Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 16, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Document Period End Date | Dec. 31, 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 | 55,222,118 | ||
Entity Public Float | $ 6,237,127,049 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for our 2021 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission no later than 120 days after the close of our fiscal year ended December 31, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 608.3 | $ 414.6 |
Short-term investments | 227.7 | 109.4 |
Trade accounts receivable, net of allowance for doubtful accounts of $2.0 and $1.8 at December 31, 2020 and 2019, respectively | 392.7 | 341.1 |
Inventories | 501.4 | 462.1 |
Other current assets | 74.3 | 106.3 |
Total current assets | 1,804.4 | 1,433.5 |
Property, plant and equipment, net | 284.3 | 241.9 |
Right-of-use assets | 184.4 | 64.5 |
Goodwill | 1,066.4 | 1,058.5 |
Intangible assets, net | 512.2 | 564.6 |
Long-term investments | 6.5 | 5.8 |
Other assets | 45.6 | 47.5 |
Total assets | 3,903.8 | 3,416.3 |
Current liabilities: | ||
Short-term debt | 14.5 | 12.1 |
Accounts payable | 110.6 | 88.4 |
Accrued compensation | 117.9 | 100.9 |
Income taxes payable | 18.3 | 15.4 |
Lease liability | 15.8 | 20.6 |
Deferred revenue and customer advances | 31.2 | 21.5 |
Other current liabilities | 65.6 | 58.8 |
Total current liabilities | 373.9 | 317.7 |
Long-term debt, net | 815 | 871.7 |
Non-current deferred taxes | 59.2 | 72.4 |
Non-current accrued compensation | 49.5 | 43.9 |
Non-current lease liability | 187.4 | 44.8 |
Other non-current liabilities | 57.9 | 42.5 |
Total liabilities | 1,542.9 | 1,393 |
Commitments and contingencies (Note 23) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued and outstanding | ||
Common stock, no par value, 200,000,000 shares authorized; 55,196,501 and 54,596,183 shares issued and outstanding at December 31, 2020 and 2019, respectively | 0.1 | 0.1 |
Additional paid-in capital | 873.2 | 864.3 |
Retained earnings | 1,487.3 | 1,181.2 |
Accumulated other comprehensive income (loss) | 0.3 | (22.3) |
Total stockholders’ equity | 2,360.9 | 2,023.3 |
Total liabilities and stockholders' equity | $ 3,903.8 | $ 3,416.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 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 | 55,196,501 | 54,596,183 |
Common stock, shares outstanding | 55,196,501 | 54,596,183 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenues: | |||
Net revenues | $ 2,330 | $ 1,899.8 | $ 2,075.1 |
Cost of revenues: | |||
Cost of revenues | 1,280.5 | 1,069.4 | 1,095.6 |
Gross profit | 1,049.5 | 830.4 | 979.5 |
Research and development | 173.1 | 164.1 | 135.7 |
Selling, general and administrative | 353.1 | 330.3 | 298.1 |
Acquisition and integration costs | 3.8 | 37.3 | 3.1 |
Restructuring and other | 9.4 | 7 | 4.6 |
Amortization of intangible assets | 55.2 | 67.4 | 43.5 |
Asset impairment | 2.3 | 4.7 | |
COVID-19 related net credits | (1.2) | ||
Fees and expenses related to repricing of Term Loan Facility | 6.6 | 0.4 | |
Gain on sale of long-lived assets | (6.8) | ||
Income from operations | 453.8 | 219.8 | 494.1 |
Interest income | 1.4 | 5.4 | 5.8 |
Interest expense | 29.1 | 44.1 | 16.9 |
Other expense, net | 3.1 | 3.3 | 2 |
Income before income taxes | 423 | 177.8 | 481 |
Provision for income taxes | 72.9 | 37.4 | 88.1 |
Net income | 350.1 | 140.4 | 392.9 |
Other comprehensive income, net of tax: | |||
Changes in value of financial instruments designated as cash flow hedges | (10.6) | (10) | 4.9 |
Foreign currency translation adjustments | 34.7 | (6.2) | (14.2) |
Unrecognized pension (loss) gain | (1.7) | (0.5) | 0.2 |
Unrealized gain on investments | 0.2 | ||
Total comprehensive income | $ 372.7 | $ 123.7 | $ 383.8 |
Net income per share: | |||
Basic | $ 6.36 | $ 2.57 | $ 7.22 |
Diluted | $ 6.33 | $ 2.55 | $ 7.14 |
Weighted average common shares outstanding: | |||
Basic | 55,095,000 | 54,711,000 | 54,406,000 |
Diluted | 55,300,000 | 55,100,000 | 55,000,000 |
Products [Member] | |||
Net revenues: | |||
Net revenues | $ 2,014.8 | $ 1,611.3 | $ 1,835.2 |
Cost of revenues: | |||
Cost of revenues | 1,106.4 | 913.5 | 969.3 |
Services [Member] | |||
Net revenues: | |||
Net revenues | 315.2 | 288.5 | 239.9 |
Cost of revenues: | |||
Cost of revenues | $ 174.1 | $ 155.9 | $ 126.3 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | |
Beginning Balance at Dec. 31, 2017 | $ 1,588.9 | $ 1.7 | $ 0.1 | $ 789.6 | $ 795.7 | $ 1.7 | $ 3.5 | |
Beginning Balance, Shares at Dec. 31, 2017 | 54,355,535 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||
Net issuance under stock-based plans | $ (11.1) | (11.1) | ||||||
Net issuance under stock-based plans, shares | 502,150 | |||||||
Stock-based compensation | 27.3 | 27.3 | ||||||
Stock repurchase | (75) | (11.9) | (63.1) | |||||
Stock repurchase, Shares | (818,131) | |||||||
Cash dividend | (42.4) | (42.4) | ||||||
Comprehensive income (net of tax): | ||||||||
Net income | 392.9 | 392.9 | ||||||
Other comprehensive income (loss) | (9.1) | (9.1) | ||||||
Ending Balance at Dec. 31, 2018 | 1,873.2 | $ 0.1 | 793.9 | 1,084.8 | (5.6) | |||
Ending Balance, Shares at Dec. 31, 2018 | 54,039,554 | |||||||
Net issuance under stock-based plans | (11) | (11) | ||||||
Net issuance under stock-based plans, shares | 556,629 | |||||||
Settlement of share-based compensation awards | [1] | 30.6 | 30.6 | |||||
Stock-based compensation | $ 50.3 | 50.3 | ||||||
Stock repurchase, Shares | 0 | |||||||
Cash dividend | $ (43.5) | (43.5) | ||||||
Stock dividends accrued | 0.5 | (0.5) | ||||||
Comprehensive income (net of tax): | ||||||||
Net income | 140.4 | 140.4 | ||||||
Other comprehensive income (loss) | (16.7) | (16.7) | ||||||
Ending Balance at Dec. 31, 2019 | 2,023.3 | $ 0.1 | 864.3 | 1,181.2 | (22.3) | |||
Ending Balance, Shares at Dec. 31, 2019 | 54,596,183 | |||||||
Net issuance under stock-based plans | (20.7) | (20.7) | ||||||
Net issuance under stock-based plans, shares | 600,318 | |||||||
Stock-based compensation | $ 29.6 | 29.6 | ||||||
Stock repurchase, Shares | 0 | |||||||
Cash dividend | $ (44) | (44) | ||||||
Comprehensive income (net of tax): | ||||||||
Net income | 350.1 | 350.1 | ||||||
Other comprehensive income (loss) | 22.6 | 22.6 | ||||||
Ending Balance at Dec. 31, 2020 | $ 2,360.9 | $ 0.1 | $ 873.2 | $ 1,487.3 | $ 0.3 | |||
Ending Balance, Shares at Dec. 31, 2020 | 55,196,501 | |||||||
[1] | Represents the vested but unissued portion of Electro Scientific Industries, Inc. (“ESI”) share-based compensation awards as of the acquisition date of February 1, 2019 as described further in Note 12. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividend, per common share | $ 0.80 | $ 0.80 | $ 0.78 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 350.1 | $ 140.4 | $ 392.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 99.2 | 110 | 79.8 |
Amortization of inventory step-up adjustment to fair value | 7.6 | ||
Amortization of debt issuance costs and original issue discount | 2.7 | 7.1 | 4.7 |
Stock-based compensation | 29.5 | 49.2 | 27.3 |
Provision for excess and obsolete inventory | 24.8 | 24.7 | 22.3 |
Provision for doubtful accounts | 0.1 | (0.7) | 1.4 |
Deferred income taxes | (7.1) | (4.2) | (19.4) |
Gain on sale of long-lived asset | (6.8) | ||
Asset impairment | 2.3 | 4.7 | |
Other | 0.6 | 0.9 | 2.6 |
Changes in operating assets and liabilities, net of business acquired: | |||
Trade accounts receivable | (44.8) | (0.1) | (0.5) |
Inventories | (52.2) | (29.3) | (73.8) |
Income taxes payable | 21.6 | (12.4) | (11.4) |
Other current and non-current assets | 40.9 | (9.8) | (1.6) |
Current and non-current accrued compensation | 19.4 | (4.2) | (8.6) |
Other current and non-current liabilities | 5.1 | (8.4) | (3.9) |
Accounts payable | 21 | (24.2) | 2 |
Net cash provided by operating activities | 513.2 | 244.5 | 413.8 |
Cash flows (used in) provided by investing activities: | |||
Acquisition of business, net of cash acquired | (988.6) | ||
Purchases of investments | (522.4) | (246.3) | (253.6) |
Maturities of investments | 332.4 | 142.6 | 181.7 |
Sales of investments | 72.5 | 166.9 | 207.5 |
Proceeds from sale of assets | 42.1 | ||
Purchases of property, plant and equipment | (84.9) | (63.9) | (62.9) |
Net cash (used in) provided by investing activities | (202.4) | (947.2) | 72.7 |
Cash flows (used in) provided by financing activities: | |||
Net proceeds from short and long-term borrowings | 27 | 642.2 | 67.7 |
Payments of short-term borrowings | (24.7) | (5.4) | (67.2) |
Payments of long-term borrowings | (59.1) | (106.1) | (50) |
Repurchases of common stock | (75) | ||
Net payments related to employee stock awards | (20.7) | (11) | (11.1) |
Dividend payments | (44) | (43.5) | (42.4) |
Net cash (used in) provided by financing activities | (121.5) | 476.2 | (178) |
Effect of exchange rate changes on cash and cash equivalents | 4.4 | (3.2) | 1.9 |
Increase (decrease) in cash and cash equivalents | 193.7 | (229.7) | 310.4 |
Cash and cash equivalents at beginning of period | 414.6 | 644.3 | 333.9 |
Cash and cash equivalents at end of period | 608.3 | 414.6 | 644.3 |
Cash paid during the period for: | |||
Interest | 26.3 | 39.9 | 14.6 |
Income taxes | $ 65.6 | $ 35.5 | $ 91.8 |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Description | 1) Business Description MKS Instruments, Inc. (“MKS” or the “Company”) was founded in 1961 and 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. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 2) Basis of Presentation The consolidated financial statements include the accounts of MKS Instruments, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of these 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 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 and allowance for doubtful accounts, inventory valuation, warranty costs, stock-based compensation, intangible assets, goodwill, other long-lived assets, in process research and development and other acquisition expenses 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3) Summary of Significant Accounting Policies Leases The Company adopted Accounting Standards Update (“ASU”) 2016-02, “Leases,” on January 1, 2019 and used the effective date as its date of initial application. As such, the Company did not adjust prior period amounts. The Company also elected to adopt the package of practical expedients upon transition, which permits companies to not reassess lease identification, classification, and initial direct costs for leases that commenced prior to the effective date. The Company implemented internal controls and a lease accounting information system to enable preparation on adoption. Upon adoption, the Company recorded a cumulative effect of initially applying this new standard, resulting in the addition of $71.0 of right-of-use assets and $20.2 and $54.1 of short-term and long-term lease liabilities, respectively. The right-of-use asset is net of the deferred rent liability, prepaid rent and a net favorable lease asset which were re-classified to the right-of-use asset upon adoption of the standard. 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. 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 Company has lease arrangements with lease and non-lease components, has elected to account for the lease and non-lease components as a single lease component, and has allocated all of the contract consideration to the lease component only. The Company has existing net leases in which the non-lease components (e.g. common area maintenance, maintenance and consumables) are paid separately from rent based on actual costs incurred. Therefore, non-lease components are not included in the right-of-use asset and lease liability and are reflected as expenses in the periods incurred. Revenue from Contracts with Customers The Company accounts for revenue using Accounting Standards Codification (“ASC”) 606 (“ASC 606”). The Company applies ASC 606 using the following steps: • Identify the contract with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to performance obligations in the contract • Recognize revenue when or as the Company satisfies a performance obligation Revenue under ASC 606 is recognized when or as obligations under the terms of a contract with the Company’s customer has been satisfied and control has transferred to the customer. The majority of the Company’s performance obligations, and associated revenue, are transferred to customers at a point in time, generally upon shipment of a product to the customer or receipt of the product by the customer and without significant judgments. Installation services are not significant and are usually completed in a short period of time (normally less than two weeks) and therefore, recorded at a point in time when the installation services are completed, rather than over time as they are not material. Extended warranty, service contracts, and repair services, which are transferred to the customer over time, are recorded as revenue as the services are performed. For repair services, the Company makes an accrual at quarter end based upon historical repair times within its product groups to record revenue based upon the estimated number of days completed to date, which is consistent with ratable recognition. Customized products with no alternative future use to the Company, and that have an enforceable right to payment for performance completed to date, are also recorded over time. The Company considers this to be a faithful depiction of the transfer to the customer of revenue over time as the work is performed or service is delivered, ratably over time. These adjustments were not material for 2020 or 2019. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the product or service is separately identifiable from other promises in the contract. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company’s normal payment terms are 30 to 60 days, but vary by the type and location of its customers and the products or services offered. The time between invoicing and when payment is due is not significant. For certain products and services and customer types, the Company requires payment before the products or services are delivered to, or performed for, the customer. None of the Company’s contracts as of December 31, 2020 contained a significant financing component. Contracts with Multiple Performance Obligations The Company periodically enters into contracts with its customers in which a customer may purchase a combination of goods and or services, such as products with installation services or extended warranty obligations. These contracts include multiple promises that the Company evaluates to determine if the promises are separate performance obligations. Once the Company determines the performance obligations, the Company then determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the method the Company expects to better predict the amount of consideration to which it will be entitled. There are no constraints on the variable consideration recorded. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price charged separately to customers or using an expected cost - plus - margin method. The corresponding revenues are recognized when or as the related performance obligations are satisfied, which are noted above. The impact of variable consideration was immaterial during 2020 , 2019 and 2018 . Deferred Revenues The Company’s standard assurance warranty period is normally 12 to 24 months. The Company sells separately-priced service contracts and extended warranty contracts related to certain of its products, especially its laser products. The separately priced contracts generally range from 12 to 60 months. The Company normally receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract. The Company has elected to use the practical expedient related to disclosing the remaining performance obligations as of December 31, 2020 and 2019, as the majority have a duration of less than one year. Costs to Obtain and Fulfill a Contract Under ASC 606, the Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administration expenses. The Company has elected to recognize the costs for freight and shipping when control over products has transferred to the customer as an expense in cost of sales. Product revenue, excluding revenue from certain custom products, is recorded at a point in time, while the majority of service revenue and revenue from certain custom products is recorded over time. Accounts Receivable Allowances Accounts receivable allowances include sales returns and bad debt allowances. The Company monitors and tracks the amount of product returns and reduces revenue at the time of shipment for the estimated amount of such future returns, based on historical experience. The Company makes estimates evaluating its allowance for doubtful accounts. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon its historical experience and any specific customer collection issues that it has identified. Research and Development Research and development costs are expensed as incurred and consist mainly of compensation-related expenses and project materials. The Company’s research and development efforts include numerous projects, which generally have a duration of 3 to 30 months. Acquired in-process research and development (“IPR&D”) expenses, if acquired in a business combination, are capitalized at fair value as an intangible asset until the related project is completed, are then amortized over the estimated useful life of the product. The Company monitors projects and, if they are abandoned, the Company writes them off. Advertising Costs Advertising costs are expensed as incurred and were immaterial in 2020, 2019 and 2018. Stock-Based Compensation The accounting for share-based compensation expense requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. For restricted stock units (“RSUs”), the fair value is measured on the date of grant and expensed normally over a three-year Management determined that blended volatility, a combination of historical and implied volatility, is more reflective of market conditions and a better indicator of expected volatility than historical or implied volatility alone. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, stock-based compensation expense could be materially different in the future. Accumulated Other Comprehensive Income For foreign subsidiaries where the functional currency is the local currency, assets and liabilities are translated into U.S. dollars at the current exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are recorded to Accumulated Other Comprehensive Income ( “ ” Net Income Per Share Basic net income per share is based on the weighted average number of common shares outstanding and diluted net income per share is based on the weighted average number of common shares outstanding and all potential dilutive common equivalent shares outstanding. The dilutive effect of RSUs and stock appreciation rights (“SARs”) are determined under the treasury stock method using the average market price for the period. Common equivalent shares are included in the per share calculations when the effect of their inclusion would be dilutive. Cash and Cash Equivalents and Investments All highly liquid investments with a maturity date of three months or less at the date of purchase are considered to be cash equivalents. The appropriate classification of investments in securities is determined at the time of purchase. Debt securities that the Company does not have the intent and ability to hold to maturity are classified as “available-for-sale” and are carried at fair value. The Company classifies investments with maturity dates greater than twelve months in short-term investments rather than long-term investments. This method classifies these securities as current based on the nature of the securities and the availability for use in current operations. The Company believes this method is preferable because it is more reflective of the Company’s assessment of its overall liquidity position. The Company reviews its investment portfolio on a quarterly basis to identify and evaluate individual investments that have indications of possible impairment. The factors considered in determining whether a loss is other-than-temporary include: the length of time and extent to which fair market value has been below the cost basis, the financial condition and near-term prospects of the issuer, credit quality, and the Company’s ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Concentrations of Credit Risk The Company’s significant concentrations of credit risk consist principally of cash and cash equivalents, investments, forward exchange contracts and trade accounts receivable. The Company maintains cash and cash equivalents with financial institutions, including some banks with which it had borrowings. The Company maintains investments primarily in U.S. Treasury and government agency securities and corporate debt securities. The Company enters into forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. The Company’s largest customers are primarily concentrated in the semiconductor industry, and a limited number of these customers account for a significant portion of the Company’s revenues. The Company regularly monitors the creditworthiness of its customers and believes it has adequately provided for potential credit loss exposures. Credit is extended for all customers based primarily on financial condition, and collateral is not required. During 2020, 2019 and 2018, approximately 59%, 49% and 55% of the Company’s net revenues, respectively, were from sales to semiconductor capital equipment manufacturers and semiconductor device manufacturers. One customer represented 10% or more of the Company’s accounts receivable balance as of December 31, 2020. No customers represented 10% or more of the Company’s accounts receivable balance as of December 31, 2019. Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined using a standard costing system which approximates cost based on a first-in, first-out method. The Company regularly reviews inventory quantities on hand and records a provision to write-down excess and obsolete inventory to its estimated net realizable value, if less than cost, based primarily on its estimated forecast of product demand. Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property, plant and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized in earnings. Depreciation is provided on the straight-line method over the estimated useful lives of ten to fifty years for buildings and three to eighteen years for machinery and equipment, furniture and fixtures and office equipment, which includes enterprise resource planning software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the leased asset. Acquisition Accounting The fair value of the consideration exchanged in a business combination is allocated to tangible assets and identifiable intangible assets acquired and liabilities assumed at acquisition date fair value. Goodwill is measured as the excess of the consideration transferred over the net fair value of identifiable assets acquired and liabilities assumed. The accounting for an acquisition involves a considerable amount of judgement and estimation. Cost, income, market or a combination of approaches may be used to establish the fair value of consideration exchanged, assets acquired, and liabilities assumed, depending on the nature of those items. The valuation approach is determined in accordance with generally accepted valuation methods. Key areas of estimation and judgment may include the selection of valuation approaches, cost of capital, market characteristics, cost structure, impacts of synergies, and estimates of terminal value, among other factors. While the Company uses estimates and assumptions as part of the purchase price allocation process to estimate the value of assets acquired and liabilities assumed, estimates are inherently uncertain and subject to refinement. During the measurement period, which maybe up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill, to the extent that adjustments are identified to the preliminary purchase price allocation. Upon conclusion of the measurement period, or final determination of the value of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded to results of operations. Intangible Assets Intangible assets resulting from the acquisitions of businesses are estimated by management based on the fair value of assets acquired. These include acquired customer lists, technology, patents, trademarks, trade names, covenants not to compete and IPR&D. Intangible assets are amortized from one to eighteen years on a straight-line basis which represents the estimated periods of benefit and the expected pattern of consumption. Goodwill Goodwill is the amount by which the cost of acquired net assets exceeded the fair value of those net assets on the date of acquisition. The Company allocates goodwill to reporting units at the time of acquisition or when there is a change in the reporting structure and bases that allocation on which reporting units will benefit from the acquired assets and liabilities. Reporting units are defined as operating segments or one level below an operating segment, referred to as a component. The Company assesses goodwill for impairment on an annual basis as of October 31 or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The estimated fair value of the Company’s reporting units are based on discounted cash flow models derived from internal earnings and internal and external market forecasts. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount and terminal growth rates, as well as forecasted revenue, gross profit and operating margins. Discount rates are based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity. The WACC used to test goodwill is derived from a group of comparable companies. Assumptions in estimating future cash flows are subject to a high degree of judgment and complexity. The Company makes every effort to forecast these future cash flows as accurately as possible with the information available at the time the forecast is developed. In performing the Company’s annual goodwill impairment test, the Company is permitted to first assess qualitative factors to determine whether it is more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount, including goodwill. In performing the qualitative assessment, the Company considers certain events and circumstances specific to the reporting unit and to the entity as a whole, such as macroeconomic conditions, industry and market considerations, overall financial performance and cost factors when evaluating whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company is also permitted to bypass the qualitative assessment and proceed directly to the quantitative test. If the Company chooses to undertake the qualitative assessment and concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company would then proceed to the quantitative impairment test. In the quantitative assessment, the Company compares the fair value of the reporting unit to its carrying amount, which includes goodwill. If the fair value exceeds the carrying value, no impairment loss exists. If the fair value is less than the carrying amount, a goodwill impairment loss is measured and recorded. Effective January 1, 2019, the Company reassigned goodwill to certain reporting units within the Light & Motion reportable segment, resulting from a reorganization of the composition of reporting units. The goodwill was reassigned to the reporting units affected using the relative fair value approach. The Company also concluded that the fair value of each reporting unit exceeded its respective carrying value. As of October 31, 2020, the Company performed its annual impairment assessment of goodwill by performing a quantitative impairment analysis of its Equipment & Solutions reporting unit and a qualitative analysis for all other reporting units and determined that it is more likely than not that the fair values of the reporting units exceed their carrying amount. For the quantitative assessment for the Equipment & Solutions reporting unit, the Company estimated that the fair value exceeded its carrying value by 10%. Impairment of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. This periodic review may result in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment are present, the carrying values of the asset are evaluated in relation to their operating performance and future undiscounted cash flows of the underlying business. If the future undiscounted cash flows are less than their carrying value, impairment exists. The impairment is measured as the difference between the carrying value and the fair value of the underlying asset. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. Foreign Exchange The functional currency of the majority of the Company’s foreign subsidiaries is the applicable local currency. For those subsidiaries, assets and liabilities are translated to U.S. dollars at year-end exchange rates. Income and expense accounts are translated at the average exchange rates prevailing during the year. The resulting translation adjustments are included in accumulated other comprehensive income (loss) in consolidated stockholders’ equity. Foreign exchange transaction gains and losses are classified in other income/expense in the statement of operations and comprehensive income . Net foreign exchange losses resulting from re-measurement were $3.5, $3.6 and $2.5 for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in other expense, net. These amounts do not reflect the corresponding gain (loss) from foreign exchange forward contracts, which are included in cost of sales. See Note 9 “Derivatives” regarding foreign exchange contracts. Employee Benefit Plans The majority of the Company’s employees participate in defined contribution plans, whereby the Company, at its discretion, makes certain matching contributions based on participating employees’ annual contribution to the plan and their total compensation. The Company also has defined benefit retirement plans at certain of its foreign subsidiaries. The Company accounts for these plans based on the provisions of ASC Topic 715, “Compensation-Retirement Benefits.” Some of the key assumptions used to calculate the pension expense and projected benefit obligation include the discount rate, rate of forecasted salary increases, the expected long-term rate of return on plan assets and the mortality lives of participants. The obligation for these claims and the related periodic costs are measured using actuarial techniques and assumptions. Actuarial gains and losses are deferred and amortized over future periods. Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and also for operating loss and tax credit carry-forwards. On a quarterly basis, the Company evaluates both the positive and negative evidence that affects the realizability of net deferred tax assets and assesses the need for a valuation allowance. The future benefit to be derived from its deferred tax assets is dependent upon its ability to generate sufficient future taxable income in each jurisdiction of the right type to realize the assets. The Company records a valuation allowance to reduce its net deferred tax assets to the amount that is expected to be realized. To the extent the Company establishes a valuation allowance an expense will be recorded as a component of the provision for income taxes on the statement of operations. Accounting for income taxes requires a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not that the position will be sustained upon audit, including resolutions of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company re-evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Any change in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. Income tax effects resulting from changes in tax law are generally accounted for by the Company in the period in which the law is enacted and the effects are recorded as a component of provision for income taxes from continuing operations. |
Recently Issued or Adopted Acco
Recently Issued or Adopted Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued or Adopted Accounting Pronouncements | 4) Recently Issued or Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in this update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in this update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022 that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). The Company is in the process of evaluating the requirements of th ese standard s 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 the former “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 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 | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 5) 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 the Company’s right-of-use assets and 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 the particular lease that would make it reasonably certain that the Company would exercise such an option During the twelve months ended December 31, 2020, the Company recorded $151.5 of additional right-of-use assets of which $133.6 related to three new leases that commenced during the period and three 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: Years Ended December 31, 2020 2019 Lease cost: Operating lease (1) $ 29.2 $ 23.2 Short-term lease 4.9 4.3 Total lease cost $ 34.1 $ 27.5 (1) Operating lease cost includes an immaterial amount of variable expenses, offset by certain sublease rental income. The weighted average discount rate and the weighted average remaining lease term were 3.0% and 15 years, respectively, as of December 31, 2020. The weighted average discount rate and the weighted average remaining lease term were 3.8% and 4.9 years, respectively, as of December 31, 2019. Operating cash flows used for operating leases for the twelve months ended December 31, 2020 and 2019 were $13.0 and $23.4, respectively. Operating cash flows used for operating leases for the twelve months ended December 31, 2020 was net of $10.3 in tenant improvement allowance receipts. In 2019, the Company sold two properties in Boulder, Colorado, and three properties in Portland, Oregon, the latter of which were part of sale and leaseback transactions, and leased back the buildings over varying terms into 2021. Total net cash proceeds received for these two transactions were $41.2 and the Company recognized a net gain on the sale of these long-lived assets of $6.8 . Future lease payments under non-cancelable leases as of December 31, 2020 are detailed as follows: Year Ending December 31, Amount 2021 $ 21.6 2022 20.4 2023 18.3 2024 17.4 2025 16.6 Thereafter 161.7 Total lease payments 256.0 Less: imputed interest 52.8 Total operating lease liabilities $ 203.2 The 2021 payment amount of $21.6 is net of tenant improvement allowances of $6.7. Amounts presented above do not include payments relating to immaterial leases excluded from the balance sheet as well as operating leases with terms of less than twelve months. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 6) Revenue from Contracts with Customers Contract assets as of December 31, 2020 and 2019 were $3.7 and $3.5, respectively, and included in other current assets. A rollforward of the Company’s deferred revenue and customer advances is as follows: 2020 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 107.4 77.7 Amount of deferred revenue and customer advances recognized in income (95.5 ) (75.0 ) Ending balance, December 31 (2) $ 36.7 $ 24.8 (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 December 31, 2020 included $18.3 of current deferred revenue, $5.6 of long-term deferred revenue and $12.8 of current customer advances. Disaggregation of Revenue The following table summarizes revenue from contracts with customers: Year Ended December 31, 2020 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 1,222.4 $ 621.9 $ 170.5 $ 2,014.8 Services 183.5 67.7 64.0 315.2 Total net revenues $ 1,405.9 $ 689.6 $ 234.5 $ 2,330.0 Year Ended December 31, 2019 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 819.1 $ 663.7 $ 128.5 $ 1,611.3 Services 171.4 61.9 55.2 288.5 Total net revenues $ 990.5 $ 725.6 $ 183.7 $ 1,899.8 Year Ended December 31, 2018 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 1,080.3 $ 754.9 $ — $ 1,835.2 Services 180.5 59.4 — 239.9 Total net revenues $ 1,260.8 $ 814.3 $ — $ 2,075.1 Refer to Note 21 for revenue by reportable segment, geography and groupings of similar products. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 7) Investments Investments classified as short-term consist of the following: Years Ended December 31, 2020 2019 Available-for-sale investments: Time deposits and certificates of deposit $ 0.7 $ 13.1 Bankers’ acceptance drafts 3.8 4.0 Commercial paper — 61.2 U.S. treasury obligations 223.2 5.0 U.S. agency obligations — 26.1 $ 227.7 $ 109.4 Investments classified as long-term consist of the following: Years Ended December 31, 2020 2019 Available-for-sale investments: Group insurance contracts $ 6.5 $ 5.8 The following table shows the gross unrealized gains and (losses) aggregated by investment category for available-for-sale investments: As of December 31, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Short-term investments: Available-for-sale investments: Time deposits and certificates of deposit $ 0.7 $ — $ — $ 0.7 Bankers' acceptance drafts 3.8 — — 3.8 U.S. treasury obligations 223.2 — — 223.2 $ 227.7 $ — $ — $ 227.7 As of December 31, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Long-term investments: Available-for-sale investments: Group insurance contracts $ 5.6 $ 0.9 $ — $ 6.5 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 December 31, 2020 and 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. Interest income is accrued as earned. Dividend income is recognized as income on the date the security trades “ex-dividend.” Realized gains or losses are reflected in income and were not material in 2020, 2019 and 2018. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8) 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. Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2020, are summarized as follows: Fair Value Measurements at Reporting Date Using Description December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 1.3 $ 1.3 $ — $ — Commercial paper 0.3 $ — 0.3 $ — U.S. treasury obligations 62.1 — 62.1 — Available-for-sale securities: Time deposits and certificates of deposit 0.7 — 0.7 — Bankers' acceptance drafts 3.8 — 3.8 — U.S. treasury obligations 223.2 — 223.2 — Group insurance contracts 6.5 — 6.5 — Funds in investments and other assets: Israeli pension assets 18.8 — 18.8 — Deferred compensation plan assets: Mutual funds and exchange traded funds 1.7 — 1.7 — Total assets $ 318.4 $ 1.3 $ 317.1 $ — Liabilities: Derivatives – forward exchange contracts $ 6.5 $ — $ 6.5 $ — Derivatives – interest rate hedge – non-current 14.0 — 14.0 — Total liabilities $ 20.5 $ — $ 20.5 $ — Reported as follows: Assets: Cash and cash equivalents (1) $ 63.7 $ $ 63.7 $ — Short-term investments 227.7 — 227.7 — Other current assets — — — — Total current assets $ 291.4 $ — $ 291.4 $ — Long-term investments $ 6.5 $ — $ 6.5 $ — Other assets 20.5 — 20.5 — Total long-term assets $ 27.0 $ — $ 27.0 $ — Liabilities: Other current liabilities $ 6.5 $ — $ 6.5 $ — Other liabilities $ 14.0 $ — $ 14.0 $ — (1) The cash and cash equivalent amounts presented in the table above does not include cash of $544.6 as of December 31, 2020. Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2019 , are summarized as follows: Fair Value Measurements at Reporting Date Using Description December 31, 2019 Quoted Prices in Active Markets for Identical Assets (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 – forward exchange 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 securities 0.5 — 0.5 — Total assets $ 201.5 $ 0.6 $ 200.9 $ — Liabilities: Derivatives – forward exchange 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 December 31, 2020 and 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 of the Company’s Israeli subsidiaries. These funds are classified within Level 2 of the fair value hierarchy. Derivatives As a result of the Company’s global operating activities, the Company is exposed to market risks from changes in foreign currency exchange rates and variable interest rates, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes its risks from foreign currency exchange rate and interest rate fluctuations through the use of derivative financial instruments. The principal market in which the Company executes its foreign currency contracts and interest rate swaps is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. The foreign exchange forward contracts and interest rate hedge are valued using broker quotations, or market transactions and are classified within Level 2 of the fair value hierarchy. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 9) 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 foreign exchange forward 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. 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 foreign exchange forward contracts accounted for as cash-flow hedges related to British, Euro, Japanese, South Korean and Taiwanese currencies. 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 immediately 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 December 31, 2020 and 2019, the Company had outstanding foreign exchange forward contracts with gross notional values of $176.2 and $154.7, respectively. The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of December 31, 2020 and December 31, 2019: December 31, 2020 Currency Hedged (Buy/Sell) Gross Notional Value Fair Value (1) U.S. Dollar/Japanese yen $ 61.5 $ (1.1 ) U.S. Dollar/South Korean won 62.2 (3.1 ) U.S. Dollar/Euro 13.1 (0.6 ) U.S. Dollar/U.K. pound sterling 6.1 (0.3 ) U.S. Dollar/Taiwan dollar 33.3 (1.4 ) Total $ 176.2 $ (6.5 ) 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 the (payable) receivable amount included in the consolidated balance sheet. Interest Rate Swap Agreements The Company entered into various interest rate swap agreements that exchange the variable LIBOR interest rate to a fixed rate to manage the exposure to interest rate fluctuations associated with the variable LIBOR interest rate paid on the outstanding balance of the 2019 Incremental Term Loan Facility, as described further in Note 15. The table below summarizes the various interest rate hedges entered into by the Company: Year Ended December 31, Years Ended December 31, 2020 2020 2019 Swap Trade Date Effective Date Maturity Fixed Rate Notional Amount at Effective Date Notional Amount Fair Value Asset (Liability) Fair Value Asset (Liability) 1 September 29, 2016 September 30,2016 September 30, 2020 1.198 % $ 335.0 $ — $ — $ 0.8 2 April 3, 2019 April 5, 2019 March 31, 2023 2.309 % $ 300.0 $ 300.0 (12.4 ) (6.5 ) 3 October 29, 2020 October 26, 2021 February 28, 2025 0.485 % $ 200.0 $ — (0.7 ) - 4 October 29, 2020 March 31, 2022 February 28, 2025 0.623 % $ 100.0 $ — (0.9 ) - Total $ (14.0 ) $ (5.7 ) The interest rate swaps are recorded at fair value on the balance sheet and changes in the fair value are recognized in OCI, as these hedges have been determined to be effective. To the extent that these arrangements are no longer effective hedges, any ineffectiveness measured in the hedging relationships is recorded immediately in earnings in the period it occurs. The following table provides a summary of the fair value amounts of the Company’s derivative instruments: Years Ended December 31, Derivatives Designated as Hedging Instruments 2020 2019 Derivative asset: Forward exchange contracts (1) $ — $ 1.1 Interest rate hedge (2) — 0.8 Derivative liability: Forward exchange contracts (1) (6.5 ) (1.3 ) Interest rate hedge (2) (14.0 ) (6.5 ) Total net derivative liability designated as hedging instruments $ (20.5 ) $ (5.9 ) (1) The derivative asset related to foreign exchange contracts of $1.1 is classified in other current assets in the condensed consolidated balance sheet as of December 31, 2019. The derivative liabilities related to foreign exchange contracts of $6.5 and $1.3 are classified in other current liabilities in the condensed consolidated balance sheet as of December 31, 2020 and 2019, respectively. These foreign exchange forward 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 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 in the consolidated balance sheet as of December 31, 2020 and 2019, respectively. The net amount of existing gains as of December 31, 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 (loss) gain on derivatives designated as cash flow hedging instruments: Derivatives Designated as Cash Flow Hedging Instruments Years Ended December 31, Forward exchange contracts: 2020 2019 2018 Net (loss) gain recognized in OCI, net of tax (1) $ (10.6 ) $ (10.0 ) $ 4.9 Net gain reclassified from OCI into income (2) $ 1.7 $ 5.7 $ 3.4 (1) Net change in the fair value of the effective portion classified in OCI. (2) Effective portion classified in cost of products. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial. The following table provides a summary of (loss) gain on derivatives not designated as cash flow hedging instruments: Derivatives Not Designated as Cash Flow Hedging Instruments Years Ended December 31, Forward exchange contracts: 2020 2019 2018 Net (loss) gain recognized in income (1) $ (1.5 ) $ (1.3 ) $ 0.1 (1) The Company enters into foreign exchange forward 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 cash flow hedging instruments and gains or losses from these derivatives are recorded immediately in other expense, net. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 10) Inventories Inventories consist of the following: Years Ended December 31, 2020 2019 Raw material $ 321.3 $ 288.8 Work-in-process 76.7 79.3 Finished goods 103.4 94.0 Total $ 501.4 $ 462.1 Inventory-related excess and obsolete charges of $24.8, $24.7 and $22.3 were recorded in cost of products and services in the years ended December 31, 2020, 2019 and 2018, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 11) Property, Plant and Equipment Property, plant and equipment consist of the following: Years Ended December 31, 2020 2019 Land $ 12.3 $ 11.9 Buildings 120.2 113.3 Machinery and equipment 397.8 396.2 Furniture and fixtures, office equipment and software 187.1 186.7 Leasehold improvements 95.4 80.4 Construction in progress 70.6 46.9 883.4 835.4 Less: accumulated depreciation 599.1 593.5 Total $ 284.3 $ 241.9 Depreciation of property, plant and equipment totaled $44.0, $42.6 and $36.3 for the years ended 2020, 2019 and 2018, respectively. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition | 12) Acquisition 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 aggregate consideration was $1,032.7, which excludes related transaction fees and expenses, and non-cash consideration related to the exchange of share-based awards of $30.6, for a total purchase consideration of $1,063.3. The Company funded the payment of the aggregate consideration 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 15. ESI provides laser-based manufacturing systems solutions for the micro-machining industry that enable customers to optimize production. Its market is composed primarily of flexible and rigid printed circuit board (“PCB”) processing/fabrication 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) 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. The Company expects that none of such goodwill and intangible assets will be deductible for tax purposes . The following table summarizes the 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 will be expensed over the period during which the acquired inventory is sold. For the year ended December 31, 2019, the Company recorded $7.6 of incremental cost of sales charges 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 $39.2 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 its 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. The Company’s Equipment & Solutions reportable segment was created in conjunction with the ESI Merger (see Note 21). 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 year ended December 31, 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. The Company’s consolidated net revenue and earnings for the year ended December 31, 2019 include the following amounts of revenue and earnings of ESI since the acquisition date: Year Ended December 31, 2019 Total net revenues $ 183.7 Net loss $ (33.5 ) Net loss per share: Basic $ (0.61 ) Diluted $ (0.61 ) 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 each year. In addition, the unaudited pro forma financial information does not attempt to project the future results of operations of the combined Company. Years Ended December 31, 2019 2018 Total net revenues $ 1,914.6 $ 2,445.7 Net income $ 171.5 $ 424.8 Net income per share: Basic $ 3.14 $ 7.81 Diluted $ 3.11 $ 7.72 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 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, as defined in Note 15. (4) The exclusion of acquisition costs and inventory step-up amortization for the year ended December 31, 2019 and the addition of these items to the year ended December 31, 2018. (5) The exclusion of debt issuance costs due to the modification of the 2019 Incremental Term Loan Facility, as defined in Note 15. ( 6 ) The estimated tax impact of the above adjustments. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 13) 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 losses were as follows: 2020 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 (1) — — — 474.0 — 474.0 Impairment of goodwill (2) — (1.1 ) (1.1 ) — — — Foreign currency translation 9.0 — 9.0 (2.5 ) — (2.5 ) Ending balance at December 31 $ 1,211.8 $ (145.4 ) $ 1,066.4 $ 1,202.8 $ (144.3 ) $ 1,058.5 (1 ) During the twelve months ended December 31, 2019, the Company recorded $474.0 of goodwill related to the ESI Merger. (2) Intangible Assets Components of the Company’s acquired intangible assets are comprised of the following: As of December 31, 2020 Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology $ 446.4 $ (0.1 ) $ (209.8 ) $ (0.1 ) $ 236.4 Customer relationships 308.2 (1.4 ) (104.8 ) 1.7 203.7 Patents, trademarks, trade names and other 120.9 — (48.6 ) (0.2 ) 72.1 $ 875.5 $ (1.5 ) $ (363.2 ) $ 1.4 $ 512.2 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 (1) 120.9 — (45.5 ) 0.2 75.6 $ 875.5 $ (1.5 ) $ (308.0 ) $ (1.4 ) $ 564.6 (1) During the twelve months ended December 31, 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. Aggregate amortization expense related to acquired intangible assets for the years 2020, 2019 and 2018 was $55.2, $67.4 and $43.5, respectively. Aggregate net amortization expense related to acquired intangible assets for future years is: Year Amount 2021 $ 48.2 2022 45.6 2023 45.2 2024 44.3 2025 43.3 Thereafter $ 229.7 The Company excluded $55.9 of indefinite-lived trademarks and trade names that were not subject to amortization from the table above. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Product Warranties | 14) 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: Years Ended December 31, 2020 2019 Beginning balance $ 14.9 $ 10.4 Assumed product warranty liability from ESI Merger — 7.2 Provision for product warranties 28.3 17.4 Direct and other charges to warranty liability (24.8 ) (20.1 ) Ending balance (1) $ 18.4 $ 14.9 (1) Short-term product warranty of $15.6 and long-term product warranty of $2.8, each as of December 31, 2020, are included within other current liabilities and other non-current liabilities, respectively, within the accompanying consolidated balance sheet. Short-term product warranty of $12.1 and long-term product warranty of $2.8, each as of December 31, 2019, are included within other current liabilities and other non-current liabilities, respectively, within the accompanying consolidated balance sheet. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 15) 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 December 31, 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. 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. 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 December 31, 2020, the remaining balance of deferred finance fees and original issue discount of the Term Loan Facility was $9.4. 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 December 31, 2020, after total principal prepayments of $575.0 (which included a $50.0 prepayment made during 2020) and regularly scheduled principal payments of $21.6 , the total outstanding principal balance of the Term Loan Facility was $833.4 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 December 31, 2020, the Company was in compliance with all covenants under the Term Loan Credit Agreement. Interest Rate Swap Agreements The Company entered into various interest rate swap agreements as described further in Note 9 that exchange the variable LIBOR interest rate to a fixed rate to manage the exposure to interest rate fluctuations associated with the variable LIBOR interest rate paid on the outstanding balance of the 2019 Incremental Term Loan Facility. 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, (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. 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. Under the ABL Facility, we are required to prepay amounts outstanding under the ABL Facility (1) if amounts outstanding under the ABL Facility exceed the lesser of (a) the commitment amount and (b) the borrowing base, in an amount required to reduce such shortfall, (2) if amounts outstanding under the ABL Facility in any currency other than U.S. dollars exceed the sublimit for such currency, in an amount required to reduce such shortfall, and (3) during any period in which we have excess availability less than the greater of (a) 10.0% of the lesser of (x) the commitment amount and (y) the borrowing base and (b) $8.5 million for 3 consecutive business days, until the time when we have excess availability equal to or greater than the greater of (A) 10.0% of the lesser of (i) the commitment amount and (ii) the borrowing base and (B) $8.5 million for 30 consecutive days, or during the continuance of an event of default, with immediately available funds in its blocked accounts. 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 the ABL Facility to date. Lines of Credit and 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 December 31, 2020 December 31, 2019 Short-term debt: Japanese lines of credit $ 5.4 $ 2.5 Japanese receivables financing facility 0.1 0.6 Term Loan Facility 9.0 9.0 $ 14.5 $ 12.1 December 31, 2020 December 31, 2019 Long-term debt: Other debt $ — $ 0.1 Term Loan Facility, net (1) 815.0 871.6 $ 815.0 $ 871.7 (1) The Company recognized interest expense of $29.1, $44.1 and $16.9 for the twelve months ended December 31, 2020, 2019 and 2018, respectively. Contractual maturities of the Company’s debt obligations as of December 31, 2020 are as follows: Year Amount 2021 $ 14.5 2022 $ 9.0 2023 $ 9.0 2024 $ 9.0 2025 $ 9.0 Thereafter $ 788.4 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16) Income Taxes A reconciliation of the Company’s effective tax rate to the U.S. federal statutory rate is as follows: Years Ended December 31, 2020 2019 2018 U.S. federal income tax statutory rate 21.0 % 21.0 % 21.0 % Federal tax credits (1.5 ) (2.9 ) (0.7 ) State income taxes, net of federal benefit 1.1 2.3 1.3 Effect of foreign operations taxed at various rates (5.0 ) (4.4 ) (1.3 ) Executive compensation 1.1 5.8 — Gain on intercompany sale of assets — 2.9 — Utilization of a capital loss — (1.2 ) — Foreign derived intangible income deduction (1.5 ) (3.8 ) (2.1 ) Global intangible low taxed income, net of foreign tax credits 0.9 2.6 0.4 Transition tax, net of foreign tax credits — — (0.1 ) Revaluation of deferred income taxes — (1.4 ) (0.3 ) Revaluation of prepaid taxes — — 1.6 Stock-based compensation (0.7 ) (0.3 ) (1.3 ) Deferred tax asset valuation allowance 0.6 0.1 — Release of income tax reserves (including interest) — (0.8 ) (0.4 ) Foreign dividends, net of foreign tax credits 0.7 0.6 (1.0 ) Other 0.5 0.6 1.2 17.2 % 21.1 % 18.3 % The components of income from operations before income taxes and the related provision for income taxes consist of the following: Years Ended December 31, 2020 2019 2018 Income before income taxes: United States $ 132.0 $ 2.3 $ 287.3 Foreign 291.0 175.5 193.6 $ 423.0 $ 177.8 $ 480.9 Current taxes: United States $ 29.2 $ 6.8 $ 41.4 State 6.1 2.0 8.1 Foreign 44.7 32.8 58.0 80.0 41.6 107.5 Deferred taxes: United States (7.9 ) (1.7 ) (2.5 ) State and Foreign 0.8 (2.5 ) (16.9 ) (7.1 ) (4.2 ) (19.4 ) Provision for income taxes $ 72.9 $ 37.4 $ 88.1 The significant components of the deferred tax assets and deferred tax liabilities are as follows: Years Ended December 31, 2020 2019 Deferred tax assets: Carry-forward losses and credits $ 54.2 $ 59.2 Inventory and warranty reserves 32.4 29.7 Accrued expenses and other reserves 14.5 12.6 Stock-based compensation 5.1 8.6 Executive supplemental retirement benefits 1.8 1.6 Lease liability 48.7 15.3 Unrealized net loss 4.0 2.7 Other 2.7 2.3 Total deferred tax assets $ 163.4 $ 132.0 Deferred tax liabilities: Acquired intangible assets and goodwill $ (116.2 ) $ (128.1 ) Depreciation and amortization (14.5 ) (14.1 ) Loan costs (1.8 ) (2.3 ) Right-of-use asset (46.4 ) (14.4 ) Foreign withholding taxes (3.2 ) (5.0 ) Total deferred tax liabilities (182.1 ) (163.9 ) Valuation allowance (30.6 ) (27.4 ) Net deferred tax liabilities $ (49.3 ) $ (59.3 ) As of December 31, 2020, the Company had federal, state and foreign gross research and other tax credit carry-forwards of $58.9. Included in the total carry-forward are $13.7 of credits that can be carried forward indefinitely while the remaining credits expire at various dates through 2037. The Company also had federal, state and foreign gross net operating loss and capital loss carry-forwards of $97.0. Included in the total carry-forward are $50.9 of losses that can be carried forward indefinitely while the remaining losses expire at various dates through 2037. Although the Company believes that its tax positions are consistent with applicable U.S. federal, state and international laws, it maintains certain tax reserves as of December 31, 2020 in the event its tax positions were to be challenged by the applicable tax authority and additional tax assessed upon audit. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 43.5 $ 32.7 $ 27.3 Increases for prior years 1.1 9.3 0.9 Increases for the current year 6.8 3.2 6.1 Reductions related to expiration of statutes of limitations and audit settlements (4.4 ) (1.7 ) (1.6 ) Balance at end of year $ 47.0 $ 43.5 $ 32.7 The net increase in gross unrecognized tax benefits was primarily attributable to the addition of a reserve related to executive compensation, partially offset by a release of income tax reserves related to the expiration of the statutes of limitations. The Company accrues interest and, if applicable, penalties for any uncertain tax positions. Interest and penalties are classified as a component of income tax expense. As of December 31, 2020, 2019 and 2018, the Company accrued interest on unrecognized tax benefits of approximately $0.7, $0.5 and $0.6, respectively. Over the next 12 months it is reasonably possible that the Company may recognize approximately $4.3 of previously net unrecognized tax benefits, excluding interest and penalties, related to various U.S. federal, state and foreign tax positions, primarily due to the expiration of statutes of limitations. The Company is subject to examination by U.S. federal, state and foreign tax authorities. The U.S. federal statute of limitations remains open for tax years 2017 through the present. The statute of limitations for the Company’s tax filings in other jurisdictions varies between fiscal years 2015 through present. The Company has certain federal credit carry-forwards and state tax loss and credit carry-forwards that are open to examination for tax years 2000 through the present. On a quarterly basis, the Company evaluates both positive and negative evidence that affects the realizability of net deferred tax assets and assesses the need for a valuation allowance. The future benefit to be derived from its deferred tax assets is dependent upon its ability to generate sufficient future taxable income to realize the assets. During 2020, the Company increased its valuation allowance by $3.3, primarily related to certain foreign net operating loss carry-forward amounts. During 2019, the Company increased its valuation allowance by $9.4. This increase was primarily attributable to the addition of historical valuation allowances for ESI and its subsidiaries which were included as a result of the ESI Merger during the quarter ended March 31, 2019. During 2018, the Company increased its valuation allowance by $4.3, primarily related to certain tax credit and net operating loss carry-forward amounts. No provision has been made for deferred taxes related to remaining historical outside basis differences in certain of the Company’s non-US subsidiaries. The Company continues to assert indefinite reinvestment with respect to certain outside basis differences as of December 31, 2020. Determination of the amount of unrecognized deferred tax liability on such outside basis differences is not practicable because the amount of such liability, if any, is dependent upon various circumstances and factors, including availability of tax planning. Certain of the Company’s subsidiaries have obtained tax rate reductions or tax holidays under government-sponsored incentive programs. For example, a Singapore subsidiary of the Company obtained a tax holiday in Singapore. The benefits of the holiday were approximately $1.7 ($0.03 per share) in 2020 and $2.2 ($0.04 per share) in 2019. The tax holiday in Singapore expires in June 2021. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 17) Stock-Based Compensation Employee Stock Purchase Plans The 2014 Employee Stock Purchase Plan (“2014 ESPP”) was adopted by the Board of Directors on February 10, 2014 and approved by the Company’s stockholders on May 5, 2014. The 2014 ESPP authorizes the issuance of up to an aggregate of 2,500,000 shares of common stock to participating employees. Offerings under the 2014 ESPP commence on June 1 and December 1 and terminate, respectively, on November 30 and May 31. Under the 2014 ESPP, eligible employees can purchase shares of common stock through payroll deductions up to 10% of their compensation, up to a defined maximum annual amount. The price at which an employee’s purchase option is exercised for each offering period is the lower of (1) 90% of the closing price on the common stock on the Nasdaq Global Select Market on the day that each offering commences, or (2) 90% of the closing price on the day that the offering terminates. During 2020, 2019 and 2018, the Company issued 102,719, 126,407, and 105,672 shares, respectively, of common stock to employees who participated in the 2014 ESPP at exercise prices of $95.07 and $93.77 per share in 2020, $64.31 and $63.78 per share in 2019, and $84.11 and $70.61 per share in 2018. As of, December 31, 2020 there were 1,697,604 shares reserved for future issuance under the 2014 ESPP. Equity Incentive Plans 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. The 2014 Plan was adopted by the Board of Directors on February 10, 2014 and was approved by the Company’s stockholders on May 5, 2014. Up to 18,000,000 shares of common stock (subject to adjustment in the event of stock splits and other similar events) may be issued pursuant to awards granted under the 2014 Plan. The Company may grant options, RSUs, restricted stock, SARs and other stock-based awards to employees, officers, directors, consultants and advisors under the 2014 Plan. Any full-value awards granted under the 2014 Plan will be counted against the shares reserved for issuance under the 2014 Plan as 2.4 shares for each share of common stock subject to such award . A ny award granted under the 2014 Plan that is not a full-value award (including, without limitation, any option or SAR) will be counted against the shares reserved for issuance under the plan as one share for each one share of common stock subject to such award. “Full-value award” means any RSU, or other stock-based award with a per share price or per unit purchase price lower than 100 % of fair market value on the date of grant. To the extent a share that was subject to an award that counted as one share is returned to the 2014 Plan, each applicable share reserve will be credited with one share. To the extent that a share that was subject to an award that counts as 2.4 shares is returned to the 2014 Plan, each applicable share reserve will be credited with 2.4 shares. As of December 31, 2020 , there were 12,690,974 shares reserved for future issuance under the 2014 Plan. Time-based RSUs granted to employees in 2020, 2019 and 2018 generally vest 33% per year beginning on the first anniversary of the date of grant. Performance-based RSUs granted to the Company’s executive officers in 2020 were based on the Company’s achievement of non-GAAP EBITDA for 2020, defined as GAAP operating income excluding any charges or income not related to the operating performance of the Company plus depreciation and stock compensation expense, set at varying revenue levels. Performance-based RSUs granted to the Company’s executive officers in 2019 and 2018 were based on the Company’s achievement of non-GAAP cash flows from operations for the relevant year, defined as GAAP net income plus depreciation, amortization and non-cash stock-based compensation and excluding any charges or income not related to the operating performance of the Company, set at varying revenue levels. The final number of performance-based RSUs that vest vary based on the level of performance achieved, from 0% to 150% of the underlying target shares. The performance-based RSUs earned will vest 33% per year beginning on the first anniversary of the date of grant. RSUs granted to certain employees who meet certain retirement eligibility requirements will vest in full upon each such employee’s retirement and are expensed immediately. RSUs granted to directors generally vest at the earliest of (1) one day prior to the next annual meeting, (2) 13 months from date of grant, or (3) the effective date of a change in control of the Company. In connection with the completion of the Newport Merger, the Company assumed: • all RSUs granted under any Newport equity plan that were outstanding immediately prior to the effective time of the Newport Merger, and as to which shares of Newport common stock were not fully distributed in connection with the closing of the Newport Merger (the “Newport RSUs”), and • all SARs granted under any Newport equity plan, whether vested or unvested, that were outstanding immediately prior to the effective time of the Newport Merger (the “Newport SARs”). As of the effective time of the Newport Merger, based on a formula provided in the merger agreement, (a) the Newport RSUs were converted automatically into RSUs with respect to 360,674 shares of the Company’s common stock (the “Newport Assumed RSUs”), and (b) the Newport SARs were converted automatically into SARs with respect to 899,851 shares of the Company’s common stock (the “Newport Assumed SARs”). Included in the total number of Newport Assumed RSUs were 36,599 RSUs for outside directors that were part of the Newport Deferred Compensation Plan (the “Newport DC Plan”), from which 5,561 shares were released in May 2018, 967 shares were released in May 2019 and 976 shares were released in May 2020. As of December 31, 2020, 4,875 Company RSUs remained outstanding under the Newport DC Plan, and an additional 35 shares of the Company’s common stock were added to the Newport DC Plan due to reinvested dividends. As of December 31, 2019, 5,794 Company RSUs remained outstanding under the Newport DC Plan, and an additional 57 shares of the Company’s common stock were added to the Newport DC Plan due to reinvested dividends. These Newport Assumed RSUs will not become issued shares until their respective release dates. The shares of the Company’s common stock that are subject to the Newport Assumed SARs and the Newport Assumed RSUs are issuable pursuant to the 2014 Plan. The 1,260,525 shares of the Company’s common stock were issuable pursuant to the Newport Assumed RSUs and the Newport Assumed SARs under the 2014 Plan were registered under the Securities Act of 1933, as amended (“Securities Act”), on a registration statement on Form S-8. These shares did not include 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 on a registration statement on Form S-8. 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 (the “ESI Time-Based RSUs”), • 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 (the “ESI Performance-Based RSUs and collectively with the ESI Time-Based RSUs, the “ESI RSUs”), 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 (the “ESI SARs”). As of the effective time of the ESI Merger, based on a formula in the merger agreement, (a) such ESI RSUs were converted automatically into RSUs with respect to 736,133 shares of the Company’s common stock (the “ESI Assumed RSUs”), and (b) such ESI SARs were converted automatically into SARs with respect to 12,787 shares of the Company’s common stock (the “ESI Assumed SARs”). Included in the total number of ESI Assumed RSUs are 326,283 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”), from which 300,654 shares were released in January 2020. As of December 31, 2020, 31,458 Company RSUs remained outstanding under the ESI DC Plan, and an additional 203 shares of the Company’s common stock were added to the ESI DC Plan due to reinvested dividends. As of December 31, 2019, 327,328 Company RSUs remained outstanding under the ESI DC Plan, and an additional 3,086 shares of the Company’s common stock were added to the ESI DC Plan due to reinvested dividends. 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 ESI Assumed RSUs and the ESI Assumed SARs are issuable pursuant to the 2014 Plan. The 748,920 shares of the Company’s common stock were issuable pursuant to the ESI Assumed RSUs and the ESI Assumed SARs under the 2014 Plan were registered under the Securities Act on a registration statement on Form S-8. These shares did not include the 18,000,000 shares of the Company’s common stock reserved for issuance under the 2014 Plan and the 1,260,525 shares of the Company’s common stock that were issuable in connection with the Newport Merger, all of which shares were previously registered under the Securities Act on a registration statement on Form S-8. The following table presents the activity for RSUs under the 2014 Plan, including the Newport Assumed RSUs and the ESI Assumed RSUs: Year Ended December 31, 2020 RSUs Weighted Average Grant Date Fair Value RSUs — beginning of period 1,102,533 $ 85.93 Accrued dividend shares 629 $ 114.35 Granted 309,435 $ 98.72 Vested (737,007 ) $ 85.32 Forfeited or expired (69,504 ) $ 85.71 RSUs — end of period 606,086 $ 93.26 The following table presents the activity for SARs under the 2014 Plan, including the Newport Assumed SARs and the ESI Assumed SARs: Year Ended December 31, 2020 Outstanding and Exercisable SARs Weighted Average Base Value SARs — beginning of period 108,854 $ 29.05 Exercised (55,865 ) $ 27.76 Forfeited or expired (1,400 ) $ 22.39 SARs — end of period 51,589 $ 30.64 At December 31, 2020, the Company’s outstanding and exercisable SARs, the weighted-average base value, the weighted average remaining contractual life and the aggregate intrinsic value thereof, were as follows: Number of Shares Weighted Average Base Value Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value SARs outstanding and exercisable 51,589 $ 30.64 1.0 $ 6.2 The Company settles employee RSU vesting and SARs exercises with newly issued shares of the Company’s common stock. Stock-Based Compensation Expense The Company recognized the full impact of its share-based payment plans in the consolidated statements of operations and comprehensive income. The following table reflects the effect of recording stock-based compensation: Years Ended December 31, 2020 2019 2018 Stock-based compensation expense by type of award: RSUs $ 27.0 $ 47.0 $ 24.9 SARs — 0.1 0.1 Employee stock purchase plan 2.5 2.1 2.3 Total stock-based compensation 29.5 49.2 27.3 Windfall tax effect on stock-based compensation (2.2 ) (2.2 ) (8.3 ) Net effect on net income $ 27.3 $ 47.0 $ 19.0 Effect on net earnings per share: Basic $ 0.50 $ 0.86 $ 0.35 Diluted $ 0.49 $ 0.85 $ 0.35 The pre-tax effect within the consolidated statements of operations and comprehensive income of recording stock-based compensation was as follows: Years Ended December 31, 2020 2019 2018 Cost of revenues $ 4.2 $ 2.8 $ 3.5 Research and development expense 4.0 3.8 2.8 Selling, general and administrative expense 20.4 20.5 21.0 Acquisition and integration related expense 0.9 21.7 — Restructuring related expense — 0.4 — Total pre-tax stock-based compensation expense $ 29.5 $ 49.2 $ 27.3 Valuation Assumptions The Company determines the fair value of RSUs based on the closing market price of the Company’s common stock on the date of the award and estimates the fair value of SARs and employee stock purchase plan rights using the Black-Scholes valuation model. Such values are recognized as expense on a straight-line basis for time-based awards and using the accelerated graded vesting method for performance-based awards, both over the requisite service periods. The weighted average fair value per share of employee stock purchase plan rights granted in 2020, 2019 and 2018 was $23.88, $16.04, and $21.74, respectively. The fair value of employee stock purchase plan rights was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Years Ended December 31, Employee stock purchase plan rights: 2020 2019 2018 Expected life (years) 0.5 0.5 0.5 Risk-free interest rate 0.9 % 2.4 % 1.8 % Expected volatility 45.4 % 38.7 % 38.6 % Expected annual dividends per share $ 0.80 $ 0.80 $ 0.76 Expected volatilities for 2020, 2019 and 2018 are based on a combination of implied and historical volatilities of the Company’s common stock; the expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and the Company’s historical exercise patterns; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. The total intrinsic value of SARs exercised and the total fair value of RSUs vested during 2020, 2019 and 2018 was approximately $86.2, $68.1 and $61.6, respectively. As of December 31, 2020, the unrecognized compensation cost related to RSUs and SARs was approximately $31.5 and will be recognized over an estimated weighted average amortization period of 1.0 year. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | 18) Stockholders’ Equity Stock 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 will depend 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. During 2020 and 2019, there were no repurchases of common stock. During 2018, the Company repurchased approximately 818,000 shares of its common stock for $75.0 at an average price of $91.67 per share. The Company has repurchased approximately 2,588,000 shares of common stock for approximately $127 pursuant to the program since its adoption. 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 17 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 quarter of 2020, which totaled $44.0 or $0.80 per share. The Company’s Board of Directors declared a cash dividend of $0.20 per share during each quarter of 2019, which totaled $43.5 or $0.80 per share. 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 . On February 8, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share to be paid on March 5, 2021 to Stockholders of record as of February 22, 2021. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 19) Employee Benefit Plans The Company has a 401(k) profit-sharing plan for U.S. employees meeting certain requirements, in which eligible employees may contribute between 1% and 50% of their annual compensation to this plan, and, with respect to employees who are age 50 and older, certain specified additional amounts, limited by an annual maximum amount determined by the Internal Revenue Service. The Company, at its discretion, makes certain matching contributions to this plan based on participating employees’ annual contribution to this plan and their total compensation. The Company’s contributions were $7.2, $6.9 and $6.1 for 2020, 2019 and 2018, respectively. The Company maintains a bonus plan which provides cash awards to key employees, at the discretion of the Compensation Committee of the Company’s Board of Directors, based upon the Company’s operating results. In addition, the Company’s foreign locations also have various bonus plans based upon local operating results and employee performance. The total bonus expense was $66.4, $32.2 and $38.3 for 2020, 2019 and 2018, respectively. The Company provides supplemental retirement benefits for a number of retired executives. The total cost of these benefits was $0.3, $3.2 and $4.6 for 2020, 2019 and 2018, respectively. The accumulated benefit obligation was $2.5 and was included in other non-current liabilities at December 31, 2020. The current accumulated benefit obligation was $21.3 and was included in other current liabilities and the non-current accumulated benefit obligation was $2.5 and was included in other non-current liabilities at December 31, 2019. The decrease in the accumulated benefit obligation from 2019 to 2020 was attributed to a large supplemental retirement benefit payment made during 2020 to the Company’s former Chief Executive Officer in connection with his retirement. The Company also assumed deferred compensation plans as a result of each of the Newport Merger and the ESI Merger. Participants in the Newport DC Plan were not permitted to make any new elections beginning with 2018 compensation. Participants in the ESI DC Plan were not permitted to make any new elections beginning with 2020 compensation. Defined Benefit Pension Plans As a result of the Newport Merger, the Company assumed all assets and liabilities of Newport’s defined benefit pension plans, which cover substantially all of its full-time employees in France, Germany, Israel and Japan. In addition, there are certain pension assets and liabilities relating to its former employees in the United Kingdom. The German plan is unfunded, as permitted under the plan and applicable laws. As a result of the ESI Merger, the Company assumed all assets and liabilities of ESI’s defined benefit pension plans, which cover substantially all of its full-time employees in Japan, South Korea and Taiwan. For financial reporting purposes, the calculation of net periodic pension costs was based upon a number of actuarial assumptions including a discount rate for plan obligations, an assumed rate of return on pension plan assets and an assumed rate of compensation increase for employees covered by the plan. All of these assumptions were based upon management’s judgment, considering all known trends and uncertainties. Actual results that differ from these assumptions would impact future expense recognition and the cash funding requirements of the Company’s pension plans. The net periodic benefit costs for the plans included the following components: Year Ended December 31, 2020 2019 Service cost $ 1.0 $ 0.8 Interest cost on projected benefit obligations 0.4 0.5 Expected return on plan assets (0.1 ) (0.1 ) Amortization of actuarial net loss 0.5 0.1 $ 1.8 $ 1.3 The changes in projected benefit obligations and plan assets, as well as the ending balance sheet amounts for the Company’s defined benefit plans, were as follows: Year Ended December 31, 2020 2019 Change in projected benefit obligations: Projected benefit obligations, beginning of year $ 30.1 $ 24.9 Assumed in ESI Merger — 3.5 Service cost 1.0 0.8 Interest cost 0.4 0.5 Contributions by plan participants 0.7 — Plan amendments (0.2 ) — Actuarial loss 3.0 2.1 Benefits paid (1.2 ) (1.5 ) Currency translation adjustments 2.4 (0.2 ) Projected benefit obligations, end of year $ 36.2 $ 30.1 Change in plan assets: Fair value of plan assets, beginning of year $ 11.1 $ 7.8 Assumed in ESI Merger — 1.3 Company contributions 1.1 1.8 Gain on plan assets 0.6 0.6 Benefits paid (0.5 ) (0.5 ) Currency translation adjustments 0.6 0.1 Fair value of plan assets, end of year 12.9 11.1 Net underfunded status $ (23.3 ) $ (19.0 ) As of December 31, 2020, the estimated benefit payments for the Company’s defined benefit plans for the next 10 years were as follows: Estimated benefit payments 2021 $ 0.9 2022 1.1 2023 1.3 2024 1.1 2025 1.3 2026-2030 8.8 $ 14.5 The Company expects to contribute $0.7 to the plans during 2021. The weighted-average rates used to determine the net periodic benefit costs were as follows: December 31, 2020 December 31, 2019 Discount rate 1.1 % 1.4 % Rate of increase in salary levels 2.2 % 2.2 % Expected long-term rate of return on assets 1.2 % 2.1 % In determining the expected long-term rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. Plan assets were held in the following categories as a percentage of total plan assets: December 31, 2020 December 31, 2019 Amount Percentage Amount Percentage Cash $ 0.2 1.3 % $ 0.4 3.9 % Debt securities 5.2 40.5 8.1 72.3 Equity securities 0.7 5.6 1.5 13.7 Other 6.8 52.6 1.1 10.1 $ 12.9 100 % $ 11.1 100 % In general, the Company’s asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk, while providing adequate liquidity to meet immediate and future benefit payment requirements. The Company’s Israeli plans account for the deferred vested benefits using the shut-down method of accounting, which resulted in assets of $18.8 and vested benefit obligations of $21.7 as of December 31, 2020 and assets of $16.7 and vested benefit obligations of $19.7 as of December 31, 2019. Under the shut-down method, the liability is calculated as if it were payable as of the balance sheet date, on an undiscounted basis. Other Pension-Related Assets As of December 31, 2020 and 2019, the Company had assets with an aggregate market value of $6.5 and $5.8, respectively, for its German pension plans. These assets are invested in group insurance contracts through the insurance companies administering these plans, in accordance with applicable pension laws. These group insurance contracts have a guaranteed minimum rate of return ranging from 2.25% to 4.25%, depending on the contract. Because these assets were not separate legal assets of the pension plan, they were not included in the Company’s plan assets shown above. However, the Company has designated such assets to pay pension benefits. Such assets are included in other assets in the accompanying consolidated balance sheet. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 20) Net Income Per Share The following is a reconciliation of basic to diluted net income per share: Years Ended December 31, Numerator: 2020 2019 2018 Net income $ 350.1 $ 140.4 $ 392.9 Denominator: Shares used in net income per common share – basic 55,095,000 54,711,000 54,406,000 Effect of dilutive securities 255,000 400,000 586,000 Shares used in net income per common share – diluted 55,350,000 55,111,000 54,992,000 Net income per common share: Basic $ 6.36 $ 2.57 $ 7.22 Diluted $ 6.33 $ 2.55 $ 7.14 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 (RSUs and SARs) had been converted to such common shares, and if such assumed conversion is dilutive. In 2020, 2019 and 2018, the potential dilutive effect of 2,411, 65,664 and 79,500 weighted average shares, respectively, of RSUs, were excluded from the computation of diluted weighted-average shares outstanding, as the shares would have had an anti-dilutive effect on EPS. |
Business Segment, Geographic Ar
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information | 21) Business Segment, Geographic Area, Product Information 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”), which is the Company’s Chief Executive Officer, 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. Reportable Segments 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 a range of products including laser-based systems for PCB manufacturing, which include flexible interconnect PCB processing systems and high density interconnect solutions for rigid PCB manufacturing and substrate processing and multi-layer ceramic capacitor test 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 group s its similar products within its three reportable segments. The following table sets forth net revenues by reportable segment: Years Ended December 31, 2020 2019 2018 Vacuum & Analysis $ 1,405.9 $ 990.5 $ 1,260.8 Light & Motion 689.6 725.6 814.3 Equipment & Solutions 234.5 183.7 — $ 2,330.0 $ 1,899.8 $ 2,075.1 The following table sets forth a reconciliation of segment gross profit to consolidated net income: Years Ended December 31, 2020 2019 2018 Gross profit by reportable segment: Vacuum & Analysis $ 633.7 $ 426.4 $ 577.6 Light & Motion 309.8 336.8 401.9 Equipment & Solutions 106.0 67.2 — Total gross profit by reportable segment 1,049.5 830.4 979.5 Operating expenses: Research and development 173.1 164.1 135.7 Selling, general and administrative 353.1 330.3 298.1 Acquisition and integration costs 3.8 37.3 3.1 Restructuring and other 9.4 7.0 4.6 Amortization of intangible assets 55.2 67.4 43.5 Asset impairment 2.3 4.7 — COVID-19 related net credits (1.2 ) — — Fees and expenses related to repricing of Term Loan Facility — 6.6 0.4 Gain on sale of long-lived assets — (6.8 ) — Income from operations 453.8 219.8 494.1 Interest income 1.4 5.4 5.8 Interest expense 29.1 44.1 16.9 Other expense, net 3.1 3.3 2.0 Income before income taxes 423.0 177.8 481.0 Provision for income taxes 72.9 37.4 88.1 Net income $ 350.1 $ 140.4 $ 392.9 The following table set forth capital expenditures by reportable segment for the years ended December 31, 2020, 2019 and 2018: Capital expenditures: Vacuum & Analysis Light & Motion Equipment & Solutions Total December 31, 2020: $ 36.0 $ 32.1 $ 16.8 $ 84.9 December 31, 2019: $ 34.1 $ 23.0 $ 6.8 $ 63.9 December 31, 2018: $ 40.1 $ 22.8 $ — $ 62.9 The following table sets forth depreciation and amortization by reportable segment for the years ended December 31, 2020, 2019 and 2018: Depreciation and amortization: Vacuum & Analysis Light & Motion Equipment & Solutions Total December 31, 2020: $ 20.3 $ 43.2 $ 35.7 $ 99.2 December 31, 2019: $ 16.8 $ 53.9 $ 39.3 $ 110.0 December 31, 2018: $ 20.8 $ 59.0 $ — $ 79.8 Total income tax expense is not presented by reportable segment because the necessary information is not available or used by the CODM. The following table sets forth segment assets by reportable segment: Vacuum & Analysis Light & Motion Equipment & Solutions Corporate, Eliminations and Other Total December 31, 2020: Segment assets: Accounts receivable $ 229.1 $ 122.6 $ 51.7 $ (10.7 ) $ 392.7 Inventory 273.3 166.1 63.7 (1.7 ) 501.4 Total segment assets $ 502.4 $ 288.7 $ 115.4 $ (12.4 ) $ 894.1 Vacuum & Analysis Light & Motion Equipment & Solutions Corporate, Eliminations and Other Total December 31, 2019: Segment assets: Accounts receivable $ 185.9 $ 147.2 $ 40.1 $ (32.1 ) $ 341.1 Inventory 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: Years Ended December 31, 2020 2019 Total segment assets $ 894.1 $ 803.2 Cash and cash equivalents and short-term investments 836.0 524.0 Other current assets 74.3 106.3 Property, plant and equipment, net 284.3 241.9 Right-of-use assets 184.4 64.5 Goodwill and intangible assets, net 1,578.6 1,623.1 Other assets and long-term assets 52.1 53.3 Consolidated total assets $ 3,903.8 $ 3,416.3 Geographic Area Information about the Company’s operations by geographic region is presented in the tables below. Net revenues from unaffiliated customers are based on the location in which the sale originated. Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues. Years Ended December 31, 2020 2019 2018 Net revenues: United States $ 1,058.9 $ 888.4 $ 1,022.7 South Korea 278.8 167.7 203.6 China 273.5 178.6 127.7 Other Asia 519.6 435.8 477.1 Europe 199.2 229.3 244.0 $ 2,330.0 $ 1,899.8 $ 2,075.1 Years Ended December 31, 2020 2019 Long-lived assets: (1) United States $ 364.0 $ 208.3 Asia 94.8 89.6 Europe 45.1 41.4 $ 503.9 $ 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. The increase in long-lived assets in the United States for 2020 reflects right-of-use assets from new leases, mainly at three locations. Goodwill associated with each of the Company’s reportable segments is as follows: Years Ended December 31, 2020 2019 Reportable segment: Vacuum & Analysis $ 196.2 $ 196.7 Light & Motion 395.3 388.5 Equipment & Solutions 474.9 473.3 Total goodwill $ 1,066.4 $ 1,058.5 Major Customers The Company had two customers with net revenues greater than 10% of total net revenues at December 31, 2020 and 2018 as shown below. No individual customers accounted for greater than 10% of the Company’s net revenues for 2019. Years Ended December 31, 2020 2019 2018 Lam Research Corporation 13.5% 8.5% 10.8% Applied Materials, Inc. 10.6% 9.3% 11.7% |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2020 | |
Expense Of Restructuring Activities And Other [Abstract] | |
Restructuring and Other | 22) Restructuring and Other Restructuring During 2020, the Company recorded restructuring charges of $2.7, primarily related to costs incurred from the pending closure of a facility in Europe and costs related to the exit of certain product groups. During 2019, the Company recorded restructuring charges of $5.5, primarily related to costs incurred from the closure of a facility in Europe and also to severance costs related to an organization-wide reduction in workforce, the consolidation of service functions in Asia and the movement of certain products to low cost regions. The activity related to the Company’s restructuring accrual is shown below: 2020 2019 Balance at January 1 $ 3.7 $ 2.6 Charged to expense 2.7 5.5 Payments and adjustments (6.1 ) (4.4 ) Balance at December 31 $ 0.3 $ 3.7 Other During 2020, the Company recorded charges of $7.2 related to duplicate facility costs. The Company also received an insurance reimbursement of $0.5 for costs recorded on a legal settlement from a contractual obligation assumed as part of the Newport Merger. During 2019, the Company recorded a charge of $1.5 related to a legal settlement from a contractual obligation assumed as part of the Newport Merger. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 23) 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 District 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 District 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 District Court dismissed the Company and Newport from the action. The second amended complaint seeks monetary damages, including pre- and post-judgment interest. The District 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 District 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 District Court’s order granting defendants’ motion for summary judgment, as well as from the District Court’s prior orders granting defendants’ motion for a bench trial and denying plaintiffs’ motion for leave to file an amended complaint. On November 30, 2020, plaintiffs filed their opening brief in the Nevada Supreme Court in support of their appeal from the District Court’s orders. On January 29, 2021, defendants filed their answering brief. The Nevada Supreme Court has not yet reached a decision on the appeal. The Company is also subject to various legal proceedings and claims that have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters , and the matters noted above, will not have a material adverse effect on the Company’s results of operations, financial condition or cash flows. The Company leases certain of its facilities and machinery and equipment under operating leases expiring in various years through 2184. Refer to Note 5 for a schedule of future lease payments under non-cancelable leases as of December 31, 2020. As of December 31, 2020, the Company has entered into purchase commitments for certain inventory components and other equipment and services used in its normal operations. The majority of the purchase commitments covered by these arrangements are for periods of less than one year and aggregate to approximately $268.2. To the extent permitted by Massachusetts law, the Company’s Restated Articles of Organization, as amended, require the Company to indemnify any of its current or former officers or directors or any person who has served or is serving in any capacity with respect to any of the Company’s employee benefit plans. The Company believes that the estimated exposure for these indemnification obligations is currently not material. Accordingly, the Company has no material liabilities recorded for these requirements as of December 31, 2020. The Company also enters into agreements in the ordinary course of business which include indemnification provisions. Pursuant to these agreements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified party, generally its customers, for losses suffered or incurred by the indemnified party in connection with certain patent or other intellectual property infringement claims, and, in some instances, other claims, by any third party with respect to the Company’s As part of past acquisitions and divestitures of businesses or assets, the Company has provided a variety of indemnifications to the sellers and purchasers for certain events or occurrences that took place prior to the date of the acquisition or divestiture. Typically, certain of the indemnifications expire after a defined period of time following the transaction, but certain indemnifications may survive indefinitely. The maximum potential amount of future payments the Company could be required to make for such obligations is undeterminable at this time. Other than obligations recorded as liabilities at the time of the acquisitions, historically the Company has not made significant payments for these indemnifications. Accordingly, no material liabilities have been recorded for these obligations. In conjunction with certain asset sales, the Company may provide routine indemnifications whose terms range in duration and often are not explicitly defined. Where appropriate, an obligation for such indemnification is recorded as a liability. Because the amounts of liability under these types of indemnifications are not explicitly stated, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of the asset sale, historically the Company has not made significant payments for these indemnifications. |
Supplemental Financial Data
Supplemental Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Financial Data | MKS Instruments, Inc. Supplemental Financial Data Quarter Ended March 31 June 30 Sept. 30 Dec. 31 (Table in millions, except per share data) (Unaudited) 2020 Statement of Operations Data Net revenues $ 535.7 $ 544.3 $ 589.8 $ 660.2 Gross profit 239.6 246.3 262.0 301.6 Income from operations 89.9 100.8 116.4 146.7 Net income $ 69.1 $ 73.7 $ 91.7 $ 115.6 Net income per share: Basic $ 1.26 $ 1.34 $ 1.66 $ 2.10 Diluted $ 1.25 $ 1.33 $ 1.66 $ 2.08 Cash dividends paid per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 2019 Statement of Operations Data Net revenues $ 463.6 $ 474.1 $ 462.5 $ 499.7 Gross profit 198.1 211.0 205.0 216.3 Income from operations 23.1 63.9 66.8 66.1 Net income $ 12.5 $ 37.7 $ 47.4 $ 42.8 Net income per share: Basic $ 0.23 $ 0.69 $ 0.86 $ 0.78 Diluted $ 0.23 $ 0.69 $ 0.86 $ 0.77 Cash dividends paid per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 24) On February 4, 2021, we made a proposal to acquire in a cash and stock transaction Coherent, Inc. (“Coherent”), which had previously announced that it had entered into a definitive agreement with Lumentum Holdings, Inc. (“Lumentum”) pursuant to which Lumentum would acquire Coherent. U nder the terms of our proposal to Coherent, if accepted by Coherent, Coherent shareholders would receive $115 cash and .7473 of a share of our common stock per share of Coherent common stock. The execution of a definitive merger agreement between Coherent and us would be subject to approval of each party’s board of directors and completion of the transaction would be subject to customary closing conditions, including receipt of required regulatory approvals and approval of our and Coherent’s respective stockholders. Completion of the transaction would not be subject to any financing condition. On February 12, 2021, |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | MKS Instruments, Inc. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Additions Description Balance at Beginning of Year Acquisition Beginning Balance Charged to Costs and Expenses Charged to Other Accounts Deductions & Write-offs Balance at End of Year Allowance for doubtful accounts: (in millions) Years ended December 31, 2020 $ 1.8 $ — $ 0.1 $ — $ 0.1 $ 2.0 2019 $ 5.2 $ 0.2 $ (0.7 ) $ — $ (2.9 ) $ 1.8 2018 $ 4.1 $ — $ 1.4 $ — $ (0.3 ) $ 5.2 Additions Description Balance at Beginning of Year Acquisition Beginning Balance Charged to Costs and Expenses Charged to Other Accounts Deductions & Write-offs Balance at End of Year Allowance for sales returns: (in millions) Years ended December 31, 2020 $ 1.4 $ — $ 0.3 $ — $ 0.1 $ 1.8 2019 $ 1.0 $ — $ 0.2 $ — $ 0.2 $ 1.4 2018 $ 1.3 $ — $ 0.1 $ — $ (0.4 ) $ 1.0 Additions Description Balance at Beginning of Year Acquisition Beginning Balance Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Year Valuation allowance on deferred tax asset: (in millions) Years ended December 31, 2020 $ 27.4 $ — $ 4.2 $ — $ (1.0 ) $ 30.6 2019 $ 17.9 $ 5.9 $ 4.9 $ — $ (1.3 ) $ 27.4 2018 $ 13.6 $ — $ 4.8 $ — $ (0.5 ) $ 17.9 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Leases | Leases The Company adopted Accounting Standards Update (“ASU”) 2016-02, “Leases,” on January 1, 2019 and used the effective date as its date of initial application. As such, the Company did not adjust prior period amounts. The Company also elected to adopt the package of practical expedients upon transition, which permits companies to not reassess lease identification, classification, and initial direct costs for leases that commenced prior to the effective date. The Company implemented internal controls and a lease accounting information system to enable preparation on adoption. Upon adoption, the Company recorded a cumulative effect of initially applying this new standard, resulting in the addition of $71.0 of right-of-use assets and $20.2 and $54.1 of short-term and long-term lease liabilities, respectively. The right-of-use asset is net of the deferred rent liability, prepaid rent and a net favorable lease asset which were re-classified to the right-of-use asset upon adoption of the standard. 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. 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 Company has lease arrangements with lease and non-lease components, has elected to account for the lease and non-lease components as a single lease component, and has allocated all of the contract consideration to the lease component only. The Company has existing net leases in which the non-lease components (e.g. common area maintenance, maintenance and consumables) are paid separately from rent based on actual costs incurred. Therefore, non-lease components are not included in the right-of-use asset and lease liability and are reflected as expenses in the periods incurred. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company accounts for revenue using Accounting Standards Codification (“ASC”) 606 (“ASC 606”). The Company applies ASC 606 using the following steps: • Identify the contract with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to performance obligations in the contract • Recognize revenue when or as the Company satisfies a performance obligation Revenue under ASC 606 is recognized when or as obligations under the terms of a contract with the Company’s customer has been satisfied and control has transferred to the customer. The majority of the Company’s performance obligations, and associated revenue, are transferred to customers at a point in time, generally upon shipment of a product to the customer or receipt of the product by the customer and without significant judgments. Installation services are not significant and are usually completed in a short period of time (normally less than two weeks) and therefore, recorded at a point in time when the installation services are completed, rather than over time as they are not material. Extended warranty, service contracts, and repair services, which are transferred to the customer over time, are recorded as revenue as the services are performed. For repair services, the Company makes an accrual at quarter end based upon historical repair times within its product groups to record revenue based upon the estimated number of days completed to date, which is consistent with ratable recognition. Customized products with no alternative future use to the Company, and that have an enforceable right to payment for performance completed to date, are also recorded over time. The Company considers this to be a faithful depiction of the transfer to the customer of revenue over time as the work is performed or service is delivered, ratably over time. These adjustments were not material for 2020 or 2019. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the product or service is separately identifiable from other promises in the contract. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company’s normal payment terms are 30 to 60 days, but vary by the type and location of its customers and the products or services offered. The time between invoicing and when payment is due is not significant. For certain products and services and customer types, the Company requires payment before the products or services are delivered to, or performed for, the customer. None of the Company’s contracts as of December 31, 2020 contained a significant financing component. Contracts with Multiple Performance Obligations The Company periodically enters into contracts with its customers in which a customer may purchase a combination of goods and or services, such as products with installation services or extended warranty obligations. These contracts include multiple promises that the Company evaluates to determine if the promises are separate performance obligations. Once the Company determines the performance obligations, the Company then determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the method the Company expects to better predict the amount of consideration to which it will be entitled. There are no constraints on the variable consideration recorded. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price charged separately to customers or using an expected cost - plus - margin method. The corresponding revenues are recognized when or as the related performance obligations are satisfied, which are noted above. The impact of variable consideration was immaterial during 2020 , 2019 and 2018 . Deferred Revenues The Company’s standard assurance warranty period is normally 12 to 24 months. The Company sells separately-priced service contracts and extended warranty contracts related to certain of its products, especially its laser products. The separately priced contracts generally range from 12 to 60 months. The Company normally receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract. The Company has elected to use the practical expedient related to disclosing the remaining performance obligations as of December 31, 2020 and 2019, as the majority have a duration of less than one year. Costs to Obtain and Fulfill a Contract Under ASC 606, the Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administration expenses. The Company has elected to recognize the costs for freight and shipping when control over products has transferred to the customer as an expense in cost of sales. Product revenue, excluding revenue from certain custom products, is recorded at a point in time, while the majority of service revenue and revenue from certain custom products is recorded over time. |
Accounts Receivable Allowances | Accounts Receivable Allowances Accounts receivable allowances include sales returns and bad debt allowances. The Company monitors and tracks the amount of product returns and reduces revenue at the time of shipment for the estimated amount of such future returns, based on historical experience. The Company makes estimates evaluating its allowance for doubtful accounts. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon its historical experience and any specific customer collection issues that it has identified. |
Research and Development | Research and Development Research and development costs are expensed as incurred and consist mainly of compensation-related expenses and project materials. The Company’s research and development efforts include numerous projects, which generally have a duration of 3 to 30 months. Acquired in-process research and development (“IPR&D”) expenses, if acquired in a business combination, are capitalized at fair value as an intangible asset until the related project is completed, are then amortized over the estimated useful life of the product. The Company monitors projects and, if they are abandoned, the Company writes them off. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and were immaterial in 2020, 2019 and 2018. |
Stock-Based Compensation | Stock-Based Compensation The accounting for share-based compensation expense requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. For restricted stock units (“RSUs”), the fair value is measured on the date of grant and expensed normally over a three-year Management determined that blended volatility, a combination of historical and implied volatility, is more reflective of market conditions and a better indicator of expected volatility than historical or implied volatility alone. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, stock-based compensation expense could be materially different in the future. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income For foreign subsidiaries where the functional currency is the local currency, assets and liabilities are translated into U.S. dollars at the current exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are recorded to Accumulated Other Comprehensive Income ( “ ” |
Net Income Per Share | Net Income Per Share Basic net income per share is based on the weighted average number of common shares outstanding and diluted net income per share is based on the weighted average number of common shares outstanding and all potential dilutive common equivalent shares outstanding. The dilutive effect of RSUs and stock appreciation rights (“SARs”) are determined under the treasury stock method using the average market price for the period. Common equivalent shares are included in the per share calculations when the effect of their inclusion would be dilutive. |
Cash and Cash Equivalents and Investments | Cash and Cash Equivalents and Investments All highly liquid investments with a maturity date of three months or less at the date of purchase are considered to be cash equivalents. The appropriate classification of investments in securities is determined at the time of purchase. Debt securities that the Company does not have the intent and ability to hold to maturity are classified as “available-for-sale” and are carried at fair value. The Company classifies investments with maturity dates greater than twelve months in short-term investments rather than long-term investments. This method classifies these securities as current based on the nature of the securities and the availability for use in current operations. The Company believes this method is preferable because it is more reflective of the Company’s assessment of its overall liquidity position. The Company reviews its investment portfolio on a quarterly basis to identify and evaluate individual investments that have indications of possible impairment. The factors considered in determining whether a loss is other-than-temporary include: the length of time and extent to which fair market value has been below the cost basis, the financial condition and near-term prospects of the issuer, credit quality, and the Company’s ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s significant concentrations of credit risk consist principally of cash and cash equivalents, investments, forward exchange contracts and trade accounts receivable. The Company maintains cash and cash equivalents with financial institutions, including some banks with which it had borrowings. The Company maintains investments primarily in U.S. Treasury and government agency securities and corporate debt securities. The Company enters into forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. The Company’s largest customers are primarily concentrated in the semiconductor industry, and a limited number of these customers account for a significant portion of the Company’s revenues. The Company regularly monitors the creditworthiness of its customers and believes it has adequately provided for potential credit loss exposures. Credit is extended for all customers based primarily on financial condition, and collateral is not required. During 2020, 2019 and 2018, approximately 59%, 49% and 55% of the Company’s net revenues, respectively, were from sales to semiconductor capital equipment manufacturers and semiconductor device manufacturers. One customer represented 10% or more of the Company’s accounts receivable balance as of December 31, 2020. No customers represented 10% or more of the Company’s accounts receivable balance as of December 31, 2019. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined using a standard costing system which approximates cost based on a first-in, first-out method. The Company regularly reviews inventory quantities on hand and records a provision to write-down excess and obsolete inventory to its estimated net realizable value, if less than cost, based primarily on its estimated forecast of product demand. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property, plant and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized in earnings. Depreciation is provided on the straight-line method over the estimated useful lives of ten to fifty years for buildings and three to eighteen years for machinery and equipment, furniture and fixtures and office equipment, which includes enterprise resource planning software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the leased asset. |
Acquisition Accounting | Acquisition Accounting The fair value of the consideration exchanged in a business combination is allocated to tangible assets and identifiable intangible assets acquired and liabilities assumed at acquisition date fair value. Goodwill is measured as the excess of the consideration transferred over the net fair value of identifiable assets acquired and liabilities assumed. The accounting for an acquisition involves a considerable amount of judgement and estimation. Cost, income, market or a combination of approaches may be used to establish the fair value of consideration exchanged, assets acquired, and liabilities assumed, depending on the nature of those items. The valuation approach is determined in accordance with generally accepted valuation methods. Key areas of estimation and judgment may include the selection of valuation approaches, cost of capital, market characteristics, cost structure, impacts of synergies, and estimates of terminal value, among other factors. While the Company uses estimates and assumptions as part of the purchase price allocation process to estimate the value of assets acquired and liabilities assumed, estimates are inherently uncertain and subject to refinement. During the measurement period, which maybe up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill, to the extent that adjustments are identified to the preliminary purchase price allocation. Upon conclusion of the measurement period, or final determination of the value of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded to results of operations. |
Intangible Assets | Intangible Assets Intangible assets resulting from the acquisitions of businesses are estimated by management based on the fair value of assets acquired. These include acquired customer lists, technology, patents, trademarks, trade names, covenants not to compete and IPR&D. Intangible assets are amortized from one to eighteen years on a straight-line basis which represents the estimated periods of benefit and the expected pattern of consumption. |
Goodwill | Goodwill Goodwill is the amount by which the cost of acquired net assets exceeded the fair value of those net assets on the date of acquisition. The Company allocates goodwill to reporting units at the time of acquisition or when there is a change in the reporting structure and bases that allocation on which reporting units will benefit from the acquired assets and liabilities. Reporting units are defined as operating segments or one level below an operating segment, referred to as a component. The Company assesses goodwill for impairment on an annual basis as of October 31 or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The estimated fair value of the Company’s reporting units are based on discounted cash flow models derived from internal earnings and internal and external market forecasts. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount and terminal growth rates, as well as forecasted revenue, gross profit and operating margins. Discount rates are based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity. The WACC used to test goodwill is derived from a group of comparable companies. Assumptions in estimating future cash flows are subject to a high degree of judgment and complexity. The Company makes every effort to forecast these future cash flows as accurately as possible with the information available at the time the forecast is developed. In performing the Company’s annual goodwill impairment test, the Company is permitted to first assess qualitative factors to determine whether it is more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount, including goodwill. In performing the qualitative assessment, the Company considers certain events and circumstances specific to the reporting unit and to the entity as a whole, such as macroeconomic conditions, industry and market considerations, overall financial performance and cost factors when evaluating whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company is also permitted to bypass the qualitative assessment and proceed directly to the quantitative test. If the Company chooses to undertake the qualitative assessment and concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company would then proceed to the quantitative impairment test. In the quantitative assessment, the Company compares the fair value of the reporting unit to its carrying amount, which includes goodwill. If the fair value exceeds the carrying value, no impairment loss exists. If the fair value is less than the carrying amount, a goodwill impairment loss is measured and recorded. Effective January 1, 2019, the Company reassigned goodwill to certain reporting units within the Light & Motion reportable segment, resulting from a reorganization of the composition of reporting units. The goodwill was reassigned to the reporting units affected using the relative fair value approach. The Company also concluded that the fair value of each reporting unit exceeded its respective carrying value. As of October 31, 2020, the Company performed its annual impairment assessment of goodwill by performing a quantitative impairment analysis of its Equipment & Solutions reporting unit and a qualitative analysis for all other reporting units and determined that it is more likely than not that the fair values of the reporting units exceed their carrying amount. For the quantitative assessment for the Equipment & Solutions reporting unit, the Company estimated that the fair value exceeded its carrying value by 10%. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. This periodic review may result in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment are present, the carrying values of the asset are evaluated in relation to their operating performance and future undiscounted cash flows of the underlying business. If the future undiscounted cash flows are less than their carrying value, impairment exists. The impairment is measured as the difference between the carrying value and the fair value of the underlying asset. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. |
Foreign Exchange | Foreign Exchange The functional currency of the majority of the Company’s foreign subsidiaries is the applicable local currency. For those subsidiaries, assets and liabilities are translated to U.S. dollars at year-end exchange rates. Income and expense accounts are translated at the average exchange rates prevailing during the year. The resulting translation adjustments are included in accumulated other comprehensive income (loss) in consolidated stockholders’ equity. Foreign exchange transaction gains and losses are classified in other income/expense in the statement of operations and comprehensive income . Net foreign exchange losses resulting from re-measurement were $3.5, $3.6 and $2.5 for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in other expense, net. These amounts do not reflect the corresponding gain (loss) from foreign exchange forward contracts, which are included in cost of sales. See Note 9 “Derivatives” regarding foreign exchange contracts. |
Employee Benefit Plans | Employee Benefit Plans The majority of the Company’s employees participate in defined contribution plans, whereby the Company, at its discretion, makes certain matching contributions based on participating employees’ annual contribution to the plan and their total compensation. The Company also has defined benefit retirement plans at certain of its foreign subsidiaries. The Company accounts for these plans based on the provisions of ASC Topic 715, “Compensation-Retirement Benefits.” Some of the key assumptions used to calculate the pension expense and projected benefit obligation include the discount rate, rate of forecasted salary increases, the expected long-term rate of return on plan assets and the mortality lives of participants. The obligation for these claims and the related periodic costs are measured using actuarial techniques and assumptions. Actuarial gains and losses are deferred and amortized over future periods. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and also for operating loss and tax credit carry-forwards. On a quarterly basis, the Company evaluates both the positive and negative evidence that affects the realizability of net deferred tax assets and assesses the need for a valuation allowance. The future benefit to be derived from its deferred tax assets is dependent upon its ability to generate sufficient future taxable income in each jurisdiction of the right type to realize the assets. The Company records a valuation allowance to reduce its net deferred tax assets to the amount that is expected to be realized. To the extent the Company establishes a valuation allowance an expense will be recorded as a component of the provision for income taxes on the statement of operations. Accounting for income taxes requires a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not that the position will be sustained upon audit, including resolutions of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company re-evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Any change in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. Income tax effects resulting from changes in tax law are generally accounted for by the Company in the period in which the law is enacted and the effects are recorded as a component of provision for income taxes from continuing operations. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Elements of Lease Payments | The elements of lease expense were as follows: Years Ended December 31, 2020 2019 Lease cost: Operating lease (1) $ 29.2 $ 23.2 Short-term lease 4.9 4.3 Total lease cost $ 34.1 $ 27.5 (1) Operating lease cost includes an immaterial amount of variable expenses, offset by certain sublease rental income. |
Future Lease Payment Under Non-Cancelable Lease | Future lease payments under non-cancelable leases as of December 31, 2020 are detailed as follows: Year Ending December 31, Amount 2021 $ 21.6 2022 20.4 2023 18.3 2024 17.4 2025 16.6 Thereafter 161.7 Total lease payments 256.0 Less: imputed interest 52.8 Total operating lease liabilities $ 203.2 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 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: 2020 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 107.4 77.7 Amount of deferred revenue and customer advances recognized in income (95.5 ) (75.0 ) Ending balance, December 31 (2) $ 36.7 $ 24.8 (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 December 31, 2020 included $18.3 of current deferred revenue, $5.6 of long-term deferred revenue and $12.8 of current customer advances. |
Summary of Revenue from Contracts with Customers | The following table summarizes revenue from contracts with customers: Year Ended December 31, 2020 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 1,222.4 $ 621.9 $ 170.5 $ 2,014.8 Services 183.5 67.7 64.0 315.2 Total net revenues $ 1,405.9 $ 689.6 $ 234.5 $ 2,330.0 Year Ended December 31, 2019 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 819.1 $ 663.7 $ 128.5 $ 1,611.3 Services 171.4 61.9 55.2 288.5 Total net revenues $ 990.5 $ 725.6 $ 183.7 $ 1,899.8 Year Ended December 31, 2018 Vacuum & Analysis Light & Motion Equipment & Solutions Total Net revenues: Products $ 1,080.3 $ 754.9 $ — $ 1,835.2 Services 180.5 59.4 — 239.9 Total net revenues $ 1,260.8 $ 814.3 $ — $ 2,075.1 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Short-Term and Long-Term Investments Available-for-Sale | Investments classified as short-term consist of the following: Years Ended December 31, 2020 2019 Available-for-sale investments: Time deposits and certificates of deposit $ 0.7 $ 13.1 Bankers’ acceptance drafts 3.8 4.0 Commercial paper — 61.2 U.S. treasury obligations 223.2 5.0 U.S. agency obligations — 26.1 $ 227.7 $ 109.4 Investments classified as long-term consist of the following: Years Ended December 31, 2020 2019 Available-for-sale investments: Group insurance contracts $ 6.5 $ 5.8 |
Gross Unrealized Gains and (Losses) Aggregated by Investment Category | The following table shows the gross unrealized gains and (losses) aggregated by investment category for available-for-sale investments: As of December 31, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Short-term investments: Available-for-sale investments: Time deposits and certificates of deposit $ 0.7 $ — $ — $ 0.7 Bankers' acceptance drafts 3.8 — — 3.8 U.S. treasury obligations 223.2 — — 223.2 $ 227.7 $ — $ — $ 227.7 As of December 31, 2020: Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Long-term investments: Available-for-sale investments: Group insurance contracts $ 5.6 $ 0.9 $ — $ 6.5 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) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2020, are summarized as follows: Fair Value Measurements at Reporting Date Using Description December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 1.3 $ 1.3 $ — $ — Commercial paper 0.3 $ — 0.3 $ — U.S. treasury obligations 62.1 — 62.1 — Available-for-sale securities: Time deposits and certificates of deposit 0.7 — 0.7 — Bankers' acceptance drafts 3.8 — 3.8 — U.S. treasury obligations 223.2 — 223.2 — Group insurance contracts 6.5 — 6.5 — Funds in investments and other assets: Israeli pension assets 18.8 — 18.8 — Deferred compensation plan assets: Mutual funds and exchange traded funds 1.7 — 1.7 — Total assets $ 318.4 $ 1.3 $ 317.1 $ — Liabilities: Derivatives – forward exchange contracts $ 6.5 $ — $ 6.5 $ — Derivatives – interest rate hedge – non-current 14.0 — 14.0 — Total liabilities $ 20.5 $ — $ 20.5 $ — Reported as follows: Assets: Cash and cash equivalents (1) $ 63.7 $ $ 63.7 $ — Short-term investments 227.7 — 227.7 — Other current assets — — — — Total current assets $ 291.4 $ — $ 291.4 $ — Long-term investments $ 6.5 $ — $ 6.5 $ — Other assets 20.5 — 20.5 — Total long-term assets $ 27.0 $ — $ 27.0 $ — Liabilities: Other current liabilities $ 6.5 $ — $ 6.5 $ — Other liabilities $ 14.0 $ — $ 14.0 $ — (1) The cash and cash equivalent amounts presented in the table above does not include cash of $544.6 as of December 31, 2020. Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2019 , are summarized as follows: Fair Value Measurements at Reporting Date Using Description December 31, 2019 Quoted Prices in Active Markets for Identical Assets (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 – forward exchange 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 securities 0.5 — 0.5 — Total assets $ 201.5 $ 0.6 $ 200.9 $ — Liabilities: Derivatives – forward exchange 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) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and December 31, 2019: December 31, 2020 Currency Hedged (Buy/Sell) Gross Notional Value Fair Value (1) U.S. Dollar/Japanese yen $ 61.5 $ (1.1 ) U.S. Dollar/South Korean won 62.2 (3.1 ) U.S. Dollar/Euro 13.1 (0.6 ) U.S. Dollar/U.K. pound sterling 6.1 (0.3 ) U.S. Dollar/Taiwan dollar 33.3 (1.4 ) Total $ 176.2 $ (6.5 ) 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 the (payable) receivable amount included in the consolidated balance sheet. |
Summary of Various Interest Rate Hedges | The table below summarizes the various interest rate hedges entered into by the Company: Year Ended December 31, Years Ended December 31, 2020 2020 2019 Swap Trade Date Effective Date Maturity Fixed Rate Notional Amount at Effective Date Notional Amount Fair Value Asset (Liability) Fair Value Asset (Liability) 1 September 29, 2016 September 30,2016 September 30, 2020 1.198 % $ 335.0 $ — $ — $ 0.8 2 April 3, 2019 April 5, 2019 March 31, 2023 2.309 % $ 300.0 $ 300.0 (12.4 ) (6.5 ) 3 October 29, 2020 October 26, 2021 February 28, 2025 0.485 % $ 200.0 $ — (0.7 ) - 4 October 29, 2020 March 31, 2022 February 28, 2025 0.623 % $ 100.0 $ — (0.9 ) - Total $ (14.0 ) $ (5.7 ) |
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: Years Ended December 31, Derivatives Designated as Hedging Instruments 2020 2019 Derivative asset: Forward exchange contracts (1) $ — $ 1.1 Interest rate hedge (2) — 0.8 Derivative liability: Forward exchange contracts (1) (6.5 ) (1.3 ) Interest rate hedge (2) (14.0 ) (6.5 ) Total net derivative liability designated as hedging instruments $ (20.5 ) $ (5.9 ) (1) The derivative asset related to foreign exchange contracts of $1.1 is classified in other current assets in the condensed consolidated balance sheet as of December 31, 2019. The derivative liabilities related to foreign exchange contracts of $6.5 and $1.3 are classified in other current liabilities in the condensed consolidated balance sheet as of December 31, 2020 and 2019, respectively. These foreign exchange forward 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 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 in the consolidated balance sheet as of December 31, 2020 and 2019, respectively. |
Summary of (Loss) Gain on Derivatives Designated as Cash Flow Hedging Instruments | The following table provides a summary of the (loss) gain on derivatives designated as cash flow hedging instruments: Derivatives Designated as Cash Flow Hedging Instruments Years Ended December 31, Forward exchange contracts: 2020 2019 2018 Net (loss) gain recognized in OCI, net of tax (1) $ (10.6 ) $ (10.0 ) $ 4.9 Net gain reclassified from OCI into income (2) $ 1.7 $ 5.7 $ 3.4 (1) Net change in the fair value of the effective portion classified in OCI. (2) Effective portion classified in cost of products. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial. |
Summary of (Loss) Gain on Derivatives Not Designated as Cash Flow Hedging Instruments | The following table provides a summary of (loss) gain on derivatives not designated as cash flow hedging instruments: Derivatives Not Designated as Cash Flow Hedging Instruments Years Ended December 31, Forward exchange contracts: 2020 2019 2018 Net (loss) gain recognized in income (1) $ (1.5 ) $ (1.3 ) $ 0.1 (1) The Company enters into foreign exchange forward 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 cash flow hedging instruments and gains or losses from these derivatives are recorded immediately in other expense, net. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following: Years Ended December 31, 2020 2019 Raw material $ 321.3 $ 288.8 Work-in-process 76.7 79.3 Finished goods 103.4 94.0 Total $ 501.4 $ 462.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consist of the following: Years Ended December 31, 2020 2019 Land $ 12.3 $ 11.9 Buildings 120.2 113.3 Machinery and equipment 397.8 396.2 Furniture and fixtures, office equipment and software 187.1 186.7 Leasehold improvements 95.4 80.4 Construction in progress 70.6 46.9 883.4 835.4 Less: accumulated depreciation 599.1 593.5 Total $ 284.3 $ 241.9 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 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) |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the 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 Consolidated Net Revenue and Earnings | The Company’s consolidated net revenue and earnings for the year ended December 31, 2019 include the following amounts of revenue and earnings of ESI since the acquisition date: Year Ended December 31, 2019 Total net revenues $ 183.7 Net loss $ (33.5 ) Net loss per share: Basic $ (0.61 ) Diluted $ (0.61 ) |
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 each year. In addition, the unaudited pro forma financial information does not attempt to project the future results of operations of the combined Company. Years Ended December 31, 2019 2018 Total net revenues $ 1,914.6 $ 2,445.7 Net income $ 171.5 $ 424.8 Net income per share: Basic $ 3.14 $ 7.81 Diluted $ 3.11 $ 7.72 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | The changes in the carrying amount of goodwill and accumulated impairment losses were as follows: 2020 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 (1) — — — 474.0 — 474.0 Impairment of goodwill (2) — (1.1 ) (1.1 ) — — — Foreign currency translation 9.0 — 9.0 (2.5 ) — (2.5 ) Ending balance at December 31 $ 1,211.8 $ (145.4 ) $ 1,066.4 $ 1,202.8 $ (144.3 ) $ 1,058.5 (1 ) During the twelve months ended December 31, 2019, the Company recorded $474.0 of goodwill related to the ESI Merger. (2) |
Acquired Intangible Assets | Intangible Assets Components of the Company’s acquired intangible assets are comprised of the following: As of December 31, 2020 Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology $ 446.4 $ (0.1 ) $ (209.8 ) $ (0.1 ) $ 236.4 Customer relationships 308.2 (1.4 ) (104.8 ) 1.7 203.7 Patents, trademarks, trade names and other 120.9 — (48.6 ) (0.2 ) 72.1 $ 875.5 $ (1.5 ) $ (363.2 ) $ 1.4 $ 512.2 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 (1) 120.9 — (45.5 ) 0.2 75.6 $ 875.5 $ (1.5 ) $ (308.0 ) $ (1.4 ) $ 564.6 (1) During the twelve months ended December 31, 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. |
Estimated Net Amortization Expense | Aggregate net amortization expense related to acquired intangible assets for future years is: Year Amount 2021 $ 48.2 2022 45.6 2023 45.2 2024 44.3 2025 43.3 Thereafter $ 229.7 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Product Warranty Activities | Product warranty activities were as follows: Years Ended December 31, 2020 2019 Beginning balance $ 14.9 $ 10.4 Assumed product warranty liability from ESI Merger — 7.2 Provision for product warranties 28.3 17.4 Direct and other charges to warranty liability (24.8 ) (20.1 ) Ending balance (1) $ 18.4 $ 14.9 (1) Short-term product warranty of $15.6 and long-term product warranty of $2.8, each as of December 31, 2020, are included within other current liabilities and other non-current liabilities, respectively, within the accompanying consolidated balance sheet. Short-term product warranty of $12.1 and long-term product warranty of $2.8, each as of December 31, 2019, are included within other current liabilities and other non-current liabilities, respectively, within the accompanying consolidated balance sheet. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | December 31, 2020 December 31, 2019 Short-term debt: Japanese lines of credit $ 5.4 $ 2.5 Japanese receivables financing facility 0.1 0.6 Term Loan Facility 9.0 9.0 $ 14.5 $ 12.1 |
Schedule of Long-Term Debt | December 31, 2020 December 31, 2019 Long-term debt: Other debt $ — $ 0.1 Term Loan Facility, net (1) 815.0 871.6 $ 815.0 $ 871.7 (1) |
Schedule of Contractual Maturities of Debt Obligations | Contractual maturities of the Company’s debt obligations as of December 31, 2020 are as follows: Year Amount 2021 $ 14.5 2022 $ 9.0 2023 $ 9.0 2024 $ 9.0 2025 $ 9.0 Thereafter $ 788.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Company's Effective Tax Rate to U.S. Federal Statutory Rate | A reconciliation of the Company’s effective tax rate to the U.S. federal statutory rate is as follows: Years Ended December 31, 2020 2019 2018 U.S. federal income tax statutory rate 21.0 % 21.0 % 21.0 % Federal tax credits (1.5 ) (2.9 ) (0.7 ) State income taxes, net of federal benefit 1.1 2.3 1.3 Effect of foreign operations taxed at various rates (5.0 ) (4.4 ) (1.3 ) Executive compensation 1.1 5.8 — Gain on intercompany sale of assets — 2.9 — Utilization of a capital loss — (1.2 ) — Foreign derived intangible income deduction (1.5 ) (3.8 ) (2.1 ) Global intangible low taxed income, net of foreign tax credits 0.9 2.6 0.4 Transition tax, net of foreign tax credits — — (0.1 ) Revaluation of deferred income taxes — (1.4 ) (0.3 ) Revaluation of prepaid taxes — — 1.6 Stock-based compensation (0.7 ) (0.3 ) (1.3 ) Deferred tax asset valuation allowance 0.6 0.1 — Release of income tax reserves (including interest) — (0.8 ) (0.4 ) Foreign dividends, net of foreign tax credits 0.7 0.6 (1.0 ) Other 0.5 0.6 1.2 17.2 % 21.1 % 18.3 % |
Components of Income from Operations Before Income Taxes and Related Provision for Income Taxes | The components of income from operations before income taxes and the related provision for income taxes consist of the following: Years Ended December 31, 2020 2019 2018 Income before income taxes: United States $ 132.0 $ 2.3 $ 287.3 Foreign 291.0 175.5 193.6 $ 423.0 $ 177.8 $ 480.9 Current taxes: United States $ 29.2 $ 6.8 $ 41.4 State 6.1 2.0 8.1 Foreign 44.7 32.8 58.0 80.0 41.6 107.5 Deferred taxes: United States (7.9 ) (1.7 ) (2.5 ) State and Foreign 0.8 (2.5 ) (16.9 ) (7.1 ) (4.2 ) (19.4 ) Provision for income taxes $ 72.9 $ 37.4 $ 88.1 |
Significant Components of Deferred Tax Assets and Deferred Tax Liabilities | The significant components of the deferred tax assets and deferred tax liabilities are as follows: Years Ended December 31, 2020 2019 Deferred tax assets: Carry-forward losses and credits $ 54.2 $ 59.2 Inventory and warranty reserves 32.4 29.7 Accrued expenses and other reserves 14.5 12.6 Stock-based compensation 5.1 8.6 Executive supplemental retirement benefits 1.8 1.6 Lease liability 48.7 15.3 Unrealized net loss 4.0 2.7 Other 2.7 2.3 Total deferred tax assets $ 163.4 $ 132.0 Deferred tax liabilities: Acquired intangible assets and goodwill $ (116.2 ) $ (128.1 ) Depreciation and amortization (14.5 ) (14.1 ) Loan costs (1.8 ) (2.3 ) Right-of-use asset (46.4 ) (14.4 ) Foreign withholding taxes (3.2 ) (5.0 ) Total deferred tax liabilities (182.1 ) (163.9 ) Valuation allowance (30.6 ) (27.4 ) Net deferred tax liabilities $ (49.3 ) $ (59.3 ) |
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 43.5 $ 32.7 $ 27.3 Increases for prior years 1.1 9.3 0.9 Increases for the current year 6.8 3.2 6.1 Reductions related to expiration of statutes of limitations and audit settlements (4.4 ) (1.7 ) (1.6 ) Balance at end of year $ 47.0 $ 43.5 $ 32.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Activity for RSUs | The following table presents the activity for RSUs under the 2014 Plan, including the Newport Assumed RSUs and the ESI Assumed RSUs: Year Ended December 31, 2020 RSUs Weighted Average Grant Date Fair Value RSUs — beginning of period 1,102,533 $ 85.93 Accrued dividend shares 629 $ 114.35 Granted 309,435 $ 98.72 Vested (737,007 ) $ 85.32 Forfeited or expired (69,504 ) $ 85.71 RSUs — end of period 606,086 $ 93.26 |
Summary of Activity for SARs | At December 31, 2020, the Company’s outstanding and exercisable SARs, the weighted-average base value, the weighted average remaining contractual life and the aggregate intrinsic value thereof, were as follows: Number of Shares Weighted Average Base Value Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value SARs outstanding and exercisable 51,589 $ 30.64 1.0 $ 6.2 |
Effect of Recording Stock-Based Compensation | The following table reflects the effect of recording stock-based compensation: Years Ended December 31, 2020 2019 2018 Stock-based compensation expense by type of award: RSUs $ 27.0 $ 47.0 $ 24.9 SARs — 0.1 0.1 Employee stock purchase plan 2.5 2.1 2.3 Total stock-based compensation 29.5 49.2 27.3 Windfall tax effect on stock-based compensation (2.2 ) (2.2 ) (8.3 ) Net effect on net income $ 27.3 $ 47.0 $ 19.0 Effect on net earnings per share: Basic $ 0.50 $ 0.86 $ 0.35 Diluted $ 0.49 $ 0.85 $ 0.35 |
Pre-Tax Effect Within Consolidated Statements of Operations of Recording Stock-Based Compensation | The pre-tax effect within the consolidated statements of operations and comprehensive income of recording stock-based compensation was as follows: Years Ended December 31, 2020 2019 2018 Cost of revenues $ 4.2 $ 2.8 $ 3.5 Research and development expense 4.0 3.8 2.8 Selling, general and administrative expense 20.4 20.5 21.0 Acquisition and integration related expense 0.9 21.7 — Restructuring related expense — 0.4 — Total pre-tax stock-based compensation expense $ 29.5 $ 49.2 $ 27.3 |
Fair Value of Employee Purchase Rights Estimated using Black-Scholes Option-Pricing Model | The fair value of employee stock purchase plan rights was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Years Ended December 31, Employee stock purchase plan rights: 2020 2019 2018 Expected life (years) 0.5 0.5 0.5 Risk-free interest rate 0.9 % 2.4 % 1.8 % Expected volatility 45.4 % 38.7 % 38.6 % Expected annual dividends per share $ 0.80 $ 0.80 $ 0.76 |
Stock Appreciation Rights (SARs) [Member] | |
Summary of Activity for SARs | The following table presents the activity for SARs under the 2014 Plan, including the Newport Assumed SARs and the ESI Assumed SARs: Year Ended December 31, 2020 Outstanding and Exercisable SARs Weighted Average Base Value SARs — beginning of period 108,854 $ 29.05 Exercised (55,865 ) $ 27.76 Forfeited or expired (1,400 ) $ 22.39 SARs — end of period 51,589 $ 30.64 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Summary of Net Periodic Benefit Costs | The net periodic benefit costs for the plans included the following components: Year Ended December 31, 2020 2019 Service cost $ 1.0 $ 0.8 Interest cost on projected benefit obligations 0.4 0.5 Expected return on plan assets (0.1 ) (0.1 ) Amortization of actuarial net loss 0.5 0.1 $ 1.8 $ 1.3 |
Summary of Changes in Projected Benefit Obligations and Plan Assets, and Ending Balances of Defined Benefit Plans | The changes in projected benefit obligations and plan assets, as well as the ending balance sheet amounts for the Company’s defined benefit plans, were as follows: Year Ended December 31, 2020 2019 Change in projected benefit obligations: Projected benefit obligations, beginning of year $ 30.1 $ 24.9 Assumed in ESI Merger — 3.5 Service cost 1.0 0.8 Interest cost 0.4 0.5 Contributions by plan participants 0.7 — Plan amendments (0.2 ) — Actuarial loss 3.0 2.1 Benefits paid (1.2 ) (1.5 ) Currency translation adjustments 2.4 (0.2 ) Projected benefit obligations, end of year $ 36.2 $ 30.1 Change in plan assets: Fair value of plan assets, beginning of year $ 11.1 $ 7.8 Assumed in ESI Merger — 1.3 Company contributions 1.1 1.8 Gain on plan assets 0.6 0.6 Benefits paid (0.5 ) (0.5 ) Currency translation adjustments 0.6 0.1 Fair value of plan assets, end of year 12.9 11.1 Net underfunded status $ (23.3 ) $ (19.0 ) |
Summary of Estimated Benefit Payments for Defined Benefit Plans for Next 10 Years | As of December 31, 2020, the estimated benefit payments for the Company’s defined benefit plans for the next 10 years were as follows: Estimated benefit payments 2021 $ 0.9 2022 1.1 2023 1.3 2024 1.1 2025 1.3 2026-2030 8.8 $ 14.5 |
Schedule of Weighted Average Rates Used to Determine Net Periodic Benefit Costs | The weighted-average rates used to determine the net periodic benefit costs were as follows: December 31, 2020 December 31, 2019 Discount rate 1.1 % 1.4 % Rate of increase in salary levels 2.2 % 2.2 % Expected long-term rate of return on assets 1.2 % 2.1 % |
Schedule of Defined Benefit Plan Assets | Plan assets were held in the following categories as a percentage of total plan assets: December 31, 2020 December 31, 2019 Amount Percentage Amount Percentage Cash $ 0.2 1.3 % $ 0.4 3.9 % Debt securities 5.2 40.5 8.1 72.3 Equity securities 0.7 5.6 1.5 13.7 Other 6.8 52.6 1.1 10.1 $ 12.9 100 % $ 11.1 100 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following is a reconciliation of basic to diluted net income per share: Years Ended December 31, Numerator: 2020 2019 2018 Net income $ 350.1 $ 140.4 $ 392.9 Denominator: Shares used in net income per common share – basic 55,095,000 54,711,000 54,406,000 Effect of dilutive securities 255,000 400,000 586,000 Shares used in net income per common share – diluted 55,350,000 55,111,000 54,992,000 Net income per common share: Basic $ 6.36 $ 2.57 $ 7.22 Diluted $ 6.33 $ 2.55 $ 7.14 |
Business Segment, Geographic _2
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Net Revenues, Assets and Goodwill by Reportable Segment | The following table sets forth net revenues by reportable segment: Years Ended December 31, 2020 2019 2018 Vacuum & Analysis $ 1,405.9 $ 990.5 $ 1,260.8 Light & Motion 689.6 725.6 814.3 Equipment & Solutions 234.5 183.7 — $ 2,330.0 $ 1,899.8 $ 2,075.1 The following table sets forth segment assets by reportable segment: Vacuum & Analysis Light & Motion Equipment & Solutions Corporate, Eliminations and Other Total December 31, 2020: Segment assets: Accounts receivable $ 229.1 $ 122.6 $ 51.7 $ (10.7 ) $ 392.7 Inventory 273.3 166.1 63.7 (1.7 ) 501.4 Total segment assets $ 502.4 $ 288.7 $ 115.4 $ (12.4 ) $ 894.1 Vacuum & Analysis Light & Motion Equipment & Solutions Corporate, Eliminations and Other Total December 31, 2019: Segment assets: Accounts receivable $ 185.9 $ 147.2 $ 40.1 $ (32.1 ) $ 341.1 Inventory 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: Years Ended December 31, 2020 2019 Reportable segment: Vacuum & Analysis $ 196.2 $ 196.7 Light & Motion 395.3 388.5 Equipment & Solutions 474.9 473.3 Total goodwill $ 1,066.4 $ 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: Years Ended December 31, 2020 2019 2018 Gross profit by reportable segment: Vacuum & Analysis $ 633.7 $ 426.4 $ 577.6 Light & Motion 309.8 336.8 401.9 Equipment & Solutions 106.0 67.2 — Total gross profit by reportable segment 1,049.5 830.4 979.5 Operating expenses: Research and development 173.1 164.1 135.7 Selling, general and administrative 353.1 330.3 298.1 Acquisition and integration costs 3.8 37.3 3.1 Restructuring and other 9.4 7.0 4.6 Amortization of intangible assets 55.2 67.4 43.5 Asset impairment 2.3 4.7 — COVID-19 related net credits (1.2 ) — — Fees and expenses related to repricing of Term Loan Facility — 6.6 0.4 Gain on sale of long-lived assets — (6.8 ) — Income from operations 453.8 219.8 494.1 Interest income 1.4 5.4 5.8 Interest expense 29.1 44.1 16.9 Other expense, net 3.1 3.3 2.0 Income before income taxes 423.0 177.8 481.0 Provision for income taxes 72.9 37.4 88.1 Net income $ 350.1 $ 140.4 $ 392.9 |
Schedule of Capital Expenditures, Depreciation and Amortization Expense of Intangible Assets by Reportable Segment | The following table set forth capital expenditures by reportable segment for the years ended December 31, 2020, 2019 and 2018: Capital expenditures: Vacuum & Analysis Light & Motion Equipment & Solutions Total December 31, 2020: $ 36.0 $ 32.1 $ 16.8 $ 84.9 December 31, 2019: $ 34.1 $ 23.0 $ 6.8 $ 63.9 December 31, 2018: $ 40.1 $ 22.8 $ — $ 62.9 The following table sets forth depreciation and amortization by reportable segment for the years ended December 31, 2020, 2019 and 2018: Depreciation and amortization: Vacuum & Analysis Light & Motion Equipment & Solutions Total December 31, 2020: $ 20.3 $ 43.2 $ 35.7 $ 99.2 December 31, 2019: $ 16.8 $ 53.9 $ 39.3 $ 110.0 December 31, 2018: $ 20.8 $ 59.0 $ — $ 79.8 |
Reconciliation of Segment Assets to Consolidated Total Assets | The following is a reconciliation of segment assets to consolidated total assets: Years Ended December 31, 2020 2019 Total segment assets $ 894.1 $ 803.2 Cash and cash equivalents and short-term investments 836.0 524.0 Other current assets 74.3 106.3 Property, plant and equipment, net 284.3 241.9 Right-of-use assets 184.4 64.5 Goodwill and intangible assets, net 1,578.6 1,623.1 Other assets and long-term assets 52.1 53.3 Consolidated total assets $ 3,903.8 $ 3,416.3 |
Schedule of Net Revenues and Long-Lived Assets by Geographic Regions | Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues. Years Ended December 31, 2020 2019 2018 Net revenues: United States $ 1,058.9 $ 888.4 $ 1,022.7 South Korea 278.8 167.7 203.6 China 273.5 178.6 127.7 Other Asia 519.6 435.8 477.1 Europe 199.2 229.3 244.0 $ 2,330.0 $ 1,899.8 $ 2,075.1 Years Ended December 31, 2020 2019 Long-lived assets: (1) United States $ 364.0 $ 208.3 Asia 94.8 89.6 Europe 45.1 41.4 $ 503.9 $ 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. The increase in long-lived assets in the United States for 2020 reflects right-of-use assets from new leases, mainly at three locations. |
Summary of Net Revenues by Major Customers | The Company had two customers with net revenues greater than 10% of total net revenues at December 31, 2020 and 2018 as shown below. No individual customers accounted for greater than 10% of the Company’s net revenues for 2019. Years Ended December 31, 2020 2019 2018 Lam Research Corporation 13.5% 8.5% 10.8% Applied Materials, Inc. 10.6% 9.3% 11.7% |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Expense Of Restructuring Activities And Other [Abstract] | |
Schedule of Company's Restructuring Activity | The activity related to the Company’s restructuring accrual is shown below: 2020 2019 Balance at January 1 $ 3.7 $ 2.6 Charged to expense 2.7 5.5 Payments and adjustments (6.1 ) (4.4 ) Balance at December 31 $ 0.3 $ 3.7 |
Supplemental Financial Data (Ta
Supplemental Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Supplemental Financial Data | Quarter Ended March 31 June 30 Sept. 30 Dec. 31 (Table in millions, except per share data) (Unaudited) 2020 Statement of Operations Data Net revenues $ 535.7 $ 544.3 $ 589.8 $ 660.2 Gross profit 239.6 246.3 262.0 301.6 Income from operations 89.9 100.8 116.4 146.7 Net income $ 69.1 $ 73.7 $ 91.7 $ 115.6 Net income per share: Basic $ 1.26 $ 1.34 $ 1.66 $ 2.10 Diluted $ 1.25 $ 1.33 $ 1.66 $ 2.08 Cash dividends paid per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 2019 Statement of Operations Data Net revenues $ 463.6 $ 474.1 $ 462.5 $ 499.7 Gross profit 198.1 211.0 205.0 216.3 Income from operations 23.1 63.9 66.8 66.1 Net income $ 12.5 $ 37.7 $ 47.4 $ 42.8 Net income per share: Basic $ 0.23 $ 0.69 $ 0.86 $ 0.78 Diluted $ 0.23 $ 0.69 $ 0.86 $ 0.77 Cash dividends paid per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Right-of-use assets | $ 184.4 | $ 64.5 | |
Lease liability | 15.8 | 20.6 | |
Non-current lease liability | $ 187.4 | $ 44.8 | |
Minimum period of company's research and development projects | 3 months | ||
Maximum period of company's research and development projects | 30 months | ||
Vesting period | 3 years | ||
Number of customers accounted for 10% or more of total accounts receivable | Customer | 1 | 0 | |
Amortization period of leasehold improvements | shorter of the lease term or the estimated useful life of the leased asset. | ||
Reporting unit, percentage of fair value in excess of carrying value | 10.00% | ||
Minimum percentage of recognition of tax benefits from uncertain tax positions | 50.00% | ||
Other Expense [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Net foreign exchange losses from re-measurement | $ 3.5 | $ 3.6 | $ 2.5 |
Customer Concentration Risk [Member] | Semiconductor Products [Member] | Sales Revenue, Net [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 59.00% | 49.00% | 55.00% |
Minimum [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Intangible assets amortized period | 1 year | ||
Minimum [Member] | Building [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum [Member] | Office Equipment [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Maximum [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Intangible assets amortized period | 18 years | ||
Maximum [Member] | Building [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 50 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 18 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 18 years | ||
Maximum [Member] | Office Equipment [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 18 years | ||
Accounting Standards Update 2016-02 [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Change In Accounting Principle Accounting Standards Update Adopted | true | ||
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2019 | ||
Right-of-use assets | $ 71 | ||
Lease liability | 20.2 | ||
Non-current lease liability | $ 54.1 | ||
Accounting Standards Codification Topic 606 adjustment [Member] | Minimum [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Company's normal payment terms | 30 days | ||
Warranty period | 12 months | ||
Term of separately priced contracts | 12 months | ||
Accounting Standards Codification Topic 606 adjustment [Member] | Maximum [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Company's normal payment terms | 60 days | ||
Warranty period | 24 months | ||
Term of separately priced contracts | 60 months | ||
Remaining performance obligation period | 1 year | 1 year |
Recently Issued or Adopted Ac_2
Recently Issued or Adopted Accounting Pronouncements - Additional Information (Detail) | Dec. 31, 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) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Property | |
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 | |
Additional right-of-use assets | $ 151.5 | |
Right-of-use assets related to new leases commenced and existing leases extended during period | $ 133.6 | |
Weighted average discount rate | 3.00% | 3.80% |
Weighted average remaining lease term | 15 years | 4 years 10 months 24 days |
Operating cash flows used for operating leases | $ 13 | $ 23.4 |
Tenant improvement allowance receipts | 10.3 | |
Gain loss on sale lease back | 6.8 | |
Proceeds received on sale lease back transactions | $ 41.2 | |
2021 lease payment | 21.6 | |
Tenant improvement allowance | $ 6.7 | |
Boulder, Colorado [Member] | ||
Leases [Line Items] | ||
Number of properties sold as part of sale and leaseback transactions | Property | 2 | |
Portland, Oregon [Member] | ||
Leases [Line Items] | ||
Number of properties sold as part of sale and leaseback transactions | Property | 3 | |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Lease cost: | |||
Operating lease | [1] | $ 29.2 | $ 23.2 |
Short-term lease | 4.9 | 4.3 | |
Total lease cost | $ 34.1 | $ 27.5 | |
[1] | Operating lease cost includes an immaterial amount of variable expenses, offset by certain sublease rental income. |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 21.6 |
2022 | 20.4 |
2023 | 18.3 |
2024 | 17.4 |
2025 | 16.6 |
Thereafter | 161.7 |
Total lease payments | 256 |
Less: imputed interest | 52.8 |
Total operating lease liabilities | $ 203.2 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Contract with Customer, Liability [Line Items] | ||
Beginning balance, January 1 | $ 24.8 | $ 17.5 |
Additions to deferred revenue and customer advances | 107.4 | 77.7 |
Amount of deferred revenue and customer advances recognized in income | (95.5) | (75) |
Ending balance, December 31 | $ 36.7 | 24.8 |
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 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Change in Contract with Customer, Liability [Line Items] | |||
Long-term deferred revenue | $ 5.6 | $ 3.3 | |
Deferred revenue and customer advances | 31.2 | $ 21.5 | |
Deferred Revenue [Member] | |||
Change in Contract with Customer, Liability [Line Items] | |||
Deferred revenue and customer advances | 18.3 | 12.4 | |
Customer Advances [Member] | |||
Change in Contract with Customer, Liability [Line Items] | |||
Deferred revenue and customer advances | $ 12.8 | $ 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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 660.2 | $ 589.8 | $ 544.3 | $ 535.7 | $ 499.7 | $ 462.5 | $ 474.1 | $ 463.6 | $ 2,330 | $ 1,899.8 | $ 2,075.1 |
Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 2,014.8 | 1,611.3 | 1,835.2 | ||||||||
Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 315.2 | 288.5 | 239.9 | ||||||||
Vacuum & Analysis [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 1,405.9 | 990.5 | 1,260.8 | ||||||||
Vacuum & Analysis [Member] | Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 1,222.4 | 819.1 | 1,080.3 | ||||||||
Vacuum & Analysis [Member] | Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 183.5 | 171.4 | 180.5 | ||||||||
Light & Motion [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 689.6 | 725.6 | 814.3 | ||||||||
Light & Motion [Member] | Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 621.9 | 663.7 | 754.9 | ||||||||
Light & Motion [Member] | Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 67.7 | 61.9 | $ 59.4 | ||||||||
Equipment & Solutions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 234.5 | 183.7 | |||||||||
Equipment & Solutions [Member] | Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 170.5 | 128.5 | |||||||||
Equipment & Solutions [Member] | Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 64 | $ 55.2 |
Investments - Investments Class
Investments - Investments Classified as Short-Term Available-for-Sale Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments classified as short-term | $ 227.7 | $ 109.4 |
Time Deposits and Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments classified as short-term | 0.7 | 13.1 |
Bankers' Acceptance Drafts [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments classified as short-term | 3.8 | 4 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments classified as short-term | 61.2 | |
U.S. Treasury Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments classified as short-term | $ 223.2 | 5 |
U.S. Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments classified as short-term | $ 26.1 |
Investments - Investments Cla_2
Investments - Investments Classified as Long-Term Available-for-Sale Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities and Cost-method Investments [Line Items] | ||
Investments classified as long-term | $ 6.5 | $ 5.8 |
Available-for-Sale Investments [Member] | Group Insurance Contracts [Member] | ||
Schedule of Available-for-sale Securities and Cost-method Investments [Line Items] | ||
Investments classified as long-term | $ 6.5 | $ 5.8 |
Investments - Gross Unrealized
Investments - Gross Unrealized Gains and (Losses) Aggregated by Investment Category (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | $ 227.7 | $ 109.7 |
Investments, Gross Unrealized (Losses) | (0.3) | |
Investments, Estimated Fair Value | 227.7 | 109.4 |
Time Deposits and Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 0.7 | 13.1 |
Investments, Estimated Fair Value | 0.7 | 13.1 |
Bankers' Acceptance Drafts [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 3.8 | 4 |
Investments, Estimated Fair Value | 3.8 | 4 |
U.S. Treasury Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 223.2 | 5 |
Investments, Estimated Fair Value | 223.2 | 5 |
Group Insurance Contracts [Member] | Long Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Cost | 5.6 | 5.2 |
Investments, Gross Unrealized Gains | 0.9 | 0.6 |
Investments, Estimated Fair Value | $ 6.5 | 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | $ 227.7 | $ 109.4 |
Short-term investments | 227.7 | 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 | 63.7 | 65.2 |
Total assets | 318.4 | 201.5 |
Total liabilities | 20.5 | 6.8 |
Short-term investments | 227.7 | 109.4 |
Other current assets | 1.9 | |
Total current assets | 291.4 | 176.5 |
Long-term investments | 6.5 | 5.8 |
Other assets | 20.5 | 19.2 |
Total long-term assets | 27 | 25 |
Total assets | 318.4 | 201.5 |
Fair Value Measurements, Recurring [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – forward exchange contracts | 1.1 | |
Derivatives – forward exchange contracts | 6.5 | 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 - current | 0.8 | |
Derivatives – interest rate hedge – non-current | 14 | 6.5 |
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 | 0.3 | 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 | 6.5 | 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 | 18.8 | 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 | 1.3 | 0.6 |
Deferred compensation plan assets | 0.5 | |
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 | 0.7 | 13.1 |
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 | 62.1 | 2.7 |
Available-for-sale investments | 223.2 | 5 |
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] | Bankers' Acceptance Drafts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 3.8 | 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 | 1.7 | 2 |
Fair Value Measurements, Recurring [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 6.5 | 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 | 0.6 | |
Total assets | 1.3 | 0.6 |
Total current assets | 0.6 | |
Total assets | 1.3 | 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 | 1.3 | 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 | 63.7 | 64.6 |
Total assets | 317.1 | 200.9 |
Total liabilities | 20.5 | 6.8 |
Short-term investments | 227.7 | 109.4 |
Other current assets | 1.9 | |
Total current assets | 291.4 | 175.9 |
Long-term investments | 6.5 | 5.8 |
Other assets | 20.5 | 19.2 |
Total long-term assets | 27 | 25 |
Total assets | 317.1 | 200.9 |
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 – forward exchange contracts | 1.1 | |
Derivatives – forward exchange contracts | 6.5 | 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 - current | 0.8 | |
Derivatives – interest rate hedge – non-current | 14 | 6.5 |
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 | 0.3 | 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 | 6.5 | 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 | 18.8 | 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 | 0.5 | |
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 | 0.7 | 13.1 |
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 | 62.1 | 2.7 |
Available-for-sale investments | 223.2 | 5 |
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] | Bankers' Acceptance Drafts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 3.8 | 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 | 1.7 | 2 |
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 | 6.5 | 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Cash/Non-negotiable time deposits-not subject to fair value disclosure requirements | $ 544.6 | $ 349.4 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 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 | |
Foreign Exchange Forward Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional values of outstanding forward foreign exchange contracts | $ 176.2 | $ 154.7 |
Derivatives - Summary of Primar
Derivatives - Summary of Primary Net Hedging Positions and Corresponding Fair Values (Detail) - Foreign Exchange Forward Contracts [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | $ 176.2 | $ 154.7 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (6.5) | (0.2) |
U.S. Dollar/Japanese Yen [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 61.5 | 45.9 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (1.1) | |
U.S. Dollar/South Korean Won [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 62.2 | 51.7 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (3.1) | 0.2 |
U.S. Dollar/Euro [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 13.1 | 15.7 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (0.6) | 0.2 |
U.S. Dollar/U.K. Pound Sterling [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 6.1 | 8.3 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | (0.3) | (0.2) |
U.S. Dollar/Taiwan Dollar [Member] | ||
Derivative [Line Items] | ||
Currency Hedged (Buy/Sell), Gross Notional Value, Net | 33.3 | 33.1 |
Currency Hedged (Buy/Sell), Fair Value, (Liability)/Asset, Net | $ (1.4) | $ (0.4) |
Derivatives - Summary of Variou
Derivatives - Summary of Various Interest Rate Hedges (Detail) - Incremental Term Loan Facility [Member] - Interest Rate Hedge [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Fair Value Asset (Liability) | $ (14) | $ (5.7) |
Swap Agreement One [Member] | ||
Derivative [Line Items] | ||
Trade Date | Sep. 29, 2016 | |
Effective Date | Sep. 30, 2016 | |
Maturity | Sep. 30, 2020 | |
Fixed Rate | 1.198% | |
Notional Amount at Effective Date | $ 335 | |
Fair Value Asset (Liability) | 0.8 | |
Swap Agreement Two [Member] | ||
Derivative [Line Items] | ||
Trade Date | Apr. 3, 2019 | |
Effective Date | Apr. 5, 2019 | |
Maturity | Mar. 31, 2023 | |
Fixed Rate | 2.309% | |
Notional Amount at Effective Date | $ 300 | |
Fair Value Asset (Liability) | $ (12.4) | $ (6.5) |
Swap Agreement Three [Member] | ||
Derivative [Line Items] | ||
Trade Date | Oct. 29, 2020 | |
Effective Date | Oct. 26, 2021 | |
Maturity | Feb. 28, 2025 | |
Fixed Rate | 0.485% | |
Notional Amount at Effective Date | $ 200 | |
Fair Value Asset (Liability) | $ (0.7) | |
Swap Agreement Four [Member] | ||
Derivative [Line Items] | ||
Trade Date | Oct. 29, 2020 | |
Effective Date | Mar. 31, 2022 | |
Maturity | Feb. 28, 2025 | |
Fixed Rate | 0.623% | |
Notional Amount at Effective Date | $ 100 | |
Fair Value Asset (Liability) | $ (0.9) |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Total net derivative liability designated as hedging instruments | $ (20.5) | $ (5.9) |
Forward Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1.1 | |
Derivative liability | (6.5) | (1.3) |
Interest Rate Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0.8 | |
Derivative liability | $ (14) | $ (6.5) |
Derivatives - Summary of Fair_2
Derivatives - Summary of Fair Value Amounts of Company's Derivative Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Current Assets [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contract derivative assets | $ 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 | $ 6.5 | 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 (Loss)
Derivatives - Summary of (Loss) Gain on Derivatives Designated as Cash Flow Hedging Instruments (Detail) - Cash Flow Hedging [Member] - Foreign Exchange Forward Contracts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net (loss) gain recognized in OCI, net of tax | $ (10.6) | $ (10) | $ 4.9 |
Net gain reclassified from OCI into income | $ 1.7 | $ 5.7 | $ 3.4 |
Derivatives - Summary of (Los_2
Derivatives - Summary of (Loss) Gain on Derivatives Not Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Exchange Forward Contracts [Member] | |||
Derivative Instruments Gain Loss Not Designated As Hedging Instruments [Line Items] | |||
Net (loss) gain recognized in income | $ (1.5) | $ (1.3) | $ 0.1 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 321.3 | $ 288.8 |
Work-in-process | 76.7 | 79.3 |
Finished goods | 103.4 | 94 |
Inventories | $ 501.4 | $ 462.1 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Inventory related excess and obsolete charges | $ 24.8 | $ 24.7 | $ 22.3 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 883.4 | $ 835.4 |
Less: accumulated depreciation | 599.1 | 593.5 |
Property, plant and equipment, net | 284.3 | 241.9 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 12.3 | 11.9 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 120.2 | 113.3 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 397.8 | 396.2 |
Furniture and Fixtures, Office Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 187.1 | 186.7 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 95.4 | 80.4 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 70.6 | $ 46.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation of property, plant and equipment | $ 44 | $ 42.6 | $ 36.3 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) | Feb. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Business acquisition share price | $ 30 | |||
Stock-based compensation expense | $ 29,500,000 | $ 49,200,000 | $ 27,300,000 | |
Electro Scientific Industries Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition share price | $ 30 | |||
Business acquisition, total cash consideration | $ 1,032,700,000 | |||
Non Cash Consideration related to share based compensation awards | 30,600,000 | |||
Total Purchase Consideration | $ 1,063,300,000 | |||
Fair value write-up of acquired finished goods inventory | 7,600,000 | |||
Incremental costs of sales charge | 7,600,000 | |||
Fair value excluding write-up of acquired property, plant and equipment | $ 39,200,000 | |||
Compensation expense | 2,700,000 | |||
Stock-based compensation expense | $ 14,000,000 |
Acquisition - Summary of Purcha
Acquisition - Summary of Purchase Price (Detail) - USD ($) | Feb. 01, 2019 | Dec. 31, 2019 |
Acquisition Date [Line Items] | ||
Total purchase price, net of cash and cash equivalents acquired | $ 988,600,000 | |
Electro Scientific Industries Inc [Member] | ||
Acquisition Date [Line Items] | ||
Cash paid for outstanding shares | $ 1,032,700,000 | |
Settlement of share-based compensation awards | 30,600,000 | |
Total purchase price | 1,063,300,000 | |
Less: cash and cash equivalents acquired | (44,100,000) | |
Total purchase price, net of cash and cash equivalents acquired | $ 1,019,200,000 |
Acquisition - Summary of Purc_2
Acquisition - 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 |
Acquisition - Summary of Estima
Acquisition - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Feb. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 |
Acquisition Date [Line Items] | ||||
Goodwill | $ 1,058.5 | $ 1,066.4 | $ 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 |
Acquisition - Allocation of Acq
Acquisition - 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 |
Acquisition - Schedule of Conso
Acquisition - Schedule of Consolidated Net Revenue and Earnings (Detail) - Electro Scientific Industries Inc [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / shares | |
Acquisition Date [Line Items] | |
Total net revenues | $ | $ 183.7 |
Net loss | $ | $ (33.5) |
Net loss per share: | |
Basic | $ / shares | $ (0.61) |
Diluted | $ / shares | $ (0.61) |
Acquisition - Schedule of Unaud
Acquisition - Schedule of Unaudited Pro Forma Financial Information (Detail) - Electro Scientific Industries Inc [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquisition Date [Line Items] | ||
Total net revenues | $ 1,914.6 | $ 2,445.7 |
Net income | $ 171.5 | $ 424.8 |
Net income per share: | ||
Basic | $ 3.14 | $ 7.81 |
Diluted | $ 3.11 | $ 7.72 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | 9 | (2.5) |
Ending balance, Goodwill Gross Carrying Amount | 1,211.8 | 1,202.8 |
Beginning balance, Accumulated Impairment Loss | (144.3) | (144.3) |
Impairment of goodwill, Accumulated Impairment Loss | (1.1) | |
Ending balance, Accumulated Impairment Loss | (145.4) | (144.3) |
Beginning balance, Goodwill Net | 1,058.5 | 587 |
Acquired goodwill, Net | 474 | |
Impairment of goodwill, Net | (1.1) | |
Foreign currency translation, Net | 9 | (2.5) |
Ending balance, Goodwill Net | $ 1,066.4 | $ 1,058.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Acquired goodwill | $ 474 | |
Goodwill impairment charges related to pending closure of facility in Europe | $ 1.1 | |
Electro Scientific Industries Inc [Member] | ||
Goodwill [Line Items] | ||
Acquired goodwill | $ 474 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Acquired Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | (363.2) | (308) |
Foreign Currency Translation | 1.4 | (1.4) |
Intangible assets, net | 512.2 | 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 | (209.8) | (178.3) |
Foreign Currency Translation | (0.1) | (0.2) |
Intangible assets, net | 236.4 | 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 | (104.8) | (84.2) |
Foreign Currency Translation | 1.7 | (1.4) |
Intangible assets, net | 203.7 | 221.2 |
Patents, Trademarks, Trade Names and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross | 120.9 | 120.9 |
Accumulated Amortization | (48.6) | (45.5) |
Foreign Currency Translation | (0.2) | 0.2 |
Intangible assets, net | $ 72.1 | $ 75.6 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Acquired Intangible Assets (Parenthetical) (Detail) - Electro Scientific Industries Inc [Member] - USD ($) $ in Millions | Feb. 01, 2019 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 316.2 | $ 316.2 |
Completed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | 274 | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 25.4 | 25.4 |
Trademarks Tradenames And Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, purchase price | $ 16.8 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 55.2 | $ 67.4 | $ 43.5 |
Trademarks and Trade names [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Un-amortized Intangible assets, net | $ 55.9 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Estimated Net Amortization Expense (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 | $ 48.2 |
2022 | 45.6 |
2023 | 45.2 |
2024 | 44.3 |
2025 | 43.3 |
Thereafter | $ 229.7 |
Product Warranties - Product Wa
Product Warranties - Product Warranty Activities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Product Warranty Liability [Line Items] | ||
Beginning balance | $ 14.9 | $ 10.4 |
Provision for product warranties | 28.3 | 17.4 |
Direct and other charges to warranty liability | (24.8) | (20.1) |
Ending balance | $ 18.4 | 14.9 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Current Liabilities [Member] | ||
Product Warranty Liability [Line Items] | ||
Short-term product warranty | $ 15.6 | $ 12.1 |
Other Noncurrent Liabilities [Member] | ||
Product Warranty Liability [Line Items] | ||
Long-term product warranty | $ 2.8 | $ 2.8 |
Debt - Senior Secured Term Loan
Debt - Senior Secured Term Loan Credit Facility - Additional Information (Detail) - USD ($) $ in Millions | Sep. 27, 2019 | Feb. 01, 2019 | Dec. 31, 2020 | Dec. 31, 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 [Member] | 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 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] | 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 [Member] | ||||
Debt Instrument [Line Items] | ||||
Deferred finance fees, original issue discount and re-pricing fee, gross | $ 11.4 | |||
Newport Corporation | Incremental Term Loan Facility [Member] | 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 [Member] | Secured Debt Repricing Amendment 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured term loan, face amount | $ 833.4 | |||
Term loan maturity date | Feb. 2, 2026 | |||
Debt instrument, interest rate | 1.90% | |||
Debt instrument, prepaid principal amount | $ 21.6 | |||
Debt instrument, frequency of periodic payment | quarterly | |||
Debt instrument, periodic payment percentage | 0.25% | |||
Newport Corporation | 2019 Term Loan Refinancing Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Deferred finance fees, original issue discount and re-pricing fee, gross | $ 9.4 | $ 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] | Incremental Term Loan Facility [Member] | 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 [Member] | 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 [Member] | 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 [Member] | 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) | 12 Months Ended |
Dec. 31, 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 | Under the ABL Facility, we are required to prepay amounts outstanding under the ABL Facility (1) if amounts outstanding under the ABL Facility exceed the lesser of (a) the commitment amount and (b) the borrowing base, in an amount required to reduce such shortfall, (2) if amounts outstanding under the ABL Facility in any currency other than U.S. dollars exceed the sublimit for such currency, in an amount required to reduce such shortfall, and (3) during any period in which we have excess availability less than the greater of (a) 10.0% of the lesser of (x) the commitment amount and (y) the borrowing base and (b) $8.5 million for 3 consecutive business days, until the time when we have excess availability equal to or greater than the greater of (A) 10.0% of the lesser of (i) the commitment amount and (ii) the borrowing base and (B) $8.5 million for 30 consecutive days, or during the continuance of an event of default, with immediately available funds in its blocked accounts |
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 Borr
Debt - Lines of Credit and Borrowing Arrangements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 29,100,000 | $ 44,100,000 | $ 16,900,000 |
Revolving Lines of Credit [Member] | Japan [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate borrowings expire and renewal period | 3 months | ||
Borrowing capacity in the form of letters of credit | $ 32,500,000 | ||
Total borrowings outstanding | $ 5,500,000 | $ 3,100,000 |
Debt - Schedule of Short-Term D
Debt - Schedule of Short-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short Term Debt [Line Items] | ||
Short term debt | $ 14.5 | $ 12.1 |
Japan [Member] | ||
Short Term Debt [Line Items] | ||
Short term debt | 5.4 | 2.5 |
Financing Facility [Member] | Japan [Member] | ||
Short Term Debt [Line Items] | ||
Short term debt | 0.1 | 0.6 |
Term Loan Facility [Member] | ||
Short Term Debt [Line Items] | ||
Short term debt | $ 9 | $ 9 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Other debt | $ 0.1 | |
Long term debt | $ 815 | 871.7 |
Term Loan Facility, Net [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 815 | $ 871.6 |
Debt - Schedule of Long-Term _2
Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Term Loan Facility, Net [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing fees, original issuance discount and re-pricing fee | $ 9.4 | $ 11.8 |
Debt - Schedule of Contractual
Debt - Schedule of Contractual Maturities of Debt Obligations (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Maturities Of Long Term Debt [Abstract] | |
2021 | $ 14.5 |
2022 | 9 |
2023 | 9 |
2024 | 9 |
2025 | 9 |
Thereafter | $ 788.4 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Company's Effective Tax Rate to U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax statutory rate | 21.00% | 21.00% | 21.00% |
Federal tax credits | (1.50%) | (2.90%) | (0.70%) |
State income taxes, net of federal benefit | 1.10% | 2.30% | 1.30% |
Effect of foreign operations taxed at various rates | (5.00%) | (4.40%) | (1.30%) |
Executive compensation | 1.10% | 5.80% | |
Gain on intercompany sale of assets | 2.90% | ||
Utilization of a capital loss | (1.20%) | ||
Foreign derived intangible income | (1.50%) | (3.80%) | (2.10%) |
Global intangible low taxed income, net of foreign tax credits | 0.90% | 2.60% | 0.40% |
Transition tax, net of foreign tax credits | (0.10%) | ||
Revaluation of U.S. deferred income taxes | (1.40%) | (0.30%) | |
Revaluation of prepaid taxes | 1.60% | ||
Stock-based compensation | (0.70%) | (0.30%) | (1.30%) |
Deferred tax asset valuation allowance | 0.60% | 0.10% | |
Release of income tax reserves (including interest) | (0.80%) | (0.40%) | |
Taxes on foreign dividends, net of foreign tax credits | 0.70% | 0.60% | (1.00%) |
Other | 0.50% | 0.60% | 1.20% |
Total | 17.20% | 21.10% | 18.30% |
Income Taxes - Components of In
Income Taxes - Components of Income from Operations Before Income Taxes and Related Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before income taxes: | |||
United States | $ 132 | $ 2.3 | $ 287.3 |
Foreign | 291 | 175.5 | 193.6 |
Income from continuing operations before income taxes | 423 | 177.8 | 480.9 |
Current taxes: | |||
United States | 29.2 | 6.8 | 41.4 |
State | 6.1 | 2 | 8.1 |
Foreign | 44.7 | 32.8 | 58 |
Current taxes, Total | 80 | 41.6 | 107.5 |
Deferred taxes: | |||
United States | (7.9) | (1.7) | (2.5) |
State and Foreign | 0.8 | (2.5) | (16.9) |
Deferred taxes, Total | (7.1) | (4.2) | (19.4) |
Provision for income taxes | $ 72.9 | $ 37.4 | $ 88.1 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Carry-forward losses and credits | $ 54.2 | $ 59.2 |
Inventory and warranty reserves | 32.4 | 29.7 |
Accrued expenses and other reserves | 14.5 | 12.6 |
Stock-based compensation | 5.1 | 8.6 |
Executive supplemental retirement benefits | 1.8 | 1.6 |
Lease liability | 48.7 | 15.3 |
Deferred tax assets utilization loss | 4 | 2.7 |
Other | 2.7 | 2.3 |
Total deferred tax assets | 163.4 | 132 |
Deferred tax liabilities: | ||
Acquired intangible assets and goodwill | (116.2) | (128.1) |
Depreciation and amortization | (14.5) | (14.1) |
Loan costs | (1.8) | (2.3) |
Right-of-use asset | (46.4) | (14.4) |
Foreign withholding taxes | (3.2) | (5) |
Total deferred tax liabilities | (182.1) | (163.9) |
Valuation allowance | (30.6) | (27.4) |
Net deferred tax (liabilities) assets | $ (49.3) | $ (59.3) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Gross tax research other tax credit carryforwards | $ 58.9 | ||
Accrued interest on unrecognized tax benefits | 0.7 | $ 0.5 | $ 0.6 |
Net unrecognized tax benefits, excluding interest and penalties, related to foreign tax positions | 4.3 | ||
Change in valuation allowance | $ 3.3 | $ 9.4 | $ 4.3 |
Benefits of the tax holiday per share | $ 0.03 | $ 0.04 | |
Inland Revenue, Singapore (IRAS) [Member] | |||
Income Taxes [Line Items] | |||
Benefits of the tax holiday | $ 1.7 | $ 2.2 | |
Indefinite [Member] | |||
Income Taxes [Line Items] | |||
Gross tax research other tax credit carryforwards | $ 13.7 | ||
Federal State and Foreign [Member] | |||
Income Taxes [Line Items] | |||
Tax credit expiration period | 2037 | ||
Federal State and Foreign [Member] | Indefinite [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | $ 50.9 | ||
Federal State and Foreign [Member] | 2017 [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | $ 97 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 43.5 | $ 32.7 | $ 27.3 |
Increases for prior years | 1.1 | 9.3 | 0.9 |
Increases for the current year | 6.8 | 3.2 | 6.1 |
Reductions related to expiration of statutes of limitations and audit settlements | (4.4) | (1.7) | (1.6) |
Balance at end of year | $ 47 | $ 43.5 | $ 32.7 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 29, 2016 | May 31, 2020 | Jan. 31, 2020 | May 31, 2019 | May 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock, shares issued | 55,196,501 | 54,596,183 | ||||||
Common stock reserved for issuance | 18,000,000 | |||||||
Weighted Average Grant Date Fair Value, Granted | $ 23.88 | $ 16.04 | $ 21.74 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for future grant | 18,000,000 | |||||||
Shares issued as per merger agreement | 1,260,525 | |||||||
Number of RSUs outstanding | 4,875 | 5,794 | ||||||
Dividend reinvestment | 35 | 57 | ||||||
Total intrinsic value of options, stock appreciation rights exercised and fair value of RSUs vested | $ 86.2 | $ 68.1 | $ 61.6 | |||||
Total compensation expense related to restricted stock unites and stock appreciation rights | $ 31.5 | |||||||
Estimated weighted average amortization period | 1 year | |||||||
Restricted Stock Units (RSUs) [Member] | Newport Corporation | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued as per merger agreement | 360,674 | |||||||
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting percentage per year of RSUs from date of grant | 33.00% | 33.00% | 33.00% | |||||
RSUs Granted to Employees [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share based compensation arrangement by share based payment award vesting period description | employees who meet certain retirement eligibility requirements will vest in full upon each such employee’s retirement and are expensed immediately. | |||||||
RSUs Granted To Directors [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share based compensation arrangement by share based payment award vesting period description | directors generally vest at the earliest of (1) one day prior to the next annual meeting, (2) 13 months from date of grant, or (3) the effective date of a change in control of the Company. | |||||||
Stock Appreciation Rights (SARs) [Member] | Newport Corporation | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued as per merger agreement | 899,851 | |||||||
2014 ESPP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares authorized for issuance | 2,500,000 | |||||||
Percentage of payroll deduction to compensation | up to 10% | |||||||
Percentage of Common Stock through payroll deductions | 10.00% | |||||||
Percentage of closing price of the Common Stock | 90.00% | |||||||
Common stock, shares issued | 102,719 | 126,407 | 105,672 | |||||
Common stock reserved for issuance | 1,697,604 | |||||||
2014 ESPP [Member] | Offer Terminate [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of closing price of the Common Stock | 90.00% | |||||||
Stock Incentive Plan 2014 [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 12,690,974 | |||||||
Shares available for future grant | 18,000,000 | |||||||
Number of shares returned for each common stock | 2.4 | |||||||
Percentage of exercise price fair value option grant in period | 100.00% | |||||||
Stock Incentive Plan 2014 [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted Average Grant Date Fair Value, Granted | $ 98.72 | |||||||
Newport Deferred Compensation [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of RSUs outstanding | 31,458 | 327,328 | ||||||
Dividend reinvestment | 203 | 3,086 | ||||||
Newport Deferred Compensation [Member] | Restricted Stock Units (RSUs) [Member] | Outside Directors [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Newport RSUs converted to MKS RSUs at Merger date | 36,599 | |||||||
Newport RSUs converted to MKS RSUs at Merger date and released | 976 | 967 | 5,561 | |||||
Esi Planmember | Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued as per merger agreement | 748,920 | |||||||
Esi Planmember | Restricted Stock Units (RSUs) [Member] | Outside Directors [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Newport RSUs converted to MKS RSUs at Merger date | 326,283 | |||||||
Newport RSUs converted to MKS RSUs at Merger date and released | 300,654 | |||||||
Esi Planmember | Restricted Stock Units (RSUs) [Member] | Newport Corporation | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued as per merger agreement | 736,133 | |||||||
Esi Planmember | Stock Appreciation Rights (SARs) [Member] | Newport Corporation | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued as per merger agreement | 12,787 | |||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Level of performance target achieved | 0.00% | |||||||
Minimum [Member] | 2014 ESPP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock, exercise price | $ 95.07 | $ 64.31 | $ 84.11 | |||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Level of performance target achieved | 150.00% | |||||||
Maximum [Member] | 2014 ESPP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock, exercise price | $ 93.77 | $ 63.78 | $ 70.61 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity for RSUs (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value, Granted | $ 23.88 | $ 16.04 | $ 21.74 |
Stock Incentive Plan 2014 [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs/SARs, beginning of period | 1,102,533 | ||
Granted | 309,435 | ||
Vested | (737,007) | ||
Forfeited or expired | (69,504) | ||
RSUs/SARs, end of period | 606,086 | 1,102,533 | |
RSUs/SARs, Weighted Average Grant Date Fair Value, Beginning of period | $ 85.93 | ||
Weighted Average Grant Date Fair Value, Granted | 98.72 | ||
Weighted Average Grant Date Fair Value, Vested | 85.32 | ||
Weighted Average Grant Date Fair Value, Forfeited | 85.71 | ||
RSUs/SARs, Weighted Average Grant Date Fair Value, end of period | $ 93.26 | $ 85.93 | |
Stock Incentive Plan 2014 [Member] | Shares [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Accrued dividend shares | 629 | ||
Weighted Average Grant Date Fair Value, Accrued dividend shares | $ 114.35 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity for SARs (Detail) - Stock Incentive Plan 2014 [Member] - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Dec. 31, 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 | (55,865) |
Forfeited or expired, Weighted Average Grant Date Fair Value | shares | (1,400) |
RSUs/SARs, end of period | shares | 51,589 |
RSUs/SARs, Weighted Average Grant Date Fair Value, Beginning of period | $ / shares | $ 29.05 |
Exercised, Weighted Average Grant Date Fair Value | $ / shares | 27.76 |
Forfeited or expired, Weighted Average Grant Date Fair Value | $ / shares | 22.39 |
RSUs/SARs, Weighted Average Grant Date Fair Value, end of period | $ / shares | $ 30.64 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Activity for Outstanding and Exercisable SARs (Detail) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares | shares | 51,589 |
Weighted Average Base Value | $ / shares | $ 30.64 |
Weighted Average Remaining Contractual Life (years) | 1 year |
Aggregate Intrinsic Value | $ | $ 6.2 |
Stock-Based Compensation - Effe
Stock-Based Compensation - Effect of Recording Stock-Based Compensation (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 29.5 | $ 49.2 | $ 27.3 |
Windfall tax effect on stock-based compensation | (2.2) | (2.2) | (8.3) |
Net effect on net income | $ 27.3 | $ 47 | $ 19 |
Basic | $ 0.50 | $ 0.86 | $ 0.35 |
Diluted | $ 0.49 | $ 0.85 | $ 0.35 |
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 27 | $ 47 | $ 24.9 |
Stock Appreciation Rights (SARs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 0.1 | 0.1 | |
Employee Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2.5 | $ 2.1 | $ 2.3 |
Stock-Based Compensation - Pre-
Stock-Based Compensation - Pre-Tax Effect Within Consolidated Statements of Operations of Recording Stock-Based Compensation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 29.5 | $ 49.2 | $ 27.3 |
Cost of Revenues [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4.2 | 2.8 | 3.5 |
Research and Development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4 | 3.8 | 2.8 |
Selling, General and Administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 20.4 | 20.5 | $ 21 |
Acquisition and Integration Cost [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 0.9 | 21.7 | |
Restructuring Related Expense [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 0.4 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Employee Purchase Rights Estimated Using Black-Scholes Option-Pricing Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected life (years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.90% | 2.40% | 1.80% |
Expected volatility | 45.40% | 38.70% | 38.60% |
Expected annual dividends per share | $ 0.80 | $ 0.80 | $ 0.76 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 08, 2021 | Jul. 25, 2011 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders Equity [Line Items] | |||||||||||||
Common stock, value of shares authorized to repurchase | $ 200 | ||||||||||||
Stock repurchase, shares | 2,588,000 | 0 | 0 | ||||||||||
Value of shares repurchased | $ 127 | $ 75 | |||||||||||
Average price of repurchased shares | $ 91.67 | ||||||||||||
Cash dividends per common share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 | |||
Dividend payment to common shareholders | $ 44 | $ 43.5 | $ 42.4 | ||||||||||
Subsequent Event [Member] | |||||||||||||
Stockholders Equity [Line Items] | |||||||||||||
Dividend declared date | Feb. 8, 2021 | ||||||||||||
Cash dividend to be paid | $ 0.20 | ||||||||||||
Dividend to be paid date | Mar. 5, 2021 | ||||||||||||
Dividend declared, shareholders of record date | Feb. 22, 2021 | ||||||||||||
Common Stock [Member] | |||||||||||||
Stockholders Equity [Line Items] | |||||||||||||
Stock repurchase, shares | 818,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee contribution to Company's profit sharing plan percentage | 1.00% | |||
Employee contribution to Company's profit sharing plan percentage | 50.00% | |||
Minimum age limit for specified additional amount | 50 years | |||
Company's contributions | $ 7.2 | $ 6.9 | $ 6.1 | |
Bonus expense | 66.4 | 32.2 | 38.3 | |
Supplemental retirement benefits cost | 0.3 | 3.2 | $ 4.6 | |
Accumulated benefit obligation noncurrent | 2.5 | 2.5 | ||
Accumulated benefit obligation current | 21.3 | |||
Israel [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension assets | 18.8 | 16.7 | ||
Defined benefit plan, vested benefit obligations | 21.7 | 19.7 | ||
Germany [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension assets | $ 6.5 | $ 5.8 | ||
Germany [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan assets guaranteed rate of return | 2.25% | |||
Germany [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan assets guaranteed rate of return | 4.25% | |||
Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company's contributions | $ 0.7 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 1 | $ 0.8 |
Interest cost on projected benefit obligations | 0.4 | 0.5 |
Expected return on plan assets | (0.1) | (0.1) |
Amortization of actuarial net loss | 0.5 | 0.1 |
Net periodic benefit costs | $ 1.8 | $ 1.3 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Changes in Projected Benefit Obligations and Plan Assets, and Ending Balances of Defined Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in projected benefit obligations: | ||
Service cost | $ 1 | $ 0.8 |
Interest cost | 0.4 | 0.5 |
Change in plan assets: | ||
Fair value of plan assets, beginning of year | 11.1 | |
Fair value of plan assets, end of year | 12.9 | 11.1 |
Newport Corporation | ||
Change in projected benefit obligations: | ||
Projected benefit obligations, beginning of year | 30.1 | 24.9 |
Assumed in ESI Merger | 3.5 | |
Service cost | 1 | 0.8 |
Interest cost | 0.4 | 0.5 |
Contributions by plan participants | 0.7 | |
Plan amendments | (0.2) | |
Actuarial loss | 3 | 2.1 |
Benefits paid | (1.2) | (1.5) |
Currency translation adjustments | 2.4 | (0.2) |
Projected benefit obligations, end of year | 36.2 | 30.1 |
Change in plan assets: | ||
Fair value of plan assets, beginning of year | 11.1 | 7.8 |
Assumed in ESI Merger | 1.3 | |
Company contributions | 1.1 | 1.8 |
Gain on plan assets | 0.6 | 0.6 |
Benefits paid | (0.5) | (0.5) |
Currency translation adjustments | 0.6 | 0.1 |
Fair value of plan assets, end of year | 12.9 | 11.1 |
Net underfunded status | $ (23.3) | $ (19) |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Estimated Benefit Payments for Defined Benefit Plans for Next 10 Years (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2021 | $ 0.9 |
2022 | 1.1 |
2023 | 1.3 |
2024 | 1.1 |
2025 | 1.3 |
2026-2030 | 8.8 |
Estimated benefit payments for next 10 years, total | $ 14.5 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Weighted Average Rates Used to Determine Net Periodic Benefit Costs (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 1.10% | 1.40% |
Rate of increase in salary levels | 2.20% | 2.20% |
Expected long-term rate of return on assets | 1.20% | 2.10% |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Defined Benefit Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan assets, amount | $ 12.9 | $ 11.1 |
Defined benefit plan assets, percentage | 100.00% | 100.00% |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan assets, amount | $ 0.2 | $ 0.4 |
Defined benefit plan assets, percentage | 1.30% | 3.90% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan assets, amount | $ 5.2 | $ 8.1 |
Defined benefit plan assets, percentage | 40.50% | 72.30% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan assets, amount | $ 0.7 | $ 1.5 |
Defined benefit plan assets, percentage | 5.60% | 13.70% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan assets, amount | $ 6.8 | $ 1.1 |
Defined benefit plan assets, percentage | 52.60% | 10.10% |
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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income | $ 115.6 | $ 91.7 | $ 73.7 | $ 69.1 | $ 42.8 | $ 47.4 | $ 37.7 | $ 12.5 | $ 350.1 | $ 140.4 | $ 392.9 |
Denominator: | |||||||||||
Shares used in net income per common share – basic | 55,095,000 | 54,711,000 | 54,406,000 | ||||||||
Effect of dilutive securities | 255,000 | 400,000 | 586,000 | ||||||||
Shares used in net income per common share – diluted | 55,350,000 | 55,111,000 | 54,992,000 | ||||||||
Net income per common share: | |||||||||||
Basic | $ 2.10 | $ 1.66 | $ 1.34 | $ 1.26 | $ 0.78 | $ 0.86 | $ 0.69 | $ 0.23 | $ 6.36 | $ 2.57 | $ 7.22 |
Diluted | $ 2.08 | $ 1.66 | $ 1.33 | $ 1.25 | $ 0.77 | $ 0.86 | $ 0.69 | $ 0.23 | $ 6.33 | $ 2.55 | $ 7.14 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) [Member] | |||
Earnings Per Share [Line Items] | |||
Number of shares excluded from computation of diluted earnings per share | 2,411 | 65,664 | 79,500 |
Business Segment, Geographic _3
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2020CustomerSegment | Dec. 31, 2019Customer | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Number of customers accounted for 10% or more of total revenue | Customer | 2 | 0 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 660.2 | $ 589.8 | $ 544.3 | $ 535.7 | $ 499.7 | $ 462.5 | $ 474.1 | $ 463.6 | $ 2,330 | $ 1,899.8 | $ 2,075.1 |
Vacuum & Analysis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 1,405.9 | 990.5 | 1,260.8 | ||||||||
Light & Motion [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 689.6 | 725.6 | $ 814.3 | ||||||||
Equipment & Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 234.5 | $ 183.7 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ 301.6 | $ 262 | $ 246.3 | $ 239.6 | $ 216.3 | $ 205 | $ 211 | $ 198.1 | $ 1,049.5 | $ 830.4 | $ 979.5 |
Research and development | 173.1 | 164.1 | 135.7 | ||||||||
Selling, general and administrative | 353.1 | 330.3 | 298.1 | ||||||||
Acquisition and integration costs | 3.8 | 37.3 | 3.1 | ||||||||
Restructuring and other | 9.4 | 7 | 4.6 | ||||||||
Amortization of intangible assets | 55.2 | 67.4 | 43.5 | ||||||||
Asset impairment | 2.3 | 4.7 | |||||||||
COVID-19 related net credits | (1.2) | ||||||||||
Fees and expenses related to repricing of Term Loan Facility | 6.6 | 0.4 | |||||||||
Gain on sale of long-lived assets | (6.8) | ||||||||||
Income from operations | 146.7 | 116.4 | 100.8 | 89.9 | 66.1 | 66.8 | 63.9 | 23.1 | 453.8 | 219.8 | 494.1 |
Interest income | 1.4 | 5.4 | 5.8 | ||||||||
Interest expense | 29.1 | 44.1 | 16.9 | ||||||||
Other expense, net | 3.1 | 3.3 | 2 | ||||||||
Income before income taxes | 423 | 177.8 | 481 | ||||||||
Provision for income taxes | 72.9 | 37.4 | 88.1 | ||||||||
Net income | $ 115.6 | $ 91.7 | $ 73.7 | $ 69.1 | $ 42.8 | $ 47.4 | $ 37.7 | $ 12.5 | 350.1 | 140.4 | 392.9 |
Vacuum & Analysis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | 633.7 | 426.4 | 577.6 | ||||||||
Light & Motion [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | 309.8 | 336.8 | $ 401.9 | ||||||||
Equipment & Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ 106 | $ 67.2 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 84.9 | $ 63.9 | $ 62.9 |
Depreciation and amortization | 99.2 | 110 | 79.8 |
Vacuum & Analysis [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 36 | 34.1 | 40.1 |
Depreciation and amortization | 20.3 | 16.8 | 20.8 |
Light & Motion [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 32.1 | 23 | 22.8 |
Depreciation and amortization | 43.2 | 53.9 | $ 59 |
Equipment & Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 16.8 | 6.8 | |
Depreciation and amortization | $ 35.7 | $ 39.3 |
Business Segment, Geographic _7
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Segment Assets by Reportable Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 392.7 | $ 341.1 |
Inventory | 501.4 | 462.1 |
Total segment assets | 894.1 | 803.2 |
Operating Segments [Member] | Vacuum & Analysis [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | 229.1 | 185.9 |
Inventory | 273.3 | 224.8 |
Total segment assets | 502.4 | 410.7 |
Operating Segments [Member] | Light & Motion [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | 122.6 | 147.2 |
Inventory | 166.1 | 163.7 |
Total segment assets | 288.7 | 310.9 |
Operating Segments [Member] | Equipment & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | 51.7 | 40.1 |
Inventory | 63.7 | 73.5 |
Total segment assets | 115.4 | 113.6 |
Corporate, Eliminations & Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | (10.7) | (32.1) |
Inventory | (1.7) | 0.1 |
Total segment assets | $ (12.4) | $ (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 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total segment assets | $ 894.1 | $ 803.2 |
Cash and cash equivalents | 608.3 | 414.6 |
Other current assets | 74.3 | 106.3 |
Property, plant and equipment, net | 284.3 | 241.9 |
Right-of-use assets | 184.4 | 64.5 |
Other assets and long-term assets | 45.6 | 47.5 |
Consolidated total assets | 3,903.8 | 3,416.3 |
Segment Reconciling Items [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash and cash equivalents | 836 | 524 |
Other current assets | 74.3 | 106.3 |
Property, plant and equipment, net | 284.3 | 241.9 |
Right-of-use assets | 184.4 | 64.5 |
Goodwill and intangible assets, net | 1,578.6 | 1,623.1 |
Other assets and long-term assets | 52.1 | 53.3 |
Consolidated total assets | $ 3,903.8 | $ 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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | $ 660.2 | $ 589.8 | $ 544.3 | $ 535.7 | $ 499.7 | $ 462.5 | $ 474.1 | $ 463.6 | $ 2,330 | $ 1,899.8 | $ 2,075.1 |
Long-lived assets | 503.9 | 339.3 | 503.9 | 339.3 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 1,058.9 | 888.4 | 1,022.7 | ||||||||
Long-lived assets | 364 | 208.3 | 364 | 208.3 | |||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 273.5 | 178.6 | 127.7 | ||||||||
South Korea [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 278.8 | 167.7 | 203.6 | ||||||||
Other Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 519.6 | 435.8 | 477.1 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 199.2 | 229.3 | $ 244 | ||||||||
Long-lived assets | 45.1 | 41.4 | 45.1 | 41.4 | |||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets | $ 94.8 | $ 89.6 | $ 94.8 | $ 89.6 |
Business Segment, Geographic_10
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Schedule of Net Revenues and Long-Lived Assets by Geographic Regions (Parenthetical) (Detail) | Dec. 31, 2020Location |
United States [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Number of locations with increase in right-of-use assets | 3 |
Business Segment, Geographic_11
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Summary of Goodwill Associated with Reportable Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 1,066.4 | $ 1,058.5 | $ 587 |
Vacuum & Analysis [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 196.2 | 196.7 | |
Light & Motion [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 395.3 | 388.5 | |
Equipment & Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 474.9 | $ 473.3 |
Business Segment, Geographic_12
Business Segment, Geographic Area, Product/Service Offerings and Significant Customer Information - Summary of Net Revenues by Major Customers (Detail) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lam Research Corporation [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of total net revenues | 13.50% | 8.50% | 10.80% |
Applied Materials, Inc. [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of total net revenues | 10.60% | 9.30% | 11.70% |
Restructurings and Other - Addi
Restructurings and Other - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost And Other Cost [Line Items] | ||
Restructuring charges | $ 2.7 | $ 5.5 |
Other restructuring charges, facility cost | 7.2 | |
Newport Corporation | ||
Restructuring Cost And Other Cost [Line Items] | ||
Insurance reimbursement received | $ 0.5 | |
Legal settlement from a contractual obligation | $ 1.5 |
Restructurings and Other - Sche
Restructurings and Other - Schedule of Company's Restructuring Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | ||
Balance at January 1 | $ 3.7 | $ 2.6 |
Restructuring charges | 2.7 | 5.5 |
Payments and adjustments | (6.1) | (4.4) |
Balance at December 31 | $ 0.3 | $ 3.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Purchase commitments covered by aggregate value | $ 268,200,000 |
Purchase commitments | less than one year |
Liabilities. purchase obligation | $ 0 |
Supplemental Financial Data (De
Supplemental Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Operations Data | |||||||||||
Net revenues | $ 660.2 | $ 589.8 | $ 544.3 | $ 535.7 | $ 499.7 | $ 462.5 | $ 474.1 | $ 463.6 | $ 2,330 | $ 1,899.8 | $ 2,075.1 |
Gross profit | 301.6 | 262 | 246.3 | 239.6 | 216.3 | 205 | 211 | 198.1 | 1,049.5 | 830.4 | 979.5 |
Income from operations | 146.7 | 116.4 | 100.8 | 89.9 | 66.1 | 66.8 | 63.9 | 23.1 | 453.8 | 219.8 | 494.1 |
Net income | $ 115.6 | $ 91.7 | $ 73.7 | $ 69.1 | $ 42.8 | $ 47.4 | $ 37.7 | $ 12.5 | $ 350.1 | $ 140.4 | $ 392.9 |
Net income per share: | |||||||||||
Basic | $ 2.10 | $ 1.66 | $ 1.34 | $ 1.26 | $ 0.78 | $ 0.86 | $ 0.69 | $ 0.23 | $ 6.36 | $ 2.57 | $ 7.22 |
Diluted | 2.08 | 1.66 | 1.33 | 1.25 | 0.77 | 0.86 | 0.69 | 0.23 | 6.33 | 2.55 | $ 7.14 |
Cash dividends paid per common share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - Coherent, Inc. [Member] $ in Millions | Feb. 04, 2021USD ($)shares |
Subsequent Event [Line Items] | |
Date of acquisition agreement | Feb. 4, 2021 |
Price per share of common stock in cash | $ | $ 115 |
Number of share received per common stock | shares | 7,473 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 1.8 | $ 5.2 | $ 4.1 |
Additions Acquisition Beginning Balance | 0.2 | ||
Additions Charged to Costs and Expenses | 0.1 | (0.7) | 1.4 |
Deductions & Write-offs | 0.1 | (2.9) | (0.3) |
Balance at End of Year | 2 | 1.8 | 5.2 |
Valuation Allowance for Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 1.4 | 1 | 1.3 |
Additions Charged to Costs and Expenses | 0.3 | 0.2 | 0.1 |
Deductions & Write-offs | 0.1 | 0.2 | (0.4) |
Balance at End of Year | 1.8 | 1.4 | 1 |
Valuation Allowance on Deferred Tax Asset [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 27.4 | 17.9 | 13.6 |
Additions Acquisition Beginning Balance | 5.9 | ||
Additions Charged to Costs and Expenses | 4.2 | 4.9 | 4.8 |
Deductions & Write-offs | (1) | (1.3) | (0.5) |
Balance at End of Year | $ 30.6 | $ 27.4 | $ 17.9 |