Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 27, 2020 | |
Cover [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2020 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | MKS INSTRUMENTS, INC. | |
Entity Central Index Key | 0001049502 | |
Trading Symbol | MKSI | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 55,137,088 | |
Entity File Number | 0-23621 | |
Entity Tax Identification Number | 04-2277512 | |
Entity Address, Address Line One | 2 Tech Drive, Suite 201, | |
Entity Address, City or Town | Andover | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01810 | |
Entity Incorporation, State or Country Code | MA | |
City Area Code | 978 | |
Local Phone Number | 645-5500 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 493.3 | $ 414.6 |
Short-term investments | 222.4 | 109.4 |
Trade accounts receivable, net of allowance for doubtful accounts of $2.0 and $1.8 at September 30, 2020 and December 31, 2019, respectively | 363.9 | 341.1 |
Inventories | 494.2 | 462.1 |
Other current assets | 95.9 | 106.3 |
Total current assets | 1,669.7 | 1,433.5 |
Property, plant and equipment, net | 267.9 | 241.9 |
Right-of-use asset | 180.1 | 64.5 |
Goodwill | 1,062.1 | 1,058.5 |
Intangible assets, net | 523.3 | 564.6 |
Long-term investments | 6.3 | 5.8 |
Other assets | 41.5 | 47.5 |
Total assets | 3,750.9 | 3,416.3 |
Current liabilities: | ||
Short-term debt | 12 | 12.1 |
Accounts payable | 113.4 | 88.4 |
Accrued compensation | 95.4 | 100.9 |
Income taxes payable | 18.8 | 15.4 |
Lease liability | 16.8 | 20.6 |
Deferred revenue and customer advances | 30.4 | 21.5 |
Other current liabilities | 77.5 | 58.8 |
Total current liabilities | 364.3 | 317.7 |
Long-term debt, net | 816.8 | 871.7 |
Non-current deferred taxes | 67.2 | 72.4 |
Non-current accrued compensation | 44.9 | 43.9 |
Non-current lease liability | 172.2 | 44.8 |
Other liabilities | 58.7 | 42.5 |
Total liabilities | 1,524.1 | 1,393 |
Commitments and contingencies (Note 19) | ||
Stockholders’ equity: | ||
Preferred Stock, $0.01 par value per share, 2,000,000 shares authorized; none issued and outstanding | ||
Common Stock, no par value, 200,000,000 shares authorized; 55,135,910 and 54,596,183 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 0.1 | 0.1 |
Additional paid-in capital | 861.6 | 864.3 |
Retained earnings | 1,382.7 | 1,181.2 |
Accumulated other comprehensive loss | (17.6) | (22.3) |
Total stockholders’ equity | 2,226.8 | 2,023.3 |
Total liabilities and stockholders’ equity | $ 3,750.9 | $ 3,416.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2 | $ 1.8 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 55,135,910 | 54,596,183 |
Common stock, shares outstanding | 55,135,910 | 54,596,183 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net revenues: | ||||
Net revenues | $ 589.8 | $ 462.5 | $ 1,669.8 | $ 1,400.1 |
Cost of revenues: | ||||
Cost of revenues | 327.8 | 257.5 | 921.9 | 786 |
Gross profit | 262 | 205 | 747.9 | 614.1 |
Research and development | 42.5 | 41.7 | 127.7 | 122.3 |
Selling, general and administrative | 87 | 82.1 | 260.3 | 247.8 |
Acquisition and integration costs | 0.5 | 2.1 | 3.4 | 35.5 |
Restructuring and other | 3.1 | 1.5 | 6.8 | 4.7 |
Amortization of intangible assets | 12.5 | 17 | 42.6 | 50.3 |
Asset impairment | 1.2 | |||
COVID-19 related net credits | (1.2) | |||
Fees and expenses related to repricing of Term Loan | 0.6 | 6.5 | ||
Gain on sale of long-lived assets | (6.8) | (6.8) | ||
Income from operations | 116.4 | 66.8 | 307.1 | 153.8 |
Interest income | 0.1 | 1.2 | 1.1 | 4.3 |
Interest expense | 6.6 | 13.5 | 22.7 | 35.3 |
Other expense (income), net | 1.1 | (0.9) | 3 | 0.2 |
Income before income taxes | 108.8 | 55.4 | 282.5 | 122.6 |
Provision for income taxes | 17.1 | 8 | 48 | 25 |
Net income | 91.7 | 47.4 | 234.5 | 97.6 |
Other comprehensive income, net of tax: | ||||
Changes in value of financial instruments designated as cash flow hedges | (0.6) | (0.8) | (7.7) | (8.6) |
Foreign currency translation adjustments | 17.1 | (14.5) | 12.1 | (18.2) |
Net actuarial gain on pension and post-retirement benefits | 0.1 | 0.1 | 0.1 | 0.1 |
Unrealized gain (loss) on investments | 0.2 | (0.1) | ||
Total comprehensive income | $ 108.3 | $ 32.2 | $ 239.2 | $ 70.8 |
Net income per share: | ||||
Basic | $ 1.66 | $ 0.86 | $ 4.26 | $ 1.79 |
Diluted | $ 1.66 | $ 0.86 | $ 4.24 | $ 1.77 |
Weighted average common shares outstanding: | ||||
Basic | 55,173,000 | 54,945,000 | 55,060,000 | 54,636,000 |
Diluted | 55,399,000 | 55,204,000 | 55,301,000 | 55,045,000 |
Products [Member] | ||||
Net revenues: | ||||
Net revenues | $ 506.8 | $ 386.2 | $ 1,441 | $ 1,184.9 |
Cost of revenues: | ||||
Cost of revenues | 280.7 | 216.3 | 794.8 | 672.2 |
Services [Member] | ||||
Net revenues: | ||||
Net revenues | 83 | 76.3 | 228.8 | 215.2 |
Cost of revenues: | ||||
Cost of revenues | $ 47.1 | $ 41.2 | $ 127.1 | $ 113.8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] |
Beginning Balance at Dec. 31, 2018 | $ 1,873.2 | $ 0.1 | $ 793.9 | $ 1,084.8 | $ (5.6) |
Beginning Balance, Shares at Dec. 31, 2018 | 54,039,554 | ||||
Net issuance under stock-based plans | 22.5 | 22.5 | |||
Net issuance under stock-based plans, Shares | 192,218 | ||||
Stock-based compensation | 27.8 | 27.8 | |||
Cash dividend | (10.8) | (10.8) | |||
Comprehensive income (net of tax): | |||||
Net income | 12.5 | 12.5 | |||
Other comprehensive income (loss) | (4.3) | (4.3) | |||
Ending Balance at Mar. 31, 2019 | 1,920.9 | $ 0.1 | 844.2 | 1,086.5 | (9.9) |
Ending Balance, Shares at Mar. 31, 2019 | 54,231,772 | ||||
Beginning Balance at Dec. 31, 2018 | 1,873.2 | $ 0.1 | 793.9 | 1,084.8 | (5.6) |
Beginning Balance, Shares at Dec. 31, 2018 | 54,039,554 | ||||
Comprehensive income (net of tax): | |||||
Net income | 97.6 | ||||
Ending Balance at Sep. 30, 2019 | 1,973.5 | $ 0.1 | 856.4 | 1,149.5 | (32.5) |
Ending Balance, Shares at Sep. 30, 2019 | 54,496,664 | ||||
Beginning Balance at Mar. 31, 2019 | 1,920.9 | $ 0.1 | 844.2 | 1,086.5 | (9.9) |
Beginning Balance, Shares at Mar. 31, 2019 | 54,231,772 | ||||
Net issuance under stock-based plans | (2.1) | (2.1) | |||
Net issuance under stock-based plans, Shares | 247,920 | ||||
Stock-based compensation | 7.2 | 7.2 | |||
Cash dividend | (10.9) | (10.9) | |||
Stock dividends accrued | 0.2 | (0.2) | |||
Comprehensive income (net of tax): | |||||
Net income | 37.7 | 37.7 | |||
Other comprehensive income (loss) | (7.3) | (7.3) | |||
Ending Balance at Jun. 30, 2019 | 1,945.5 | $ 0.1 | 849.5 | 1,113.1 | (17.2) |
Ending Balance, Shares at Jun. 30, 2019 | 54,479,692 | ||||
Net issuance under stock-based plans | (0.6) | (0.6) | |||
Net issuance under stock-based plans, Shares | 16,972 | ||||
Stock-based compensation | 7.4 | 7.4 | |||
Cash dividend | (10.9) | (10.9) | |||
Stock dividends accrued | 0.1 | (0.1) | |||
Comprehensive income (net of tax): | |||||
Net income | 47.4 | 47.4 | |||
Other comprehensive income (loss) | (15.3) | (15.3) | |||
Ending Balance at Sep. 30, 2019 | 1,973.5 | $ 0.1 | 856.4 | 1,149.5 | (32.5) |
Ending Balance, Shares at Sep. 30, 2019 | 54,496,664 | ||||
Beginning Balance at Dec. 31, 2019 | 2,023.3 | $ 0.1 | 864.3 | 1,181.2 | (22.3) |
Beginning Balance, Shares at Dec. 31, 2019 | 54,596,183 | ||||
Net issuance under stock-based plans | (20.4) | (20.4) | |||
Net issuance under stock-based plans, Shares | 276,800 | ||||
Stock-based compensation | 8.5 | 8.5 | |||
Cash dividend | (11) | (11) | |||
Comprehensive income (net of tax): | |||||
Net income | 69.1 | 69.1 | |||
Other comprehensive income (loss) | (17) | (17) | |||
Ending Balance at Mar. 31, 2020 | 2,052.5 | $ 0.1 | 852.4 | 1,239.3 | (39.3) |
Ending Balance, Shares at Mar. 31, 2020 | 54,872,983 | ||||
Beginning Balance at Dec. 31, 2019 | 2,023.3 | $ 0.1 | 864.3 | 1,181.2 | (22.3) |
Beginning Balance, Shares at Dec. 31, 2019 | 54,596,183 | ||||
Comprehensive income (net of tax): | |||||
Net income | 234.5 | ||||
Ending Balance at Sep. 30, 2020 | 2,226.8 | $ 0.1 | 861.6 | 1,382.7 | (17.6) |
Ending Balance, Shares at Sep. 30, 2020 | 55,135,910 | ||||
Beginning Balance at Mar. 31, 2020 | 2,052.5 | $ 0.1 | 852.4 | 1,239.3 | (39.3) |
Beginning Balance, Shares at Mar. 31, 2020 | 54,872,983 | ||||
Net issuance under stock-based plans | (0.5) | (0.5) | |||
Net issuance under stock-based plans, Shares | 205,850 | ||||
Stock-based compensation | 6.8 | 6.8 | |||
Cash dividend | (11) | (11) | |||
Comprehensive income (net of tax): | |||||
Net income | 73.7 | 73.7 | |||
Other comprehensive income (loss) | 5.1 | 5.1 | |||
Ending Balance at Jun. 30, 2020 | 2,126.6 | $ 0.1 | 858.7 | 1,302 | (34.2) |
Ending Balance, Shares at Jun. 30, 2020 | 55,078,833 | ||||
Net issuance under stock-based plans | (4.5) | (4.5) | |||
Net issuance under stock-based plans, Shares | 57,077 | ||||
Stock-based compensation | 7.4 | 7.4 | |||
Cash dividend | (11) | (11) | |||
Comprehensive income (net of tax): | |||||
Net income | 91.7 | 91.7 | |||
Other comprehensive income (loss) | 16.6 | 16.6 | |||
Ending Balance at Sep. 30, 2020 | $ 2,226.8 | $ 0.1 | $ 861.6 | $ 1,382.7 | $ (17.6) |
Ending Balance, Shares at Sep. 30, 2020 | 55,135,910 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||||
Cash dividend, per common share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows provided by operating activities: | ||
Net income | $ 234.5 | $ 97.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 75.8 | 79.9 |
Amortization of inventory step-up adjustment to fair value | 7.6 | |
Amortization of debt issuance costs, original issue discount and soft call premium | 2.1 | 6.5 |
Stock-based compensation | 22.7 | 42.1 |
Provision for excess and obsolete inventory | 19.8 | 18.6 |
Provision for doubtful accounts | 0.2 | 0.2 |
Deferred income taxes | (0.7) | (9.1) |
Gain on sale of long-lived assets | (6.8) | |
Asset impairment | 1.2 | |
Other | 1.6 | 0.4 |
Changes in operating assets and liabilities, net of business acquired: | ||
Trade accounts receivable | (20.9) | 9.3 |
Inventories | (47.1) | (25.8) |
Income taxes | 21.4 | (0.7) |
Other current and non-current assets | 10.9 | (18.2) |
Accrued compensation | (5.8) | (13.4) |
Other current and non-current liabilities | 25.8 | 3 |
Accounts payable | 24.5 | (23.9) |
Net cash provided by operating activities | 366 | 167.3 |
Cash flows used in investing activities: | ||
Acquisition of business, net of cash acquired | (988.6) | |
Purchases of investments | (358.2) | (171.3) |
Maturities of investments | 181.5 | 93.3 |
Sales of investments | 64.3 | 162.4 |
Proceeds from sale of assets | 41.2 | |
Purchases of property, plant and equipment | (59.9) | (44.7) |
Net cash used in investing activities | (172.3) | (907.7) |
Cash flows (used in) provided by financing activities: | ||
Net proceeds from short and long-term borrowings | 20.1 | 642.2 |
Payments on short and long-term borrowings | (77) | (107.8) |
Net payments related to employee stock awards | (25.4) | (11.8) |
Dividend payments | (33) | (32.6) |
Net cash (used in) provided by financing activities | (115.3) | 490 |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | (7.6) |
Increase (decrease) in cash and cash equivalents | 78.7 | (258) |
Cash and cash equivalents at beginning of period | 414.6 | 644.3 |
Cash and cash equivalents at end of period | $ 493.3 | $ 386.3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1) Basis of Presentation The terms “MKS” and the “Company” refer to MKS Instruments, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The interim financial data as of September 30, 2020, and for the three and nine months ended September 30, 2020 are unaudited; however, in the opinion of MKS, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The condensed consolidated balance sheet presented as of December 31, 2019 has been derived from the consolidated audited financial statements as of that date. The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by United States generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the MKS Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 28, 2020. The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, stock-based compensation, inventory, intangible assets, goodwill and other long-lived assets, warranty liabilities, pension liabilities, lease liabilities and income taxes. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. While the Company’s operations and financial performance in certain areas of its business have been negatively impacted by the coronavirus (“COVID-19”) pandemic, the impact to the Company’s financial results for the three and nine months ended September 30, 2020 was minimal due to the strong demand for its products from its semiconductor customers. The extent to which the COVID-19 pandemic impacts the Company’s financial results and operations for the remainder of 2020 and beyond will depend on future developments that are highly uncertain and cannot be predicted at this time. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. |
Recently Issued or Adopted Acco
Recently Issued or Adopted Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued or Adopted Accounting Pronouncements | 2) Recently Issued or Adopted Accounting Prono uncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This standard provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The standard was effective upon issuance and generally can be applied through December 31, 2022. The Company is in the process of evaluating the requirements of this standard and has not yet determined the impact of adoption on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740).” This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This standard is effective for annual periods beginning after December 15, 2021, including interim periods within those fiscal years beginning after December 15, 2022. The Company evaluated the requirements of this ASU and the impact of pending adoption on the Company’s consolidated financial statements. The Company does not expect that the impact of this ASU will be material to its financial position, results of operations and cash flows. In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments to this update. This standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this ASU during the first quarter of 2020 and the adoption of this ASU did not have a material impact on its financial position, results of operations and cash flows . In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This standard introduced the expected credit losses methodology for the measurement of credit losses on financial assets that are not measured at fair value through net income and replaces today’s “incurred loss” model with an “expected credit loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. There have been several consequential subsequent amendments to this standard. This standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this ASU during the first quarter of 2020 and the adoption of this ASU did not have a material impact on its financial position, results of operations and cash flows . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 3 ) Leases The Company has various operating leases for real estate and non-real estate items. The non-real estate leases are mainly comprised of automobiles but also include office equipment and other lower-valued items. The Company does not have any finance leases. Some of the Company’s real estate lease agreements include Company options to either extend and/or terminate the lease. The cost of these options is included in our operating lease liabilities to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between 1 to 10 years. When determining the lease term, renewal options reasonably certain of being exercised are included in the lease term. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including but not limited to, the significance of leasehold improvements made to the property, whether the physical space is difficult to replace, underlying contractual obligations, and specific characteristics unique to that particular lease that would make it reasonably certain that the Company would exercise such an option. During the nine months ended September 30, 2020, the Company recorded $127.2 of additional right-of-use assets and lease liabilities related to three new leases that commenced and two existing leases that were extended during the period. The Company has existing leases that include variable lease and non-lease components that are not included in the right-of-use asset and lease liability, and are reflected as expenses in the periods incurred. Such payments primarily include common area maintenance charges and increases in rent payments that are driven by factors such as future changes in an index (e.g., the Consumer Price Index). The elements of lease expense were as follows: Three Months Ended September 30, 2020 2019 Lease cost: Operating lease cost (1) $ 7.2 $ 5.9 Short-term lease 1.4 1.1 Total lease cost $ 8.6 $ 7.0 Nine Months Ended September 30, 2020 2019 Lease cost: Operating lease cost (1) $ 22.1 $ 16.6 Short-term lease 3.7 3.4 Total lease cost $ 25.8 $ 20.0 (1) Operating lease cost includes an immaterial amount of variable expenses and sublease rental income. The weighted average discount rate and the weighted average remaining lease term were 3.0% and 15 years, respectively, as of September 30, 2020. The weighted average discount rate and weighted average remaining lease term were 3.8% and 5.0 years, respectively, as of September 30, 2019. Operating cash flows used for operating leases for the nine months ended September 30, 2020 and September 30, 2019 were $15.4 and $17.4, respectively. Future lease payments under non-cancelable leases as of September 30, 2020 are detailed as follows: 2020 (remaining) $ 0.3 2021 12.1 2022 18.1 2023 16.9 2024 16.3 Thereafter 179.3 Total lease payments 243.0 Less: imputed interest 54.0 Total operating lease liabilities $ 189.0 The remaining 2020 lease payment amount of $0.3 and the 2021 lease payment amount of $12.1 are net of tenant improvement allowances of $5.2 and $10.0, respectively. Amounts presented above do not include payments relating to immaterial leases excluded from the balance sheet as part of transition elections adopted upon implementation of ASU 2016-02,“Leases”, on January 1, 2019, as well as operating leases with terms of less than twelve months. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 4 ) Revenue from Contracts with Customers Contract assets as of September 30, 2020 and December 31, 2019 were $3.7 and $3.5, respectively, and are included in other current assets. A rollforward of the Company’s deferred revenue and customer advances is as follows: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Beginning balance, January 1 (1) $ 24.8 $ 17.5 Deferred revenue and customer advances assumed in ESI Merger — 4.6 Additions to deferred revenue and customer advances 76.3 41.9 Amount of deferred revenue and customer advances recognized in income (65.6 ) (38.8 ) Ending balance, September 30 (2) $ 35.5 $ 25.2 (1) Beginning deferred revenue and customer advances as of January 1, 2020 included $12.4 of current deferred revenue, $3.3 of long-term deferred revenue and $9.1 of current customer advances. (2) Ending deferred revenue and customer advances as of September 30, 2020 included $19.7 of current deferred revenue, $5.1 of long-term deferred revenue and $10.7 of current customer advances. Disaggregation of Revenue The following table summarizes revenue from contracts with customers: Three Months Ended September 30, 2020 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 313.9 $ 156.9 $ 36.0 $ 506.8 Services 47.4 19.0 16.6 83.0 Total net revenues $ 361.3 $ 175.9 $ 52.6 $ 589.8 Three Months Ended September 30, 2019 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 197.2 $ 156.4 $ 32.6 $ 386.2 Services 43.5 16.0 16.8 76.3 Total net revenues $ 240.7 $ 172.4 $ 49.4 $ 462.5 Nine Months Ended September 30, 2020 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 863.5 $ 457.3 $ 120.2 $ 1,441.0 Services 131.6 50.0 47.2 228.8 Total net revenues $ 995.1 $ 507.3 $ 167.4 $ 1,669.8 Nine Months Ended September 30, 2019 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 581.6 $ 502.5 $ 100.8 $ 1,184.9 Services 129.1 46.5 39.6 215.2 Total net revenues $ 710.7 $ 549.0 $ 140.4 $ 1,400.1 Product revenue, excluding revenue from certain custom products, is recorded at a point in time, while the majority of the service revenue and revenue from certain custom products is recorded over time. Refer to Note 17 for revenue by reportable segment and geography. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 5 ) Investments The following tables show the gross unrealized gains and (losses) aggregated by investment category for available-for-sale investments: As of September 30, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Short-term investments: Available-for-sale investments: Time deposits and certificates of deposit $ 0.3 $ — $ — $ 0.3 Bankers’ acceptance drafts 3.1 — — 3.1 U.S. treasury obligations 219.0 — — 219.0 $ 222.4 $ — $ — $ 222.4 As of September 30, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Long-term investments: Available-for-sale investments: Group insurance contracts $ 5.5 $ 0.8 $ — $ 6.3 As of December 31, 2019: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Short-term investments: Available-for-sale investments: Time deposits and certificates of deposit $ 13.1 $ — $ — $ 13.1 Bankers' acceptance drafts 4.0 — — 4.0 Commercial paper 61.5 — (0.3 ) 61.2 U.S. treasury obligations 5.0 — — 5.0 U.S. agency obligations 26.1 — — 26.1 $ 109.7 $ — $ (0.3 ) $ 109.4 As of December 31, 2019: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Long-term investments: Available-for-sale investments: Group insurance contracts $ 5.2 $ 0.6 $ — $ 5.8 The tables above, which show the gross unrealized gains and (losses) aggregated by investment category for available-for-sale investments as of September 30, 2020 and December 31, 2019, reflect the inclusion within short-term investments of investments with contractual maturities greater than one year from the date of purchase. Management has the ability, if necessary, to liquidate any of its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase are classified as short-term on the accompanying balance sheets. The Company reviews and evaluates its investments for any indication of possible impairment. Based on this review, the Company has determined that the unrealized losses related to these investments at September 30, 2020 were temporary. Interest income is accrued as earned. Dividend income is recognized as income on the date the security trades “ex-dividend.” The cost of marketable securities sold is determined by the specific identification method. Realized gains or losses are reflected in income and were not material for the three and nine months ended September 30, 2020 and September 30, 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6 ) Fair Value Measurements In accordance with the provisions of fair value accounting, a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model. The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or securities or derivative contracts that are valued using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company categorizes such assets and liabilities based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability . Assets and liabilities of the Company are measured at fair value on a recurring basis as of September 30, 2020 and are summarized as follows: Fair Value Measurements at Reporting Date Using Description September 30, 2020 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 0.4 $ 0.4 $ — $ — U.S. treasury obligations 69.4 — 69.4 — Available-for-sale investments: Time deposits and certificates of deposit 0.3 — 0.3 — Bankers' acceptance drafts 3.1 — 3.1 — U.S. treasury obligations 219.0 — 219.0 — Group insurance contracts 6.3 — 6.3 — Derivatives – currency forward contracts 0.1 — 0.1 — Funds in investments and other assets: Israeli pension assets 17.3 — 17.3 — Deferred compensation plan assets: Mutual funds and exchange traded funds 1.5 — 1.5 — Money market securities 0.1 — 0.1 — Total assets $ 317.5 $ 0.4 $ 317.1 $ — Liabilities: Derivatives – currency forward contracts $ 2.2 $ — $ 2.2 $ — Derivatives – interest rate hedge – non-current 14.0 — 14.0 — Total liabilities $ 16.2 $ — $ 16.2 $ — Reported as follows: Assets: Cash and cash equivalents (1) $ 69.8 $ 0.4 $ 69.4 $ — Short-term investments 222.4 — 222.4 — Other current assets 0.1 — 0.1 — Total current assets $ 292.3 $ 0.4 $ 291.9 $ — Long-term investments $ 6.3 $ — $ 6.3 $ — Other assets 18.9 — 18.9 — Total long-term assets $ 25.2 $ — $ 25.2 $ — Liabilities: Other current liabilities $ 2.2 $ — $ 2.2 $ — Other liabilities $ 14.0 $ — $ 14.0 $ — (1) The cash and cash equivalent amounts presented in the table above do not include cash of $423.5 as of September 30, 2020. Assets and liabilities of the Company are measured at fair value on a recurring basis as of December 31, 2019 and are summarized as follows: Fair Value Measurements at Reporting Date Using Description December 31, 2019 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 0.6 $ 0.6 $ — $ — Time deposits and certificates of deposit 2.2 — 2.2 — Commercial paper 42.6 — 42.6 — U.S. treasury obligations 2.7 — 2.7 — U.S. agency obligations 17.1 — 17.1 — Available-for-sale securities: Time deposits and certificates of deposit 13.1 — 13.1 — Bankers' acceptance drafts 4.0 — 4.0 — Commercial paper 61.2 — 61.2 — U.S. treasury obligations 5.0 — 5.0 — U.S. agency obligations 26.1 — 26.1 — Group insurance contracts 5.8 — 5.8 — Derivatives – currency forward contracts 1.1 — 1.1 — Derivatives –interest rate hedge - current 0.8 — 0.8 — Funds in investments and other assets: Israeli pension assets 16.7 — 16.7 — Deferred compensation plan assets: Mutual funds and exchange traded funds 2.0 — 2.0 — Money market funds 0.5 — 0.5 — Total assets $ 201.5 $ 0.6 $ 200.9 $ — Liabilities: Derivatives – currency forward contracts $ 0.3 $ — $ 0.3 $ — Derivatives – interest rate hedge - non-current 6.5 — 6.5 — Total liabilities $ 6.8 $ — $ 6.8 $ — Reported as follows: Assets: Cash and cash equivalents (1) $ 65.2 $ 0.6 $ 64.6 $ — Short-term investments 109.4 — 109.4 — Other current assets 1.9 — 1.9 — Total current assets $ 176.5 $ 0.6 $ 175.9 $ — Long-term investments $ 5.8 $ — $ 5.8 $ — Other assets 19.2 — 19.2 — Total long-term assets $ 25.0 $ — $ 25.0 $ — Liabilities: Other current liabilities $ 0.3 $ — $ 0.3 $ — Other liabilities $ 6.5 $ — $ 6.5 $ — (1) The cash and cash equivalent amounts presented in the table above do not include cash of $349.4 as of December 31, 2019. Money Market Funds Money market funds are cash and cash equivalents and are classified within Level 1 of the fair value hierarchy. Available-For-Sale Investments As of September 30, 2020 and December 31, 2019, available-for-sale investments consisted of time deposits and drafts denominated in the Euro currency, certificates of deposit, bankers’ acceptance drafts, commercial paper, U.S. treasury obligations, U.S. agency obligations and group insurance contracts. The Company measures its debt and equity investments at fair value. The Company’s available-for-sale investments are classified within Level 2 of the fair value hierarchy. Israeli Pension Assets Israeli pension assets represent investments in mutual funds, government securities and other time deposits. These investments are set aside for the retirement benefit of the employees at the Company’s Israeli subsidiaries. These funds are classified within Level 2 of the fair value hierarchy. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 7 ) Derivatives The Company enters into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments and those utilized as economic hedges. The Company operates internationally and, in the normal course of business, is exposed to fluctuations in interest rates and foreign exchange rates. These fluctuations can increase the costs of financing, investing and operating the business. The Company has used derivative instruments, such as forward foreign currency exchange contracts, to manage certain foreign currency exposure, and interest rate swaps to manage interest rate exposure. By nature, all financial instruments involve market and credit risks. The Company enters into derivative instruments with major investment grade financial institutions, for which no collateral is required. The Company has policies to monitor the credit risk of these counterparties. While there can be no assurance, the Company does not anticipate any material non-performance by any of these counterparties. Interest Rate Swap Agreements On September 30, 2016, the Company entered into an interest rate swap agreement, which had a maturity date of September 30, 2020, to fix the rate on approximately 50% of its then-outstanding balance under the 2016 Term Loan Facility, as described further in Note 11. This hedge fixed the interest rate paid on the hedged debt at 1.198% per annum plus the applicable credit spread, which was 1.75% as of September 30, 2020. This interest rate swap matured on September 30, 2020. At December 31, 2019, the notional amount of this transaction was $250.0 and it had a fair value asset of $0.8. On April 3, 2019, the Company entered into an interest rate swap agreement, which has a maturity date of March 31, 2023, to fix the rate on $300.0 of the then-outstanding balance of the 2019 Incremental Term Loan Facility, as described further in Note 11. The rate was fixed at 2.309% per annum plus the applicable credit spread, which was 1.75% at September 30, 2020. At September 30, 2020, the notional amount of this transaction was $300.0 and had a fair value liability of $14.0. At December 31, 2019, the notional amount of this transaction was $300.0 and had a fair value liability of $6.5. The interest rate swaps are recorded at fair value on the balance sheet and changes in the fair value are recognized in other comprehensive income (“OCI”). To the extent that these arrangements are no longer an effective hedge, any ineffectiveness measured in the hedging relationships is recorded in earnings in the period it occurs. Foreign Exchange Contracts The Company hedges a portion of its forecasted foreign currency-denominated intercompany sales of inventory, over a maximum period of eighteen months, using forward foreign exchange contracts accounted for as cash-flow hedges. To the extent these derivatives are effective in off-setting the variability of the hedged cash flows, and otherwise meet the hedge accounting criteria, changes in the derivatives’ fair value are not included in current earnings but are included in OCI in stockholders’ equity. These changes in fair value will subsequently be reclassified into earnings, as applicable, when the forecasted transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period it occurs. The cash flows resulting from forward exchange contracts are classified in the consolidated statements of cash flows as part of cash flows from operating activities. The Company does not enter into derivative instruments for trading or speculative purposes. As of September 30, 2020 and December 31, 2019, the Company had outstanding forward foreign exchange contracts with gross notional values of $158.9 and $154.7, respectively. The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of September 30, 2020 and December 31, 2019: September 30, 2020 Currency Hedged (Buy/Sell) Gross Notional Value Fair Value (1) U.S. Dollar/Japanese Yen $ 55.2 $ (0.4 ) U.S. Dollar/South Korean Won 40.9 (0.4 ) U.S. Dollar/Euro 13.6 (0.3 ) U.S. Dollar/U.K. Pound Sterling 6.2 (0.1 ) U.S. Dollar/Taiwan Dollar 43.0 (0.9 ) Total $ 158.9 $ (2.1 ) December 31, 2019 Currency Hedged (Buy/Sell) Gross Notional Value Fair Value (1) U.S. Dollar/Japanese Yen $ 45.9 $ — U.S. Dollar/South Korean Won 51.7 0.2 U.S. Dollar/Euro 15.7 0.2 U.S. Dollar/U.K. Pound Sterling 8.3 (0.2 ) U.S. Dollar/Taiwan Dollar 33.1 (0.4 ) Total $ 154.7 $ (0.2 ) (1) Represents (payable) receivable amount included in the consolidated balance sheet. The following table provides a summary of the fair value amounts of the Company’s derivative instruments: September 30, 2020 December 31, 2019 Derivative assets: Foreign exchange contracts (1) $ 0.1 $ 1.1 Interest rate hedge (2) — 0.8 Derivative liabilities: Foreign exchange contracts (1) (2.2 ) (1.3 ) Interest rate hedge (2) (14.0 ) (6.5 ) Total net derivative liability designated as hedging instruments $ (16.1 ) $ (5.9 ) (1) The derivative asset of $0.1 and derivative liability of $2.2 related to the forward foreign exchange contracts are classified in other current assets and other current liabilities in the condensed consolidated balance sheet as of September 30, 2020. The derivative asset of $1.1 and derivative liability of $1.3 related to the forward foreign exchange contracts are classified in other current assets and other current liabilities in the condensed consolidated balance sheet as of December 31, 2019. These forward foreign exchange contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet. (2) The interest rate hedge asset of $0.8 is classified in other current assets in the condensed consolidated balance sheet as of December 31, 2019. The interest rate hedge liabilities of $14.0 and $6.5 are classified in other non-current liabilities as of September 30, 2020 and December 31, 2019, respectively. The net amount of existing gains as of September 30, 2020 that is expected to be reclassified from OCI into earnings within the next 12 months is immaterial. The following table provides a summary of the (losses) gains on derivatives designated as cash flow hedging instruments: Three Months Ended September 30, Nine Months Ended September 30, Derivatives Designated as Cash Flow Hedging Instruments 2020 2019 2020 2019 Forward exchange contracts: Net loss recognized in accumulated OCI (1) $ (0.6 ) $ (1.0 ) $ (7.7 ) $ (11.2 ) Net gain reclassified from accumulated OCI into income (2) $ 0.4 $ 2.0 $ 2.2 $ 4.1 (1) Net change in the fair value of the effective portion classified in accumulated OCI. (2) Effective portion classified in cost of products for the three and nine months ended September 30, 2020 and 2019. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial. The following table provides a summary of the (loss) gain on derivatives not designated as hedging instruments: Three Months Ended September 30, Nine Months Ended September 30, Derivatives Not Designated as Hedging Instruments 2020 2019 2020 2019 Forward exchange contracts: Net (loss) gain recognized in income (1) $ (0.6 ) $ 0.1 $ (0.6 ) $ (0.2 ) (1) The Company enters into foreign exchange contracts to hedge against changes in the balance sheet for certain subsidiaries to mitigate the risk associated with certain foreign currency transactions in the ordinary course of business. These derivatives are not designated as hedging instruments and gains or losses from these derivatives are recorded immediately in other (expense) income. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 8 ) Inventories Inventories consist of the following: September 30, 2020 December 31, 2019 Raw materials $ 316.6 $ 288.8 Work-in-process 76.5 79.3 Finished goods 101.1 94.0 $ 494.2 $ 462.1 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 9 ) Acquisitions Electro Scientific Industries, Inc. On February 1, 2019, the Company completed its acquisition of Electro Scientific Industries, Inc. (“ESI”) pursuant to an Agreement and Plan of Merger, dated as of October 29, 2018 (the “Merger Agreement”), by and among the Company, EAS Equipment, Inc., formerly a Delaware corporation and a wholly-owned subsidiary of the Company, and ESI (the “ESI Merger”). At the effective time of the ESI Merger and pursuant to the terms and conditions of the Merger Agreement, each share of ESI’s common stock that was issued and outstanding immediately prior to the effective time of the ESI Merger was converted into the right to receive $30.00 in cash, without interest and subject to deduction of any required withholding tax. The Company funded the payment for ESI’s outstanding shares with a combination of the Company’s available cash on hand and the proceeds from the Company’s 2019 Incremental Term Loan Facility, as defined and as described further in Note 11. ESI provides laser-based manufacturing systems solutions for the micro-machining industry that enable customers to optimize production. ESI’s market is composed primarily of flexible and rigid PCB processing/fabrication, semiconductor wafer processing and passive component manufacturing and testing. ESI solutions incorporate specialized laser technology and proprietary control software to efficiently process the materials and components that are an integral part of electronic devices and systems. The purchase price of ESI consisted of the following: Cash paid for outstanding shares (1) $ 1,032.7 Settlement of share-based compensation awards (2) 30.6 Total purchase price 1,063.3 Less: Cash and cash equivalents acquired (44.1 ) Total purchase price, net of cash and cash equivalents acquired $ 1,019.2 (1) Represents cash paid of $30.00 per share for approximately 34,422,361 shares of ESI common stock, without interest and subject to a deduction for any required withholding tax. (2) Represents the vested but not issued portion of ESI share-based compensation awards as of the acquisition date of February 1, 2019. Under the acquisition method of accounting, the total estimated acquisition consideration is allocated to the acquired tangible and intangible assets and assumed liabilities of ESI based on their fair values as of the acquisition date. Any excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed is allocated to goodwill. None of the goodwill and intangible assets are deductible for tax purposes. The following table summarizes the final allocation of the purchase price to the fair values assigned to assets acquired and liabilities assumed at the date of the ESI Merger: Current assets (excluding inventory) $ 208.0 Inventory 81.7 Intangible assets 316.2 Goodwill 474.0 Property, plant and equipment 65.5 Long-term assets 9.6 Total assets acquired 1,155.0 Current liabilities 51.5 Non-current deferred taxes 33.0 Other long-term liabilities 7.2 Total liabilities assumed 91.7 Fair value of assets acquired and liabilities assumed 1,063.3 Less: Cash and cash equivalents acquired (44.1 ) Total purchase price, net of cash and cash equivalents acquired $ 1,019.2 The fair value write-up of acquired finished goods inventory was $7.6, the amount of which was expensed over the period during which the acquired inventory was sold. For the nine months ended September 30, 2019, the Company recorded $7.6 of incremental cost of sales charge associated with the fair value write-up of inventory acquired in the ESI Merger. The fair value write-up of acquired property, plant and equipment of $39.3 will be amortized over the estimated useful life of the applicable assets, excluding the fair value write-up in the value of land. Property, plant and equipment is valued at its value-in-use, unless there was a known plan to dispose of the asset. The acquired intangible assets are being amortized on a straight-line basis, which approximates the economic use of the asset. The following table reflects the allocation of the acquired intangible assets and related estimate of useful lives: Completed technology - Laser $ 255.7 12 years Completed technology - Non-Laser 18.3 10 years Trademarks and trade names 14.4 7 years Customer relationships 25.4 10 years Backlog 2.4 1 year $ 316.2 The fair value of the acquired intangibles was determined using the income approach. In performing these valuations, the key underlying assumptions of the discounted cash flows were projected revenues, gross margin expectations and operating cost estimates. The valuations were based on the information that was available as of the acquisition date and the expectations and assumptions that have been deemed reasonable by the Company’s management. There are inherent uncertainties and management judgment required in these determinations. This acquisition resulted in a purchase price that exceeded the estimated fair value of tangible and intangible assets, the excess amount of which was allocated to goodwill . The Company believes the amount of goodwill relative to identifiable intangible assets relates to several factors, including broadening it s position in key industrial markets to complementary solutions, and leveraging component and systems expertise to provide robust solutions to meet customer evolving technology needs. The results of this acquisition were included in the Company’s consolidated statement of operations beginning on February 1, 2019. ESI constitutes the Company’s Equipment & Solutions reportable segment (see Note 17). Certain executives from ESI had severance provisions in their respective ESI employment agreements. The agreements included terms that were accounted for as dual-trigger arrangements. Through the Company’s acquisition accounting, the expense relating to these benefits was recognized in the combined entity’s financial statements. The Company recorded costs of $2.7 and $14.0 in acquisition and integration costs as compensation expense and stock-based compensation expense, respectively, for the nine months ended September 30, 2019 associated with these severance provisions. The restricted stock units and stock appreciation rights that were eligible for accelerated vesting if the executive exercised his or her rights but were not issued as of each reporting period-end, were excluded from the computation of basic earnings per share and included in the computation of diluted earnings per share for such reporting period. Pro Forma Results The following unaudited pro forma financial information presents the combined results of operations of the Company as if the ESI Merger had occurred on January 1, 2018. The unaudited pro forma financial information is not necessarily indicative of what the Company’s condensed consolidated results of operations actually would have been had the acquisition occurred at the beginning of the year. In addition, the unaudited pro forma financial information does not attempt to project the future results of operations of the combined Company. Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Total net revenues $ 462.5 $ 1,414.7 Net income $ 47.7 $ 127.7 Net income per share: Basic $ 0.87 $ 2.34 Diluted $ 0.86 $ 2.32 The unaudited pro forma financial information above gives effect primarily to the following: (1) Incremental amortization and depreciation expense related to the estimated fair value of identifiable intangible assets and property, plant and equipment, respectively, from the purchase price allocation. (2) Revenue and cost of goods sold adjustments as a result of the reduction in deferred revenue and the cost related to their estimated fair value. (3) Incremental interest expense related to the Company’s 2019 Incremental Term Loan Facility. (4) The exclusion of acquisition costs and inventory and demonstration inventory step-up amortization from the three and nine months ended September 30, 2019. (5) The exclusion of debt issuance costs due to the modification of the Term Loan Facility from the three and nine months ended September 30, 2019. (6) The estimated tax impact of the above adjustments. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 10 ) Goodwill and Intangible Assets Goodwill The Company’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. The Company assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. The changes in the carrying amount of goodwill and accumulated impairment loss during the nine months ended September 30, 2020 and year ended December 31, 2019 were as follows: Nine Months Ended September 30, 2020 Twelve Months Ended December 31, 2019 Gross Carrying Amount Accumulated Impairment Loss Net Gross Carrying Amount Accumulated Impairment Loss Net Beginning balance at January 1 $ 1,202.8 $ (144.3 ) $ 1,058.5 $ 731.3 $ (144.3 ) $ 587.0 Acquired goodwill — — — 474.0 — 474.0 Foreign currency translation 3.6 — 3.6 (2.5 ) — (2.5 ) Ending balance at September 30, 2020 and December 31, 2019 $ 1,206.4 $ (144.3 ) $ 1,062.1 $ 1,202.8 $ (144.3 ) $ 1,058.5 Intangible Assets Components of the Company’s intangible assets are comprised of the following: As of September 30, 2020: Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology $ 446.4 $ (0.1 ) $ (203.2 ) $ (0.1 ) $ 243.0 Customer relationships 308.2 (1.4 ) (99.6 ) 0.2 207.4 Patents, trademarks, trade names and other 120.9 — (47.8 ) (0.2 ) 72.9 $ 875.5 $ (1.5 ) $ (350.6 ) $ (0.1 ) $ 523.3 As of December 31, 2019: Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology (1) $ 446.4 $ (0.1 ) $ (178.3 ) $ (0.2 ) $ 267.8 Customer relationships (1) 308.2 (1.4 ) (84.2 ) (1.4 ) 221.2 Patents, trademarks, trade names and other (2) 120.9 — (45.5 ) 0.2 75.6 $ 875.5 $ (1.5 ) $ (308.0 ) $ (1.4 ) $ 564.6 (1) During 2019, the Company recorded $316.2 of separately identified intangible assets related to the ESI Merger, of which $274.0 was completed technology, $25.4 was customer relationships and $16.8 was trademarks, trade names and backlog. (2) During 2019, the Company reclassified $6.4 of gross favorable lease assets and $3.4 of related accumulated amortization from patents, trademarks, trade names and other to the right-of-use asset line in the balance sheet. Aggregate amortization expense related to acquired intangibles for the nine months ended September 30, 2020 and September 30, 2019 were $42.6 and $50.3, respectively. Aggregate net amortization expense related to acquired intangible assets for future years is as follows: Year Amount 2020 (remaining) $ 13.2 2021 47.9 2022 45.4 2023 45.0 2024 44.1 2025 43.2 Thereafter 228.6 The Company excluded $55.9 of indefinite-lived trademarks and trade names that were not subject to amortization from the table above. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 1 1 ) Debt Senior Secured Term Loan Credit Facility In connection with the completion of the acquisition of Newport Corporation (“Newport”) in 2016 (the “Newport Merger”), the Company entered into a term loan credit agreement (the “Term Loan Credit Agreement”) with Barclays Bank PLC, as administrative agent and collateral agent, and the lenders from time to time party thereto (the “Lenders”), that provided a senior secured term loan credit facility in the original principal amount of $780.0 (the “2016 Term Loan Facility”), subject to increase at the Company’s option and subject to receipt of lender commitments in accordance with the Term Loan Credit Agreement (the 2016 Term Loan Facility, together with the 2019 Incremental Term Loan Facility and 2019 Term Loan Refinancing Facility (each as defined below), the “Term Loan Facility”). Prior to the effectiveness of Amendment No. 6 (as defined below), the 2016 Term Loan Facility had a maturity date of April 29, 2023. As of September 30, 2020, borrowings under the Term Loan Facility bear interest per annum at one of the following rates selected by the Company: (a) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the “prime rate” quoted in The Wall Street Journal The Company subsequently entered into four separate repricing amendments to the 2016 Term Loan Facility, which decreased the applicable margin for LIBOR borrowings from 4.0% to 1.75%, with a LIBOR rate floor of 0.75%. As a consequence of the pricing of the 2019 Incremental Term Loan Facility (defined below), the applicable margin for the 2016 Term Loan Facility was increased to 2.00% (from 1.75%) with respect to LIBOR borrowings and 1.00% (from 0.75%) with respect to base rate borrowings. On September 30, 2016, the Company entered into an interest rate swap agreement, which had a maturity date of September 30, 2020, to fix the rate on $335.0 of the then-outstanding balance of the 2016 Term Loan Facility. The rate was fixed at 1.198% per annum plus the applicable credit spread, which was 1.75% at September 30, 2020. This interest rate swap matured on September 30, 2020. The Company incurred $28.7 of deferred finance fees, original issue discount and repricing fees related to the term loans under the 2016 Term Loan Facility, which are included in long-term debt in the accompanying consolidated balance sheets and are being amortized to interest expense over the estimated life of the term loans using the effective interest method. On February 1, 2019, in connection with the completion of the ESI Merger, the Company entered into an amendment (“Amendment No. 5”) to the Term Loan Credit Agreement. Amendment No. 5 provided an additional tranche B-5 term loan commitment in the original principal amount of $650.0 (the “2019 Incremental Term Loan Facility”), all of which was drawn down in connection with the closing of the ESI Merger. Pursuant to Amendment No. 5, the Company also effectuated certain amendments to the Term Loan Credit Agreement which make certain of the negative covenants and other provisions less restrictive. Prior to the effectiveness of Amendment No. 6 (as defined below), the 2019 Incremental Term Loan Facility had a maturity date of February 1, 2026 and bore interest at a rate per annum equal to, at the Company’s option, a base rate or LIBOR rate (as described above) plus, in each case, an applicable margin equal to 1.25% with respect to base rate borrowings and 2.25% with respect to LIBOR borrowings. The 2019 Incremental Term Loan Facility was issued with original issue discount of 1.00% of the principal amount thereof. On April 3, 2019, the Company entered into an interest rate swap agreement, which has a maturity date of March 31, 2023, to fix the rate on $300.0 of the then-outstanding balance of the 2019 Incremental Term Loan Facility. The rate was fixed at 2.309% per annum plus the applicable credit spread, which was 1.75% at September 30, 2020. At September 30, 2020, the notional amount of this transaction was $300.0 and it had a fair value liability of $14.0. The Company incurred $11.4 of deferred finance fees and original issue discount fees related to the term loans under the 2019 Incremental Term Loan Facility, which are included in long-term debt in the accompanying consolidated balance sheets and are being amortized to interest expense over the estimated life of the term loans using the effective interest method. On September 27, 2019, the Company entered into an amendment (“Amendment No. 6”) to the Term Loan Credit Agreement. Amendment No. 6 refinanced all existing loans outstanding under the 2016 Term Loan Facility and 2019 Incremental Term Loan Facility (“Existing Term Loans”) for a tranche B-6 term loan commitment in the original principal amount of $896.8 (“2019 Term Loan Refinancing Facility”). Each lender of the Existing Term Loans that elected to participate in the 2019 Term Loan Refinancing Facility was deemed to have exchanged the aggregate outstanding principal amount of its Existing Term Loans for an equal aggregate principal amount of tranche B-6 term loans under the 2019 Term Loan Refinancing Facility. On the effective date of Amendment No. 6 and immediately prior to the exchanges described above, the Company made a voluntary prepayment of $50.0, which was applied to the Existing Term Loans on a pro rata basis. The Company incurred $2.2 of original issue discount fees related to the term loans under the 2019 Term Loan Refinancing Facility, which are included in long-term debt in the accompanying consolidated balance sheets and are being amortized to interest expense over the estimated life of the term loans using the effective interest method. As of September 30, 2020, the remaining balance of deferred finance fees and original issue discount of the Term Loan Facility was $9.8. A portion of the deferred finance fees and original issue discount have been accelerated in connection with the various debt prepayments and extinguishments between 2016 and 2020. The 2019 Term Loan Refinancing Facility matures on February 2, 2026, and bears interest at a rate per annum equal to, at the Company’s option, a base rate or LIBOR rate (as described above) plus, in each case, an applicable margin equal to 0.75% with respect to base rate borrowings and 1.75% with respect to LIBOR borrowings. The 2019 Term Loan Refinancing Facility was issued with original issue discount of 0.25% of the principal amount thereof. The Company is required to make scheduled quarterly payments each equal to 0.25% of the original principal amount of the 2019 Term Loan Refinancing Facility with the balance due on February 2, 2026. As of September 30, 2020, after total principal prepayments of $575.0 (which includes a $50.0 prepayment made during the nine months ended September 30, 2020) and regularly scheduled principal payments of $19.4, the total outstanding principal balance of the Term Loan Facility was $835.6 and the interest rate was 1.9%. Under the Term Loan Credit Agreement, the Company is required to prepay outstanding term loans, subject to certain exceptions, with portions of its annual excess cash flow as well as with the net cash proceeds of certain of its asset sales, certain casualty and condemnation events and the incurrence or issuance of certain debt. All obligations under the Term Loan Facility are guaranteed by certain of the Company’s domestic subsidiaries and are collateralized by substantially all of the Company’s assets and the assets of such subsidiaries, subject to certain exceptions and exclusions. The Term Loan Credit Agreement contains customary representations and warranties, affirmative and negative covenants and provisions relating to events of default. If an event of default occurs, the lenders under the Term Loan Facility will be entitled to take various actions, including the acceleration of amounts due under the Term Loan Facility and all actions generally permitted to be taken by a secured creditor. At September 30, 2020, the Company was in compliance with all covenants under the Term Loan Credit Agreement. Senior Secured Asset-Based Revolving Credit Facility On February 1, 2019, in connection with the completion of the ESI Merger, the Company entered into an asset-based revolving credit agreement with Barclays Bank PLC, as administrative agent and collateral agent, the other borrowers from time to time party thereto, and the lenders and letters of credit issuers from time to time party thereto (the “ABL Credit Agreement”), that provides a senior secured asset-based revolving credit facility of up to $100.0, subject to a borrowing base limitation (the “ABL Facility”). On April 26, 2019, the Company entered into a First Amendment to the ABL Credit Agreement which amended the borrowing base calculation for eligible inventory prior to an initial field examination and appraisal requirements. The borrowing base for the ABL Facility at any time equals the sum of: (a) 85% of certain eligible accounts; plus (b) prior to certain notice and field examination and appraisal requirements, the lesser of (i) 20% of net book value of eligible inventory in the United States and (ii) 30% of the borrowing base, and after the satisfaction of such requirements, the lesser of (i) the lesser of (A) 65% of the lower of cost or market value of certain eligible inventory and (B) 85% of the net orderly liquidation value of certain eligible inventory and (ii) 30% of the borrowing base; minus (c) reserves established by the administrative agent, in each case, subject to additional limitations and examination requirements for eligible accounts and eligible inventory acquired in an acquisition after February 1, 2019. The ABL Facility includes borrowing capacity in the form of letters of credit up to $25.0. Borrowings under the ABL Facility bear interest at a rate per annum equal to, at the Company’s option, any of the following, plus, in each case, an applicable margin: (a) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the “prime rate” quoted in The Wall Street Journal In addition to paying interest on any outstanding principal under the ABL Facility, the Company is required to pay a commitment fee in respect of the unutilized commitments thereunder equal to 0.25% per annum. The Company must also pay customary letter of credit fees and agency fees. If at any time the aggregate amount of outstanding loans, protective advances, unreimbursed letter of credit drawings and undrawn letters of credit under the ABL Facility exceeds the lesser of (a) the commitment amount and (b) the borrowing base, the Company is required to repay outstanding loans and/or cash collateralize letters of credit, with no reduction of the commitment amount. During any period that the amount available under the ABL Facility is less than the greater of (i) $8.5 and (ii) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base for three consecutive business days, until the time when excess availability has been at least the greater of (i) $8.5 and (ii) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base, in each case, for 30 consecutive calendar days (a “Cash Dominion Period”), or during the continuance of an event of default, the Company is required to repay outstanding loans and/or cash collateralize letters of credit with the cash that it is required to deposit daily in a collection account maintained with the administrative agent under the ABL Facility. During a Cash Dominion Period, the Company may make borrowings under the ABL Facility subject to the satisfaction of customary funding conditions. There is no scheduled amortization under the ABL Facility. The principal amount outstanding under the ABL Facility is due and payable in full on the fifth anniversary of the closing date. All obligations under the ABL Facility are guaranteed by certain of the Company’s domestic subsidiaries and are collateralized by substantially all of the Company’s assets and the assets of such subsidiaries, subject to certain exceptions and exclusions. From the time when the Company has excess availability less than the greater of (a) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base and (b) $8.5 until the time when the Company has excess availability equal to or greater than the greater of (a) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base and (b) $8.5 for 30 consecutive days, or during the continuance of an event of default, the ABL Credit Agreement requires the Company to maintain a Fixed Charge Coverage Ratio (as defined in the ABL Credit Agreement) tested on the last day of each fiscal quarter of at least 1.0 to 1.0. The ABL Credit Agreement also contains customary representations and warranties, affirmative covenants and provisions relating to events of default. If an event of default occurs, the lenders under the ABL Facility will be entitled to take various actions, including the acceleration of amounts due under the ABL Facility and all actions permitted to be taken by a secured creditor. The Company has not borrowed against th e ABL Facility to date. Lines of Credit and Short-Term Borrowing Arrangements The Company’s Japanese subsidiaries have lines of credit and a financing facility with various financial institutions, many of which generally expire and are renewed at three-month September 30, 2020 December 31, 2019 Short-term debt: Japanese lines of credit $ 3.0 $ 2.5 Japanese receivables financing facility — 0.6 Term Loan Facility 9.0 9.0 $ 12.0 $ 12.1 September 30, 2020 December 31, 2019 Long-term debt: Term Loan Facility, net (1) $ 816.8 $ 871.6 Other debt — 0.1 $ 816.8 $ 871.7 (1) Net of deferred financing fees, original issue discount and repricing fees of Contractual maturities of the Company’s debt obligations as of September 30, 2020 are as follows: Year Amount 2020 (remaining) $ 5.3 2021 9.0 2022 9.0 2023 9.0 2024 9.0 2025 9.0 Thereafter 788.3 |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Product Warranties | 12) Product Warranties The Company provides for the estimated costs to fulfill customer warranty obligations upon the recognition of the related revenue. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by shipment volume, product failure rates, utilization levels, material usage and supplier warranties on parts delivered to the Company. Should actual product failure rates, utilization levels, material usage, or supplier warranties on parts differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Product warranty activities were as follows: Nine Months Ended September 30, 2020 2019 Beginning of period $ 14.9 $ 10.4 Assumed product warranty liability from ESI Merger — 7.2 Provision for product warranties 20.2 18.7 Charges to warranty liability (19.0 ) (21.2 ) End of period (1) $ 16.1 $ 15.1 (1) As of September 30, 2020, short-term product warranty of $13.0 and long-term product warranty of $3.1 were included within other current liabilities and other non-current liabilities, respectively, within the accompanying condensed consolidated balance sheet. As of September 30, 2019, short-term product warranty of $12.0 and long-term product warranty of $3.1 were included within other current liabilities and other non-current liabilities, respectively, within the accompanying condensed consolidated balance sheet. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 3 ) Income Taxes The Company’s effective tax rates for the three and nine months ended September 30, 2020 were 15.7 % and 17.0%, respectively. The effective tax rates for the three and nine months ended September 30, 2020, and related income tax expense, were lower than the U.S. statutory tax rate mainly due to the geographic mix of income earned by the Company’s international subsidiaries being taxed at rates lower than the U.S. statutory tax rate, windfall benefits of stock compensation, and the deduction for foreign derived intangible income offset by the tax effects of the global intangible low taxed income inclusion and the write-off of deferred tax assets related to certain foreign net operating losses. The Company’s effective tax rates for the three and nine months ended September 30, 2019 were 14.4% and 20.4%, respectively. The effective tax rates for the three and nine months ended September 30, 2019, and related income tax expense, were lower than the U.S. statutory tax rate due to the deduction for foreign derived intangible income, the geographic mix of income earned by the Company’s international subsidiaries being taxed at rates lower than the U.S. statutory tax rate and the impact of various tax credits, offset by the tax effects of the global intangible low-taxed income inclusion along with the correction of an out-of-period error with respect to deferred tax assets related to limitations on the deduction of executive compensation in the amount of $5.0. This correction, which was recorded during the three months ended June 30, 2019, but should have been recorded during the three months ended September 30, 2018, increased the Company’s effective tax rate for the three and six months ended June 30, 2019 and the nine months ended September 30, 2019 by 9.8%, 7.5% and 3.8%, respectively. The error and subsequent adjustment were not material to prior or current interim and annual financial statements. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act which contains numerous income tax provisions among other tax and non-tax provisions. Some of these income tax provisions have retroactive effect on years before the date of enactment. The Company has evaluated the CARES Act legislation in relation to income taxes and does not expect the CARES Act income tax provisions to have a material impact on its financial statements. The total amount of gross unrecognized tax benefits, which excludes interest and penalties, was $47.5 and $43.5 as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020 if these benefits were recognized in a future period, the timing of which is not estimable, the net unrecognized tax benefit of $39.2, excluding interest and penalties, would impact the Company’s effective tax rate. The Company accrues interest expense, and if applicable, penalties, for any uncertain tax positions. Interest and penalties are classified as a component of income tax expense. As of September 30, 2020 and December 31, 2019, the Company had accrued interest on unrecognized tax benefits of $0.6 and $0.5, respectively. Over the next 12 months, it is reasonably possible that the Company may recognize $0.9 of previously net unrecognized tax benefits, excluding interest and penalties, related to various U.S. state and foreign tax positions primarily as a result of the expiration of certain statutes of limitations. The Company and its subsidiaries are subject to examination by U.S. federal, state and foreign tax authorities. The U.S. federal statute of limitations remains open for tax years 2016 through the present. The statute of limitations for the Company’s tax filings in other jurisdictions varies between fiscal years 2014 through present. The Company has certain foreign, federal and state tax loss and credit carry-forwards that are open to examination for tax years 2000 through the present. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 1 4 ) Net Income Per Share The following table sets forth the computation of basic and diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net income $ 91.7 $ 47.4 $ 234.5 $ 97.6 Denominator: Shares used in net income per common share – basic 55,173,000 54,945,000 55,060,000 54,636,000 Effect of dilutive securities: Restricted stock units and stock appreciation rights 226,000 259,000 241,000 409,000 Shares used in net income per common share – diluted 55,399,000 55,204,000 55,301,000 55,045,000 Net income per common share: Basic $ 1.66 $ 0.86 $ 4.26 $ 1.79 Diluted $ 1.66 $ 0.86 $ 4.24 $ 1.77 Basic earnings per share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding (using the treasury stock method) if securities containing potentially dilutive common shares (restricted stock units (“RSUs”) and stock appreciation rights (“SARs”)) had been converted to such common shares, and if such assumed conversion is dilutive. For the three and nine months ended September 30, 2020 there were approximately 2,600 and 900 weighted-average restricted stock units, respectively, that would have had an anti-dilutive effect on EPS, and were excluded from the computation of diluted weighted-average shares. For the three and nine months ended September 30, 2019, there were approximately 204,000 and 165,000 weighted-average restricted stock units, respectively, that would have had an anti-dilutive effect on EPS, and were excluded from the computation of diluted weighted-average shares. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 1 5 ) Stock-Based Compensation The Company grants RSUs to employees and directors under the 2014 Stock Incentive Plan (the “2014 Plan”). The 2014 Plan is administered by the Compensation Committee of the Company’s Board of Directors. The 2014 Plan is intended to attract and retain employees and directors, and to provide an incentive for these individuals to assist the Company to achieve long-range performance goals and to enable these individuals to participate in the long-term growth of the Company. In connection with the completion of the ESI Merger, the Company assumed: • all RSUs that vest based solely on the satisfaction of service conditions, granted under any ESI equity plan, arrangement or agreement (“ESI Plan”) that were outstanding immediately prior to the effective time of the ESI Merger, and as to which shares of ESI common stock were not fully distributed in connection with the closing of the ESI Merger, • all RSUs that were granted subject to vesting based on both the achievement of performance goals and the satisfaction of service conditions granted under any ESI Plan that were outstanding immediately prior to the effective time of the ESI Merger, and • all SARs granted under any ESI Plan, whether vested or unvested, that were outstanding immediately prior to the effective time of the ESI Merger and held by an individual who was a service provider of ESI as of the date on which the effective time of the ESI Merger occurred. As of the effective time of the ESI Merger, based on a formula in the ESI Merger Agreement, (a) such RSUs were converted automatically into RSUs with respect to 736,000 shares of the Company’s common stock (the “Assumed RSUs”), and (b) such SARs were converted automatically into SARs with respect to shares of the Company’s common stock (the “ Assumed SARs”). Included in the total number of Assumed RSUs are 326,000 shares of the Company’s common stock for employees and outside directors that are part of the ESI Deferred Compensation plan (the “ESI DC Plan”). These shares will not become issued shares until their respective release dates. The shares of the Company’s common stock that are subject to the Assumed SARs and the Assumed RSUs are issuable pursuant to the Company’s 2014 Plan. The 749,000 shares of the Company’s common stock that are issuable pursuant to the Assumed RSUs and the Assumed SARs under the Company’s 2014 Plan were registered under the Securities Act of 1933 on the Registration Statement on Form S-8. These shares are in addition to the 18,000,000 shares of the Company’s common stock reserved for issuance under the 2014 Plan and previously registered under the Securities Act of 1933 on the Registration Statement on Form S-8. The total stock-based compensation expense included in the Company’s consolidated statements of income and comprehensive income was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenues $ 1.2 $ 0.8 $ 3.1 $ 1.9 Research and development expense 1.0 1.0 3.0 2.8 Selling, general and administrative expense 5.1 4.0 15.9 16.2 Acquisition and integration related expense 0.1 1.2 0.7 20.8 Restructuring related expense — 0.4 — 0.4 Total pre-tax stock-based compensation expense $ 7.4 $ 7.4 $ 22.7 $ 42.1 At September 30, 2020, the total compensation expense related to unvested stock-based awards granted to employees and directors under the 2014 Plan that had not been recognized was $37.7. The future compensation expense for time-based awards is recognized on a straight-line basis and the future compensation expense for performance-based awards is recognized using the accelerated graded vesting method, both of which expense over the requisite service period, except for retirement eligible employees, in which case the Company expenses the fair value of the grant in the period the grant is issued. The following table presents the activity for RSUs under the 2014 Plan: Nine Months Ended September 30, 2020 Outstanding RSUs Weighted Average Grant Date Fair Value RSUs – beginning of period 1,102,534 $ 85.93 Accrued dividend shares 535 $ 107.82 Granted 305,610 $ 98.25 Vested (732,416 ) $ 85.32 Forfeited (63,094 ) $ 85.40 RSUs – end of period 613,169 $ 92.87 The following table presents the activity for SARs under the 2014 Plan: Nine Months Ended September 30, 2020 Outstanding SARs Weighted Average Grant Date Fair Value SARs – beginning of period 108,854 $ 29.05 Exercised (49,492 ) $ 27.42 Forfeited or expired (1,400 ) $ 22.39 SARs – end of period 57,962 $ 30.61 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | 1 6) Stockholders’ Equity Share Repurchase Program On July 25, 2011, the Company’s Board of Directors approved a share repurchase program for the repurchase of up to an aggregate of $200 of its outstanding common stock from time to time in open market purchases, privately negotiated transactions or through other appropriate means. The timing and quantity of any shares repurchased depends upon a variety of factors, including business conditions, stock market conditions and business development activities, including, but not limited to, merger and acquisition opportunities. These repurchases may be commenced, suspended or discontinued at any time without prior notice. The Company has repurchased approximately 2,588,000 shares of common stock for approximately $127 pursuant to the program since its adoption. During the three and nine months ended September 30, 2020 and 2019, there were no repurchases of common stock. Cash Dividends Holders of the Company’s common stock are entitled to receive dividends when they are declared by the Company’s Board of Directors. In addition, the Company accrues dividend equivalents on the RSUs the Company assumed in the ESI Merger described in Note 15 above when dividends are declared by the Company’s Board of Directors. The Company’s Board of Directors declared a cash dividend of $0.20 per share during each of the first, second and third quarters of 2020, which totaled $33.0, or $0.60 per share. The Company’s Board of Directors declared a cash dividend of $0.20 per share during each of the first, second and third quarters of 2019, which totaled $32.6, or $0.60 per share. On October 26, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share to be paid on December 4, 2020 to stockholders of record as of November 23, 2020. Future dividend declarations, if any, as well as the record and payment dates for such dividends, are subject to the final determination of the Company’s Board of Directors. In addition, under the Term Loan Facility and ABL Facility, the Company may be restricted from paying dividends under certain circumstances. |
Business Segment, Geographic Ar
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information | 1 7 ) Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information The Company is a global provider of instruments, systems, subsystems and process control solutions that measure, monitor, deliver, analyze, power and control critical parameters of advanced manufacturing processes to improve process performance and productivity for its customers. The Company’s products are derived from its core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, vacuum technology, lasers, photonics, optics, precision motion control, vibration control and laser-based manufacturing systems solutions. The Company also provides services relating to the maintenance and repair of its products, installation services and training. The Company’s primary served markets include semiconductor, industrial technologies, life and health sciences, research and defense. The Company’s Chief Operating Decision Maker (“CODM”) utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision making process to assess performance. Effective February 1, 2019, in conjunction with its acquisition of ESI, the Company created a third reportable segment known as the Equipment & Solutions segment in addition to its two then-existing reportable segments: the Vacuum & Analysis segment and the Light & Motion segment. The Vacuum & Analysis segment provides a broad range of instruments, components and subsystems which are derived from the Company’s core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery and vacuum technology. The Light & Motion segment provides a broad range of instruments, components and subsystems which are derived from the Company’s core competencies in lasers, photonics, optics, precision motion control and vibration control. The Equipment & Solutions segment provides laser-based manufacturing systems solutions for the micro-machining industry that enable customers to optimize production. The Equipment & Solutions segment’s primary served markets include flexible and rigid PCB processing/fabrication, semiconductor wafer processing, and passive component manufacturing and testing. The Equipment & Solutions segment’s systems incorporate specialized laser technology and proprietary control software to efficiently process the materials and components that are an integral part of electronic devices and systems. The Company derives its segment results directly from the manner in which results are reported in its management reporting system. The accounting policies that the Company uses to derive reportable segment results are substantially the same as those used for external reporting purposes. The Company does not disclose external or intersegment revenues separately by reportable segment as this information is not presented to the CODM for decision making purposes. The following table sets forth net revenues by reportable segment: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Vacuum & Analysis $ 361.3 $ 240.7 $ 995.1 $ 710.7 Light & Motion 175.9 172.4 507.3 549.0 Equipment & Solutions 52.6 49.4 167.4 140.4 $ 589.8 $ 462.5 $ 1,669.8 $ 1,400.1 The following table sets forth a reconciliation of segment gross profit to consolidated net income: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gross profit by reportable segment: Vacuum & Analysis $ 163.5 $ 102.8 $ 444.1 $ 303.0 Light & Motion 76.0 79.9 227.8 257.6 Equipment & Solutions 22.5 22.3 76.0 53.5 Total gross profit by reportable segment 262.0 205.0 747.9 614.1 Operating expenses: Research and development 42.5 41.7 127.7 122.3 Selling, general and administrative 87.0 82.1 260.3 247.8 Acquisition and integration costs 0.5 2.1 3.4 35.5 Restructuring and other 3.1 1.5 6.8 4.7 Amortization of intangible assets 12.5 17.0 42.6 50.3 Asset impairment — — 1.2 — COVID-19 related net credits — — (1.2 ) — Fees and expenses related to repricing of Term Loan Facility — 0.6 — 6.5 Gain on sale of long-lived assets — (6.8 ) — (6.8 ) Income from operations 116.4 66.8 307.1 153.8 Interest and other expense, net 7.6 11.4 24.6 31.2 Income before income taxes 108.8 55.4 282.5 122.6 Provision for income taxes 17.1 8.0 48.0 25.0 Net income $ 91.7 $ 47.4 $ 234.5 $ 97.6 The following table sets forth capital expenditures by reportable segment for the three and nine months ended September 30, 2020 and 2019: Vacuum & Analysis Light & Motion Equipment & Solutions Total Three Months Ended September 30, 2020: Capital expenditures $ 9.7 $ 12.9 $ 6.4 $ 29.0 Nine Months Ended September 30, 2020: Capital expenditures $ 28.8 $ 21.4 $ 9.7 $ 59.9 Three Months Ended September 30, 2019: Capital expenditures $ 7.4 $ 6.8 $ 2.3 $ 16.5 Nine Months Ended September 30, 2019: Capital expenditures $ 21.6 $ 16.9 $ 6.2 $ 44.7 The following table sets forth depreciation and amortization by reportable segment for the three and nine months ended September 30, 2020 and 2019: Vacuum & Analysis Light & Motion Equipment & Solutions Total Three Months Ended September 30, 2020: Depreciation and amortization $ 5.1 $ 9.6 $ 8.6 $ 23.3 Nine Months Ended September 30, 2020: Depreciation and amortization $ 15.1 $ 33.5 $ 27.2 $ 75.8 Three Months Ended September 30, 2019: Depreciation and amortization $ 4.2 $ 13.0 $ 10.0 $ 27.2 Nine Months Ended September 30, 2019: Depreciation and amortization $ 12.2 $ 40.4 $ 27.3 $ 79.9 Total income tax expense is not presented by reportable segment because the necessary information is not available nor used by the CODM. The following table sets forth segment assets by reportable segment: September 30, 2020 Vacuum & Analysis Light & Motion Equipment & Corporate, Eliminations & Other Total Segment assets: Trade accounts receivable, net $ 202.9 $ 143.7 $ 42.5 $ (25.2 ) $ 363.9 Inventory, net 261.0 169.9 64.6 (1.3 ) 494.2 Total segment assets $ 463.9 $ 313.6 $ 107.1 $ (26.5 ) $ 858.1 December 31, 2019 Vacuum & Analysis Light & Motion Equipment & Corporate, Eliminations & Other Total Segment assets: Trade accounts receivable, net $ 185.9 $ 147.2 $ 40.1 $ (32.1 ) $ 341.1 Inventory, net 224.8 163.7 73.5 0.1 462.1 Total segment assets $ 410.7 $ 310.9 $ 113.6 $ (32.0 ) $ 803.2 The following is a reconciliation of segment assets to consolidated total assets: September 30, 2020 December 31, 2019 Total segment assets $ 858.1 $ 803.2 Cash and cash equivalents 493.3 414.6 Short-term investments 222.4 109.4 Other current assets 95.9 106.3 Property, plant and equipment, net 267.9 241.9 Right-of-use asset 180.1 64.5 Goodwill and intangible assets, net 1,585.4 1,623.1 Other assets and long-term investments 47.8 53.3 Consolidated total assets $ 3,750.9 $ 3,416.3 Geographic Information about the Company’s operations in different geographic regions is presented in the tables below. Net revenues to unaffiliated customers are based on the location in which the sale originated. Transfers between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenues: United States $ 281.2 $ 211.1 $ 757.7 $ 653.0 South Korea 65.8 41.3 206.8 116.0 China 67.6 46.7 192.5 140.5 Japan 39.9 32.4 117.1 105.5 Israel 34.3 26.4 98.3 76.6 Germany 29.4 36.4 94.3 111.9 Other 71.6 68.2 203.1 196.6 $ 589.8 $ 462.5 $ 1,669.8 $ 1,400.1 Long-lived assets: (1) September 30, 2020 December 31, 2019 United States $ 353.1 $ 208.3 Europe 37.3 41.4 Asia 88.7 89.6 $ 479.1 $ 339.3 (1) Long-lived assets include property, plant and equipment, net, right-of-use assets, and certain other assets, and exclude goodwill, intangible assets and long-term tax-related accounts. Goodwill associated with each of the Company’s reportable segments is as follows: September 30, 2020 December 31, 2019 Reportable segment: Vacuum & Analysis $ 196.5 $ 196.7 Light & Motion 391.7 388.5 Equipment & Solutions 473.9 473.3 Total goodwill $ 1,062.1 $ 1,058.5 Major Customers For the three and nine months ended September 30, 2020, the Company had two customers that each accounted for 10% or more of the Company’s total net revenues. Net revenues from LAM Research Corporation constituted 14.1% and 12.3%, of the Company’s total net revenues for the three and nine month periods ended September 30, 2020, respectively, and net revenues from Applied Materials, Inc. constituted 11.0% and 10.8% of the Company’s total net revenues for the same periods. For the three and nine months ended September 30, 2019, no single customer accounted for 10% or more of the Company’s total net revenues. |
Restructuring and Other
Restructuring and Other | 9 Months Ended |
Sep. 30, 2020 | |
Expense Of Restructuring Activities And Other [Abstract] | |
Restructuring and Other | 1 8 ) Restructuring and Other Restructuring The Company recorded restructuring charges of $0.8 and $1.4 during the three and nine months ended September 30, 2020, related to the pending closure of a facility in Europe and costs related to the exit of certain product groups. The Company recorded restructuring charges of $1.5 and $3.0 during the three and nine months ended September 30, 2019, primarily related to severance costs as a result of an organization-wide reduction in workforce, the consolidation of service functions in Asia and the movement of certain products to low cost regions. Restructuring activities were as follows: Nine Months Ended September 30, 2020 2019 Beginning of period restructuring accrual $ 3.7 $ 2.6 Charged to expense 1.4 3.0 Payments and adjustments (3.8 ) (3.1 ) End of period restructuring accrual $ 1.3 $ 2.5 Other The Company recorded charges of $2.3 and $5.9 during the three and nine months ended September 30, 2020, respectively, related to duplicate facility costs. The Company received an insurance reimbursement of $0.5 during the nine months ended September 30, 2020 for costs recorded on a legal settlement from a contractual obligation assumed as part of the acquisition of Newport. The Company recorded a charge of $1.7 during the nine months ended September 30, 2019 related to this legal settlement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19 ) Commitments and Contingencies In 2016, two putative class actions lawsuit captioned Dixon Chung v. Newport Corp., et al., Case No. A-16-733154-C, and Hubert C. Pincon v. Newport Corp., et al., Case No. A-16-734039-B, were filed in the District Court, Clark County, Nevada on behalf of a putative class of stockholders of Newport for claims related to the merger agreement (“Newport Merger Agreement”) between the Company, Newport, and a wholly-owned subsidiary of the Company (“Merger Sub”). The lawsuits named as defendants the Company, Newport, Merger Sub, and certain then current and former members of Newport’s board of directors. Both complaints alleged that Newport directors breached their fiduciary duties to Newport’s stockholders by agreeing to sell Newport through an inadequate and unfair process, which led to inadequate and unfair consideration, by agreeing to unfair deal protection devices and by omitting material information from the proxy statement. The complaints also alleged that the Company, Newport and Merger Sub aided and abetted the directors’ alleged breaches of their fiduciary duties. The Court consolidated the actions, and plaintiffs later filed an amended complaint captioned In re Newport Corporation Shareholder Litigation, Case No. A-16-733154-B, in the District Court, Clark County, Nevada, on behalf of a putative class of Newport’s stockholders for claims related to the Newport Merger Agreement. The amended complaint alleged Newport’s former board of directors breached their fiduciary duties to Newport’s stockholders and that the Company, Newport and Merger Sub had aided and abetted these breaches and sought monetary damages, including pre- and post-judgment interest. In June 2017, the Court granted defendants’ motion to dismiss and dismissed the amended complaint against all defendants but granted plaintiffs leave to amend. On July 27, 2017, plaintiffs filed a second amended complaint containing substantially similar allegations but naming only Newport’s former directors as defendants. On August 8, 2017, the Court dismissed the Company and Newport from the action. The second amended complaint seeks monetary damages, including pre- and post-judgment interest. The Court granted a motion for class certification on September 27, 2018, appointing Mr. Pincon and Locals 302 and 612 of the International Union of Operating Engineers - Employers Construction Industry Retirement Trust as class representatives. On June 11, 2018, plaintiff Dixon Chung was voluntarily dismissed from the litigation. On August 9, 2019, plaintiffs filed a motion for leave to file a third amended complaint, which was denied on October 10, 2019. On August 23, 2019, defendants filed a motion for summary judgment. On January 23, 2020, the court entered its findings of fact, conclusions of law, and order granting defendants’ motion for summary judgment. On February 18, 2020, plaintiffs filed a notice of appeal from the court’s order granting defendants’ motion for summary judgment, as well as from the court’s prior orders granting defendants’ motion for a bench trial and denying plaintiffs’ motion for leave to file an amended complaint. On March 20, 2020, plaintiffs filed a motion to retax and settle costs, and defendants filed a motion for costs, interest, and attorneys’ fees. On August 4, 2020, the court issued a bench ruling granting in part and denying in part defendants’ motion for costs, interest, and attorneys’ fees, and granting in part and denying in part plaintiffs’ motion to retax and settle costs. The Company is subject to various legal proceedings and claims, which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our results of operations, financial condition or cash flows. |
Recently Issued or Adopted Ac_2
Recently Issued or Adopted Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued or Adopted Accounting Pronouncements | In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This standard provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The standard was effective upon issuance and generally can be applied through December 31, 2022. The Company is in the process of evaluating the requirements of this standard and has not yet determined the impact of adoption on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740).” This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This standard is effective for annual periods beginning after December 15, 2021, including interim periods within those fiscal years beginning after December 15, 2022. The Company evaluated the requirements of this ASU and the impact of pending adoption on the Company’s consolidated financial statements. The Company does not expect that the impact of this ASU will be material to its financial position, results of operations and cash flows. In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments to this update. This standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this ASU during the first quarter of 2020 and the adoption of this ASU did not have a material impact on its financial position, results of operations and cash flows . In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This standard introduced the expected credit losses methodology for the measurement of credit losses on financial assets that are not measured at fair value through net income and replaces today’s “incurred loss” model with an “expected credit loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. There have been several consequential subsequent amendments to this standard. This standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this ASU during the first quarter of 2020 and the adoption of this ASU did not have a material impact on its financial position, results of operations and cash flows . |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Elements of Lease Payments | The elements of lease expense were as follows: Three Months Ended September 30, 2020 2019 Lease cost: Operating lease cost (1) $ 7.2 $ 5.9 Short-term lease 1.4 1.1 Total lease cost $ 8.6 $ 7.0 Nine Months Ended September 30, 2020 2019 Lease cost: Operating lease cost (1) $ 22.1 $ 16.6 Short-term lease 3.7 3.4 Total lease cost $ 25.8 $ 20.0 (1) Operating lease cost includes an immaterial amount of variable expenses and sublease rental income. |
Future Lease Payment Under Non-Cancelable Lease | Future lease payments under non-cancelable leases as of September 30, 2020 are detailed as follows: 2020 (remaining) $ 0.3 2021 12.1 2022 18.1 2023 16.9 2024 16.3 Thereafter 179.3 Total lease payments 243.0 Less: imputed interest 54.0 Total operating lease liabilities $ 189.0 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Deferred Revenue and Customer Advances by Arrangement | A rollforward of the Company’s deferred revenue and customer advances is as follows: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Beginning balance, January 1 (1) $ 24.8 $ 17.5 Deferred revenue and customer advances assumed in ESI Merger — 4.6 Additions to deferred revenue and customer advances 76.3 41.9 Amount of deferred revenue and customer advances recognized in income (65.6 ) (38.8 ) Ending balance, September 30 (2) $ 35.5 $ 25.2 (1) Beginning deferred revenue and customer advances as of January 1, 2020 included $12.4 of current deferred revenue, $3.3 of long-term deferred revenue and $9.1 of current customer advances. (2) Ending deferred revenue and customer advances as of September 30, 2020 included $19.7 of current deferred revenue, $5.1 of long-term deferred revenue and $10.7 of current customer advances. |
Summary of Revenue from Contracts with Customers | The following table summarizes revenue from contracts with customers: Three Months Ended September 30, 2020 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 313.9 $ 156.9 $ 36.0 $ 506.8 Services 47.4 19.0 16.6 83.0 Total net revenues $ 361.3 $ 175.9 $ 52.6 $ 589.8 Three Months Ended September 30, 2019 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 197.2 $ 156.4 $ 32.6 $ 386.2 Services 43.5 16.0 16.8 76.3 Total net revenues $ 240.7 $ 172.4 $ 49.4 $ 462.5 Nine Months Ended September 30, 2020 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 863.5 $ 457.3 $ 120.2 $ 1,441.0 Services 131.6 50.0 47.2 228.8 Total net revenues $ 995.1 $ 507.3 $ 167.4 $ 1,669.8 Nine Months Ended September 30, 2019 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 581.6 $ 502.5 $ 100.8 $ 1,184.9 Services 129.1 46.5 39.6 215.2 Total net revenues $ 710.7 $ 549.0 $ 140.4 $ 1,400.1 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Gross Unrealized Gains and (Losses) Aggregated by Investment Category | The following tables show the gross unrealized gains and (losses) aggregated by investment category for available-for-sale investments: As of September 30, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Short-term investments: Available-for-sale investments: Time deposits and certificates of deposit $ 0.3 $ — $ — $ 0.3 Bankers’ acceptance drafts 3.1 — — 3.1 U.S. treasury obligations 219.0 — — 219.0 $ 222.4 $ — $ — $ 222.4 As of September 30, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Long-term investments: Available-for-sale investments: Group insurance contracts $ 5.5 $ 0.8 $ — $ 6.3 As of December 31, 2019: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Short-term investments: Available-for-sale investments: Time deposits and certificates of deposit $ 13.1 $ — $ — $ 13.1 Bankers' acceptance drafts 4.0 — — 4.0 Commercial paper 61.5 — (0.3 ) 61.2 U.S. treasury obligations 5.0 — — 5.0 U.S. agency obligations 26.1 — — 26.1 $ 109.7 $ — $ (0.3 ) $ 109.4 As of December 31, 2019: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Long-term investments: Available-for-sale investments: Group insurance contracts $ 5.2 $ 0.6 $ — $ 5.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | Assets and liabilities of the Company are measured at fair value on a recurring basis as of September 30, 2020 and are summarized as follows: Fair Value Measurements at Reporting Date Using Description September 30, 2020 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 0.4 $ 0.4 $ — $ — U.S. treasury obligations 69.4 — 69.4 — Available-for-sale investments: Time deposits and certificates of deposit 0.3 — 0.3 — Bankers' acceptance drafts 3.1 — 3.1 — U.S. treasury obligations 219.0 — 219.0 — Group insurance contracts 6.3 — 6.3 — Derivatives – currency forward contracts 0.1 — 0.1 — Funds in investments and other assets: Israeli pension assets 17.3 — 17.3 — Deferred compensation plan assets: Mutual funds and exchange traded funds 1.5 — 1.5 — Money market securities 0.1 — 0.1 — Total assets $ 317.5 $ 0.4 $ 317.1 $ — Liabilities: Derivatives – currency forward contracts $ 2.2 $ — $ 2.2 $ — Derivatives – interest rate hedge – non-current 14.0 — 14.0 — Total liabilities $ 16.2 $ — $ 16.2 $ — Reported as follows: Assets: Cash and cash equivalents (1) $ 69.8 $ 0.4 $ 69.4 $ — Short-term investments 222.4 — 222.4 — Other current assets 0.1 — 0.1 — Total current assets $ 292.3 $ 0.4 $ 291.9 $ — Long-term investments $ 6.3 $ — $ 6.3 $ — Other assets 18.9 — 18.9 — Total long-term assets $ 25.2 $ — $ 25.2 $ — Liabilities: Other current liabilities $ 2.2 $ — $ 2.2 $ — Other liabilities $ 14.0 $ — $ 14.0 $ — (1) The cash and cash equivalent amounts presented in the table above do not include cash of $423.5 as of September 30, 2020. Assets and liabilities of the Company are measured at fair value on a recurring basis as of December 31, 2019 and are summarized as follows: Fair Value Measurements at Reporting Date Using Description December 31, 2019 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 0.6 $ 0.6 $ — $ — Time deposits and certificates of deposit 2.2 — 2.2 — Commercial paper 42.6 — 42.6 — U.S. treasury obligations 2.7 — 2.7 — U.S. agency obligations 17.1 — 17.1 — Available-for-sale securities: Time deposits and certificates of deposit 13.1 — 13.1 — Bankers' acceptance drafts 4.0 — 4.0 — Commercial paper 61.2 — 61.2 — U.S. treasury obligations 5.0 — 5.0 — U.S. agency obligations 26.1 — 26.1 — Group insurance contracts 5.8 — 5.8 — Derivatives – currency forward contracts 1.1 — 1.1 — Derivatives –interest rate hedge - current 0.8 — 0.8 — Funds in investments and other assets: Israeli pension assets 16.7 — 16.7 — Deferred compensation plan assets: Mutual funds and exchange traded funds 2.0 — 2.0 — Money market funds 0.5 — 0.5 — Total assets $ 201.5 $ 0.6 $ 200.9 $ — Liabilities: Derivatives – currency forward contracts $ 0.3 $ — $ 0.3 $ — Derivatives – interest rate hedge - non-current 6.5 — 6.5 — Total liabilities $ 6.8 $ — $ 6.8 $ — Reported as follows: Assets: Cash and cash equivalents (1) $ 65.2 $ 0.6 $ 64.6 $ — Short-term investments 109.4 — 109.4 — Other current assets 1.9 — 1.9 — Total current assets $ 176.5 $ 0.6 $ 175.9 $ — Long-term investments $ 5.8 $ — $ 5.8 $ — Other assets 19.2 — 19.2 — Total long-term assets $ 25.0 $ — $ 25.0 $ — Liabilities: Other current liabilities $ 0.3 $ — $ 0.3 $ — Other liabilities $ 6.5 $ — $ 6.5 $ — (1) The cash and cash equivalent amounts presented in the table above do not include cash of $349.4 as of December 31, 2019. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Primary Net Hedging Positions and Corresponding Fair Values | The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of September 30, 2020 and December 31, 2019: September 30, 2020 Currency Hedged (Buy/Sell) Gross Notional Value Fair Value (1) U.S. Dollar/Japanese Yen $ 55.2 $ (0.4 ) U.S. Dollar/South Korean Won 40.9 (0.4 ) U.S. Dollar/Euro 13.6 (0.3 ) U.S. Dollar/U.K. Pound Sterling 6.2 (0.1 ) U.S. Dollar/Taiwan Dollar 43.0 (0.9 ) Total $ 158.9 $ (2.1 ) |
Summary of Fair Value Amounts of Company's Derivative Instruments | The following table provides a summary of the fair value amounts of the Company’s derivative instruments: September 30, 2020 December 31, 2019 Derivative assets: Foreign exchange contracts (1) $ 0.1 $ 1.1 Interest rate hedge (2) — 0.8 Derivative liabilities: Foreign exchange contracts (1) (2.2 ) (1.3 ) Interest rate hedge (2) (14.0 ) (6.5 ) Total net derivative liability designated as hedging instruments $ (16.1 ) $ (5.9 ) (1) The derivative asset of $0.1 and derivative liability of $2.2 related to the forward foreign exchange contracts are classified in other current assets and other current liabilities in the condensed consolidated balance sheet as of September 30, 2020. The derivative asset of $1.1 and derivative liability of $1.3 related to the forward foreign exchange contracts are classified in other current assets and other current liabilities in the condensed consolidated balance sheet as of December 31, 2019. These forward foreign exchange contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet. (2) The interest rate hedge asset of $0.8 is classified in other current assets in the condensed consolidated balance sheet as of December 31, 2019. The interest rate hedge liabilities of $14.0 and $6.5 are classified in other non-current liabilities as of September 30, 2020 and December 31, 2019, respectively. |
Summary of Gains (Losses) on Derivatives Designated as Cash Flow Hedging Instruments | The following table provides a summary of the (losses) gains on derivatives designated as cash flow hedging instruments: Three Months Ended September 30, Nine Months Ended September 30, Derivatives Designated as Cash Flow Hedging Instruments 2020 2019 2020 2019 Forward exchange contracts: Net loss recognized in accumulated OCI (1) $ (0.6 ) $ (1.0 ) $ (7.7 ) $ (11.2 ) Net gain reclassified from accumulated OCI into income (2) $ 0.4 $ 2.0 $ 2.2 $ 4.1 (1) Net change in the fair value of the effective portion classified in accumulated OCI. (2) Effective portion classified in cost of products for the three and nine months ended September 30, 2020 and 2019. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial. |
Summary of (Losses) Gain on Derivatives Not Designated as Hedging Instruments | The following table provides a summary of the (loss) gain on derivatives not designated as hedging instruments: Three Months Ended September 30, Nine Months Ended September 30, Derivatives Not Designated as Hedging Instruments 2020 2019 2020 2019 Forward exchange contracts: Net (loss) gain recognized in income (1) $ (0.6 ) $ 0.1 $ (0.6 ) $ (0.2 ) (1) The Company enters into foreign exchange contracts to hedge against changes in the balance sheet for certain subsidiaries to mitigate the risk associated with certain foreign currency transactions in the ordinary course of business. These derivatives are not designated as hedging instruments and gains or losses from these derivatives are recorded immediately in other (expense) income. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following: September 30, 2020 December 31, 2019 Raw materials $ 316.6 $ 288.8 Work-in-process 76.5 79.3 Finished goods 101.1 94.0 $ 494.2 $ 462.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Purchase Price | The purchase price of ESI consisted of the following: Cash paid for outstanding shares (1) $ 1,032.7 Settlement of share-based compensation awards (2) 30.6 Total purchase price 1,063.3 Less: Cash and cash equivalents acquired (44.1 ) Total purchase price, net of cash and cash equivalents acquired $ 1,019.2 (1) Represents cash paid of $30.00 per share for approximately 34,422,361 shares of ESI common stock, without interest and subject to a deduction for any required withholding tax. (2) Represents the vested but not issued portion of ESI share-based compensation awards as of the acquisition date of February 1, 2019. |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the final allocation of the purchase price to the fair values assigned to assets acquired and liabilities assumed at the date of the ESI Merger: Current assets (excluding inventory) $ 208.0 Inventory 81.7 Intangible assets 316.2 Goodwill 474.0 Property, plant and equipment 65.5 Long-term assets 9.6 Total assets acquired 1,155.0 Current liabilities 51.5 Non-current deferred taxes 33.0 Other long-term liabilities 7.2 Total liabilities assumed 91.7 Fair value of assets acquired and liabilities assumed 1,063.3 Less: Cash and cash equivalents acquired (44.1 ) Total purchase price, net of cash and cash equivalents acquired $ 1,019.2 |
Allocation of Acquired Intangible Assets and Related Estimates of Useful Lives | The following table reflects the allocation of the acquired intangible assets and related estimate of useful lives: Completed technology - Laser $ 255.7 12 years Completed technology - Non-Laser 18.3 10 years Trademarks and trade names 14.4 7 years Customer relationships 25.4 10 years Backlog 2.4 1 year $ 316.2 |
Schedule of Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information presents the combined results of operations of the Company as if the ESI Merger had occurred on January 1, 2018. The unaudited pro forma financial information is not necessarily indicative of what the Company’s condensed consolidated results of operations actually would have been had the acquisition occurred at the beginning of the year. In addition, the unaudited pro forma financial information does not attempt to project the future results of operations of the combined Company. Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Total net revenues $ 462.5 $ 1,414.7 Net income $ 47.7 $ 127.7 Net income per share: Basic $ 0.87 $ 2.34 Diluted $ 0.86 $ 2.32 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | The changes in the carrying amount of goodwill and accumulated impairment loss during the nine months ended September 30, 2020 and year ended December 31, 2019 were as follows: Nine Months Ended September 30, 2020 Twelve Months Ended December 31, 2019 Gross Carrying Amount Accumulated Impairment Loss Net Gross Carrying Amount Accumulated Impairment Loss Net Beginning balance at January 1 $ 1,202.8 $ (144.3 ) $ 1,058.5 $ 731.3 $ (144.3 ) $ 587.0 Acquired goodwill — — — 474.0 — 474.0 Foreign currency translation 3.6 — 3.6 (2.5 ) — (2.5 ) Ending balance at September 30, 2020 and December 31, 2019 $ 1,206.4 $ (144.3 ) $ 1,062.1 $ 1,202.8 $ (144.3 ) $ 1,058.5 |
Intangible Assets | Intangible Assets Components of the Company’s intangible assets are comprised of the following: As of September 30, 2020: Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology $ 446.4 $ (0.1 ) $ (203.2 ) $ (0.1 ) $ 243.0 Customer relationships 308.2 (1.4 ) (99.6 ) 0.2 207.4 Patents, trademarks, trade names and other 120.9 — (47.8 ) (0.2 ) 72.9 $ 875.5 $ (1.5 ) $ (350.6 ) $ (0.1 ) $ 523.3 As of December 31, 2019: Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology (1) $ 446.4 $ (0.1 ) $ (178.3 ) $ (0.2 ) $ 267.8 Customer relationships (1) 308.2 (1.4 ) (84.2 ) (1.4 ) 221.2 Patents, trademarks, trade names and other (2) 120.9 — (45.5 ) 0.2 75.6 $ 875.5 $ (1.5 ) $ (308.0 ) $ (1.4 ) $ 564.6 (1) During 2019, the Company recorded $316.2 of separately identified intangible assets related to the ESI Merger, of which $274.0 was completed technology, $25.4 was customer relationships and $16.8 was trademarks, trade names and backlog. (2) During 2019, the Company reclassified $6.4 of gross favorable lease assets and $3.4 of related accumulated amortization from patents, trademarks, trade names and other to the right-of-use asset line in the balance sheet. |
Estimated Net Amortization Expense | Aggregate net amortization expense related to acquired intangible assets for future years is as follows: Year Amount 2020 (remaining) $ 13.2 2021 47.9 2022 45.4 2023 45.0 2024 44.1 2025 43.2 Thereafter 228.6 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | September 30, 2020 December 31, 2019 Short-term debt: Japanese lines of credit $ 3.0 $ 2.5 Japanese receivables financing facility — 0.6 Term Loan Facility 9.0 9.0 $ 12.0 $ 12.1 |
Schedule of Long-Term Debt | September 30, 2020 December 31, 2019 Long-term debt: Term Loan Facility, net (1) $ 816.8 $ 871.6 Other debt — 0.1 $ 816.8 $ 871.7 (1) Net of deferred financing fees, original issue discount and repricing fees of |
Schedule of Contractual Maturities of Debt Obligations | Contractual maturities of the Company’s debt obligations as of September 30, 2020 are as follows: Year Amount 2020 (remaining) $ 5.3 2021 9.0 2022 9.0 2023 9.0 2024 9.0 2025 9.0 Thereafter 788.3 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Product Warranty Activities | Product warranty activities were as follows: Nine Months Ended September 30, 2020 2019 Beginning of period $ 14.9 $ 10.4 Assumed product warranty liability from ESI Merger — 7.2 Provision for product warranties 20.2 18.7 Charges to warranty liability (19.0 ) (21.2 ) End of period (1) $ 16.1 $ 15.1 (1) As of September 30, 2020, short-term product warranty of $13.0 and long-term product warranty of $3.1 were included within other current liabilities and other non-current liabilities, respectively, within the accompanying condensed consolidated balance sheet. As of September 30, 2019, short-term product warranty of $12.0 and long-term product warranty of $3.1 were included within other current liabilities and other non-current liabilities, respectively, within the accompanying condensed consolidated balance sheet. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net income $ 91.7 $ 47.4 $ 234.5 $ 97.6 Denominator: Shares used in net income per common share – basic 55,173,000 54,945,000 55,060,000 54,636,000 Effect of dilutive securities: Restricted stock units and stock appreciation rights 226,000 259,000 241,000 409,000 Shares used in net income per common share – diluted 55,399,000 55,204,000 55,301,000 55,045,000 Net income per common share: Basic $ 1.66 $ 0.86 $ 4.26 $ 1.79 Diluted $ 1.66 $ 0.86 $ 4.24 $ 1.77 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Total Stock-Based Compensation Expense Included in Company's Consolidated Statements of Income and Comprehensive Income | The total stock-based compensation expense included in the Company’s consolidated statements of income and comprehensive income was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenues $ 1.2 $ 0.8 $ 3.1 $ 1.9 Research and development expense 1.0 1.0 3.0 2.8 Selling, general and administrative expense 5.1 4.0 15.9 16.2 Acquisition and integration related expense 0.1 1.2 0.7 20.8 Restructuring related expense — 0.4 — 0.4 Total pre-tax stock-based compensation expense $ 7.4 $ 7.4 $ 22.7 $ 42.1 |
Summary of Activity for RSUs under 2014 Plan | The following table presents the activity for RSUs under the 2014 Plan: Nine Months Ended September 30, 2020 Outstanding RSUs Weighted Average Grant Date Fair Value RSUs – beginning of period 1,102,534 $ 85.93 Accrued dividend shares 535 $ 107.82 Granted 305,610 $ 98.25 Vested (732,416 ) $ 85.32 Forfeited (63,094 ) $ 85.40 RSUs – end of period 613,169 $ 92.87 |
Stock Appreciation Rights (SARs) [Member] | |
Summary of Activity for SARs under 2014 Plan | The following table presents the activity for SARs under the 2014 Plan: Nine Months Ended September 30, 2020 Outstanding SARs Weighted Average Grant Date Fair Value SARs – beginning of period 108,854 $ 29.05 Exercised (49,492 ) $ 27.42 Forfeited or expired (1,400 ) $ 22.39 SARs – end of period 57,962 $ 30.61 |
Business Segment, Geographic _2
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Net Revenues, Assets and Goodwill by Reportable Segment | The following table sets forth net revenues by reportable segment: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Vacuum & Analysis $ 361.3 $ 240.7 $ 995.1 $ 710.7 Light & Motion 175.9 172.4 507.3 549.0 Equipment & Solutions 52.6 49.4 167.4 140.4 $ 589.8 $ 462.5 $ 1,669.8 $ 1,400.1 The following table sets forth segment assets by reportable segment: September 30, 2020 Vacuum & Analysis Light & Motion Equipment & Corporate, Eliminations & Other Total Segment assets: Trade accounts receivable, net $ 202.9 $ 143.7 $ 42.5 $ (25.2 ) $ 363.9 Inventory, net 261.0 169.9 64.6 (1.3 ) 494.2 Total segment assets $ 463.9 $ 313.6 $ 107.1 $ (26.5 ) $ 858.1 December 31, 2019 Vacuum & Analysis Light & Motion Equipment & Corporate, Eliminations & Other Total Segment assets: Trade accounts receivable, net $ 185.9 $ 147.2 $ 40.1 $ (32.1 ) $ 341.1 Inventory, net 224.8 163.7 73.5 0.1 462.1 Total segment assets $ 410.7 $ 310.9 $ 113.6 $ (32.0 ) $ 803.2 Goodwill associated with each of the Company’s reportable segments is as follows: September 30, 2020 December 31, 2019 Reportable segment: Vacuum & Analysis $ 196.5 $ 196.7 Light & Motion 391.7 388.5 Equipment & Solutions 473.9 473.3 Total goodwill $ 1,062.1 $ 1,058.5 |
Reconciliation of Segment Gross Profit to Consolidated Net Income | The following table sets forth a reconciliation of segment gross profit to consolidated net income: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gross profit by reportable segment: Vacuum & Analysis $ 163.5 $ 102.8 $ 444.1 $ 303.0 Light & Motion 76.0 79.9 227.8 257.6 Equipment & Solutions 22.5 22.3 76.0 53.5 Total gross profit by reportable segment 262.0 205.0 747.9 614.1 Operating expenses: Research and development 42.5 41.7 127.7 122.3 Selling, general and administrative 87.0 82.1 260.3 247.8 Acquisition and integration costs 0.5 2.1 3.4 35.5 Restructuring and other 3.1 1.5 6.8 4.7 Amortization of intangible assets 12.5 17.0 42.6 50.3 Asset impairment — — 1.2 — COVID-19 related net credits — — (1.2 ) — Fees and expenses related to repricing of Term Loan Facility — 0.6 — 6.5 Gain on sale of long-lived assets — (6.8 ) — (6.8 ) Income from operations 116.4 66.8 307.1 153.8 Interest and other expense, net 7.6 11.4 24.6 31.2 Income before income taxes 108.8 55.4 282.5 122.6 Provision for income taxes 17.1 8.0 48.0 25.0 Net income $ 91.7 $ 47.4 $ 234.5 $ 97.6 |
Schedule of Capital Expenditures, Depreciation and Amortization Expense of Intangible Assets by Reportable Segment | The following table sets forth capital expenditures by reportable segment for the three and nine months ended September 30, 2020 and 2019: Vacuum & Analysis Light & Motion Equipment & Solutions Total Three Months Ended September 30, 2020: Capital expenditures $ 9.7 $ 12.9 $ 6.4 $ 29.0 Nine Months Ended September 30, 2020: Capital expenditures $ 28.8 $ 21.4 $ 9.7 $ 59.9 Three Months Ended September 30, 2019: Capital expenditures $ 7.4 $ 6.8 $ 2.3 $ 16.5 Nine Months Ended September 30, 2019: Capital expenditures $ 21.6 $ 16.9 $ 6.2 $ 44.7 The following table sets forth depreciation and amortization by reportable segment for the three and nine months ended September 30, 2020 and 2019: Vacuum & Analysis Light & Motion Equipment & Solutions Total Three Months Ended September 30, 2020: Depreciation and amortization $ 5.1 $ 9.6 $ 8.6 $ 23.3 Nine Months Ended September 30, 2020: Depreciation and amortization $ 15.1 $ 33.5 $ 27.2 $ 75.8 Three Months Ended September 30, 2019: Depreciation and amortization $ 4.2 $ 13.0 $ 10.0 $ 27.2 Nine Months Ended September 30, 2019: Depreciation and amortization $ 12.2 $ 40.4 $ 27.3 $ 79.9 |
Reconciliation of Segment Assets to Consolidated Total Assets | The following is a reconciliation of segment assets to consolidated total assets: September 30, 2020 December 31, 2019 Total segment assets $ 858.1 $ 803.2 Cash and cash equivalents 493.3 414.6 Short-term investments 222.4 109.4 Other current assets 95.9 106.3 Property, plant and equipment, net 267.9 241.9 Right-of-use asset 180.1 64.5 Goodwill and intangible assets, net 1,585.4 1,623.1 Other assets and long-term investments 47.8 53.3 Consolidated total assets $ 3,750.9 $ 3,416.3 |
Schedule of Net Revenues and Long-Lived Assets by Geographic Regions | Transfers between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenues: United States $ 281.2 $ 211.1 $ 757.7 $ 653.0 South Korea 65.8 41.3 206.8 116.0 China 67.6 46.7 192.5 140.5 Japan 39.9 32.4 117.1 105.5 Israel 34.3 26.4 98.3 76.6 Germany 29.4 36.4 94.3 111.9 Other 71.6 68.2 203.1 196.6 $ 589.8 $ 462.5 $ 1,669.8 $ 1,400.1 Long-lived assets: (1) September 30, 2020 December 31, 2019 United States $ 353.1 $ 208.3 Europe 37.3 41.4 Asia 88.7 89.6 $ 479.1 $ 339.3 (1) Long-lived assets include property, plant and equipment, net, right-of-use assets, and certain other assets, and exclude goodwill, intangible assets and long-term tax-related accounts. |
Restructurings and Other (Table
Restructurings and Other (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Company's Restructuring Activity | Restructuring activities were as follows: Nine Months Ended September 30, 2020 2019 Beginning of period restructuring accrual $ 3.7 $ 2.6 Charged to expense 1.4 3.0 Payments and adjustments (3.8 ) (3.1 ) End of period restructuring accrual $ 1.3 $ 2.5 |
Recently Issued or Adopted Ac_3
Recently Issued or Adopted Accounting Pronouncements - Additional Information (Detail) | Sep. 30, 2020 |
Accounting Standards Update 2018-15 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2016-13 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Line Items] | ||
Lessee, operating leases, option to extend | Leases with renewal options allow the Company to extend the lease term typically between 1 to 10 years. | |
Lessee, operating lease, existence of option to extend [true false] | true | |
Lessee, operating lease, option to terminate | real estate lease agreements include Company options to either extend and/or terminate the lease | |
Lessee, operating lease, existence of option to terminate [true false] | true | |
Leases commenced during the period | $ 127.2 | |
Weighted average discount rate | 3.00% | 3.80% |
Weighted average remaining lease term | 15 years | 5 years |
Operating cash flows used for operating leases | $ 15.4 | $ 17.4 |
Remaining 2020 lease payment | 0.3 | |
2021 lease payment | 12.1 | |
Tenant improvement allowance | 5.2 | |
Tenant improvement allowance for 2021 | $ 10 | |
Minimum [Member] | ||
Leases [Line Items] | ||
Operating leases, options to extend leases term | 1 year | |
Maximum [Member] | ||
Leases [Line Items] | ||
Operating leases, options to extend leases term | 10 years |
Leases - Lease expense (Detail)
Leases - Lease expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Lease cost: | |||||
Operating lease cost(1) | [1] | $ 7.2 | $ 5.9 | $ 22.1 | $ 16.6 |
Short-term lease | 1.4 | 1.1 | 3.7 | 3.4 | |
Total lease cost | $ 8.6 | $ 7 | $ 25.8 | $ 20 | |
[1] | Operating lease cost includes an immaterial amount of variable expenses and sublease rental income |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
2020 (remaining) | $ 0.3 |
2021 | 12.1 |
2022 | 18.1 |
2023 | 16.9 |
2024 | 16.3 |
Thereafter | 179.3 |
Total lease payments | 243 |
Less: imputed interest | 54 |
Total operating lease liabilities | $ 189 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Standards Codification Topic 606 adjustment [Member] | ||
Change in Contract with Customer, Liability [Line Items] | ||
Contract assets | $ 3.7 | $ 3.5 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Deferred Revenue and Customer Advances by Arrangement (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Change in Contract with Customer, Liability [Line Items] | ||
Beginning balance, January 1 | $ 24.8 | $ 17.5 |
Additions to deferred revenue and customer advances | 76.3 | 41.9 |
Amount of deferred revenue and customer advances recognized in income | (65.6) | (38.8) |
Ending balance, March 31 | $ 35.5 | 25.2 |
Electro Scientific Industries Inc [Member] | ||
Change in Contract with Customer, Liability [Line Items] | ||
Deferred revenue and customer advances assumed | $ 4.6 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Deferred Revenue and Customer Advances by Arrangement (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Change in Contract with Customer, Liability [Line Items] | |||
Long-term deferred revenue | $ 5.1 | $ 3.3 | |
Deferred revenue and customer advances | 30.4 | $ 21.5 | |
Deferred Revenue [Member] | |||
Change in Contract with Customer, Liability [Line Items] | |||
Deferred revenue and customer advances | 19.7 | 12.4 | |
Customer Advances [Member] | |||
Change in Contract with Customer, Liability [Line Items] | |||
Deferred revenue and customer advances | $ 10.7 | $ 9.1 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 589.8 | $ 462.5 | $ 1,669.8 | $ 1,400.1 |
Vacuum & Analysis [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 361.3 | 240.7 | 995.1 | 710.7 |
Light & Motion [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 175.9 | 172.4 | 507.3 | 549 |
Equipment & Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 52.6 | 49.4 | 167.4 | 140.4 |
Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 506.8 | 386.2 | 1,441 | 1,184.9 |
Products [Member] | Vacuum & Analysis [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 313.9 | 197.2 | 863.5 | 581.6 |
Products [Member] | Light & Motion [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 156.9 | 156.4 | 457.3 | 502.5 |
Products [Member] | Equipment & Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 36 | 32.6 | 120.2 | 100.8 |
Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 83 | 76.3 | 228.8 | 215.2 |
Services [Member] | Vacuum & Analysis [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 47.4 | 43.5 | 131.6 | 129.1 |
Services [Member] | Light & Motion [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 19 | 16 | 50 | 46.5 |
Services [Member] | Equipment & Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 16.6 | $ 16.8 | $ 47.2 | $ 39.6 |
Investments - Gross Unrealized
Investments - Gross Unrealized Gains and (Losses) Aggregated by Investment Category (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | $ 222.4 | $ 109.7 |
Investments, Gross Unrealized (Losses) | (0.3) | |
Investments, Estimated Fair Value | 222.4 | 109.4 |
Time Deposits and Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 0.3 | 13.1 |
Investments, Estimated Fair Value | 0.3 | 13.1 |
Bankers' Acceptance Drafts [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 3.1 | 4 |
Investments, Estimated Fair Value | 3.1 | 4 |
U.S. Treasury Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 219 | 5 |
Investments, Estimated Fair Value | 219 | 5 |
Group Insurance Contracts [Member] | Long Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 5.5 | 5.2 |
Investments, Gross Unrealized Gains | 0.8 | 0.6 |
Investments, Estimated Fair Value | $ 6.3 | 5.8 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 61.5 | |
Investments, Gross Unrealized (Losses) | (0.3) | |
Investments, Estimated Fair Value | 61.2 | |
U.S. Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 26.1 | |
Investments, Estimated Fair Value | $ 26.1 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | $ 222.4 | $ 109.4 |
Short-term investments | 222.4 | 109.4 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 61.2 | |
Fair Value Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 69.8 | 65.2 |
Total assets | 317.5 | 201.5 |
Total liabilities | 16.2 | 6.8 |
Short-term investments | 222.4 | 109.4 |
Other current assets | 0.1 | 1.9 |
Total current assets | 292.3 | 176.5 |
Long-term investments | 6.3 | 5.8 |
Other assets | 18.9 | 19.2 |
Total long-term assets | 25.2 | 25 |
Fair Value Measurements, Recurring [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – currency forward contracts | 0.1 | 1.1 |
Derivatives – currency forward contracts | 2.2 | 0.3 |
Fair Value Measurements, Recurring [Member] | Interest Rate Hedge [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate hedge – non-current | 14 | 6.5 |
Derivatives –interest rate hedge - current | 0.8 | |
Fair Value Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 42.6 | |
Available-for-sale investments | 61.2 | |
Fair Value Measurements, Recurring [Member] | Group Insurance Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 6.3 | 5.8 |
Fair Value Measurements, Recurring [Member] | Israeli Pension Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Pension assets | 17.3 | 16.7 |
Fair Value Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0.4 | 0.6 |
Deferred compensation plan assets | 0.1 | 0.5 |
Fair Value Measurements, Recurring [Member] | U.S. Treasury Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 69.4 | 2.7 |
Available-for-sale investments | 219 | 5 |
Fair Value Measurements, Recurring [Member] | Time Deposits and Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 2.2 | |
Available-for-sale investments | 0.3 | 13.1 |
Fair Value Measurements, Recurring [Member] | Bankers' Acceptance Drafts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 3.1 | 4 |
Fair Value Measurements, Recurring [Member] | Mutual Funds and Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 1.5 | 2 |
Fair Value Measurements, Recurring [Member] | U.S. Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 17.1 | |
Available-for-sale investments | 26.1 | |
Fair Value Measurements, Recurring [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 2.2 | 0.3 |
Fair Value Measurements, Recurring [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 14 | 6.5 |
Fair Value Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0.4 | 0.6 |
Total assets | 0.4 | 0.6 |
Total current assets | 0.4 | 0.6 |
Fair Value Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0.4 | 0.6 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 69.4 | 64.6 |
Total assets | 317.1 | 200.9 |
Total liabilities | 16.2 | 6.8 |
Short-term investments | 222.4 | 109.4 |
Other current assets | 0.1 | 1.9 |
Total current assets | 291.9 | 175.9 |
Long-term investments | 6.3 | 5.8 |
Other assets | 18.9 | 19.2 |
Total long-term assets | 25.2 | 25 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – currency forward contracts | 0.1 | 1.1 |
Derivatives – currency forward contracts | 2.2 | 0.3 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Hedge [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate hedge – non-current | 14 | 6.5 |
Derivatives –interest rate hedge - current | 0.8 | |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 42.6 | |
Available-for-sale investments | 61.2 | |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Group Insurance Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 6.3 | 5.8 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Israeli Pension Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Pension assets | 17.3 | 16.7 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0.1 | 0.5 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 69.4 | 2.7 |
Available-for-sale investments | 219 | 5 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Time Deposits and Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 2.2 | |
Available-for-sale investments | 0.3 | 13.1 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Bankers' Acceptance Drafts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 3.1 | 4 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mutual Funds and Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 1.5 | 2 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 17.1 | |
Available-for-sale investments | 26.1 | |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 2.2 | 0.3 |
Fair Value Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | $ 14 | $ 6.5 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Cash/Non-negotiable time deposits-not subject to fair value disclosure requirements | $ 423.5 | $ 349.4 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2020 | Dec. 31, 2019 | Apr. 03, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Maximum period for hedging a portion of forecasted foreign currency denominated intercompany sales of inventory | 18 months | |||
Accumulated other comprehensive income realization period | 12 months | |||
Interest Rate Hedge [Member] | Newport Corporation | Term Loan Credit Agreement [Member] | Secured Debt Repricing Amendment One | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest rate swap agreement, maturity date | Sep. 30, 2020 | |||
Percentage of debt which is subject to interest rate swap fixed rate | 50.00% | |||
Interest rate swap agreement, interest rate | 1.198% | |||
Interest rate swap agreement, credit spread rate | 1.75% | |||
Interest rate swap agreement, notional amount | $ 250 | |||
Interest rate swap agreement, fair value | 0.8 | |||
Interest rate swap agreement, interest rate description | the Company entered into an interest rate swap agreement, which had a maturity date of September 30, 2020, to fix the rate on approximately 50% of its then-outstanding balance under the 2016 Term Loan Facility, as described further in Note 11. This hedge fixed the interest rate paid on the hedged debt at 1.198% per annum plus the applicable credit spread, which was 1.75% as of September 30, 2020. This interest rate swap matured on September 30, 2020. At December 31, 2019, the notional amount of this transaction was $250.0 and it had a fair value asset of $0.8. | |||
Interest Rate Hedge [Member] | Newport Corporation | Incremental Term Loan Facility | Secured Debt Repricing Amendment One | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest rate swap agreement, interest rate | 2.309% | |||
Interest rate swap agreement, credit spread rate | 1.75% | |||
Interest rate swap agreement, notional amount | $ 300 | 300 | $ 300 | |
Interest rate swap agreement, fair value | 14 | 6.5 | ||
Forward Exchange Contracts [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional values of outstanding forward foreign exchange contracts | $ 158.9 | $ 154.7 |
Derivatives - Summary of Primar
Derivatives - Summary of Primary Net Hedging Positions and Corresponding Fair Values (Detail) - Forward Exchange Contracts [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | $ 158.9 | $ 154.7 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (2.1) | (0.2) |
U.S. Dollar/Japanese Yen [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 55.2 | 45.9 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (0.4) | |
U.S. Dollar/South Korean Won [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 40.9 | 51.7 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (0.4) | 0.2 |
U.S. Dollar/Euro [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 13.6 | 15.7 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (0.3) | 0.2 |
U.S. Dollar/U.K. Pound Sterling [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 6.2 | 8.3 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (0.1) | (0.2) |
U.S. Dollar/Taiwan Dollar [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 43 | 33.1 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | $ (0.9) | $ (0.4) |
Derivatives - Summary of Fair V
Derivatives - Summary of Fair Value Amounts of Company's Derivative Instruments (Detail) - Derivatives Designated as Hedging Instruments [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Total net derivative liability designated as hedging instruments | $ (16.1) | $ (5.9) |
Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.1 | 1.1 |
Derivative liabilities | (2.2) | (1.3) |
Interest Rate Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.8 | |
Derivative liabilities | $ (14) | $ (6.5) |
Derivatives - Summary of Fair_2
Derivatives - Summary of Fair Value Amounts of Company's Derivative Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Other Current Assets [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contract derivative assets | $ 0.1 | $ 1.1 |
Other Current Assets [Member] | Interest Rate Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate hedge derivative assets | 0.8 | |
Other Current Liabilities [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contract derivative liabilities | 2.2 | 1.3 |
Other Noncurrent Liabilities [Member] | Interest Rate Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate hedge liabilities | $ 14 | $ 6.5 |
Derivatives - Summary of Gains
Derivatives - Summary of Gains (Losses) on Derivatives Designated as Cash Flow Hedging Instruments (Detail) - Cash Flow Hedging [Member] - Forward Exchange Contracts [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net loss recognized in accumulated OCI | $ (0.6) | $ (1) | $ (7.7) | $ (11.2) |
Net gain reclassified from accumulated OCI into income | $ 0.4 | $ 2 | $ 2.2 | $ 4.1 |
Derivatives - Summary of (Loss)
Derivatives - Summary of (Loss) Gain on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Forward Exchange Contracts [Member] | ||||
Derivative Instruments Gain Loss Not Designated As Hedging Instruments [Line Items] | ||||
Net (loss) gain recognized in income | $ (0.6) | $ 0.1 | $ (0.6) | $ (0.2) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 316.6 | $ 288.8 |
Work-in-process | 76.5 | 79.3 |
Finished goods | 101.1 | 94 |
Inventories | $ 494.2 | $ 462.1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Feb. 01, 2019 | |
Business Acquisition [Line Items] | |||||
Business acquisition share price | $ 30 | ||||
Stock-based compensation expense | $ 7.4 | $ 7.4 | $ 22.7 | $ 42.1 | |
Electro Scientific Industries Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition share price | $ 30 | ||||
Fair value write-up of acquired finished goods inventory | 7.6 | 7.6 | |||
Incremental costs of sales charge | 7.6 | ||||
Fair value excluding write-up of acquired property, plant and equipment | $ 39.3 | $ 39.3 | |||
Compensation expense | 2.7 | ||||
Stock-based compensation expense | $ 14 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price (Detail) - USD ($) $ in Millions | Feb. 01, 2019 | Sep. 30, 2019 |
Acquisition Date [Line Items] | ||
Total purchase price, net of cash and cash equivalents acquired | $ 988.6 | |
Electro Scientific Industries Inc [Member] | ||
Acquisition Date [Line Items] | ||
Cash paid for outstanding shares | $ 1,032.7 | |
Settlement of share-based compensation awards | 30.6 | |
Total purchase price | 1,063.3 | |
Less: Cash and cash equivalents acquired | (44.1) | |
Total purchase price, net of cash and cash equivalents acquired | $ 1,019.2 |
Acquisitions - Summary of Pur_2
Acquisitions - Summary of Purchase Price (Parenthetical) (Detail) | Feb. 01, 2019$ / sharesshares |
Business Combinations [Abstract] | |
Business acquisition share price | $ / shares | $ 30 |
Business acquisition number of shares acquired | shares | 34,422,361 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Feb. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Acquisition Date [Line Items] | |||||
Goodwill | $ 1,062.1 | $ 1,058.5 | $ 587 | ||
Total purchase price, net of cash and cash equivalents acquired | $ 988.6 | ||||
Electro Scientific Industries Inc [Member] | |||||
Acquisition Date [Line Items] | |||||
Current assets (excluding inventory) | $ 208 | ||||
Inventory | 81.7 | ||||
Intangible assets | 316.2 | ||||
Goodwill | 474 | ||||
Property, plant and equipment | 65.5 | ||||
Long-term assets | 9.6 | ||||
Total assets acquired | 1,155 | ||||
Current liabilities | 51.5 | ||||
Non-current deferred taxes | 33 | ||||
Other long-term liabilities | 7.2 | ||||
Total liabilities assumed | 91.7 | ||||
Fair value of assets acquired and liabilities assumed | 1,063.3 | ||||
Less: Cash and cash equivalents acquired | (44.1) | ||||
Total purchase price, net of cash and cash equivalents acquired | $ 1,019.2 |
Acquisitions - Allocation of Ac
Acquisitions - Allocation of Acquired Intangible Assets and Liabilities Related Estimates of Useful Lives (Detail) - Electro Scientific Industries Inc [Member] - USD ($) $ in Millions | Feb. 01, 2019 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 316.2 | $ 316.2 |
Completed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | 274 | |
Completed Technology [Member] | Lasers Products [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 255.7 | |
Estimated useful life of finite-lived intangible assets | 12 years | |
Completed Technology [Member] | Non Laser Products [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 18.3 | |
Estimated useful life of finite-lived intangible assets | 10 years | |
Trademarks and Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 14.4 | |
Estimated useful life of finite-lived intangible assets | 7 years | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 25.4 | $ 25.4 |
Estimated useful life of finite-lived intangible assets | 10 years | |
Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 2.4 | |
Estimated useful life of finite-lived intangible assets | 1 year |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Financial Information (Detail) - Electro Scientific Industries Inc [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Acquisition Date [Line Items] | ||
Total net revenues | $ 462.5 | $ 1,414.7 |
Net income | $ 47.7 | $ 127.7 |
Net income per share: | ||
Basic | $ 0.87 | $ 2.34 |
Diluted | $ 0.86 | $ 2.32 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance, Goodwill Gross Carrying Amount | $ 1,202.8 | $ 731.3 |
Acquired goodwill, Gross Carrying Amount | 474 | |
Foreign currency translation, Gross Carrying Amount | 3.6 | (2.5) |
Ending balance, Goodwill Gross Carrying Amount | 1,206.4 | 1,202.8 |
Beginning balance, Accumulated Impairment Loss | (144.3) | (144.3) |
Ending balance, Accumulated Impairment Loss | (144.3) | (144.3) |
Beginning balance, Goodwill Net | 1,058.5 | 587 |
Acquired goodwill, Net | 474 | |
Foreign currency translation, Net | 3.6 | (2.5) |
Ending balance, Goodwill Net | $ 1,062.1 | $ 1,058.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross | $ 875.5 | $ 875.5 |
Accumulated Impairment Charges | (1.5) | (1.5) |
Accumulated Amortization | (350.6) | (308) |
Foreign Currency Translation | (0.1) | (1.4) |
Intangible assets, net | 523.3 | 564.6 |
Completed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross | 446.4 | 446.4 |
Accumulated Impairment Charges | (0.1) | (0.1) |
Accumulated Amortization | (203.2) | (178.3) |
Foreign Currency Translation | (0.1) | (0.2) |
Intangible assets, net | 243 | 267.8 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross | 308.2 | 308.2 |
Accumulated Impairment Charges | (1.4) | (1.4) |
Accumulated Amortization | (99.6) | (84.2) |
Foreign Currency Translation | 0.2 | (1.4) |
Intangible assets, net | 207.4 | 221.2 |
Patents, Trademarks, Trade Names and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross | 120.9 | 120.9 |
Accumulated Amortization | (47.8) | (45.5) |
Foreign Currency Translation | (0.2) | 0.2 |
Intangible assets, net | $ 72.9 | $ 75.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Feb. 01, 2019 | Dec. 31, 2019 | Sep. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 308 | $ 350.6 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 84.2 | 99.6 | |
Patents, Trademarks, Trade Names and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 45.5 | $ 47.8 | |
Electro Scientific Industries Inc [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, purchase price | $ 316.2 | 316.2 | |
Finite lived intangible asset , gross favorable lease | 6.4 | ||
Electro Scientific Industries Inc [Member] | Completed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, purchase price | 274 | ||
Electro Scientific Industries Inc [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, purchase price | $ 25.4 | 25.4 | |
Electro Scientific Industries Inc [Member] | Trademarks Tradenames and Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, purchase price | 16.8 | ||
Electro Scientific Industries Inc [Member] | Patents, Trademarks, Trade Names and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 3.4 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill And Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 12.5 | $ 17 | $ 42.6 | $ 50.3 |
Trademarks and Trade Names [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Un-amortized Intangible assets, net | $ 55.9 | $ 55.9 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Net Amortization Expense (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 (remaining) | $ 13.2 |
2021 | 47.9 |
2022 | 45.4 |
2023 | 45 |
2024 | 44.1 |
2025 | 43.2 |
Thereafter | $ 228.6 |
Debt - Senior Secured Term Loan
Debt - Senior Secured Term Loan Credit Facility - Additional Information (Detail) - USD ($) $ in Millions | Sep. 27, 2019 | Feb. 01, 2019 | Sep. 30, 2016 | Sep. 30, 2020 | Dec. 31, 2019 | Apr. 03, 2019 |
Debt Instrument [Line Items] | ||||||
Debt instrument, prepaid principal amount | $ 575 | |||||
2016 Term Loan Facility [Member] | Repricing Amendment [Member] | LIBOR [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 4.00% | |||||
2016 Term Loan Facility [Member] | Repricing Amendment [Member] | LIBOR [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 1.75% | |||||
2016 Term Loan Facility [Member] | Repricing Amendment [Member] | LIBOR Floor Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 0.75% | |||||
2016 Term Loan Facility [Member] | Incremental Term Loan Facility | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 2.00% | 1.75% | ||||
LIBOR floor rate | 1.00% | 0.75% | ||||
Newport Corporation | Secured Debt [Member] | Floor Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 0.00% | |||||
Newport Corporation | Secured Debt [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 0.75% | |||||
Newport Corporation | 2016 Term Loan Facility [Member] | Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured term loan, face amount | $ 780 | |||||
Term loan maturity date | Apr. 29, 2023 | |||||
Debt instrument, interest rate terms | borrowings under the Term Loan Facility bear interest per annum at one of the following rates selected by the Company: (a) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the “prime rate” quoted in The Wall Street Journal, (3) a London Interbank Offer Rate (“LIBOR”) rate determined by reference to the costs of funds for U.S. dollar deposits for an interest period of one month adjusted for certain additional costs, plus 1.00%, and (4) a floor of 1.75%, plus, in each case, an applicable margin; or (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, subject to a LIBOR rate floor of 0.0%, plus an applicable margin. The Company has elected the interest rate as described in clause (b) of the foregoing sentence. The Term Loan Credit Agreement provides that, unless an alternate rate of interest is agreed, all loans will be determined by reference to the base rate if the LIBOR rate cannot be ascertained, if regulators impose material restrictions on the authority of a lender to make LIBOR rate loans, or for other reasons. The 2016 Term Loan Facility was issued with original issue discount of 1.00% of the principal amount thereof. | |||||
Debt instrument, interest rate | 0.00% | |||||
Debt instrument, issue discount percentage on principal | 1.00% | |||||
Deferred finance fees, original issue discount and re-pricing fee, gross | $ 28.7 | |||||
Newport Corporation | 2016 Term Loan Facility [Member] | Secured Debt [Member] | Interest Rate Hedge [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Sep. 30, 2020 | |||||
Interest rate swap agreement, notional amount | $ 335 | |||||
Interest rate swap agreement, interest rate | 1.198% | |||||
Interest rate swap agreement, credit spread rate | 1.75% | |||||
Newport Corporation | 2016 Term Loan Facility [Member] | Secured Debt [Member] | Federal Funds Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 0.50% | |||||
Newport Corporation | 2016 Term Loan Facility [Member] | Secured Debt [Member] | Adjusted One Month LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 1.00% | |||||
Newport Corporation | 2016 Term Loan Facility [Member] | Secured Debt [Member] | Floor Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 1.75% | |||||
Newport Corporation | 2016 Term Loan Facility [Member] | Incremental Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance fees, original issue discount and re-pricing fee, gross | $ 11.4 | |||||
Newport Corporation | 2016 Term Loan Facility [Member] | Secured Debt Repricing Amendment One | Interest Rate Hedge [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swap agreement, notional amount | $ 250 | |||||
Interest rate swap agreement, interest rate | 1.198% | |||||
Interest rate swap agreement, credit spread rate | 1.75% | |||||
Newport Corporation | Incremental Term Loan Facility | Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate terms | The 2019 Term Loan Refinancing Facility matures on February 2, 2026, and bears interest at a rate per annum equal to, at the Company’s option, a base rate or LIBOR rate (as described above) plus, in each case, an applicable margin equal to 0.75% with respect to base rate borrowings and 1.75% with respect to LIBOR borrowings. The 2019 Term Loan Refinancing Facility was issued with original issue discount of 0.25% of the principal amount thereof. | |||||
Debt instrument, prepaid principal amount | $ 50 | |||||
Newport Corporation | Incremental Term Loan Facility | Secured Debt Repricing Amendment One | ||||||
Debt Instrument [Line Items] | ||||||
Secured term loan, face amount | $ 835.6 | |||||
Term loan maturity date | Feb. 2, 2026 | |||||
Debt instrument, interest rate | 1.90% | |||||
Debt instrument, prepaid principal amount | $ 19.4 | |||||
Debt instrument, frequency of periodic payment | quarterly | |||||
Debt instrument, periodic payment percentage | 0.25% | |||||
Newport Corporation | Incremental Term Loan Facility | Secured Debt Repricing Amendment One | Interest Rate Hedge [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swap agreement, notional amount | $ 300 | 300 | $ 300 | |||
Interest rate swap agreement, interest rate | 2.309% | |||||
Interest rate swap agreement, credit spread rate | 1.75% | |||||
Newport Corporation | 2019 Term Loan Refinancing Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance fees, original issue discount and re-pricing fee, gross | $ 9.8 | $ 2.2 | ||||
Newport Corporation | 2019 Term Loan Refinancing Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 1.75% | |||||
Newport Corporation | 2019 Term Loan Refinancing Facility [Member] | Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured term loan, face amount | $ 896.8 | |||||
Term loan maturity date | Feb. 2, 2026 | |||||
Debt instrument, issue discount percentage on principal | 0.25% | |||||
Electro Scientific Industries Inc [Member] | 2016 Term Loan Facility [Member] | Secured Debt [Member] | Interest Rate Hedge [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term loan maturity date | Mar. 31, 2023 | |||||
Interest rate swap agreement, notional amount | $ 300 | $ 300 | ||||
Interest rate swap agreement, interest rate | 2.309% | |||||
Interest rate swap agreement, credit spread rate | 1.75% | |||||
Interest rate swap agreement, fair value liability | $ 14 | |||||
Electro Scientific Industries Inc [Member] | Incremental Term Loan Facility | Definitive Merger Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term loan maturity date | Feb. 1, 2026 | |||||
Debt instrument, interest rate terms | Prior to the effectiveness of Amendment No. 6 (as defined below), the 2019 Incremental Term Loan Facility had a maturity date of February 1, 2026 and bore interest at a rate per annum equal to, at the Company’s option, a base rate or LIBOR rate (as described above) plus, in each case, an applicable margin equal to 1.25% with respect to base rate borrowings and 2.25% with respect to LIBOR borrowings. | |||||
Debt instrument, issue discount percentage on principal | 1.00% | |||||
Electro Scientific Industries Inc [Member] | Incremental Term Loan Facility | Maximum [Member] | Definitive Merger Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Business acquisition, term loan debt financing | $ 650 | |||||
Electro Scientific Industries Inc [Member] | Incremental Term Loan Facility | LIBOR [Member] | Definitive Merger Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 2.25% | |||||
Electro Scientific Industries Inc [Member] | Incremental Term Loan Facility | Base Rate [Member] | Definitive Merger Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 1.25% |
Debt - Senior Secured Asset-Bas
Debt - Senior Secured Asset-Based Revolving Credit Facility - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Debt Instrument [Line Items] | |
Availability under credit facility | $ 8,500,000 |
Percentage of commitment amount available | 10.00% |
Number of consecutive business days for borrowing base | 30 days |
Asset Based Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Availability under credit facility | $ 8,500,000 |
Percentage of commitment amount available | 10.00% |
Number of consecutive business days for borrowing base | 3 days |
Electro Scientific Industries Inc [Member] | Asset Based Credit Agreement [Member] | Revolving Lines of Credit [Member] | |
Debt Instrument [Line Items] | |
Secured term loan, face amount | $ 100,000,000 |
Electro Scientific Industries Inc [Member] | Asset Based Credit Agreement [Member] | Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Percentage of borrowing based on eligible accounts | 85.00% |
Percentage of borrowing based on lower of net book value of eligible inventory | 20.00% |
Percentage of borrowing base | 30.00% |
Percentage of borrowing based on lower of cost or market value of certain eligible inventory | 65.00% |
Percentage of borrowing based on net orderly liquidation value of certain eligible inventory | 85.00% |
Electro Scientific Industries Inc [Member] | Asset Based Credit Agreement [Member] | Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Borrowing capacity in the form of letters of credit | $ 25,000,000 |
Newport Corporation | Secured Debt [Member] | Floor Rate [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 0.00% |
Newport Corporation | Asset Based Credit Agreement [Member] | Revolving Lines of Credit [Member] | |
Debt Instrument [Line Items] | |
Clause to accelerate the scheduled maturities | If at any time the aggregate amount of outstanding loans, protective advances, unreimbursed letter of credit drawings and undrawn letters of credit under the ABL Facility exceeds the lesser of (a) the commitment amount and (b) the borrowing base, the Company is required to repay outstanding loans and/or cash collateralize letters of credit, with no reduction of the commitment amount. During any period that the amount available under the ABL Facility is less than the greater of (i) $8.5 and (ii) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base for three consecutive business days, until the time when excess availability has been at least the greater of (i) $8.5 and (ii) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base, in each case, for 30 consecutive calendar days (a “Cash Dominion Period”), or during the continuance of an event of default, the Company is required to repay outstanding loans and/or cash collateralize letters of credit with the cash that it is required to deposit daily in a collection account maintained with the administrative agent under the ABL Facility. During a Cash Dominion Period, the Company may make borrowings under the ABL Facility subject to the satisfaction of customary funding conditions. |
Newport Corporation | Asset Based Credit Agreement [Member] | Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 0.50% |
Debt instrument, interest rate terms | Borrowings under the ABL Facility bear interest at a rate per annum equal to, at the Company’s option, any of the following, plus, in each case, an applicable margin: (a) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the “prime rate” quoted in The Wall Street Journal, (3) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for an interest period of one month adjusted for certain additional costs, plus 1.00% and (4) a floor of 0.00%; and (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, with a floor of 0.00%. The initial applicable margin for borrowings under the ABL Facility is 0.50% with respect to base rate borrowings and 1.50% with respect to LIBOR borrowings. Commencing with the completion of the first fiscal quarter ending after the closing of the ABL Facility, the applicable margin for borrowings thereunder is subject to upward or downward adjustment each fiscal quarter, based on the average historical excess availability during the preceding quarter. |
Initial commitment fee percentage | 0.25% |
Number of consecutive business days for borrowing base | 30 days |
Debt instrument, collateral | All obligations under the ABL Facility are guaranteed by certain of the Company’s domestic subsidiaries and are collateralized by substantially all of the Company’s assets and the assets of such subsidiaries, subject to certain exceptions and exclusions |
Clause to maintain a Fixed Charge Coverage Ratio | From the time when the Company has excess availability less than the greater of (a) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base and (b) $8.5 until the time when the Company has excess availability equal to or greater than the greater of (a) 10.0% of the lesser of (1) the commitment amount and (2) the borrowing base and (b) $8.5 for 30 consecutive days, or during the continuance of an event of default, the ABL Credit Agreement requires the Company to maintain a Fixed Charge Coverage Ratio (as defined in the ABL Credit Agreement) tested on the last day of each fiscal quarter of at least 1.0 to 1.0. |
Newport Corporation | Asset Based Credit Agreement [Member] | Secured Debt [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Percentage of line of credit facility excess availability commitment fee | 10.00% |
Line of credit facility excess availability amount | $ 8,500,000 |
Newport Corporation | Asset Based Credit Agreement [Member] | Secured Debt [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Percentage of line of credit facility excess availability commitment fee | 10.00% |
Line of credit facility excess availability amount | $ 8,500,000 |
Fixed charge coverage ratio | 1 |
Newport Corporation | Asset Based Credit Agreement [Member] | Secured Debt [Member] | Adjusted One Month LIBOR [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 1.00% |
Newport Corporation | Asset Based Credit Agreement [Member] | Secured Debt [Member] | Floor Rate [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 0.00% |
Newport Corporation | Asset Based Credit Agreement [Member] | Secured Debt [Member] | Federal Funds Rate [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 0.50% |
Newport Corporation | Asset Based Credit Agreement [Member] | Secured Debt [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 1.50% |
Debt - Lines of Credit and Shor
Debt - Lines of Credit and Short-Term Borrowing Arrangements - Additional Information (Detail) - Revolving Lines of Credit [Member] - Japan [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Aggregate borrowings expire and renewal period | 3 months | |
Borrowing capacity in the form of letters of credit | $ 31,700,000 | |
Total borrowings outstanding | $ 3,000,000 | $ 3,100,000 |
Debt - Schedule of Short-Term D
Debt - Schedule of Short-Term Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Short term debt | $ 12 | $ 12.1 |
Term Loan Facility [Member] | ||
Short-term Debt [Line Items] | ||
Short term debt | 9 | 9 |
Japan [Member] | ||
Short-term Debt [Line Items] | ||
Short term debt | $ 3 | 2.5 |
Japan [Member] | Financing Facility [Member] | ||
Short-term Debt [Line Items] | ||
Short term debt | $ 0.6 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long term debt | $ 816.8 | $ 871.7 |
Other debt | 0.1 | |
Term Loan Facility, Net [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 816.8 | $ 871.6 |
Debt - Schedule of Long-Term _2
Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Term Loan Facility, Net [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing fees, original issuance discount and re-pricing fee | $ 9.8 | $ 11.8 |
Debt - Schedule of Contractual
Debt - Schedule of Contractual Maturities of Debt Obligations (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Maturities Of Long Term Debt [Abstract] | |
2020 (remaining) | $ 5.3 |
2021 | 9 |
2022 | 9 |
2023 | 9 |
2024 | 9 |
2025 | 9 |
Thereafter | $ 788.3 |
Product Warranties - Product Wa
Product Warranties - Product Warranty Activities (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Product Warranty Liability [Line Items] | ||
Beginning of period | $ 14.9 | $ 10.4 |
Provision for product warranties | 20.2 | 18.7 |
Charges to warranty liability | (19) | (21.2) |
End of period | $ 16.1 | 15.1 |
Electro Scientific Industries Inc [Member] | ||
Product Warranty Liability [Line Items] | ||
Assumed product warranty liability from ESI Merger | $ 7.2 |
Product Warranties - Product _2
Product Warranties - Product Warranty Activities (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Other Current Liabilities [Member] | ||
Product Warranty Liability [Line Items] | ||
Short-term product warranty | $ 13 | $ 12 |
Other Noncurrent Liabilities [Member] | ||
Product Warranty Liability [Line Items] | ||
Long-term product warranty | $ 3.1 | $ 3.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||||
Effective tax rate | 15.70% | 14.40% | 17.00% | 20.40% | |||
Income tax reconciliation nondeductible expense executive compensation | $ 5 | $ 5 | |||||
Effective tax rate increased related to limitations on deduction of executive compensation | 9.80% | 7.50% | 3.80% | ||||
Amount of gross unrecognized tax benefits excluding interest and penalties | $ 47.5 | $ 47.5 | $ 43.5 | ||||
Net unrecognized tax benefit excluding interest and penalties that would impact effective tax rate | 39.2 | 39.2 | |||||
Accrued interest on unrecognized tax benefits | $ 0.6 | 0.6 | $ 0.5 | ||||
Net unrecognized tax benefits, excluding interest and penalties, related to foreign tax positions | $ 0.9 |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net income | $ 91.7 | $ 73.7 | $ 69.1 | $ 47.4 | $ 37.7 | $ 12.5 | $ 234.5 | $ 97.6 |
Denominator: | ||||||||
Shares used in net income per common share – basic | 55,173,000 | 54,945,000 | 55,060,000 | 54,636,000 | ||||
Effect of dilutive securities: | ||||||||
Restricted stock units and stock appreciation rights | 226,000 | 259,000 | 241,000 | 409,000 | ||||
Shares used in net income per common share – diluted | 55,399,000 | 55,204,000 | 55,301,000 | 55,045,000 | ||||
Net income per common share: | ||||||||
Basic | $ 1.66 | $ 0.86 | $ 4.26 | $ 1.79 | ||||
Diluted | $ 1.66 | $ 0.86 | $ 4.24 | $ 1.77 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock Units (RSUs) [Member] | ||||
Earnings Per Share [Line Items] | ||||
Number of shares excluded from computation of diluted earnings per share | 2,600 | 204,000 | 900 | 165,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for issuance | 18,000,000 |
Total compensation expense related to unvested stock-based awards granted to employees, officers and directors | $ | $ 37.7 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued as per merger agreement | 749,000 |
Restricted Stock Units (RSUs) [Member] | ESI Plan member [Member] | Outside Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Newport RSUs converted to MKS RSUs at Merger date | 326,000 |
Newport Corporation | Restricted Stock Units (RSUs) [Member] | ESI Plan member [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued as per merger agreement | 736,000 |
Newport Corporation | Stock Appreciation Rights (SARs) [Member] | ESI Plan member [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued as per merger agreement | 13,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Total Stock-Based Compensation Expense Included in Company's Consolidated Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total pre-tax stock-based compensation expense | $ 7.4 | $ 7.4 | $ 22.7 | $ 42.1 |
Cost of Revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total pre-tax stock-based compensation expense | 1.2 | 0.8 | 3.1 | 1.9 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total pre-tax stock-based compensation expense | 1 | 1 | 3 | 2.8 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total pre-tax stock-based compensation expense | 5.1 | 4 | 15.9 | 16.2 |
Acquisition and Integration Cost [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total pre-tax stock-based compensation expense | $ 0.1 | 1.2 | $ 0.7 | 20.8 |
Restructuring Related Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total pre-tax stock-based compensation expense | $ 0.4 | $ 0.4 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity for RSUs under 2014 Plan (Detail) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs/SARs, beginning of period | shares | 1,102,534 |
Granted | shares | 305,610 |
Vested | shares | (732,416) |
Forfeited | shares | (63,094) |
RSUs/SARs, end of period | shares | 613,169 |
RSUs/SARs, Weighted Average Grant Date Fair Value, Beginning of period | $ / shares | $ 85.93 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 98.25 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 85.32 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 85.40 |
RSUs/SARs, Weighted Average Grant Date Fair Value, end of period | $ / shares | $ 92.87 |
Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Accrued dividend shares | shares | 535 |
Weighted Average Grant Date Fair Value, Accrued dividend shares | $ / shares | $ 107.82 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity for SARs under 2014 Plan (Detail) - Stock Appreciation Rights (SARs) [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs/SARs, beginning of period | shares | 108,854 |
Exercised, Outstanding SARs | shares | (49,492) |
Forfeited or expired, Outstanding SARs | shares | (1,400) |
RSUs/SARs, end of period | shares | 57,962 |
RSUs/SARs, Weighted Average Grant Date Fair Value, Beginning of period | $ / shares | $ 29.05 |
Exercised, Weighted Average Grant Date Fair Value | $ / shares | 27.42 |
Forfeited or expired, Weighted Average Grant Date Fair Value | $ / shares | 22.39 |
RSUs/SARs, Weighted Average Grant Date Fair Value, end of period | $ / shares | $ 30.61 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Oct. 26, 2020 | Jul. 25, 2011 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Stockholders Equity [Line Items] | ||||||||||
Common stock, value of shares authorized to repurchase | $ 200,000,000 | |||||||||
Stock repurchase, shares | 2,588,000 | 0 | 0 | 0 | 0 | |||||
Value of shares repurchased | $ 127,000,000 | |||||||||
Cash dividends per common share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 | ||
Dividend payment to common shareholders | $ 33,000,000 | $ 32,600,000 | ||||||||
Subsequent Event [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Dividend declared date | Oct. 26, 2020 | |||||||||
Cash dividend to be paid | $ 0.20 | |||||||||
Dividend to be paid date | Dec. 4, 2020 | |||||||||
Dividend declared, shareholders of record date | Nov. 23, 2020 |
Business Segment, Geographic _3
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020Customer | Sep. 30, 2019Customer | Sep. 30, 2020SegmentCustomer | Sep. 30, 2019Customer | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 2 | |||
Number of customers accounted for 10% or more of total revenue | Customer | 2 | 0 | 2 | 0 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Lam Research Corporation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of total net revenues | 14.10% | 12.30% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Applied Materials, Inc. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of total net revenues | 11.00% | 10.80% |
Business Segment, Geographic _4
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Net Revenues by Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 589.8 | $ 462.5 | $ 1,669.8 | $ 1,400.1 |
Vacuum & Analysis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 361.3 | 240.7 | 995.1 | 710.7 |
Light & Motion [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 175.9 | 172.4 | 507.3 | 549 |
Equipment & Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 52.6 | $ 49.4 | $ 167.4 | $ 140.4 |
Business Segment, Geographic _5
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Reconciliation of Segment Gross Profit to Consolidated Net Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||||||
Gross profit | $ 262 | $ 205 | $ 747.9 | $ 614.1 | ||||
Research and development | 42.5 | 41.7 | 127.7 | 122.3 | ||||
Selling, general and administrative | 87 | 82.1 | 260.3 | 247.8 | ||||
Acquisition and integration costs | 0.5 | 2.1 | 3.4 | 35.5 | ||||
Restructuring and other | 3.1 | 1.5 | 6.8 | 4.7 | ||||
Amortization of intangible assets | 12.5 | 17 | 42.6 | 50.3 | ||||
Asset impairment | 1.2 | |||||||
COVID-19 related net credits | (1.2) | |||||||
Fees and expenses related to repricing of Term Loan Facility | 0.6 | 6.5 | ||||||
Gain on sale of long-lived assets | (6.8) | (6.8) | ||||||
Income from operations | 116.4 | 66.8 | 307.1 | 153.8 | ||||
Interest and other expense, net | 7.6 | 11.4 | 24.6 | 31.2 | ||||
Income before income taxes | 108.8 | 55.4 | 282.5 | 122.6 | ||||
Provision for income taxes | 17.1 | 8 | 48 | 25 | ||||
Net income | 91.7 | $ 73.7 | $ 69.1 | 47.4 | $ 37.7 | $ 12.5 | 234.5 | 97.6 |
Vacuum & Analysis [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross profit | 163.5 | 102.8 | 444.1 | 303 | ||||
Light & Motion [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross profit | 76 | 79.9 | 227.8 | 257.6 | ||||
Equipment & Solutions [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross profit | $ 22.5 | $ 22.3 | $ 76 | $ 53.5 |
Business Segment, Geographic _6
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Schedule of Capital Expenditures, Depreciation and Amortization Expense of Intangible Assets by Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 29 | $ 16.5 | $ 59.9 | $ 44.7 |
Depreciation and amortization | 23.3 | 27.2 | 75.8 | 79.9 |
Vacuum & Analysis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 9.7 | 7.4 | 28.8 | 21.6 |
Depreciation and amortization | 5.1 | 4.2 | 15.1 | 12.2 |
Light & Motion [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 12.9 | 6.8 | 21.4 | 16.9 |
Depreciation and amortization | 9.6 | 13 | 33.5 | 40.4 |
Equipment & Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 6.4 | 2.3 | 9.7 | 6.2 |
Depreciation and amortization | $ 8.6 | $ 10 | $ 27.2 | $ 27.3 |
Business Segment, Geographic _7
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Segment Assets by Reportable Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Trade accounts receivable, net | $ 363.9 | $ 341.1 |
Inventory, net | 494.2 | 462.1 |
Total assets | 858.1 | 803.2 |
Operating Segments [Member] | Vacuum & Analysis [Member] | ||
Segment Reporting Information [Line Items] | ||
Trade accounts receivable, net | 202.9 | 185.9 |
Inventory, net | 261 | 224.8 |
Total assets | 463.9 | 410.7 |
Operating Segments [Member] | Light & Motion [Member] | ||
Segment Reporting Information [Line Items] | ||
Trade accounts receivable, net | 143.7 | 147.2 |
Inventory, net | 169.9 | 163.7 |
Total assets | 313.6 | 310.9 |
Operating Segments [Member] | Equipment & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Trade accounts receivable, net | 42.5 | 40.1 |
Inventory, net | 64.6 | 73.5 |
Total assets | 107.1 | 113.6 |
Corporate, Eliminations & Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Trade accounts receivable, net | (25.2) | (32.1) |
Inventory, net | (1.3) | 0.1 |
Total assets | $ (26.5) | $ (32) |
Business Segment, Geographic _8
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Reconciliation of Segment Assets to Consolidated Total Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $ 858.1 | $ 803.2 |
Cash and cash equivalents | 493.3 | 414.6 |
Short-term investments | 222.4 | 109.4 |
Other current assets | 95.9 | 106.3 |
Property, plant and equipment, net | 267.9 | 241.9 |
Right-of-use asset | 180.1 | 64.5 |
Other assets and long-term investments | 41.5 | 47.5 |
Consolidated total assets | 3,750.9 | 3,416.3 |
Segment Reconciling Items [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash and cash equivalents | 493.3 | 414.6 |
Short-term investments | 222.4 | 109.4 |
Other current assets | 95.9 | 106.3 |
Property, plant and equipment, net | 267.9 | 241.9 |
Right-of-use asset | 180.1 | 64.5 |
Goodwill and intangible assets, net | 1,585.4 | 1,623.1 |
Other assets and long-term investments | 47.8 | 53.3 |
Consolidated total assets | $ 3,750.9 | $ 3,416.3 |
Business Segment, Geographic _9
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Schedule of Net Revenues and Long-Lived Assets by Geographic Regions (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | $ 589.8 | $ 462.5 | $ 1,669.8 | $ 1,400.1 | |
Long-lived assets | 479.1 | 479.1 | $ 339.3 | ||
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 281.2 | 211.1 | 757.7 | 653 | |
Long-lived assets | 353.1 | 353.1 | 208.3 | ||
South Korea [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 65.8 | 41.3 | 206.8 | 116 | |
China [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 67.6 | 46.7 | 192.5 | 140.5 | |
Japan [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 39.9 | 32.4 | 117.1 | 105.5 | |
Israel [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 34.3 | 26.4 | 98.3 | 76.6 | |
Germany [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 29.4 | 36.4 | 94.3 | 111.9 | |
Other Countries [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 71.6 | $ 68.2 | 203.1 | $ 196.6 | |
Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | 37.3 | 37.3 | 41.4 | ||
Asia [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 88.7 | $ 88.7 | $ 89.6 |
Business Segment, Geographic_10
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Summary of Goodwill Associated with Reportable Segments (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 1,062.1 | $ 1,058.5 | $ 587 |
Vacuum & Analysis [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 196.5 | 196.7 | |
Light & Motion [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 391.7 | 388.5 | |
Equipment & Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 473.9 | $ 473.3 |
Restructurings and Other - Addi
Restructurings and Other - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Other Cost [Line Items] | ||||
Restructuring charges | $ 0.8 | $ 1.5 | $ 1.4 | $ 3 |
Other restructuring charges, facility cost | $ 2.3 | 5.9 | ||
Newport Corporation | ||||
Restructuring Cost and Other Cost [Line Items] | ||||
Insurance reimbursement received | $ 0.5 | |||
Legal settlement from a contractual obligation | $ 1.7 | $ 1.7 |
Restructurings and Other - Sche
Restructurings and Other - Schedule of Company's Restructuring Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Beginning of period restructuring accrual | $ 3.7 | $ 2.6 | ||
Restructuring charges | $ 0.8 | $ 1.5 | 1.4 | 3 |
Payments and adjustments | (3.8) | (3.1) | ||
End of period restructuring accrual | $ 1.3 | $ 2.5 | $ 1.3 | $ 2.5 |