Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2017 | Jul. 24, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ENTG | |
Entity Registrant Name | ENTEGRIS INC | |
Entity Central Index Key | 1,101,302 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 141,793,753 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 405,635 | $ 406,389 |
Trade accounts and notes receivable, net of allowance for doubtful accounts of $2,292 and $2,474 | 171,113 | 165,675 |
Inventories | 194,155 | 183,529 |
Deferred tax charges and refundable income taxes | 16,716 | 20,140 |
Other current assets | 21,374 | 24,398 |
Total current assets | 808,993 | 800,131 |
Property, plant and equipment, net of accumulated depreciation of $408,265 and $387,523 | 341,146 | 321,562 |
Other assets: | ||
Goodwill | 355,178 | 345,269 |
Intangible assets, net of accumulated amortization of $259,780 and $237,207 | 206,182 | 217,548 |
Deferred tax assets and other noncurrent tax assets | 8,622 | 8,022 |
Other | 7,322 | 7,000 |
Total assets | 1,727,443 | 1,699,532 |
Current liabilities: | ||
Long-term debt, current maturities | 100,000 | 100,000 |
Accounts payable | 56,961 | 61,617 |
Accrued payroll and related benefits | 41,401 | 54,317 |
Other accrued liabilities | 33,874 | 29,213 |
Income taxes payable | 18,786 | 16,424 |
Total current liabilities | 251,022 | 261,571 |
Long-term debt, excluding current maturities, net of unamortized discount and debt issuance costs of $7,940 and $9,173 | 435,910 | 484,677 |
Pension benefit obligations and other liabilities | 31,126 | 27,220 |
Deferred tax liabilities and other noncurrent tax liabilities | 27,116 | 26,846 |
Commitments and contingent liabilities | 0 | 0 |
Equity: | ||
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued and outstanding as of July 1, 2017 and December 31, 2016 | 0 | 0 |
Common stock, par value $.01; 400,000,000 shares authorized; issued and outstanding shares as of July 1, 2017 and December 31, 2016: 141,790,240 and 141,319,964 | 1,418 | 1,413 |
Additional paid-in capital | 862,660 | 859,778 |
Retained earnings | 160,376 | 92,303 |
Accumulated other comprehensive loss | (42,185) | (54,276) |
Total equity | 982,269 | 899,218 |
Total liabilities and equity | $ 1,727,443 | $ 1,699,532 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Trade accounts and notes receivable, allowance for doubtful accounts | $ 2,292 | $ 2,474 |
Property, plant and equipment, accumulated depreciation | 408,265 | 387,523 |
Intangible assets, Accumulated amortization | 259,780 | 237,207 |
Unamortized discount and debt issuance costs | $ 7,940 | $ 9,173 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 141,790,240 | 141,319,964 |
Common stock, shares outstanding | 141,790,240 | 141,319,964 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Net sales | $ 329,002 | $ 303,052 | $ 646,379 | $ 570,076 |
Cost of sales | 178,699 | 163,847 | 356,480 | 316,165 |
Gross profit | 150,303 | 139,205 | 289,899 | 253,911 |
Selling, general and administrative expenses | 52,985 | 53,597 | 103,477 | 101,553 |
Engineering, research and development expenses | 27,221 | 28,146 | 54,460 | 54,048 |
Amortization of intangible assets | 11,007 | 11,062 | 21,952 | 22,351 |
Operating income | 59,090 | 46,400 | 110,010 | 75,959 |
Interest expense | 8,196 | 9,092 | 16,669 | 18,310 |
Interest income | (93) | (41) | (173) | (110) |
Other (income) expense, net | (46) | (1,054) | 856 | (1,729) |
Income before income tax expense | 51,033 | 38,403 | 92,658 | 59,488 |
Income tax expense | 11,042 | 5,513 | 20,153 | 10,386 |
Net income | $ 39,991 | $ 32,890 | $ 72,505 | $ 49,102 |
Basic net income per common share | $ 0.28 | $ 0.23 | $ 0.51 | $ 0.35 |
Diluted net income per common share | $ 0.28 | $ 0.23 | $ 0.51 | $ 0.35 |
Weighted shares outstanding: | ||||
Basic | 141,696 | 140,953 | 141,599 | 140,867 |
Diluted | 143,508 | 141,723 | 143,411 | 141,547 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Net income | $ 39,991 | $ 32,890 | $ 72,505 | $ 49,102 |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustments | (4,039) | 1,164 | 12,084 | 6,763 |
Unrealized loss on available-for-sale securities | 0 | (384) | 0 | (611) |
Pension liability adjustments | 18 | 16 | 6 | 32 |
Other comprehensive (loss) income | (4,021) | 796 | 12,090 | 6,184 |
Comprehensive income | $ 35,970 | $ 33,686 | $ 84,595 | $ 55,286 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Jul. 02, 2016 | |
Operating activities: | ||
Net income | $ 72,505 | $ 49,102 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 28,388 | 27,525 |
Amortization | 21,952 | 22,351 |
Share-based compensation expense | 7,909 | 6,366 |
Provision for deferred income taxes | 3,207 | (931) |
Other | 10,130 | 9,204 |
Changes in operating assets and liabilities: | ||
Trade accounts and notes receivable | (3,032) | (36,099) |
Inventories | (13,837) | (11,389) |
Accounts payable and accrued liabilities | (13,313) | 13,555 |
Other current assets | 4,014 | 5,693 |
Income taxes payable and refundable income taxes | 2,957 | 407 |
Other | (2,289) | (7,246) |
Net cash provided by operating activities | 118,591 | 78,538 |
Investing activities: | ||
Acquisition of property, plant and equipment | (42,492) | (32,144) |
Acquisition of business, net of cash acquired | (20,000) | 0 |
Proceeds from sale and maturities of short-term investments | 0 | 1,726 |
Other | 211 | (3,384) |
Net cash used in investing activities | (62,281) | (33,802) |
Financing activities: | ||
Payments of long-term debt | (50,000) | (25,000) |
Issuance of common stock | 2,905 | 2,380 |
Repurchase and retirement of common stock | (8,000) | (3,573) |
Taxes paid related to net share settlement of equity awards | (5,239) | (2,203) |
Other | (1,270) | 91 |
Net cash used in financing activities | (61,604) | (28,305) |
Effect of exchange rate changes on cash and cash equivalents | 4,540 | 7,487 |
(Decrease) increase in cash and cash equivalents | (754) | 23,918 |
Cash and cash equivalents at beginning of period | 406,389 | 349,825 |
Cash and cash equivalents at end of period | 405,635 | 373,743 |
Supplemental Cash Flow Information [Abstract] | ||
Capital lease obligations incurred | 4,768 | 0 |
Schedule of interest and income taxes paid [Abstract] | ||
Interest Paid | 14,548 | 16,392 |
Income Taxes Paid, Net | $ 14,605 | $ 10,950 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 01, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Entegris, Inc. (“Entegris”, “the Company”, “us”, “we”, or “our”) is a leading global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and advanced materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Intercompany profits, transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, goodwill, intangibles, accrued expenses, and income taxes and related accounts, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and contain all adjustments considered necessary, and are of a normal recurring nature, to present fairly the financial position as of July 1, 2017 and December 31, 2016 , the results of operations, comprehensive income, and cash flows for the three and six months ended July 1, 2017 and July 2, 2016 , and cash flows for the six months ended July 1, 2017 and July 2, 2016 . The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain certain information included in the Company’s annual consolidated financial statements and notes. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2016 . The results of operations for the three and six months ended July 1, 2017 are not necessarily indicative of the results to be expected for the full year. Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable, accrued payroll and related benefits, and other accrued liabilities approximates fair value due to the short maturity of those items. The fair value of long-term debt, including current maturities, was $553.7 million at July 1, 2017 , compared to the carrying amount of long-term debt, including current maturities, of $535.9 million at July 1, 2017. Recent Accounting Pronouncements Adopted in 2017 In April 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for tax effects related to share-based payments, forfeitures, and statutory tax withholding requirements, as well as the classification of tax-related cash flows in the statement of cash flows. The update eliminates the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. ASU No. 2016-09 became effective for the Company January 1, 2017. The Company adopted ASU No. 2016-09 using the modified retrospective approach. In connection with the adoption of ASU No. 2016-09, the Company elected as an accounting policy to record forfeitures as they occur and recorded a cumulative-effect adjustment of $0.4 million to retained earnings as of January 1, 2017. The Company also recorded a cumulative-effect adjustment of $1.0 million to retained earnings as of January 1, 2017 with respect to previously unrecognized excess tax benefits. Under ASU No. 2016-09, excess tax benefits or deficiencies related to stock option exercises and restricted stock unit vesting are recognized in the condensed statement of operations. Accordingly, for the six months ended July 1, 2017, the Company recorded a tax benefit of $3.2 million in the condensed statement of operations. Also related to the adoption of ASU No. 2016-09, the Company elected to present the cash flow statement using the prospective transition method. No prior periods have been adjusted. Recent Accounting Pronouncements Yet to be Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. As such, revenue for an entity's contracts will generally be recognized as control of the product transfers to the customer, which is consistent with the revenue recognition model currently used for the majority of the Company's contracts. ASU No. 2014-09 may be applied either retrospectively or through the use of a modified-retrospective method. ASU No. 2014-09 also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers. ASU No. 2014-09 is effective for the Company beginning January 1, 2018. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and disclosures. To assist in this assessment, and to oversee the eventual adoption of ASU No. 2014-09, the Company has established a cross-functional steering committee. The initial analysis of identifying revenue streams and potential impacts of the new guidance is substantially complete, and the Company is now analyzing the potential magnitude of impact to the consolidated financial statements and related disclosures. Based on its preliminary evaluation of ASU No. 2014-09, the Company does not currently expect it to have a material impact on its results of operations or cash flows in the periods after adoption. The Company has not yet selected a transition approach. The Company expects to complete its assessment of the estimated cumulative effect of adopting ASU No. 2014-09 as well as the selection of its transition approach during the third quarter. The evaluation of ASU No. 2014-09 will continue through the date of adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases, and amortization and interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. ASU No. 2016-02 is effective beginning January 1, 2019. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and disclosures, and the timing of adoption. |
Acquisition (Notes)
Acquisition (Notes) | 6 Months Ended |
Jul. 01, 2017 | |
Business Acquisition [Line Items] | |
Business Combination Disclosure [Text Block] | ACQUISITION On April 24, 2017, the Company acquired the microelectronic water and chemical filtration product line of W.L. Gore & Associates, Inc. The acquired assets became part of the Company’s Microcontamination Control (MC) segment. The transaction was accounted for under the acquisition method of accounting and the results of operations of the product line are included in the Company's consolidated financial statements as of and since April 24, 2017. The acquisition of the product line’s assets and liabilities does not constitute a material business combination. The purchase price for the product line was cash consideration of $20.0 million , funded from the Company's existing cash on hand. Costs associated with the acquisition of the product line were not significant and were expensed as incurred. The purchase price of the product line exceeds the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $7.3 million . Cash flows used to determine the purchase price included strategic and synergistic benefits (investment value) specific to the Company, which resulted in a purchase price in excess of the fair value of identifiable net assets. This additional investment value resulted in goodwill, which is expected to be deductible for income tax purposes. The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets and liabilities assumed at the date of acquisition: (In thousands): Amount Other current assets $ 726 Property, plant and equipment 2,800 Identifiable intangible assets 9,200 Net assets acquired 12,726 Goodwill 7,274 Total purchase price $ 20,000 As of July 1, 2017, the Company has not completed its fair value determinations of the purchased intangible assets and property, plant and equipment acquired. The valuation of these items has been performed on a preliminary basis by the Company and is currently being reviewed, with the expectation of completion in the third quarter. Intangible assets, consisting mostly of technology-related intellectual property, generally will be amortized on a straight-line basis over an estimated useful life of approximately 7 years. As part of the accounting for this transaction, the Company allocated the purchase price of the acquired entities based on the fair value of all the assets acquired. The valuation of the assets acquired was 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. In performing these valuations, the Company used independent appraisals, discounted cash flows and other other factors, as the best evidence of fair value. The key underlying assumptions of the discounted cash flows were projected revenues, gross margin expectations and operating cost estimates. There are inherent uncertainties and management judgment required in these determinations. No assurance can be given that the underlying assumptions will occur as projected. The fair value measurement of the assets acquired and liabilities assumed were based on valuation involving significant unobservable inputs, or Level 3 in the fair value hierarchy. |
Inventories
Inventories | 6 Months Ended |
Jul. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following: (In thousands) July 1, 2017 December 31, 2016 Raw materials $ 57,995 $ 53,109 Work-in process 16,125 15,976 Finished goods 120,035 114,444 Total inventories $ 194,155 $ 183,529 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jul. 01, 2017 | |
Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill activity for each period was as follows: (In thousands) Specialty Chemicals and Engineered Materials Microcontamination Control Advanced Materials Handling Total December 31, 2016 $ 297,858 $ — $ 47,411 $ 345,269 Addition due to acquisition — 7,274 — 7,274 Foreign currency translation 2,635 — — 2,635 July 1, 2017 $ 300,493 $ 7,274 $ 47,411 $ 355,178 Identifiable intangible assets at July 1, 2017 and December 31, 2016 consist of the following: July 1, 2017 (In thousands) Gross carrying Amount Accumulated amortization Net carrying value Developed technology $ 210,735 $ 138,241 $ 72,494 Trademarks and trade names 16,678 13,341 3,337 Customer relationships 219,117 100,200 118,917 Other 19,432 7,998 11,434 $ 465,962 $ 259,780 $ 206,182 December 31, 2016 (In thousands) Gross carrying amount Accumulated amortization Net carrying value Developed technology $ 202,591 $ 126,077 $ 76,514 Trademarks and trade names 16,661 12,617 4,044 Customer relationships 216,918 90,581 126,337 Other 18,585 7,932 10,653 $ 454,755 $ 237,207 $ 217,548 Future amortization expense for each of the five succeeding years and thereafter relating to intangible assets currently recorded in the Company's consolidated balance sheets is estimated at July 1, 2017 to be the following: Fiscal year ending December 31 (In thousands) 2017 $ 22,330 2018 44,064 2019 41,746 2020 27,076 2021 20,444 Thereafter 50,522 $ 206,182 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jul. 01, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per common share (EPS): Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Basic—weighted common shares outstanding 141,696 140,953 141,599 140,867 Weighted common shares assumed upon exercise of stock options and vesting of restricted common stock 1,812 770 1,812 680 Diluted—weighted common shares and common shares equivalent outstanding 143,508 141,723 143,411 141,547 The Company excluded the following shares underlying stock-based awards from the calculations of diluted EPS because their inclusion would have been anti-dilutive for the three and six months ended July 1, 2017 and July 2, 2016 : Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Shares excluded from calculations of diluted EPS 338 994 269 1,391 |
Fair Value
Fair Value | 6 Months Ended |
Jul. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Financial Assets Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets that are measured at fair value on a recurring basis at July 1, 2017 and December 31, 2016 . Level 1 inputs are based on quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2 inputs are based on quoted prices for similar instruments in active markets and quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in a market. Level 3 inputs are based on prices or valuations that require inputs that are significant to the valuation and are unobservable. July 1, 2017 December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Other current assets Foreign currency contracts (a) $ — $ 183 $ — $ 183 $ — $ 4,784 $ — $ 4,784 Total assets measured and recorded at fair value $ — $ 183 $ — $ 183 $ — $ 4,784 $ — $ 4,784 (a) Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments. A reconciliation of the net fair value of foreign currency contract assets and liabilities subject to master netting arrangements that are recorded in the July 1, 2017 and December 31, 2016 condensed consolidated balance sheets to the net fair value that could have been reported in the respective condensed consolidated balance sheets is as follows: July 1, 2017 December 31, 2016 (In thousands) Gross Gross Net amount of Gross amounts of recognized assets Gross amounts offset in the condensed consolidated balance sheet Net amount of assets in the condensed consolidated balance sheet Foreign currency contracts $ 183 $ — $ 183 $ 4,784 $ — $ 4,784 Gains (losses) associated with derivatives are recorded in other income, net, in the condensed consolidated statements of operations. Gains (losses) associated with derivative instruments not designated as hedging instruments were as follows: Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Gains (losses) on foreign currency contracts $ 183 $ (3,515 ) $ (2,114 ) $ (6,165 ) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 01, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company reports its financial performance based on three reportable segments, which reflects an organizational alignment intended to leverage its unique portfolio of capabilities to create value for its customers by developing mission-critical solutions to maximize manufacturing yields and enable higher performance of devices. While these segments have unique products, solutions, and technical know-how, they share a single, global sales force, unified core systems and processes, global technology centers, strategic and technology roadmaps, and a focus on a common set of customers. The Company's business is reported in the following segments: • Specialty Chemicals and Engineered Materials (SCEM): SCEM provides high-performance and high-purity process chemistries, gases, and materials and safe and efficient delivery systems to support semiconductor and other advanced manufacturing processes. • Microcontamination Control (MC): MC solutions purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries. • Advanced Materials Handling (AMH): AMH develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a broad set of applications in the semiconductor industry and other high-technology industries. Inter-segment sales are not significant. Segment profit is defined as net sales less direct segment operating expenses, excluding certain unallocated expenses, consisting mainly of general and administrative costs for the Company’s human resources, corporate, finance and information technology functions as well as interest expense, amortization of intangible assets and income taxes. Summarized financial information for the Company’s reportable segments is shown in the following tables. Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net sales SCEM $ 121,174 $ 111,782 $ 235,609 $ 212,889 MC 104,407 91,584 204,462 169,203 AMH 103,421 99,686 206,308 187,984 Total net sales $ 329,002 $ 303,052 $ 646,379 $ 570,076 Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Segment profit SCEM $ 34,174 $ 28,914 $ 62,314 $ 51,330 MC 36,484 28,566 72,065 46,706 AMH 19,573 22,519 37,849 41,430 Total segment profit $ 90,231 $ 79,999 $ 172,228 $ 139,466 The following table reconciles total segment profit to income before income taxes: Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Total segment profit $ 90,231 $ 79,999 $ 172,228 $ 139,466 Less: Amortization of intangible assets 11,007 11,062 21,952 22,351 Unallocated general and administrative expenses 20,134 22,537 40,266 41,156 Operating income 59,090 46,400 110,010 75,959 Interest expense 8,196 9,092 16,669 18,310 Interest income (93 ) (41 ) (173 ) (110 ) Other (income) expense, net (46 ) (1,054 ) 856 (1,729 ) Income before income tax expense $ 51,033 $ 38,403 $ 92,658 $ 59,488 |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 01, 2017 | |
Nature of Operations | Nature of Operations Entegris, Inc. (“Entegris”, “the Company”, “us”, “we”, or “our”) is a leading global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and advanced materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Intercompany profits, transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, goodwill, intangibles, accrued expenses, and income taxes and related accounts, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and contain all adjustments considered necessary, and are of a normal recurring nature, to present fairly the financial position as of July 1, 2017 and December 31, 2016 , the results of operations, comprehensive income, and cash flows for the three and six months ended July 1, 2017 and July 2, 2016 , and cash flows for the six months ended July 1, 2017 and July 2, 2016 . The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain certain information included in the Company’s annual consolidated financial statements and notes. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2016 . The results of operations for the three and six months ended July 1, 2017 are not necessarily indicative of the results to be expected for the full year. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable, accrued payroll and related benefits, and other accrued liabilities approximates fair value due to the short maturity of those items. The fair value of long-term debt, including current maturities, was $553.7 million at July 1, 2017 , compared to the carrying amount of long-term debt, including current maturities, of $535.9 million at July 1, 2017. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2017 In April 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for tax effects related to share-based payments, forfeitures, and statutory tax withholding requirements, as well as the classification of tax-related cash flows in the statement of cash flows. The update eliminates the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. ASU No. 2016-09 became effective for the Company January 1, 2017. The Company adopted ASU No. 2016-09 using the modified retrospective approach. In connection with the adoption of ASU No. 2016-09, the Company elected as an accounting policy to record forfeitures as they occur and recorded a cumulative-effect adjustment of $0.4 million to retained earnings as of January 1, 2017. The Company also recorded a cumulative-effect adjustment of $1.0 million to retained earnings as of January 1, 2017 with respect to previously unrecognized excess tax benefits. Under ASU No. 2016-09, excess tax benefits or deficiencies related to stock option exercises and restricted stock unit vesting are recognized in the condensed statement of operations. Accordingly, for the six months ended July 1, 2017, the Company recorded a tax benefit of $3.2 million in the condensed statement of operations. Also related to the adoption of ASU No. 2016-09, the Company elected to present the cash flow statement using the prospective transition method. No prior periods have been adjusted. Recent Accounting Pronouncements Yet to be Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. As such, revenue for an entity's contracts will generally be recognized as control of the product transfers to the customer, which is consistent with the revenue recognition model currently used for the majority of the Company's contracts. ASU No. 2014-09 may be applied either retrospectively or through the use of a modified-retrospective method. ASU No. 2014-09 also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers. ASU No. 2014-09 is effective for the Company beginning January 1, 2018. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and disclosures. To assist in this assessment, and to oversee the eventual adoption of ASU No. 2014-09, the Company has established a cross-functional steering committee. The initial analysis of identifying revenue streams and potential impacts of the new guidance is substantially complete, and the Company is now analyzing the potential magnitude of impact to the consolidated financial statements and related disclosures. Based on its preliminary evaluation of ASU No. 2014-09, the Company does not currently expect it to have a material impact on its results of operations or cash flows in the periods after adoption. The Company has not yet selected a transition approach. The Company expects to complete its assessment of the estimated cumulative effect of adopting ASU No. 2014-09 as well as the selection of its transition approach during the third quarter. The evaluation of ASU No. 2014-09 will continue through the date of adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases, and amortization and interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. ASU No. 2016-02 is effective beginning January 1, 2019. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and disclosures, and the timing of adoption. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets and liabilities assumed at the date of acquisition: (In thousands): Amount Other current assets $ 726 Property, plant and equipment 2,800 Identifiable intangible assets 9,200 Net assets acquired 12,726 Goodwill 7,274 Total purchase price $ 20,000 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: (In thousands) July 1, 2017 December 31, 2016 Raw materials $ 57,995 $ 53,109 Work-in process 16,125 15,976 Finished goods 120,035 114,444 Total inventories $ 194,155 $ 183,529 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Schedule of Goodwill | Goodwill activity for each period was as follows: (In thousands) Specialty Chemicals and Engineered Materials Microcontamination Control Advanced Materials Handling Total December 31, 2016 $ 297,858 $ — $ 47,411 $ 345,269 Addition due to acquisition — 7,274 — 7,274 Foreign currency translation 2,635 — — 2,635 July 1, 2017 $ 300,493 $ 7,274 $ 47,411 $ 355,178 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Identifiable intangible assets at July 1, 2017 and December 31, 2016 consist of the following: July 1, 2017 (In thousands) Gross carrying Amount Accumulated amortization Net carrying value Developed technology $ 210,735 $ 138,241 $ 72,494 Trademarks and trade names 16,678 13,341 3,337 Customer relationships 219,117 100,200 118,917 Other 19,432 7,998 11,434 $ 465,962 $ 259,780 $ 206,182 December 31, 2016 (In thousands) Gross carrying amount Accumulated amortization Net carrying value Developed technology $ 202,591 $ 126,077 $ 76,514 Trademarks and trade names 16,661 12,617 4,044 Customer relationships 216,918 90,581 126,337 Other 18,585 7,932 10,653 $ 454,755 $ 237,207 $ 217,548 |
Estimated Future Amortization Expense | Future amortization expense for each of the five succeeding years and thereafter relating to intangible assets currently recorded in the Company's consolidated balance sheets is estimated at July 1, 2017 to be the following: Fiscal year ending December 31 (In thousands) 2017 $ 22,330 2018 44,064 2019 41,746 2020 27,076 2021 20,444 Thereafter 50,522 $ 206,182 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Reconcilation of Share Amount Used in Computaion of Basic and Diluted Earnings Per Share (EPS) | The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per common share (EPS): Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Basic—weighted common shares outstanding 141,696 140,953 141,599 140,867 Weighted common shares assumed upon exercise of stock options and vesting of restricted common stock 1,812 770 1,812 680 Diluted—weighted common shares and common shares equivalent outstanding 143,508 141,723 143,411 141,547 |
Shares Excluded Underlying Stock Based Awards from Calculations of Diluted EPS | The Company excluded the following shares underlying stock-based awards from the calculations of diluted EPS because their inclusion would have been anti-dilutive for the three and six months ended July 1, 2017 and July 2, 2016 : Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Shares excluded from calculations of diluted EPS 338 994 269 1,391 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Financial Assets Measured At Fair Value On Recurring Basis | The following table presents the Company’s financial assets that are measured at fair value on a recurring basis at July 1, 2017 and December 31, 2016 . Level 1 inputs are based on quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2 inputs are based on quoted prices for similar instruments in active markets and quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in a market. Level 3 inputs are based on prices or valuations that require inputs that are significant to the valuation and are unobservable. July 1, 2017 December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Other current assets Foreign currency contracts (a) $ — $ 183 $ — $ 183 $ — $ 4,784 $ — $ 4,784 Total assets measured and recorded at fair value $ — $ 183 $ — $ 183 $ — $ 4,784 $ — $ 4,784 (a) Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments. |
Information about Derivative Positions | A reconciliation of the net fair value of foreign currency contract assets and liabilities subject to master netting arrangements that are recorded in the July 1, 2017 and December 31, 2016 condensed consolidated balance sheets to the net fair value that could have been reported in the respective condensed consolidated balance sheets is as follows: July 1, 2017 December 31, 2016 (In thousands) Gross Gross Net amount of Gross amounts of recognized assets Gross amounts offset in the condensed consolidated balance sheet Net amount of assets in the condensed consolidated balance sheet Foreign currency contracts $ 183 $ — $ 183 $ 4,784 $ — $ 4,784 |
Gains and (losses) associated with derivatives | Gains (losses) associated with derivatives are recorded in other income, net, in the condensed consolidated statements of operations. Gains (losses) associated with derivative instruments not designated as hedging instruments were as follows: Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Gains (losses) on foreign currency contracts $ 183 $ (3,515 ) $ (2,114 ) $ (6,165 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Summary of Financial Information for Reportable Segments | Summarized financial information for the Company’s reportable segments is shown in the following tables. Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net sales SCEM $ 121,174 $ 111,782 $ 235,609 $ 212,889 MC 104,407 91,584 204,462 169,203 AMH 103,421 99,686 206,308 187,984 Total net sales $ 329,002 $ 303,052 $ 646,379 $ 570,076 Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Segment profit SCEM $ 34,174 $ 28,914 $ 62,314 $ 51,330 MC 36,484 28,566 72,065 46,706 AMH 19,573 22,519 37,849 41,430 Total segment profit $ 90,231 $ 79,999 $ 172,228 $ 139,466 |
Reconciliation of Total Segment Profit to Operating Income | The following table reconciles total segment profit to income before income taxes: Three months ended Six months ended (In thousands) July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Total segment profit $ 90,231 $ 79,999 $ 172,228 $ 139,466 Less: Amortization of intangible assets 11,007 11,062 21,952 22,351 Unallocated general and administrative expenses 20,134 22,537 40,266 41,156 Operating income 59,090 46,400 110,010 75,959 Interest expense 8,196 9,092 16,669 18,310 Interest income (93 ) (41 ) (173 ) (110 ) Other (income) expense, net (46 ) (1,054 ) 856 (1,729 ) Income before income tax expense $ 51,033 $ 38,403 $ 92,658 $ 59,488 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies Additional details (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Long-term Debt, Fair Value | $ 553,700 |
Long-term Debt | 535,910 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 3,200 |
Change in Forfeiture Policy | |
Cumulative Effect of New Accounting Principle in Period of Adoption | 400 |
Unrecognized Excess Tax Benefit | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,000 |
Acquisition Purchase Price Allo
Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Apr. 24, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 355,178 | $ 345,269 | |
product line acquisition member [Member] | |||
Business Acquisition [Line Items] | |||
Other Current Assets | $ 726 | ||
Property, Plant and Equipment | 2,800 | ||
Identifiable Intangible Assets | 9,200 | ||
Net Assets Acquired | 12,726 | ||
Goodwill | 7,274 | ||
Total Purchase Price | $ 20,000 |
Acquisition Additional Acquisit
Acquisition Additional Acquisition (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 01, 2017 | Apr. 24, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 355,178 | $ 345,269 | |
product line acquisition member [Member] | |||
Business Acquisition [Line Items] | |||
Total Purchase Price | $ 20,000 | ||
Goodwill | $ 7,274 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 57,995 | $ 53,109 |
Work-in process | 16,125 | 15,976 |
Finished goods | 120,035 | 114,444 |
Total inventories | $ 194,155 | $ 183,529 |
Goodwill Rollforward (Details)
Goodwill Rollforward (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning | $ 345,269 |
Addition due to acquisition | 7,274 |
Foreign currency translation | 2,635 |
Goodwill, Ending | 355,178 |
Specialty Chemicals and Electronic Materials SCEM [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning | 297,858 |
Addition due to acquisition | 0 |
Foreign currency translation | 2,635 |
Goodwill, Ending | 300,493 |
Microcontamination Control MC [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning | 0 |
Addition due to acquisition | 7,274 |
Foreign currency translation | 0 |
Goodwill, Ending | 7,274 |
Advanced Materials Handling AMH [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning | 47,411 |
Addition due to acquisition | 0 |
Foreign currency translation | 0 |
Goodwill, Ending | $ 47,411 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets | ||
Gross carrying Amount | $ 465,962 | $ 454,755 |
Accumulated amortization | 259,780 | 237,207 |
Net carrying value | 206,182 | 217,548 |
Developed Technology | ||
Finite-Lived Intangible Assets | ||
Gross carrying Amount | 210,735 | 202,591 |
Accumulated amortization | 138,241 | 126,077 |
Net carrying value | 72,494 | 76,514 |
Trademarks and Trade names | ||
Finite-Lived Intangible Assets | ||
Gross carrying Amount | 16,678 | 16,661 |
Accumulated amortization | 13,341 | 12,617 |
Net carrying value | 3,337 | 4,044 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross carrying Amount | 219,117 | 216,918 |
Accumulated amortization | 100,200 | 90,581 |
Net carrying value | 118,917 | 126,337 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross carrying Amount | 19,432 | 18,585 |
Accumulated amortization | 7,998 | 7,932 |
Net carrying value | $ 11,434 | $ 10,653 |
Goodwill and Intangible Asset27
Goodwill and Intangible Assets Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets | ||
2,017 | $ 22,330 | |
2,018 | 44,064 | |
2,019 | 41,746 | |
2,020 | 27,076 | |
2,021 | 20,444 | |
Thereafter | 50,522 | |
Intangible assets, net | $ 206,182 | $ 217,548 |
Reconciliation of Share Amount
Reconciliation of Share Amount Used in Computation of Basic and Diluted Earnings Per Share (EPS) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Weighted shares outstanding: | ||||
Basic-weighted common shares outstanding | 141,696 | 140,953 | 141,599 | 140,867 |
Weighted common shares assumed upon exercise of stock options and vesting of restricted common stock | 1,812 | 770 | 1,812 | 680 |
Diluted-weighted common shares and common shares equivalent outstanding | 143,508 | 141,723 | 143,411 | 141,547 |
Shares Excluded Underlying Stoc
Shares Excluded Underlying Stock Based Award from Calucations of Diluted EPS (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from calculations of diluted EPS | 338 | 994 | 269 | 1,391 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, asset | $ 183 | $ 4,784 |
Total assets measured and recorded at fair value | 183 | 4,784 |
Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, asset | 183 | 4,784 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, asset | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 183 | 4,784 |
Fair Value, Inputs, Level 2 | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, asset | 183 | 4,784 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, asset | $ 0 | $ 0 |
Information about Derivative Po
Information about Derivative Positions (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | $ 0 | $ 0 |
Gross amounts of recognized assets | 183 | 4,784 |
Net amount of assets | $ 183 | $ 4,784 |
Fair Value Gain (losses) associ
Fair Value Gain (losses) associated with derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Gain (losses) on forward currency contracts | $ 183 | $ (3,515) | $ (2,114) | $ (6,165) |
Summary of Financial Informatio
Summary of Financial Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 329,002 | $ 303,052 | $ 646,379 | $ 570,076 |
Total Segment Profit | 90,231 | 79,999 | 172,228 | 139,466 |
Specialty Chemicals and Electronic Materials SCEM [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 121,174 | 111,782 | 235,609 | 212,889 |
Total Segment Profit | 34,174 | 28,914 | 62,314 | 51,330 |
Microcontamination Control [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 104,407 | 91,584 | 204,462 | 169,203 |
Total Segment Profit | 36,484 | 28,566 | 72,065 | 46,706 |
Advanced Materials Handling AMH [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 103,421 | 99,686 | 206,308 | 187,984 |
Total Segment Profit | $ 19,573 | $ 22,519 | $ 37,849 | $ 41,430 |
Reconciliation of Total Segment
Reconciliation of Total Segment Profit to Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jul. 02, 2016 | Jul. 01, 2017 | Jul. 02, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total Segment Profit | $ 90,231 | $ 79,999 | $ 172,228 | $ 139,466 |
Amortization | 11,007 | 11,062 | 21,952 | 22,351 |
Unallocated General And Administrative Expenses | 20,134 | 22,537 | 40,266 | 41,156 |
Operating income | 59,090 | 46,400 | 110,010 | 75,959 |
Interest expense | 8,196 | 9,092 | 16,669 | 18,310 |
Interest income | (93) | (41) | (173) | (110) |
Other income, net | (46) | (1,054) | 856 | (1,729) |
Income before income tax expense | $ 51,033 | $ 38,403 | $ 92,658 | $ 59,488 |