Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 12, 2018 | Jul. 01, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ENTG | ||
Entity Registrant Name | ENTEGRIS INC | ||
Entity Central Index Key | 1,101,302 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 141,141,239 | ||
Entity Public Float | $ 3,091,161,474 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 625,408 | $ 406,389 |
Trade accounts and notes receivable, net | 183,434 | 165,675 |
Inventories, net | 198,089 | 183,529 |
Deferred tax charges and refundable income taxes | 18,012 | 20,140 |
Other current assets | 32,665 | 24,398 |
Total current assets | 1,057,608 | 800,131 |
Property, plant and equipment, net | 359,523 | 321,562 |
Other assets: | ||
Goodwill | 359,688 | 345,269 |
Intangible assets, net | 182,430 | 217,548 |
Deferred tax assets and other noncurrent tax assets | 9,103 | 8,022 |
Other | 7,820 | 7,000 |
Total assets | 1,976,172 | 1,699,532 |
Current liabilities: | ||
Long-term debt, current maturities | 100,000 | 100,000 |
Accounts payable | 68,762 | 61,617 |
Accrued payroll and related benefits | 64,860 | 54,317 |
Other accrued liabilities | 34,514 | 29,213 |
Income taxes payable | 22,835 | 16,424 |
Total current liabilities | 290,971 | 261,571 |
Long-term debt, excluding current maturities | 574,380 | 484,677 |
Pension benefit obligations and other liabilities | 32,130 | 27,220 |
Deferred tax liabilities and other noncurrent tax liabilities | 85,673 | 26,846 |
Commitments and contingent liabilities | 0 | 0 |
Equity: | ||
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, par value $.01; 400,000,000 shares authorized; issued and outstanding shares: 141,282,539 and 141,319, 964 | 1,413 | 1,413 |
Additional paid-in capital | 867,699 | 859,778 |
Retained earnings (deficit) | 147,418 | 92,303 |
Accumulated other comprehensive income | (23,512) | (54,276) |
Total equity | 993,018 | 899,218 |
Total liabilities and equity | $ 1,976,172 | $ 1,699,532 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 141,282,539 | 141,319,964 |
Common stock, shares outstanding | 141,282,539 | 141,319,964 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 1,342,532 | $ 1,175,270 | $ 1,081,121 |
Cost of sales | 733,547 | 666,579 | 610,890 |
Gross profit | 608,985 | 508,691 | 470,231 |
Selling, general and administrative expenses | 216,194 | 201,901 | 198,914 |
Engineering, research and development expenses | 106,951 | 106,991 | 105,900 |
Amortization of intangible assets | 44,023 | 44,263 | 47,349 |
Operating income | 241,817 | 155,536 | 118,068 |
Interest expense | 32,343 | 36,846 | 38,667 |
Interest income | (715) | (318) | (429) |
Other expense (income), net | 25,458 | (991) | (12,355) |
Income before income tax expense and equity in net loss of affiliate | 184,731 | 119,999 | 92,185 |
Income tax expense | 99,665 | 22,852 | 10,202 |
Equity in net loss of affiliate | 0 | 0 | 1,687 |
Net income | $ 85,066 | $ 97,147 | $ 80,296 |
Earnings Per Share: | |||
Basic net income (loss) per common share | $ 0.60 | $ 0.69 | $ 0.57 |
Diluted net income (loss) per common share | $ 0.59 | $ 0.68 | $ 0.57 |
Weighted shares outstanding | |||
Basic | 141,553 | 141,093 | 140,353 |
Diluted | 143,518 | 142,050 | 141,121 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 85,066 | $ 97,147 | $ 80,296 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | 29,294 | (7,352) | (44,569) |
Unrealized gain on available-for-sale investments | 0 | 0 | 611 |
Reclassification of cumulative translation adjustment associated with liquidated and planned sale of subsidiaries | 1,702 | 0 | 0 |
Reclassification adjustment associated with the sale of available-for-sale investments | 0 | (611) | 0 |
Pension liability adjustments, net of income tax (benefit) expense of $(26), $82, and $(45) for year ended December 31, 2017, 2016, and 2015 | (232) | 462 | (142) |
Other comprehensive income (loss) | 30,764 | (7,501) | (44,100) |
Comprehensive income (loss) | $ 115,830 | $ 89,646 | $ 36,196 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension liability adjustments, income (benefit) tax expense | $ (26) | $ 82 | $ (45) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings (deficit) | Foreign currency translation adjustments | Available-for-sale investments-Change in net unrealized gains | Defined benefit pension adjustments |
Balance (in shares) at Dec. 31, 2014 | 139,793 | ||||||
Balance at Dec. 31, 2014 | $ 748,441 | $ 1,398 | $ 830,430 | $ (80,712) | $ (1,668) | $ 0 | $ (1,007) |
Shares issued under stock plans (in shares) | 923 | ||||||
Shares issued under stock plans | 1,756 | $ 9 | 1,747 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 11,033 | 0 | 11,033 | 0 | 0 | 0 | 0 |
Tax benefit associated with stock plans | 5,457 | 0 | 5,457 | 0 | 0 | 0 | 0 |
Pension liability adjustment | (142) | 0 | 0 | 0 | 0 | 0 | (142) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||||
Unrealized gain on available-for-sale investments | 611 | 0 | 0 | 0 | 0 | 611 | 0 |
Foreign currency translation | (44,569) | 0 | 0 | 0 | (44,569) | 0 | 0 |
Reclassification of cumulative translation adjustment associated with liquidated and planned sale of subsidiaries | 0 | ||||||
Net income | 80,296 | $ 0 | 0 | 80,296 | 0 | 0 | 0 |
Balance (in shares) at Dec. 31, 2015 | 140,716 | ||||||
Balance at Dec. 31, 2015 | 802,883 | $ 1,407 | 848,667 | (416) | (46,237) | 611 | (1,149) |
Shares issued under stock plans (in shares) | 1,123 | ||||||
Shares issued under stock plans | 826 | $ 11 | 815 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 13,436 | $ 0 | 13,436 | 0 | 0 | 0 | 0 |
Repurchase and retirement of common stock (in shares) | (519) | ||||||
Repurchase and retirement of common stock | (7,573) | $ (5) | (3,140) | (4,428) | 0 | 0 | 0 |
Pension liability adjustment | 462 | 0 | 0 | 0 | 0 | 0 | 462 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (611) | 0 | 0 | 0 | 0 | (611) | 0 |
Unrealized gain on available-for-sale investments | 0 | ||||||
Foreign currency translation | (7,352) | 0 | 0 | 0 | (7,352) | 0 | 0 |
Reclassification of cumulative translation adjustment associated with liquidated and planned sale of subsidiaries | 0 | ||||||
Net income | 97,147 | $ 0 | 0 | 97,147 | 0 | 0 | 0 |
Balance (in shares) at Dec. 31, 2016 | 141,320 | ||||||
Balance at Dec. 31, 2016 | 899,218 | $ 1,413 | 859,778 | 92,303 | (53,589) | 0 | (687) |
Shares issued under stock plans (in shares) | 1,040 | ||||||
Shares issued under stock plans | (321) | $ 11 | (332) | 0 | 0 | 0 | 0 |
Share-based compensation expense | 15,306 | $ 0 | 15,306 | 0 | 0 | 0 | 0 |
Repurchase and retirement of common stock (in shares) | (1,077) | ||||||
Repurchase and retirement of common stock | (28,000) | $ (11) | (6,565) | (21,424) | |||
Dividends, Common Stock, Cash | (9,896) | 0 | 0 | (9,896) | 0 | 0 | 0 |
Pension liability adjustment | (232) | 0 | 0 | 0 | 0 | 0 | (232) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||||
Unrealized gain on available-for-sale investments | 0 | ||||||
Foreign currency translation | 29,294 | 0 | 0 | 0 | 29,294 | 0 | 0 |
Reclassification of cumulative translation adjustment associated with liquidated and planned sale of subsidiaries | 1,702 | 0 | 0 | 0 | 1,702 | 0 | 0 |
Net income | 85,066 | $ 0 | 0 | 85,066 | 0 | 0 | 0 |
Balance (in shares) at Dec. 31, 2017 | 141,283 | ||||||
Balance at Dec. 31, 2017 | 993,018 | $ 1,413 | 867,699 | 147,418 | (22,593) | 0 | (919) |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 881 | $ 0 | $ (488) | $ 1,369 | $ 0 | $ 0 | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income | $ 85,066 | $ 97,147 | $ 80,296 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 58,208 | 55,623 | 54,305 |
Amortization | 44,023 | 44,263 | 47,349 |
Share-based compensation expense | 15,306 | 13,436 | 11,033 |
Provision for deferred income taxes | 1,628 | (16,284) | (13,313) |
Charge for excess and obsolete inventory | 9,405 | 9,302 | 8,311 |
Excess tax benefit from share-based compensation plans | 0 | 0 | (5,457) |
Amortization of debt issuance costs | 2,864 | 3,947 | 3,344 |
Loss on extinguishment of debt | 20,687 | 0 | 0 |
Other | 16,026 | 9,744 | (20,299) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Trade accounts receivable and notes receivable | (15,401) | (25,298) | 5,212 |
Inventories | (20,214) | (19,871) | (26,670) |
Accounts payable and other accrued liabilities | 15,975 | 31,294 | (28,686) |
Other current assets | (3,330) | 185 | 654 |
Income taxes payable and refundable income taxes | 64,516 | 3,408 | 4,955 |
Other | (1,386) | 659 | (116) |
Net cash provided by operating activities | 293,373 | 207,555 | 120,918 |
Investing activities: | |||
Acquisition of property and equipment | (93,597) | (65,260) | (71,977) |
Acquisition of business, net of cash acquired | (20,000) | 0 | 0 |
Proceeds from sale or maturities of short-term investments | 0 | 1,726 | 7,692 |
Other | 1,142 | (3,152) | 647 |
Net cash used in investing activities | (112,455) | (66,686) | (63,638) |
Financing activities: | |||
Proceeds from long-term debt | 550,000 | 0 | 0 |
Payments of long-term debt | (460,000) | (75,000) | (100,000) |
Payments for debt issuance costs | (7,333) | 0 | 0 |
Payments for debt extinguishment costs | (16,200) | 0 | 0 |
Payments for dividends | (9,896) | 0 | 0 |
Issuance of common stock from employee stock plans | 5,566 | 4,844 | 4,264 |
Taxes paid related to net share settlement of equity awards | (5,887) | (4,018) | (2,508) |
Repurchase and retirement of common stock | (28,000) | (7,573) | 0 |
Other | (999) | 0 | 5,457 |
Net cash provided by (used in) financing activities | 27,251 | (81,747) | (92,787) |
Effect of exchange rate changes on cash and cash equivalents | 10,850 | (2,558) | (4,367) |
Increase (decrease) in cash and cash equivalents | 219,019 | 56,564 | (39,874) |
Cash and cash equivalents at beginning of year | 406,389 | 349,825 | 389,699 |
Cash and cash equivalents at end of year | 625,408 | 406,389 | 349,825 |
Supplemental Cash Flow Information | |||
Equipment purchases in accounts payable | 8,608 | 5,104 | 3,757 |
Capital lease obligations incurred | 4,768 | 0 | 0 |
Schedule of interest and income taxes paid: | |||
Interest paid | 30,392 | 32,085 | 35,126 |
Income taxes, net of refunds received | $ 33,330 | $ 35,722 | $ 16,060 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Entegris, Inc. (Entegris or the Company) 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 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 and Basis of Presentation The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an ongoing basis, Entegris evaluates its estimates, including those related to receivables, inventories, property, plant and equipment, intangible assets, accrued liabilities, income taxes and share-based compensation, among others. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid debt securities with original maturities of three months or less, which are valued at cost and approximates fair value. Allowance for Doubtful Accounts An allowance for uncollectible trade receivables is estimated based on a combination of write-off history, aging analysis and any specific, known troubled accounts. The Company maintains an allowance for doubtful accounts that management believes is adequate to cover expected losses on trade receivables. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out (FIFO) method. Property, Plant, and Equipment Property, plant and equipment are carried at cost and are depreciated on the straight-line method over the estimated useful lives of the assets. When assets are retired or disposed of, the cost and related accumulated depreciation are removed from the accounts, and gains or losses are recognized in the same period. Maintenance and repairs are expensed as incurred, while significant additions and improvements are capitalized. Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable based on estimated future undiscounted cash flows. The amount of impairment, if any, is measured as the difference between the net book value and the estimated fair value of the asset(s). Investments The Company’s nonmarketable investments are accounted for under either the cost or equity method of accounting, as appropriate. All nonmarketable investments are periodically reviewed to determine whether declines, if any, in fair value below cost basis are other-than-temporary. If the decline in fair value is determined to be other-than-temporary, an impairment loss is recorded and the investment is written down to a new cost basis. 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 instruments. The fair value of long-term debt, including current maturities, based upon models utilizing market observable (Level 2) inputs and credit risk, was $686 million at December 31, 2017 compared to the carrying amount of long-term debt, including current maturities, of $674 million . Goodwill and Intangible Assets Goodwill represents the excess of acquisition costs over the fair value of the net assets of businesses acquired. Goodwill is not subject to amortization, but is tested for impairment annually at August 31, the Company's annual testing date, and whenever events or changes in circumstances indicate that impairment may have occurred. The Company compares the carrying value of its reporting units, including goodwill, to their fair value. For reporting units in which the assessment indicates that it is more likely than not that the fair value is more than its carrying value, goodwill is not considered impaired. If the carrying value of the reporting unit exceeds fair value, goodwill is considered impaired. Based on its annual analysis, the Company determined there was no indication of impairment of goodwill and the estimated fair value of each reporting unit substantially exceeded its carrying value. Amortizable intangible assets include, among other items, patented, unpatented and other developed technology and customer-based intangibles, and are amortized using the straight-line method over their respective estimated useful lives. The Company reviews intangible assets, along with other long-lived assets - primarily property, plant and equipment - for impairment if changes in circumstances or the occurrence of events suggest the remaining value may not be recoverable. Derivative Financial Instruments The Company records derivatives as assets or liabilities on the balance sheet and measures such instruments at fair value. Changes in fair value of derivatives are recorded each period in the Company’s consolidated statements of operations. The Company periodically enters into forward foreign currency contracts to reduce exposures relating to rate changes in certain foreign currencies. Certain exposures to credit losses related to counterparty nonperformance exist. However, the Company does not anticipate nonperformance by the counterparties since they are large, well-established financial institutions. None of these derivatives is accounted for as a hedge transaction. Accordingly, changes in the fair value of forward foreign currency contracts are recorded as other (income) expense, net, in the Company’s consolidated statements of operations. The fair values of the Company’s derivative financial instruments are based on prices quoted by financial institutions for these instruments. Foreign Currency Translation Assets and liabilities of certain foreign subsidiaries are translated from foreign currencies into U.S. dollars at period-end exchange rates, and the resulting gains and losses arising from translation of net assets located outside the U.S. are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss in the consolidated balance sheets. Income statement amounts are translated at the weighted average exchange rates for the year. Translation adjustments are not adjusted for income taxes, as substantially all translation adjustments relate to permanent investments in non-U.S. subsidiaries. Gains and losses resulting from foreign currency transactions are included in other (income) expense, net, in the Company's consolidated statements of operations. Revenue Recognition Revenue and the related cost of sales are generally recognized upon shipment of the products. Revenue for product sales is recognized upon delivery, when persuasive evidence of an arrangement exists, when title and risk of loss have been transferred to the customer, collectability is reasonably assured, and pricing is fixed or determinable. Shipping and handling fees related to sales transactions are billed to customers and are recorded as revenue. The Company sells its products throughout the world primarily to companies in the microelectronics industry. The Company performs continuing credit evaluations of its customers and generally does not require collateral. Letters of credit may be required from its customers in certain circumstances. The Company provides for estimated returns based on historical and current trends in both sales and product returns. The Company collects various sales and value-added taxes on certain product and service sales that are accounted for on a net basis. Shipping and Handling Costs Shipping and handling costs incurred are recorded in cost of sales in the Company's consolidated statements of operations. Engineering, Research and Development Expenses Engineering, research and development costs are expensed as incurred. Share-based Compensation The Company measures the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. Compensation expense is recognized using the straight-line attribution method to recognize share-based compensation over the service period of the award, with adjustments recorded for forfeitures as they occur. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income tax expense in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that the Company would not be able to realize all or part of its deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company’s policy for recording interest and penalties associated with audits and unrecognized tax benefits is to record such items as a component of income before taxes. Penalties and interest to be paid or received are recorded in other expense (income), net, in the statement of operations. Comprehensive Income (Loss) Comprehensive income (loss) represents the change in equity resulting from items other than shareholder investments and distributions. The Company’s foreign currency translation adjustments, unrealized gains and losses on available-for-sale investments, and minimum pension liability adjustments are included in accumulated other comprehensive loss. Comprehensive income (loss) and the components of accumulated other comprehensive loss are presented in the accompanying consolidated statements of comprehensive income (loss) and consolidated statements of equity. 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 on 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 consolidated statement of operations. Accordingly, for the twelve months ended December 31, 2017, the Company recorded a tax benefit of $3.6 million in the consolidated 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. Under ASU No. 2014-09, revenue for the Company’s contracts will be recognized when control of the products or services transfers to the customer at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which is generally consistent with the revenue recognition model currently used for the Company's contracts. ASU No. 2014-09 provides a five-step analysis for determining when and how revenue is recognized. The Company performed and completed a review of its revenue streams as compared to its current accounting policies for customer contracts in 2017. The Company designed and implemented specific controls over its evaluation of the impact of ASU No. 2014-09, including its calculation of the cumulative effect of adopting the standard. As a result of its evaluation, the Company also identified changes to and modified certain of its accounting policies and practices. Although there were no significant changes to its accounting systems or controls upon adoption, the Company modified certain of its existing controls to incorporate the revisions made to its accounting policies and practices. The Company adopted ASU No. 2014-09 on January 1, 2018 on a modified retrospective basis and has concluded that the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and its internal controls over financial reporting. The Company recorded a cumulative adjustment that decreased retained earnings by approximately $0.7 million reflecting the cumulative impact of changes to revenue recognition related to certain customer incentive arrangements and to product deliveries using certain shipping terms made upon adoption of ASU No. 2014-09. 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. 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. 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) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Business Combination Disclosure | ACQUISITION On April 24, 2017, the Company acquired the microelectronic water and chemical filtration product line of W.L. Gore & Associates, Inc. (Gore). 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 $8.0 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 final 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 2,447 Identifiable intangible assets 8,820 Net assets acquired 11,993 Goodwill $ 8,007 Total purchase price 20,000 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 product line 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 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 was based on valuation involving significant unobservable inputs, or Level 3 in the fair value hierarchy. |
Trade Accounts and Notes Receiv
Trade Accounts and Notes Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Trade Accounts and Notes Receivable | TRADE ACCOUNTS AND NOTES RECEIVABLE Trade accounts and notes receivable from customers at December 31, 2017 and 2016 consist of the following: (In thousands) 2017 2016 Accounts receivable $ 179,194 $ 163,759 Notes receivable 5,100 4,390 184,294 168,149 Less allowance for doubtful accounts 860 2,474 $ 183,434 $ 165,675 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | INVENTORIES Inventories at December 31, 2017 and 2016 consist of the following: (In thousands) 2017 2016 Raw materials $ 58,226 $ 53,109 Work-in-process 16,193 15,976 Finished goods (a) 123,670 114,444 $ 198,089 $ 183,529 (a) Includes consignment inventories held by customers for $15.6 million and $16.4 million at December 31, 2017 and 2016 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant, and equipment at December 31, 2017 and 2016 consists of the following: (In thousands) 2017 2016 Estimated useful lives in years Land $ 16,795 $ 15,903 Buildings and improvements 174,615 155,769 5-35 Manufacturing equipment 274,723 248,201 5-10 Canisters and cylinders 77,325 65,100 3-12 Molds 80,198 76,782 3-5 Office furniture and equipment 121,345 107,194 3-8 Construction in progress 42,288 40,136 787,289 709,085 Less accumulated depreciation 427,766 387,523 $ 359,523 $ 321,562 The table below sets forth the depreciation expense for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Depreciation expense $ 58,208 $ 55,623 $ 54,305 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill activity for each of the Company's reportable segments that carry goodwill, Specialty Chemicals and Engineered Materials (SCEM ), Microcontamination Control (MC) and Advanced Materials Handling (AMH), for the years ended December 31, 2017 and 2016 is shown below: (In thousands) SCEM MC AMH Total December 31, 2015 $ 294,700 $ — $ 47,411 $ 342,111 Addition due to purchase accounting adjustments 4,434 — — 4,434 Other, including foreign currency translation (1,276 ) — — (1,276 ) December 31, 2016 297,858 — 47,411 345,269 Addition due to acquisition — 8,007 — 8,007 Other, including foreign currency translation 6,412 — — 6,412 December 31, 2017 $ 304,270 $ 8,007 $ 47,411 $ 359,688 As of December 31, 2017 , goodwill amounted to approximately $359.7 million , an increase of $14.4 million from the balance at December 31, 2016 . The increase in goodwill in 2017 reflects the acquisition of the microelectronic water and chemical filtration product line of Gore described in note 2. In addition, goodwill increased due to foreign currency translation. Identifiable intangible assets at December 31, 2017 and 2016 consist of the following: 2017 (In thousands) Gross carrying Amount Accumulated amortization Net carrying value Weighted average life in years Developed technology 206,224 149,215 57,009 6.6 Trademarks and trade names 16,807 13,712 3,095 9.9 Customer relationships 220,806 110,281 110,525 10.3 Other 20,032 8,231 11,801 6.7 $ 463,869 $ 281,439 $ 182,430 8.5 2016 (In thousands) Gross carrying amount Accumulated amortization Net carrying value Weighted average life in years Developed technology 202,591 126,077 76,514 6.7 Trademarks and trade names 16,661 12,617 4,044 9.9 Customer relationships 216,918 90,581 126,337 10.3 Other 18,585 7,932 10,653 6.5 $ 454,755 $ 237,207 $ 217,548 8.5 The table below sets forth the amortization expense for the years ended December 31, 2017 , 2016 , and 2015 : (In thousands) 2017 2016 2015 Amortization expense $ 44,023 $ 44,263 $ 47,349 The 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 to be the following at December 31, 2017 : Fiscal year ending December 31 (In thousands) 2018 $ 43,670 2019 41,540 2020 26,767 2021 20,055 2022 19,907 Thereafter 30,491 $ 182,430 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Debt | DEBT Long-term debt at December 31, 2017 and 2016 consists of the following: (In thousands) December 31, 2017 December 31, 2016 Senior secured term loan facility due 2021 $ 133,850 $ 233,850 Senior unsecured notes due 2022 — 360,000 Senior unsecured notes due 2026 550,000 — 683,850 593,850 Unamortized discount and debt issuance costs 9,470 9,173 Total long-term debt 674,380 584,677 Less current maturities of long-term debt 100,000 100,000 Long-term debt less current maturities $ 574,380 $ 484,677 Annual maturities of long-term debt contractually due as of December 31, 2017 are as follows: Fiscal year ending December 31 (In thousands) 2018 $ — 2019 — 2020 — 2021 133,850 2022 — Thereafter 550,000 $ 683,850 In November 2017, the Company issued $550 million aggregate principal amount of 4.625% senior unsecured notes due February 10, 2026 (the "2026 Notes"). The Company used the net proceeds of the issuance of the 2026 Senior Unsecured Notes to redeem all of the Company's 6.000% Senior Unsecured Notes due 2022 (the "2022 Notes"), to pay fees and expenses related to the issuance and the redemption, and for general corporate purposes. Debt issuance costs of $7.1 million paid to third parties are capitalized as debt issuance costs in connection with the 2026 Notes. These debt issuance costs are being amortized as interest expense in the Company's consolidated statements of operations over the term of the debt instrument using the straight-line method. The 2022 Notes were redeemed at the redemption price of 104.5% (expressed as percentage of principal amount), plus accrued and unpaid interest. The redemption of the 2022 Notes resulted in a loss of $20.7 million on extinguishment of debt, which is included in other expense in the Company's consolidated statement of operations. 2022 Senior Unsecured Notes On April 1, 2014 , the Company issued $360 million aggregate principal amount of 6.000% senior unsecured notes due April 1, 2022 . The 2022 Notes were issued under an indenture dated as of April 1, 2014 by and among the Company and Wells Fargo Bank, National Association, as trustee. Interest on the 2022 Notes is payable semi-annually in arrears on April 1 and October 1, commencing October 1, 2014. As stated above, the 2022 Notes were redeemed in November 2017. 2026 Senior Unsecured Notes On November 10, 2017 , the Company issued $550 million aggregate principal amount of 4.625% senior unsecured notes due February 10, 2026 . The 2026 Notes were issued under an indenture dated as of November 10, 2017 (the "2026 Notes Indenture") by and among the Company and Wells Fargo Bank, National Association, as trustee. Interest on the 2026 Notes is payable semi-annually in arrears on February 15 and August 15, commencing February 15, 2018. The 2026 Notes are guaranteed, jointly and severally, fully and unconditionally, on a senior unsecured basis, by, subject to certain exclusions, each of the Company’s domestic subsidiaries (the Guarantors) that guarantee indebtedness under the Company’s senior secured term loan facility and senior secured asset-based revolving credit facility (Senior Secured Credit Facilities). As provided in the 2026 Notes Indenture, the Company may at its option on one or more occasions redeem all or a part of the 2026 Notes at a redemption price equal to (a) 100% of the principal amount of the 2026 Notes redeemed plus a make-whole premium if redeemed prior to November 10, 2020 , or (b) 100% of the principal amount of the 2026 Notes redeemed plus a percentage of principal amount between 100% and 103.469% of the aggregate principal amount of notes to be redeemed depending on the period of redemption, if redeemed on or after November 10, 2020 , plus, in each case, accrued and unpaid interest on the amount of 2026 Notes being redeemed. Upon a change in control accompanied by certain rating events, the Company is required to offer to repurchase all of the 2026 Notes at a price in cash equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The 2026 Notes Indenture contains covenants that, among other things and subject to certain exceptions, limit the Company's ability and the ability of the Company's restricted subsidiaries to create liens, enter into sale and leaseback transactions, engage in consolidations or mergers, or sell, transfer or otherwise dispose of all or substantially all of their assets. The 2026 Notes Indenture also, subject to certain exceptions, limits the ability of any non-Guarantor subsidiary of the Company to incur indebtedness. The Company is in compliance with all of the above covenants at December 31, 2017 . The 2026 Notes Indenture also provides for events of default which, if certain of them occur, would permit the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding 2026 Notes to declare the principal, premium, if any, interest and any other monetary obligations on all the then-outstanding 2026 Notes to be due and payable immediately. Senior Secured Term Loan Facility On April 30, 2014 , the Company entered into a term loan credit and guaranty agreement with Goldman Sachs Bank USA, as administrative agent, collateral agent, sole lead arranger, sole bookrunner and sole syndication agent (the Term Loan Facility), that provides senior secured financing of $460 million (which may be increased by up to $225 million in certain circumstances). During the first quarter of 2017, the Company and its lenders agreed to an amendment of the term loan agreement that decreases the applicable margins for the Company’s term loan. Borrowings under the Term Loan Facility bear interest at a rate per annum equal to, at the Company’s option, a base rate (such as prime rate or LIBOR) plus, an applicable margin. The Company's interest rate is 3.819% at December 31, 2017 . In addition to paying interest on the outstanding principal under the Term Loan Facility, the Company is required to pay customary agency fees. During the years ended December 31, 2017 and 2016, the Company made payments of $100.0 million and $75.0 million , respectively, on the Term Loan Facility. As of December 31, 2017 , under the terms of the Term Loan Facility, the Company is not obligated to remit payments on the Term Loan Facility in 2018. However, based on management's plans and intent, the Company reflects $100 million as the current maturity of long-term debt in its consolidated balance sheet as of December 31, 2017 . The credit agreement governing the Term Loan Facility requires the Company to prepay outstanding term loans, subject to certain exceptions, with (a) up to 50% of the Company’s annual Excess Cash Flow (as defined in the credit agreement governing the Term Loan Facility) and (b) 100% of the net cash proceeds of (i) certain asset sales and casualty and condemnation events, subject to reinvestment rights and certain other exceptions; and (ii) any incurrence or issuance of certain debt, other than debt permitted under the Term Loan Facility. The Company may voluntarily prepay outstanding loans under the Term Loan Facility at any time without premium or penalty other than customary “breakage” costs with respect to LIBOR loans. All obligations under the Term Loan Facility are unconditionally guaranteed by certain of the Company’s existing wholly owned domestic subsidiaries, and are secured, subject to certain exceptions, by substantially all of the Company’s assets and the assets of the Company's subsidiary guarantors. The Term Loan Facility contains a number of negative covenants that, subject to certain exceptions, restrict the Company’s ability and each of the Company’s subsidiaries' ability to incur additional indebtedness; pay dividends on its capital stock or redeem, repurchase or retire its capital stock or its other indebtedness; make investments, loans and acquisitions; create restrictions on the payment of dividends or other amounts to the Company from the Company’s restricted subsidiaries; engage in transactions with its affiliates; sell assets, including capital stock of its subsidiaries; materially alter the business it conducts; consolidate or merge; incur liens; and engage in sale-leaseback transactions. The credit agreement governing the Term Loan Facility additionally contains certain customary representations and warranties, affirmative covenants and provisions relating to events of default. The Company is in compliance with all of the above covenants at December 31, 2017 . Senior Secured Asset-Based Revolving Credit Facility The Company has an asset-based credit agreement with Goldman Sachs Bank USA, as administrative agent, collateral agent, sole lead arranger, sole bookrunner and sole syndication agent (the ABL Facility), that provides senior secured financing of $75 million (which may be increased by up to $35 million in certain circumstances), subject to a borrowing base limitation. The borrowing base for the ABL Facility at any time equals the sum of certain percentages of various accounts and inventories and stood at $65.0 million at December 31, 2017 . The ABL Facility includes borrowing capacity in the form of letters of credit up to $35 million of the facility, and up to $20 million in U.S. dollars for borrowings on same-day notice, referred to as swingline loans. Borrowings under the ABL Facility bear interest at a rate per annum equal to, at the Company’s option, a base rate (prime rate or LIBOR), plus an applicable margin. Swingline loans shall bear interest at a rate per annum equal to the base rate plus the applicable margin. In addition to paying interest on outstanding principal under the ABL Facility, the Company is required to pay a commitment fee of 0.33% per annum in respect of the unutilized commitments thereunder. The Company must also pay customary letter of credit fees and agency fees. The Company may voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans at any time. Prepayments of the loans may be made without premium or penalty other than customary “breakage” costs with respect to LIBOR loans. There is no scheduled amortization under the Company’s ABL Facility. The principal amount outstanding under the ABL Facility is due and payable in full on April 30, 2019. There is no outstanding balance under the ABL Facility at December 31, 2017 . All obligations under the ABL Facility are unconditionally guaranteed by certain of the Company’s existing wholly owned domestic subsidiaries and are secured, subject to certain exceptions, by substantially all of the Company’s assets and the assets of the Company's subsidiaries that have guaranteed the ABL Facility. The ABL Facility contains a number of negative covenants that, among other things, subject to certain exceptions, restrict the Company’s ability and the ability of each of the Company’s subsidiaries to incur additional indebtedness; pay dividends on its capital stock or redeem, repurchase or retire its capital stock or its other indebtedness; make investments, loans and acquisitions; create restrictions on the payment of dividends or other amounts to the Company from the Company’s restricted subsidiaries; engage in transactions with its affiliates; sell assets, including capital stock of its subsidiaries; materially alter the business it conducts; consolidate or merge; incur liens; and engage in sale-leaseback transactions. The credit agreement governing the ABL Facility additionally contains certain customary representations and warranties, affirmative covenants and provisions relating to events of default. The Company is in compliance with all of the above covenants at December 31, 2017 . |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Lease Commitments | LEASE COMMITMENTS As of December 31, 2017 , the Company was obligated under noncancellable operating lease agreements for certain sales offices and manufacturing facilities, manufacturing equipment, vehicles, information technology equipment and warehouse space. Future minimum lease payments for noncancellable operating leases with initial or remaining terms in excess of one year are as follows: Fiscal year ending December 31 (In thousands) 2018 $ 9,805 2019 7,663 2020 5,015 2021 4,911 2022 3,369 Thereafter 11,794 Total minimum lease payments $ 42,557 Total rental expense for all equipment and building operating leases for the years ended December 31, 2017 , 2016 and 2015 , were $10.6 million , $13.3 million and $13.8 million , respectively. |
Asset Retirement Obligations (N
Asset Retirement Obligations (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS The Company has asset retirement obligations (AROs) related to environmental disposal obligations associated with cylinders used to supply customers with gas products, and certain restoration obligations associated with its leased facilities. Changes in the carrying amounts of the Company’s AROs for the years ended December 31, 2017 and 2016 are shown below: (In thousands) 2017 2016 Balance at beginning of year $ 11,529 $ 11,334 Liabilities settled (577 ) (975 ) Liabilities incurred 412 491 Accretion expense 215 188 Revision of estimate 588 491 Balance at end of year $ 12,167 $ 11,529 ARO liabilities expected to be settled within twelve months are included in the consolidated balance sheets in other accrued liabilities, while all other ARO liabilities are included in pension benefit obligations and other liabilities in the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act makes broad and complex changes to the U.S. tax code that will affect 2017, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017. The Tax Cuts and Jobs Act also provides for a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017 and the acceleration of depreciation for certain assets placed into service after September 27, 2017 as well as prospective changes beginning in 2018, including the repeal of the domestic manufacturing deduction, additional limitations on executive compensation and limitations on the deductibility of interest. The Security and Exchange Commission (SEC) staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Cuts and Jobs Act enactment date for entities to complete the accounting under ASC 740. In accordance with SAB 118, an entity must reflect the income tax effects of those aspects of the Tax Cuts and Jobs Act for which the accounting under Accounting Standards Codification (ASC) 740 is complete. To the extent that an entity's accounting for certain income tax effects of the Tax Cuts and Jobs Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If an entity cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Cuts and Jobs Act. The Company has calculated its best estimate of the impact of the Tax Cuts and Jobs Act in its year end income tax provision in accordance with its understanding of the Tax Cuts and Jobs Act and guidance available as of the date of this filing. As a result, the Company recorded a discrete net tax expense of $66.7 million in the period ending December 31, 2017. This net expense primarily consists of a net benefit for the corporate rate reduction of $10.2 million and a net expense for the transition tax of $73.0 million and $4.0 million of additional tax related to no longer asserting that a significant portion of the Company's undistributed earnings are considered indefinitely reinvested overseas. For various reasons that are discussed more fully below, the Company has not completed its accounting for the income tax effects of certain elements of the Tax Cuts and Jobs Act. If the Company was able to make reasonable estimates of the effects of elements for which its analysis is not yet complete, the Company recorded provisional adjustments. If the Company was not yet able to make reasonable estimates of the impact of certain elements, it has not recorded any adjustments related to those elements and has continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before the Tax Cuts and Jobs Act. The Company continues to analyze the implications of the global intangible low taxed income ("GILTI") provision of the Tax Cuts and Jobs Act and delays finalizing its GILTI policy election under SAB 118 until it has the necessary information available to analyze and make an informed policy decision. The changes to existing U.S. tax laws as a result of the Tax Cuts and Jobs Act, which the Company believes have the most significant impact on the Company’s federal income taxes are as follows: Reduction of U.S. federal corporate tax rate The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were remeasured to reflect the reduction in the U.S. corporate income tax rate from 35 percent to 21 percent, resulting in a $10.2 million decrease in income tax expense for the year ended December 31, 2017 and a corresponding decrease in net deferred tax liabilities as of December 31, 2017. Included in this benefit are provisional amounts related to certain deferred tax assets and liabilities where the necessary information is not available, prepared or analyzed. Examples of this include fixed assets and compensation. The Company expects to complete its analysis of these provisional items when the necessary information becomes available to accurately analyze and compute in reasonable detail under ASC Topic 740. The Company estimates such analysis will be completed in the second half of 2018. Transition Tax on Foreign Earnings The Deemed Repatriation Transition Tax ("Transition Tax") is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company recognized a provisional income tax expense of $73.0 million for the year ended December 31, 2017 related to the one-time Transition Tax on certain foreign earnings. This resulted in a corresponding decrease in deferred tax assets due to the utilization of foreign tax credit carryforwards of $10.2 million and research and development credit carryforwards of $11.8 million . The determination of the Transition Tax requires further analysis regarding the amount and composition of the Company’s historical earnings, which is expected to be completed when the necessary information becomes available to accurately analyze and compute in reasonable detail under ASC Topic 740. The Company estimates such analysis will be completed in the second half of 2018. Acceleration of Depreciation The Company recorded a provisional benefit of $1.3 million attributable to the accelerated depreciation for certain assets placed into service after September 27, 2017. This resulted in a decrease of approximately $3.2 million to our current income tax payable and a corresponding increase in our deferred tax liabilities of approximately $1.9 million (after considering the effects of the reduction in income tax rates). The income tax effects for this position requires further analysis due to the volume of data required to complete the calculations. The Company expects to complete this analysis when the necessary information becomes available to accurately analyze and compute in reasonable detail under ASC Topic 740. The Company estimates such analysis will be completed in the second half of 2018. Excessive Compensation under Sec. 162(m) The Tax Cuts and Jobs Act repeals the exceptions to the section 162(m) deduction limitation for commissions and performance-based compensation. The Tax Cuts and Jobs Act provides a transition rule which states that the expansion of section 162(m) does not apply to any remuneration paid under a written, binding contract in effect on November 2, 2017, which was not materially modified on or after this date. The Tax Cuts and Jobs Act does not specifically define the criteria for a binding contract and no further guidance was provided on this topic. The Company has determined this change would be immaterial and its analysis will be completed when the necessary information becomes available to accurately analyze and compute in reasonable detail under ASC Topic 740. The Company estimates such analysis will be completed in the second half of 2018. Undistributed Foreign Earnings As of December 31, 2017, the Company has accumulated undistributed earnings generated by its foreign subsidiaries of approximately $943.7 million subject to the one-time Transition Tax on foreign earnings required by the Tax Cuts and Jobs Act or has otherwise been previously taxed. As of January 1, 2017, the Company removed its assertion on its Korean entities. Additionally, due to tax reform, the Company removed its prior year assertion on all but certain entities and recorded the associated withholding tax of $4.0 million . At December 31, 2017, there were approximately $30.7 million of accumulated undistributed earnings of subsidiaries outside of United States, all of which are considered to be indefinitely reinvested. Management estimates that no material withholding taxes would be incurred if these undistributed earnings were distributed. Income (loss) before income taxes for the years ended December 31, 2017 , 2016 and 2015 was derived from the following sources: (In thousands) 2017 2016 2015 Domestic $ 13,363 $ (7,328 ) $ (16,751 ) Foreign 171,368 127,327 108,936 Income before income tax expense and equity in net loss of affiliate $ 184,731 $ 119,999 $ 92,185 Income tax expense for the years ended December 31, 2017 , 2016 and 2015 is summarized as follows: (In thousands) 2017 2016 2015 Current: Federal $ 60,529 $ 7,759 $ 4,170 State 808 (10 ) 528 Foreign 36,700 31,387 18,817 98,037 39,136 23,515 Deferred (net of valuation allowance): Federal 249 (8,183 ) (11,374 ) State (891 ) 250 (738 ) Foreign 2,270 (8,351 ) (1,201 ) 1,628 (16,284 ) (13,313 ) Income tax expense $ 99,665 $ 22,852 $ 10,202 Income tax (benefit) expense differs from the expected amounts based upon the statutory federal tax rates for the years ended December 31, 2017 , 2016 and 2015 as follows: (In thousands) 2017 2016 2015 Expected federal income tax at statutory rate $ 64,656 $ 42,000 $ 32,265 State income taxes before valuation allowance, net of federal tax effect (1,376 ) (769 ) (576 ) Effect of foreign source income (27,581 ) (22,242 ) (23,374 ) Tax contingencies 2,816 1,103 1,483 Valuation allowance 3,195 1,713 1,109 U.S. federal research credit (4,881 ) (1,676 ) (3,905 ) Equity compensation (2,321 ) 815 739 Transition tax 72,993 — — Remeasurement of deferred taxes (10,248 ) — — Incremental taxes on unremitted foreign earnings release 3,968 — — Other items, net (1,556 ) 1,908 2,461 Income tax expense $ 99,665 $ 22,852 $ 10,202 As a result of commitments made by the Company related to investments in tangible property and equipment, the establishment of a research and development center in 2006 and certain employment commitments, income from certain manufacturing activities in Malaysia has been exempt from tax for years up through 2015. The income tax benefits attributable to the tax status of this subsidiary is $10.2 million ( $0.07 per diluted share) for the year ended December 31, 2015 . The 2017, 2016 and 2015 effective tax rates include additional benefits of $2.0 million , $4.3 million , and $4.4 million , respectively, because the corporate tax rate in Malaysia is lower than the U.S. rate. In 2012, Entegris' Korean subsidiary made commitments to produce a certain line of products. In return for this commitment, the Company has a tax holiday on income earned on sales of these products for five years and a partial holiday for two additional years. The income tax benefits attributable to this tax holiday are $7.4 million ( $0.05 per diluted share), $3.3 million ( $0.02 per diluted share) and $1.5 million ( $0.01 per diluted share) for the years ended December 31, 2017, 2016 and 2015, respectively. The 2017, 2016 and 2015 effective tax rates include additional benefits of $4.3 million , $1.9 million and $0.9 million , respectively, because the corporate tax rate in Korea is lower than the U.S. rate. The Company also has made employment and spending commitments to Singapore. In return for those commitments, the Company has been granted a partial tax holiday for eight years starting in 2013. During 2017, this agreement was extended to 2027 in exchange for revised employment and spending commitments. The income tax benefits attributable to the tax status are $4.7 million ( $0.03 cents per diluted share), $2.3 million ( $0.02 cent per diluted share) and $1.7 million ( $0.01 cent per diluted share) for the years ending December 31, 2017, 2016 and 2015, respectively. The 2017, 2016 and 2015 effective tax rates include additional benefits of $12.4 million , $6.5 million and $4.6 million , because the corporate tax rate in Singapore is lower than the U.S. rate. The Company has remeasured its deferred tax assets and liabilities as a result of passage of the Tax Cuts and Jobs Act. The primary impact of this remeasurement was a reduction in deferred tax assets and liabilities in connection with the reduction of the U.S. corporate income tax rate as described above. The significant components of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Deferred tax assets attributable to: Accounts receivable $ 32 $ 470 Inventory 4,132 5,061 Accruals not currently deductible for tax purposes 8,641 3,729 Net operating loss and credit carryforwards 15,184 27,198 Capital loss carryforward 2,391 3,134 Depreciation — 8,395 Equity compensation 3,658 5,134 Asset impairments 452 1,467 Other, net 2,549 4,356 Gross deferred tax assets 37,039 58,944 Valuation allowance (17,494 ) (14,661 ) Total deferred tax assets 19,545 44,283 Deferred tax liabilities attributable to: Purchased intangible assets (28,956 ) (55,809 ) Depreciation (2,512 ) — Total deferred tax liabilities (31,468 ) (55,809 ) Net deferred tax liabilities $ (11,923 ) $ (11,526 ) Deferred tax assets are generally required to be reduced by a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2017 and 2016 , the Company had a net U.S. deferred tax liability of $5.1 million and $3.5 million , respectively, which are composed of temporary differences and various tax credit carryforwards. Management believes that it is more likely than not that the benefit from certain state net operating loss carryforwards, state credits, capital asset impairments, and a federal capital loss carryforward will not be realized. In recognition of this risk, management has provided a valuation allowance of $10.6 million and $9.6 million as of December 31, 2017 and 2016 , respectively, on the related deferred tax assets. If the assumptions change and management determines the assets will be realized, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets at December 31, 2017 will be recognized as a reduction of income tax expense. As of December 31, 2017 and 2016 , the Company had a net non-U.S. deferred tax asset of $10.7 million and $6.6 million , respectively, for which management determined based upon the available evidence a valuation allowance of $6.9 million and $5.0 million as of December 31, 2017 and 2016, respectively, was required against the non-U.S. gross deferred tax assets. For other non-U.S. jurisdictions, management is relying upon projections of future taxable income to utilize deferred tax assets. At December 31, 2017 , the Company had state operating loss and credit carryforwards of approximately $7.9 million , which begin to expire in 2019 and foreign operating loss carryforwards of $25.0 million , which begin to expire in 2018 . Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax positions will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that fail to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The provisions also provide guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. Reconciliations of the beginning and ending balances of the total amounts of gross unrecognized tax benefits for the years ended December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Gross unrecognized tax benefits at beginning of year $ 8,293 $ 7,621 Increase in tax positions from prior years 298 14 Increases in tax positions for current year 4,724 1,944 Lapse in statute of limitations (754 ) (1,286 ) Gross unrecognized tax benefits at end of year $ 12,561 $ 8,293 The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was $9.9 million at December 31, 2017 . Penalties and interest paid or received are recorded in other income, net, in the consolidated statements of operations. For the years ended December 31, 2017 and 2016 , the Company has accrued interest and penalties related to unrecognized tax benefits of $1.0 million and $0.7 million , respectively. Expenses of $0.3 million , $0.1 million and $0.1 million were recognized as interest and penalties in the consolidated statements of operations for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company files income tax returns in the U.S. and in various state, local and foreign jurisdictions. The statutes of limitations related to both the consolidated Federal income tax return and state returns are closed for all years up to and including 2013 and 2013 , respectively. With respect to foreign jurisdictions, the statute of limitations varies from country to country, with the earliest open year for the Company’s major foreign subsidiaries being 2011 . Due to the expiration of various statutes of limitations and settlement of audits, it is reasonably possible that the Company’s gross unrecognized tax benefit balance may decrease within the next twelve months by approximately $1.8 million . |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity | EQUITY Dividend On October 18, 2017, the Company's Board of Directors declared its initial quarterly cash dividend of $0.07 per share, totaling $9.9 million , paid on November 22, 2017 to shareholders of record on the close of business on November 1, 2017. 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. Share Repurchase Program On February 15, 2017, the Company's Board of Directors authorized a repurchase program which expires February 15, 2018 covering up to an aggregate of $100.0 million of the Company's common stock in open market transactions and in accordance with one or more pre-arranged stock trading plans established in accordance with Rule 10b5-1 under the Securities and Exchange Act of 1934, as amended. The repurchase program represents a renewal and replacement of the repurchase program originally authorized on February 5, 2016, which expired February 15, 2017. The Company repurchased $28.0 million of shares and $7.6 million of shares for the years ended December 31, 2017 and December 31, 2016, respectively. 2010 Stock Plan In 2009, the Company’s Board of Directors approved the 2010 Stock Plan, subject to the approval by the Company’s stockholders in 2010. The 2010 Stock Plan replaced the predecessor plans for future stock awards and stock option grants. Subsequent to the acquisition of ATMI, Inc. in 2014, the Company's Board of Directors approved the absorption of 5.7 million additional shares of the ATMI, Inc. 2010 Stock Plan (ATMI Plan) into the Company's 2010 Stock Plan for the remaining term of the ATMI Plan. The 2010 Stock Plan has a term of ten years and provides for the issuance of stock options and other share-based awards to selected employees, directors, and other individuals or entities that provide services to the Company or its affiliates. Under the 2010 Stock Plan, the Board of Directors or a committee selected by the Board of Directors will determine for each award, the term, price, number of shares, rate at which each award is exercisable and whether restrictions are imposed on the shares subject to the awards. The exercise price for option awards generally may not be less than the fair market value per share of the underlying common stock on the date granted. The 2010 Stock Plan allows that after December 31, 2009 any stock awards that were awarded from the expired plans mentioned above that are forfeited, expired or otherwise terminated without issuance of such stock award again be available for issuance under the 2010 Stock Plan. Stock Options Stock option activity for the 2010 Stock Plan and predecessor plans for the years ended December 31, 2017 , 2016 and 2015 is summarized as follows: 2017 2016 2015 (Shares in thousands) Number of shares Weighted average exercise price Number of shares Weighted average exercise price Number of shares Weighted average exercise price Options outstanding, beginning of year 1,907 $ 11.54 2,139 $ 10.57 2,034 $ 9.67 Granted 335 21.60 549 12.20 411 13.49 Exercised (359 ) 10.89 (633 ) 8.66 (219 ) 7.62 Expired or forfeited (14 ) 12.78 (148 ) 12.32 (87 ) 10.72 Options outstanding, end of year 1,869 $ 13.46 1,907 $ 11.54 2,139 $ 10.57 Options exercisable, end of year 872 $ 11.11 776 $ 10.65 961 $ 9.07 Options outstanding for the Company’s stock plans at December 31, 2017 are summarized as follows: (Shares in thousands) Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining life in years Weighted- average exercise price Number exercisable Weighted average exercise $9.27 to $9.88 396 1.9 years $ 9.71 396 $ 9.71 $11.71 to $11.71 382 3.1 years 11.71 255 11.71 $12.20 to $12.20 467 5.1 years 12.20 95 12.20 $13.49 to $13.49 289 4.1 years 13.49 126 13.49 $21.60 to $21.60 335 6.1 years 21.60 — — 1,869 4.1 years 13.46 872 11.11 The weighted average remaining contractual term for options outstanding and exercisable for all plans at December 31, 2017 was 4.1 years and 2.9 years, respectively. For all plans, the Company had shares available for future grants of 8.8 million shares, 9.4 million shares, and 10.4 million shares at December 31, 2017 , 2016 and 2015 , respectively. For all plans, the total pre-tax intrinsic value of stock options exercised during the years ended December 31, 2017 and 2016 was $4.8 million and $5.1 million , respectively. The aggregate intrinsic value, which represents the total pre-tax intrinsic value based on the Company’s closing stock price of $30.45 at December 31, 2017 , which theoretically could have been received by the option holders had all option holders exercised their options as of that date, was $31.8 million and $16.9 million for options outstanding and options exercisable, respectively. Share-based payment awards in the form of stock option awards for 0.3 million , 0.5 million and 0.4 million options were granted to employees during the years ended December 31, 2017 , 2016 and 2015 . Compensation expense is based on the grant date fair value. The awards vest annually over a three -year or four -year period and have a contractual term of 7 years. The Company estimates the fair value of stock options using the Black-Scholes valuation model. Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the Company’s stock, the risk-free rate and the Company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of reasonableness of the original estimates of fair value made by the Company. The fair value of each stock option grant was estimated at the date of grant using a Black-Scholes option pricing model. The following table presents the weighted-average assumptions used in the valuation and the resulting weighted-average fair value per option granted for the years ended December 31, 2017 , 2016 and 2015 : Employee stock options: 2017 2016 2015 Volatility 26.9 % 27.6 % 34.6 % Risk-free interest rate 1.7 % 1.1 % 1.3 % Dividend yield — % — % — % Expected life (years) 4.1 4.0 3.9 Weighted average fair value per option $ 5.25 $ 2.85 $ 3.86 A historical daily measurement of volatility is determined based on the expected life of the option granted. The risk-free interest rate is determined by reference to the yield on an outstanding U.S. Treasury note with a term equal to the expected life of the option granted. Expected life is determined by reference to the Company’s historical experience. The Company determines the dividend yield by dividing the expected annual dividend on the Company’s stock by the option exercise price. Employee Stock Purchase Plan The Company maintains the Entegris, Inc. Amended and Restated Employee Stock Purchase Plan (ESPP). The ESPP allows employees to elect, at six-month intervals, to contribute up to 10% of their compensation, subject to certain limitations, to purchase shares of common stock at a discount of 15% from the fair market value on the first day or last day of each six-month period. The Company treats the ESPP as a compensatory plan. At December 31, 2017 , 2.1 million shares remained available for issuance under the ESPP. Employees purchased 0.2 million shares, 0.3 million shares, and 0.3 million shares, at a weighted-average price of $16.92 , $11.56 , and $11.21 during the years ended December 31, 2017 , 2016 and 2015 , respectively. Restricted Stock Awards Restricted stock awards are awards of common stock made under the 2010 Stock Plan that are subject to a risk of forfeiture if the awardee terminates employment with the Company prior to the lapse of the restrictions. The value of such stock is determined using the market price on the grant date. Compensation expense for restricted stock awards is generally recognized using the straight-line single-option method. A summary of the Company’s restricted stock activity for the years ended December 31, 2017 , 2016 and 2015 is presented in the following table: 2017 2016 2015 (Shares in thousands) Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Unvested, beginning of year 2,164 $ 12.49 1,882 $ 12.25 1,613 $ 10.53 Granted 659 22.14 1,249 12.42 1,043 13.47 Vested (801 ) 12.22 (711 ) 11.74 (638 ) 10.13 Forfeited (165 ) 14.48 (256 ) 12.44 (136 ) 11.26 Unvested, end of year 1,857 15.86 2,164 12.49 1,882 12.25 The weighted average remaining contractual term for unvested restricted shares at December 31, 2017 and 2016 was 2.1 years and 2.4 years, respectively. During the years ended December 31, 2017, 2016 and 2015, the Company awarded performance stock for up to 0.1 million shares, 0.2 million shares and 0.2 million shares, respectively, to be issued upon the achievement of performance conditions (Performance shares) under the Company’s 2010 Stock Plan to certain officers and other key employees. Compensation expense is based on the grant date fair value. The awards vest on the third anniversary of the award date. The Company estimates the fair value of the Performance shares using a Monte Carlo simulation process. As of December 31, 2017 , the total compensation cost related to unvested stock options and restricted stock awards not yet recognized was $2.6 million and $21.1 million , respectively, and is expected to be recognized over the next 2.5 years on a weighted-average basis. Valuation and Expense Information The Company recognizes compensation expense for all share-based payment awards made to employees and directors based on their estimated fair values on the date of grant. Compensation expense is recognized using the straight-line attribution method to recognize share-based compensation over the service period of the award, with adjustments recorded for forfeitures as they occur. The following table summarizes the allocation of share-based compensation expense related to employee stock options, restricted stock awards and grants under the employee stock purchase plan for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Cost of sales $ 1,031 $ 1,579 $ 1,317 Engineering, research and development expenses 1,457 1,124 1,000 Selling, general and administrative expenses 12,818 10,733 8,716 Share-based compensation expense 15,306 13,436 11,033 Tax benefit 4,978 4,153 3,362 Share-based compensation expense, net of tax $ 10,328 $ 9,283 $ 7,671 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Benefit Plans | BENEFIT PLANS 401(k) Plan The Company maintains the Entegris, Inc. 401(k) Savings and Profit Sharing Plan (the 401(k) Plan) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the Plan, eligible employees may defer a portion of their pre-tax wages, up to the Internal Revenue Service annual contribution limit. Entegris matches employees’ contributions to a maximum match of 4% of the employee’s eligible wages. The employer matching contribution expense under the Plan was $5.1 million , $4.9 million and $5.0 million in the fiscal years ended December 31, 2017 , 2016 and 2015 , respectively. Defined Benefit Plans The employees of the Company’s subsidiaries in Japan, Taiwan and Germany are covered in defined benefit pension plans. The Company uses a December 31 measurement date for its pension plans. The tables below set forth the Company’s estimated funded status as of December 31, 2017 and 2016 : (In thousands) 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 7,073 $ 8,194 Service cost 38 66 Interest cost 46 91 Actuarial (gain) loss 302 (481 ) Benefits paid (222 ) (1,000 ) Other 7 — Foreign exchange impact 438 203 Benefit obligation at end of year 7,682 7,073 Change in plan assets: Fair value of plan assets at beginning of year 743 718 Return on plan assets 5 7 Employer contributions 88 6 Foreign exchange impact 72 12 Fair value of plan assets at end of year 908 743 Funded status: Plan assets less than benefit obligation - Net amount recognized $ (6,774 ) $ (6,330 ) Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2017 2016 Noncurrent liability $ (6,774 ) $ (6,330 ) Accumulated other comprehensive loss, net of taxes 919 681 Amounts recognized in accumulated other comprehensive loss, net of tax consist of: (In thousands) 2017 2016 Net actuarial loss $ 490 $ 170 Prior service cost 705 712 Gross amount recognized 1,195 882 Deferred income taxes (276 ) (195 ) Net amount recognized $ 919 $ 687 Information for pension plans with an accumulated benefit obligation in excess of plan assets: (In thousands) 2017 2016 Projected benefit obligation $ 6,774 $ 7,073 Accumulated benefit obligation 6,497 6,145 Fair value of plan assets 908 743 The components of the net periodic benefit cost for the years ended December 31, 2017 , 2016 and 2015 were as follows: (In thousands) 2017 2016 2015 Pension benefits: Service cost $ 38 $ 66 $ 65 Interest cost 46 91 119 Expected return on plan assets (11 ) (10 ) (17 ) Amortization of prior service cost 69 65 76 Amortization of net transition obligation 22 — (1 ) Amortization of plan loss — — 28 Recognized actuarial net loss — 17 14 Curtailments — — 160 Net periodic pension benefit cost $ 164 $ 229 $ 444 The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2018 is as follows: (In thousands) Prior service cost $ 70 Net actuarial loss 21 $ 91 Assumptions used in determining the benefit obligation and net periodic benefit cost for the Company’s pension plans for the years ended December 31, 2017 , 2016 and 2015 are presented in the following table as weighted-averages: 2017 2016 2015 Benefit obligations: Discount rate 0.82 % 0.63 % 1.10 % Rate of compensation increase 3.05 % 2.90 % 3.70 % Net periodic benefit cost: Discount rate 1.45 % 1.70 % 1.94 % Rate of compensation increase 3.00 % 3.43 % 4.41 % Expected return on plan assets 1.80 % 1.43 % 1.76 % The plans’ expected return on assets as shown above is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the asset classes in which the plans are invested, as well as current economic and capital market conditions. The discount rate primarily used by the Company is based on market yields at the valuation date on government bonds as well as the estimated maturity of benefit payments. Plan Assets At December 31, 2017 , the majority of the Company’s pension plan assets are deposited in Bank of Taiwan in the form of money market funds, where the Bank of Taiwan is the assigned funding vehicle for the statutory retirement benefit. The remaining portion of the Company's plan assets is deposited in a German insurance company's investment fund. The fair value measurements of the Company’s pension plan assets at December 31, 2017 , by asset category are as follows: (In thousands) Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Asset category Total (Level 1) (Level 2) (Level 3) Taiwan plan assets (a) $ 830 $ 830 — — Germany plan assets (b) $ 78 $ 78 — — $ 908 $ 908 — — (a) This category includes investments in the government of Taiwan’s pension fund. The government of Taiwan is responsible for the strategy and allocation of the investment contributions. (b) This category includes investments in an insurer's balanced asset fund. The insurer is responsible for the strategy and allocation of the investment contributions. The Company selects a pre-packaged portfolio pooled investment fund that is conservative. The majority of the funs are invested broadly in German mortgage bonds, construction loans and government bonds with good credit rating. At December 31, 2016 , the Company’s pension plan assets are deposited in Bank of Taiwan in the form of money market funds, where the Bank of Taiwan is the assigned funding vehicle for the statutory retirement benefit. The fair value measurements of the Company’s pension plan assets at December 31, 2016 , by asset category are as follows: (In thousands) Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Asset category Total (Level 1) (Level 2) (Level 3) Taiwan plan assets (a) $ 743 $ 743 — — (a) This category includes investments in the government of Taiwan’s pension fund. The government of Taiwan is responsible for the strategy and allocation of the investment contributions. Cash Flows The Company expects to make the following contributions and benefit payments: (In thousands) Contributions Payments 2018 $ 112 $ 102 2019 — 103 2020 — 205 2021 — 186 2022 — 437 Years 2023-2027 — 2,021 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Generally accepted accounting principles establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of the fair value hierarchy are as follows: Level 1—Quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2—Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3—Prices or valuations that require inputs that are significant to the valuation and are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial Assets Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016 . December 31, 2017 December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Other current assets: Foreign exchange forward contracts asset $ — $ 36 $ — $ 36 $ — $ 4,784 $ — $ 4,784 Total assets measured and recorded at fair value $ — $ 36 $ — $ 36 $ — $ 4,784 $ — $ 4,784 The following table provides information about derivative positions held by the Company as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 (In thousands) Gross Gross Net amount Gross Gross Net amount of assets in the Foreign exchange forward contracts $36 $0 $36 $4,784 $0 $4,784 Gains and losses associated with derivatives are recorded in other expense (income), net, in the consolidated statements of operations. Losses associated with derivative instruments not designated as hedging instruments for the years ended December 31, 2017 , 2016 and 2015 were as follows: (In thousands) 2017 2016 2015 Losses on foreign currency forward contracts $(2,209) $(1,647) $(10,787) |
Earning Per Share (EPS)
Earning Per Share (EPS) | 12 Months Ended |
Dec. 31, 2017 | |
Earning Per Share (EPS) | EARNINGS PER SHARE (EPS) Basic EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share: (In thousands) 2017 2016 2015 Basic earnings per share—Weighted common shares outstanding 141,553 141,093 140,353 Weighted common shares assumed upon exercise of options and vesting of restricted stock units 1,965 957 768 Diluted earnings per share—Weighted common shares outstanding 143,518 142,050 141,121 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 years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Shares excluded from calculations of diluted EPS 303 434 998 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information | SEGMENT INFORMATION The Company's financial segment reporting reflects an organizational alignment intended to leverage the Company's 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 separate products and technical know-how, they share a global generalist sales force, common business systems and processes, technology centers, and strategic and technology roadmaps. The Company leverages its expertise from these three segments to create new and increasingly integrated solutions for its 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, finance and information technology functions as well as interest expense, amortization of intangible assets, income taxes and equity in net loss of affiliate. Corporate assets consist primarily of cash and cash equivalents, deferred tax assets and deferred tax charges. Summarized financial information for the Company’s reportable segments is shown in the following tables. (In thousands) 2017 2016 2015 Net sales: SCEM $ 485,470 $ 428,328 $ 418,878 MC 436,225 362,658 315,817 AMH 420,837 384,284 346,426 Total net sales $ 1,342,532 $ 1,175,270 $ 1,081,121 ( In thousands ) 2017 2016 2015 Segment profit: SCEM $ 132,859 $ 96,060 $ 100,370 MC 160,715 110,042 83,076 AMH 77,971 73,452 66,419 Total segment profit $ 371,545 $ 279,554 $ 249,865 ( In thousands ) 2017 2016 2015 Total assets: SCEM $ 749,379 $ 766,126 $ 801,250 MC 251,216 200,399 183,518 AMH 278,079 267,085 259,377 Corporate 697,498 465,922 402,552 Total assets $ 1,976,172 $ 1,699,532 $ 1,646,697 (In thousands) 2017 2016 2015 Depreciation and amortization: SCEM $ 65,559 $ 64,062 $ 65,352 MC 12,881 9,222 8,733 AMH 20,167 22,874 23,604 Corporate 3,624 3,728 3,965 Total depreciation and amortization $ 102,231 $ 99,886 $ 101,654 (In thousands) 2017 2016 2015 Capital expenditures: SCEM $ 41,216 $ 27,348 $ 29,333 MC 24,909 6,281 11,408 AMH 16,078 19,029 23,617 Corporate 11,394 12,602 7,619 Total capital expenditures $ 93,597 $ 65,260 $ 71,977 The following table reconciles total segment profit to income before income taxes and equity in net loss of affiliate: (In thousands) 2017 2016 2015 Total segment profit $ 371,545 $ 279,554 $ 249,865 Less: Amortization of intangibles 44,023 44,263 47,349 Unallocated general and administrative expenses 85,705 79,755 84,448 Operating income 241,817 155,536 118,068 Interest expense 32,343 36,846 38,667 Interest income (715 ) (318 ) (429 ) Other expense (income), net 25,458 (991 ) (12,355 ) Income before income tax expense and equity in net loss of affiliate $ 184,731 $ 119,999 $ 92,185 The following table presents amortization of intangibles for each of the Company’s segments for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Amortization of intangibles: SCEM $ 38,836 $ 40,034 $ 42,909 MC 881 — — AMH 4,306 4,229 4,440 Total amortization of intangibles $ 44,023 $ 44,263 $ 47,349 The following table summarizes total net sales, based upon the country or region to which sales to external customers were made for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Net sales: Taiwan $ 289,714 $ 291,309 $ 248,842 United States 286,339 253,868 253,141 South Korea 216,868 145,661 148,016 Japan 169,480 156,021 131,336 China 148,890 118,435 97,148 Europe 120,481 105,779 106,036 Southeast Asia 110,760 104,197 96,602 $ 1,342,532 $ 1,175,270 $ 1,081,121 The following table summarizes property, plant and equipment, net, attributed to significant countries for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Property, plant and equipment: United States $ 257,584 $ 226,394 $ 229,558 South Korea 39,562 33,441 32,400 Japan 23,648 25,248 23,619 Malaysia 19,212 19,180 19,878 Taiwan 16,073 14,151 11,333 Other 3,444 3,148 4,513 $ 359,523 $ 321,562 $ 321,301 In the years ended December 31, 2017 , 2016 and 2015 , Taiwan Semiconductor Manufacturing Company Limited, accounted for $167.9 million , $161.9 million and $134.1 million of net sales, respectively, all of which include sales from all of the Company's segments. In addition, in the year ended December 31, 2017, Samsung Electronics Co. accounted for $140.6 million of net sales which include sales from all of the Company's segments. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES The Company is subject to various claims, legal actions, and complaints arising in the ordinary course of business. The Company believes the final outcome of these matters will not have a material adverse effect on its consolidated financial statements. The Company expenses legal costs as incurred. |
Quarterly Information-Unaudited
Quarterly Information-Unaudited | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Information-Unaudited | QUARTERLY INFORMATION-UNAUDITED Fiscal quarter ended (In thousands, except per share data) April 1, 2017 July 1, 2017 September 30, 2017 December 31, 2017 Net sales $ 317,377 $ 329,002 $ 345,591 $ 350,562 Gross profit 139,596 150,303 155,407 163,679 Net income (loss) 32,514 39,991 40,902 (28,341 ) Basic net income (loss) per common share 0.23 0.28 0.29 (0.20 ) Diluted net income (loss) per common share 0.23 0.28 0.28 (0.20 ) Fiscal quarter ended (In thousands, except per share data) April 2, 2016 July 2, 2016 October 1, 2016 December 31, 2016 Net sales $ 267,024 $ 303,052 $ 296,692 $ 308,502 Gross profit 114,706 139,205 122,980 131,800 Net income 16,212 32,890 21,947 26,098 Basic net income per common share 0.12 0.23 0.16 0.18 Diluted net income per common share 0.11 0.23 0.15 0.18 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On January 22, 2018, the Company acquired Particle Sizing Systems, LLC (PSS), a company focused on particle sizing instrumentation for liquid applications in both the semiconductor and life science industries. The total purchase price of the acquisition was approximately $37 million in cash, subject to customary working capital adjustments. The acquisition of PSS does not constitute a material business combination. On February 13, 2018, the Company’s Board of Directors authorized a repurchase program covering up to an aggregate of $100 million of the Company’s common stock, during a period of twenty-four months, in open market transactions and in accordance with one or more pre-arranged stock trading plans to be established in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. This repurchase program represents a further renewal of the repurchase program originally authorized by the Board of Directors on February 5, 2016 and first renewed on February 15, 2017. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Nature of Operations | Nature of Operations Entegris, Inc. (Entegris or the Company) 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 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 and Basis of Presentation The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an ongoing basis, Entegris evaluates its estimates, including those related to receivables, inventories, property, plant and equipment, intangible assets, accrued liabilities, income taxes and share-based compensation, among others. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid debt securities with original maturities of three months or less, which are valued at cost and approximates fair value. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts An allowance for uncollectible trade receivables is estimated based on a combination of write-off history, aging analysis and any specific, known troubled accounts. The Company maintains an allowance for doubtful accounts that management believes is adequate to cover expected losses on trade receivables. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out (FIFO) method. |
Property, Plant, And Equipment | Property, Plant, and Equipment Property, plant and equipment are carried at cost and are depreciated on the straight-line method over the estimated useful lives of the assets. When assets are retired or disposed of, the cost and related accumulated depreciation are removed from the accounts, and gains or losses are recognized in the same period. Maintenance and repairs are expensed as incurred, while significant additions and improvements are capitalized. Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable based on estimated future undiscounted cash flows. The amount of impairment, if any, is measured as the difference between the net book value and the estimated fair value of the asset(s). |
Investments | Investments The Company’s nonmarketable investments are accounted for under either the cost or equity method of accounting, as appropriate. All nonmarketable investments are periodically reviewed to determine whether declines, if any, in fair value below cost basis are other-than-temporary. If the decline in fair value is determined to be other-than-temporary, an impairment loss is recorded and the investment is written down to a new cost basis. |
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 instruments. The fair value of long-term debt, including current maturities, based upon models utilizing market observable (Level 2) inputs and credit risk, was $686 million at December 31, 2017 compared to the carrying amount of long-term debt, including current maturities, of $674 million . |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of acquisition costs over the fair value of the net assets of businesses acquired. Goodwill is not subject to amortization, but is tested for impairment annually at August 31, the Company's annual testing date, and whenever events or changes in circumstances indicate that impairment may have occurred. The Company compares the carrying value of its reporting units, including goodwill, to their fair value. For reporting units in which the assessment indicates that it is more likely than not that the fair value is more than its carrying value, goodwill is not considered impaired. If the carrying value of the reporting unit exceeds fair value, goodwill is considered impaired. Based on its annual analysis, the Company determined there was no indication of impairment of goodwill and the estimated fair value of each reporting unit substantially exceeded its carrying value. Amortizable intangible assets include, among other items, patented, unpatented and other developed technology and customer-based intangibles, and are amortized using the straight-line method over their respective estimated useful lives. The Company reviews intangible assets, along with other long-lived assets - primarily property, plant and equipment - for impairment if changes in circumstances or the occurrence of events suggest the remaining value may not be recoverable. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records derivatives as assets or liabilities on the balance sheet and measures such instruments at fair value. Changes in fair value of derivatives are recorded each period in the Company’s consolidated statements of operations. The Company periodically enters into forward foreign currency contracts to reduce exposures relating to rate changes in certain foreign currencies. Certain exposures to credit losses related to counterparty nonperformance exist. However, the Company does not anticipate nonperformance by the counterparties since they are large, well-established financial institutions. None of these derivatives is accounted for as a hedge transaction. Accordingly, changes in the fair value of forward foreign currency contracts are recorded as other (income) expense, net, in the Company’s consolidated statements of operations. The fair values of the Company’s derivative financial instruments are based on prices quoted by financial institutions for these instruments. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of certain foreign subsidiaries are translated from foreign currencies into U.S. dollars at period-end exchange rates, and the resulting gains and losses arising from translation of net assets located outside the U.S. are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss in the consolidated balance sheets. Income statement amounts are translated at the weighted average exchange rates for the year. Translation adjustments are not adjusted for income taxes, as substantially all translation adjustments relate to permanent investments in non-U.S. subsidiaries. Gains and losses resulting from foreign currency transactions are included in other (income) expense, net, in the Company's consolidated statements of operations. |
Revenue Recognition | Revenue Recognition Revenue and the related cost of sales are generally recognized upon shipment of the products. Revenue for product sales is recognized upon delivery, when persuasive evidence of an arrangement exists, when title and risk of loss have been transferred to the customer, collectability is reasonably assured, and pricing is fixed or determinable. Shipping and handling fees related to sales transactions are billed to customers and are recorded as revenue. The Company sells its products throughout the world primarily to companies in the microelectronics industry. The Company performs continuing credit evaluations of its customers and generally does not require collateral. Letters of credit may be required from its customers in certain circumstances. The Company provides for estimated returns based on historical and current trends in both sales and product returns. The Company collects various sales and value-added taxes on certain product and service sales that are accounted for on a net basis. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs incurred are recorded in cost of sales in the Company's consolidated statements of operations. |
Engineering,Research and Development Expenses | Engineering, Research and Development Expenses Engineering, research and development costs are expensed as incurred. |
Share-Based Compensation | Share-based Compensation The Company measures the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. Compensation expense is recognized using the straight-line attribution method to recognize share-based compensation over the service period of the award, with adjustments recorded for forfeitures as they occur. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income tax expense in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that the Company would not be able to realize all or part of its deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company’s policy for recording interest and penalties associated with audits and unrecognized tax benefits is to record such items as a component of income before taxes. Penalties and interest to be paid or received are recorded in other expense (income), net, in the statement of operations. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) represents the change in equity resulting from items other than shareholder investments and distributions. The Company’s foreign currency translation adjustments, unrealized gains and losses on available-for-sale investments, and minimum pension liability adjustments are included in accumulated other comprehensive loss. Comprehensive income (loss) and the components of accumulated other comprehensive loss are presented in the accompanying consolidated statements of comprehensive income (loss) and consolidated statements of equity. |
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 on 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 consolidated statement of operations. Accordingly, for the twelve months ended December 31, 2017, the Company recorded a tax benefit of $3.6 million in the consolidated 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. Under ASU No. 2014-09, revenue for the Company’s contracts will be recognized when control of the products or services transfers to the customer at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which is generally consistent with the revenue recognition model currently used for the Company's contracts. ASU No. 2014-09 provides a five-step analysis for determining when and how revenue is recognized. The Company performed and completed a review of its revenue streams as compared to its current accounting policies for customer contracts in 2017. The Company designed and implemented specific controls over its evaluation of the impact of ASU No. 2014-09, including its calculation of the cumulative effect of adopting the standard. As a result of its evaluation, the Company also identified changes to and modified certain of its accounting policies and practices. Although there were no significant changes to its accounting systems or controls upon adoption, the Company modified certain of its existing controls to incorporate the revisions made to its accounting policies and practices. The Company adopted ASU No. 2014-09 on January 1, 2018 on a modified retrospective basis and has concluded that the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and its internal controls over financial reporting. The Company recorded a cumulative adjustment that decreased retained earnings by approximately $0.7 million reflecting the cumulative impact of changes to revenue recognition related to certain customer incentive arrangements and to product deliveries using certain shipping terms made upon adoption of ASU No. 2014-09. 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. 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. 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) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the final 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 2,447 Identifiable intangible assets 8,820 Net assets acquired 11,993 Goodwill $ 8,007 Total purchase price 20,000 |
Trade Accounts and Notes Rece29
Trade Accounts and Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade Accounts and Notes Receivable | Trade accounts and notes receivable from customers at December 31, 2017 and 2016 consist of the following: (In thousands) 2017 2016 Accounts receivable $ 179,194 $ 163,759 Notes receivable 5,100 4,390 184,294 168,149 Less allowance for doubtful accounts 860 2,474 $ 183,434 $ 165,675 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | Inventories at December 31, 2017 and 2016 consist of the following: (In thousands) 2017 2016 Raw materials $ 58,226 $ 53,109 Work-in-process 16,193 15,976 Finished goods (a) 123,670 114,444 $ 198,089 $ 183,529 (a) Includes consignment inventories held by customers for $15.6 million and $16.4 million at December 31, 2017 and 2016 , respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment | Property, plant, and equipment at December 31, 2017 and 2016 consists of the following: (In thousands) 2017 2016 Estimated useful lives in years Land $ 16,795 $ 15,903 Buildings and improvements 174,615 155,769 5-35 Manufacturing equipment 274,723 248,201 5-10 Canisters and cylinders 77,325 65,100 3-12 Molds 80,198 76,782 3-5 Office furniture and equipment 121,345 107,194 3-8 Construction in progress 42,288 40,136 787,289 709,085 Less accumulated depreciation 427,766 387,523 $ 359,523 $ 321,562 |
Depreciation Expense | The table below sets forth the depreciation expense for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Depreciation expense $ 58,208 $ 55,623 $ 54,305 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Goodwill [Table Text Block] | Goodwill activity for each of the Company's reportable segments that carry goodwill, Specialty Chemicals and Engineered Materials (SCEM ), Microcontamination Control (MC) and Advanced Materials Handling (AMH), for the years ended December 31, 2017 and 2016 is shown below: (In thousands) SCEM MC AMH Total December 31, 2015 $ 294,700 $ — $ 47,411 $ 342,111 Addition due to purchase accounting adjustments 4,434 — — 4,434 Other, including foreign currency translation (1,276 ) — — (1,276 ) December 31, 2016 297,858 — 47,411 345,269 Addition due to acquisition — 8,007 — 8,007 Other, including foreign currency translation 6,412 — — 6,412 December 31, 2017 $ 304,270 $ 8,007 $ 47,411 $ 359,688 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Identifiable intangible assets at December 31, 2017 and 2016 consist of the following: 2017 (In thousands) Gross carrying Amount Accumulated amortization Net carrying value Weighted average life in years Developed technology 206,224 149,215 57,009 6.6 Trademarks and trade names 16,807 13,712 3,095 9.9 Customer relationships 220,806 110,281 110,525 10.3 Other 20,032 8,231 11,801 6.7 $ 463,869 $ 281,439 $ 182,430 8.5 2016 (In thousands) Gross carrying amount Accumulated amortization Net carrying value Weighted average life in years Developed technology 202,591 126,077 76,514 6.7 Trademarks and trade names 16,661 12,617 4,044 9.9 Customer relationships 216,918 90,581 126,337 10.3 Other 18,585 7,932 10,653 6.5 $ 454,755 $ 237,207 $ 217,548 8.5 |
Schedule Of Amortization Of Intangibles Table [Text Block] | The table below sets forth the amortization expense for the years ended December 31, 2017 , 2016 , and 2015 : (In thousands) 2017 2016 2015 Amortization expense $ 44,023 $ 44,263 $ 47,349 The following table presents amortization of intangibles for each of the Company’s segments for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Amortization of intangibles: SCEM $ 38,836 $ 40,034 $ 42,909 MC 881 — — AMH 4,306 4,229 4,440 Total amortization of intangibles $ 44,023 $ 44,263 $ 47,349 |
Estimated Future Amortization Expense | The 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 to be the following at December 31, 2017 : Fiscal year ending December 31 (In thousands) 2018 $ 43,670 2019 41,540 2020 26,767 2021 20,055 2022 19,907 Thereafter 30,491 $ 182,430 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt at December 31, 2017 and 2016 consists of the following: (In thousands) December 31, 2017 December 31, 2016 Senior secured term loan facility due 2021 $ 133,850 $ 233,850 Senior unsecured notes due 2022 — 360,000 Senior unsecured notes due 2026 550,000 — 683,850 593,850 Unamortized discount and debt issuance costs 9,470 9,173 Total long-term debt 674,380 584,677 Less current maturities of long-term debt 100,000 100,000 Long-term debt less current maturities $ 574,380 $ 484,677 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Annual maturities of long-term debt contractually due as of December 31, 2017 are as follows: Fiscal year ending December 31 (In thousands) 2018 $ — 2019 — 2020 — 2021 133,850 2022 — Thereafter 550,000 $ 683,850 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Future Minimum Lease Payments | As of December 31, 2017 , the Company was obligated under noncancellable operating lease agreements for certain sales offices and manufacturing facilities, manufacturing equipment, vehicles, information technology equipment and warehouse space. Future minimum lease payments for noncancellable operating leases with initial or remaining terms in excess of one year are as follows: Fiscal year ending December 31 (In thousands) 2018 $ 9,805 2019 7,663 2020 5,015 2021 4,911 2022 3,369 Thereafter 11,794 Total minimum lease payments $ 42,557 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Changes in the carrying amounts of the Company’s AROs for the years ended December 31, 2017 and 2016 are shown below: (In thousands) 2017 2016 Balance at beginning of year $ 11,529 $ 11,334 Liabilities settled (577 ) (975 ) Liabilities incurred 412 491 Accretion expense 215 188 Revision of estimate 588 491 Balance at end of year $ 12,167 $ 11,529 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income (Loss) Before Income Taxes | Income (loss) before income taxes for the years ended December 31, 2017 , 2016 and 2015 was derived from the following sources: (In thousands) 2017 2016 2015 Domestic $ 13,363 $ (7,328 ) $ (16,751 ) Foreign 171,368 127,327 108,936 Income before income tax expense and equity in net loss of affiliate $ 184,731 $ 119,999 $ 92,185 |
Components of Income Tax (Benefit) Expense | Income tax expense for the years ended December 31, 2017 , 2016 and 2015 is summarized as follows: (In thousands) 2017 2016 2015 Current: Federal $ 60,529 $ 7,759 $ 4,170 State 808 (10 ) 528 Foreign 36,700 31,387 18,817 98,037 39,136 23,515 Deferred (net of valuation allowance): Federal 249 (8,183 ) (11,374 ) State (891 ) 250 (738 ) Foreign 2,270 (8,351 ) (1,201 ) 1,628 (16,284 ) (13,313 ) Income tax expense $ 99,665 $ 22,852 $ 10,202 |
Reconciliation of Income Tax Expense With Expected Amounts Based Upon Statutory Federal Tax Rates | Income tax (benefit) expense differs from the expected amounts based upon the statutory federal tax rates for the years ended December 31, 2017 , 2016 and 2015 as follows: (In thousands) 2017 2016 2015 Expected federal income tax at statutory rate $ 64,656 $ 42,000 $ 32,265 State income taxes before valuation allowance, net of federal tax effect (1,376 ) (769 ) (576 ) Effect of foreign source income (27,581 ) (22,242 ) (23,374 ) Tax contingencies 2,816 1,103 1,483 Valuation allowance 3,195 1,713 1,109 U.S. federal research credit (4,881 ) (1,676 ) (3,905 ) Equity compensation (2,321 ) 815 739 Transition tax 72,993 — — Remeasurement of deferred taxes (10,248 ) — — Incremental taxes on unremitted foreign earnings release 3,968 — — Other items, net (1,556 ) 1,908 2,461 Income tax expense $ 99,665 $ 22,852 $ 10,202 |
Deferred Tax Assets And Deferred Tax Liabilities | The Company has remeasured its deferred tax assets and liabilities as a result of passage of the Tax Cuts and Jobs Act. The primary impact of this remeasurement was a reduction in deferred tax assets and liabilities in connection with the reduction of the U.S. corporate income tax rate as described above. The significant components of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Deferred tax assets attributable to: Accounts receivable $ 32 $ 470 Inventory 4,132 5,061 Accruals not currently deductible for tax purposes 8,641 3,729 Net operating loss and credit carryforwards 15,184 27,198 Capital loss carryforward 2,391 3,134 Depreciation — 8,395 Equity compensation 3,658 5,134 Asset impairments 452 1,467 Other, net 2,549 4,356 Gross deferred tax assets 37,039 58,944 Valuation allowance (17,494 ) (14,661 ) Total deferred tax assets 19,545 44,283 Deferred tax liabilities attributable to: Purchased intangible assets (28,956 ) (55,809 ) Depreciation (2,512 ) — Total deferred tax liabilities (31,468 ) (55,809 ) Net deferred tax liabilities $ (11,923 ) $ (11,526 ) |
Reconciliations of Total Amount of Gross Unrecognized Tax Benefits | Reconciliations of the beginning and ending balances of the total amounts of gross unrecognized tax benefits for the years ended December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Gross unrecognized tax benefits at beginning of year $ 8,293 $ 7,621 Increase in tax positions from prior years 298 14 Increases in tax positions for current year 4,724 1,944 Lapse in statute of limitations (754 ) (1,286 ) Gross unrecognized tax benefits at end of year $ 12,561 $ 8,293 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Option Activity | Stock option activity for the 2010 Stock Plan and predecessor plans for the years ended December 31, 2017 , 2016 and 2015 is summarized as follows: 2017 2016 2015 (Shares in thousands) Number of shares Weighted average exercise price Number of shares Weighted average exercise price Number of shares Weighted average exercise price Options outstanding, beginning of year 1,907 $ 11.54 2,139 $ 10.57 2,034 $ 9.67 Granted 335 21.60 549 12.20 411 13.49 Exercised (359 ) 10.89 (633 ) 8.66 (219 ) 7.62 Expired or forfeited (14 ) 12.78 (148 ) 12.32 (87 ) 10.72 Options outstanding, end of year 1,869 $ 13.46 1,907 $ 11.54 2,139 $ 10.57 Options exercisable, end of year 872 $ 11.11 776 $ 10.65 961 $ 9.07 |
Summary of Options Outstanding | Options outstanding for the Company’s stock plans at December 31, 2017 are summarized as follows: (Shares in thousands) Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining life in years Weighted- average exercise price Number exercisable Weighted average exercise $9.27 to $9.88 396 1.9 years $ 9.71 396 $ 9.71 $11.71 to $11.71 382 3.1 years 11.71 255 11.71 $12.20 to $12.20 467 5.1 years 12.20 95 12.20 $13.49 to $13.49 289 4.1 years 13.49 126 13.49 $21.60 to $21.60 335 6.1 years 21.60 — — 1,869 4.1 years 13.46 872 11.11 |
Weighted Average Assumptions Used In Valuation And Resulting Weighted Average Fair Value Per Option Granted | The fair value of each stock option grant was estimated at the date of grant using a Black-Scholes option pricing model. The following table presents the weighted-average assumptions used in the valuation and the resulting weighted-average fair value per option granted for the years ended December 31, 2017 , 2016 and 2015 : Employee stock options: 2017 2016 2015 Volatility 26.9 % 27.6 % 34.6 % Risk-free interest rate 1.7 % 1.1 % 1.3 % Dividend yield — % — % — % Expected life (years) 4.1 4.0 3.9 Weighted average fair value per option $ 5.25 $ 2.85 $ 3.86 |
Summary of Restricted Stock Activity | Restricted stock awards are awards of common stock made under the 2010 Stock Plan that are subject to a risk of forfeiture if the awardee terminates employment with the Company prior to the lapse of the restrictions. The value of such stock is determined using the market price on the grant date. Compensation expense for restricted stock awards is generally recognized using the straight-line single-option method. A summary of the Company’s restricted stock activity for the years ended December 31, 2017 , 2016 and 2015 is presented in the following table: 2017 2016 2015 (Shares in thousands) Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Number of shares Weighted average grant date fair value Unvested, beginning of year 2,164 $ 12.49 1,882 $ 12.25 1,613 $ 10.53 Granted 659 22.14 1,249 12.42 1,043 13.47 Vested (801 ) 12.22 (711 ) 11.74 (638 ) 10.13 Forfeited (165 ) 14.48 (256 ) 12.44 (136 ) 11.26 Unvested, end of year 1,857 15.86 2,164 12.49 1,882 12.25 |
Summary of Allocation of Share Based Compensation Expense | The following table summarizes the allocation of share-based compensation expense related to employee stock options, restricted stock awards and grants under the employee stock purchase plan for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Cost of sales $ 1,031 $ 1,579 $ 1,317 Engineering, research and development expenses 1,457 1,124 1,000 Selling, general and administrative expenses 12,818 10,733 8,716 Share-based compensation expense 15,306 13,436 11,033 Tax benefit 4,978 4,153 3,362 Share-based compensation expense, net of tax $ 10,328 $ 9,283 $ 7,671 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Estimated Funded Status | The tables below set forth the Company’s estimated funded status as of December 31, 2017 and 2016 : (In thousands) 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 7,073 $ 8,194 Service cost 38 66 Interest cost 46 91 Actuarial (gain) loss 302 (481 ) Benefits paid (222 ) (1,000 ) Other 7 — Foreign exchange impact 438 203 Benefit obligation at end of year 7,682 7,073 Change in plan assets: Fair value of plan assets at beginning of year 743 718 Return on plan assets 5 7 Employer contributions 88 6 Foreign exchange impact 72 12 Fair value of plan assets at end of year 908 743 Funded status: Plan assets less than benefit obligation - Net amount recognized $ (6,774 ) $ (6,330 ) |
Amounts Recognized in Consolidated Balance Sheet | Amounts recognized in the consolidated balance sheets consist of: (In thousands) 2017 2016 Noncurrent liability $ (6,774 ) $ (6,330 ) Accumulated other comprehensive loss, net of taxes 919 681 |
Amounts Recognized in Accumulated Other Comprehensive Loss Net of Tax | Amounts recognized in accumulated other comprehensive loss, net of tax consist of: (In thousands) 2017 2016 Net actuarial loss $ 490 $ 170 Prior service cost 705 712 Gross amount recognized 1,195 882 Deferred income taxes (276 ) (195 ) Net amount recognized $ 919 $ 687 |
Pension Plans Accumulated Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets: (In thousands) 2017 2016 Projected benefit obligation $ 6,774 $ 7,073 Accumulated benefit obligation 6,497 6,145 Fair value of plan assets 908 743 |
Components of Net Periodic Benefit Cost | The components of the net periodic benefit cost for the years ended December 31, 2017 , 2016 and 2015 were as follows: (In thousands) 2017 2016 2015 Pension benefits: Service cost $ 38 $ 66 $ 65 Interest cost 46 91 119 Expected return on plan assets (11 ) (10 ) (17 ) Amortization of prior service cost 69 65 76 Amortization of net transition obligation 22 — (1 ) Amortization of plan loss — — 28 Recognized actuarial net loss — 17 14 Curtailments — — 160 Net periodic pension benefit cost $ 164 $ 229 $ 444 |
Estimated Amount Amortized from Accumulated Other Comprehensive Income Into Net Periodic Benefit Cost | The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2018 is as follows: (In thousands) Prior service cost $ 70 Net actuarial loss 21 $ 91 |
Assumptions Used in Determining Benefit Obligation and Net Periodic Benefit Cost for Pension Plans | Assumptions used in determining the benefit obligation and net periodic benefit cost for the Company’s pension plans for the years ended December 31, 2017 , 2016 and 2015 are presented in the following table as weighted-averages: 2017 2016 2015 Benefit obligations: Discount rate 0.82 % 0.63 % 1.10 % Rate of compensation increase 3.05 % 2.90 % 3.70 % Net periodic benefit cost: Discount rate 1.45 % 1.70 % 1.94 % Rate of compensation increase 3.00 % 3.43 % 4.41 % Expected return on plan assets 1.80 % 1.43 % 1.76 % |
Fair Value Measurements of Pension Plan Assets | The fair value measurements of the Company’s pension plan assets at December 31, 2017 , by asset category are as follows: (In thousands) Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Asset category Total (Level 1) (Level 2) (Level 3) Taiwan plan assets (a) $ 830 $ 830 — — Germany plan assets (b) $ 78 $ 78 — — $ 908 $ 908 — — (a) This category includes investments in the government of Taiwan’s pension fund. The government of Taiwan is responsible for the strategy and allocation of the investment contributions. (b) This category includes investments in an insurer's balanced asset fund. The insurer is responsible for the strategy and allocation of the investment contributions. The Company selects a pre-packaged portfolio pooled investment fund that is conservative. The majority of the funs are invested broadly in German mortgage bonds, construction loans and government bonds with good credit rating. At December 31, 2016 , the Company’s pension plan assets are deposited in Bank of Taiwan in the form of money market funds, where the Bank of Taiwan is the assigned funding vehicle for the statutory retirement benefit. The fair value measurements of the Company’s pension plan assets at December 31, 2016 , by asset category are as follows: (In thousands) Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Asset category Total (Level 1) (Level 2) (Level 3) Taiwan plan assets (a) $ 743 $ 743 — — (a) This category includes investments in the government of Taiwan’s pension fund. The government of Taiwan is responsible for the strategy and allocation of the investment contributions. |
Expected Contribution And Benefit Payments | The Company expects to make the following contributions and benefit payments: (In thousands) Contributions Payments 2018 $ 112 $ 102 2019 — 103 2020 — 205 2021 — 186 2022 — 437 Years 2023-2027 — 2,021 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets Measured At Fair Value On Recurring Basis | The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016 . December 31, 2017 December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Other current assets: Foreign exchange forward contracts asset $ — $ 36 $ — $ 36 $ — $ 4,784 $ — $ 4,784 Total assets measured and recorded at fair value $ — $ 36 $ — $ 36 $ — $ 4,784 $ — $ 4,784 |
Schedule of Derivative Instruments [Table Text Block] | The following table provides information about derivative positions held by the Company as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 (In thousands) Gross Gross Net amount Gross Gross Net amount of assets in the Foreign exchange forward contracts $36 $0 $36 $4,784 $0 $4,784 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Gains and losses associated with derivatives are recorded in other expense (income), net, in the consolidated statements of operations. Losses associated with derivative instruments not designated as hedging instruments for the years ended December 31, 2017 , 2016 and 2015 were as follows: (In thousands) 2017 2016 2015 Losses on foreign currency forward contracts $(2,209) $(1,647) $(10,787) |
Earning Per Share (EPS) (Tables
Earning Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reconcilation of Share Amount Used in Computaion of Basic and Diluted Earnings Per Share | Basic EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share: (In thousands) 2017 2016 2015 Basic earnings per share—Weighted common shares outstanding 141,553 141,093 140,353 Weighted common shares assumed upon exercise of options and vesting of restricted stock units 1,965 957 768 Diluted earnings per share—Weighted common shares outstanding 143,518 142,050 141,121 |
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 years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Shares excluded from calculations of diluted EPS 303 434 998 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Financial Information for Reportable Segments | Summarized financial information for the Company’s reportable segments is shown in the following tables. (In thousands) 2017 2016 2015 Net sales: SCEM $ 485,470 $ 428,328 $ 418,878 MC 436,225 362,658 315,817 AMH 420,837 384,284 346,426 Total net sales $ 1,342,532 $ 1,175,270 $ 1,081,121 ( In thousands ) 2017 2016 2015 Segment profit: SCEM $ 132,859 $ 96,060 $ 100,370 MC 160,715 110,042 83,076 AMH 77,971 73,452 66,419 Total segment profit $ 371,545 $ 279,554 $ 249,865 ( In thousands ) 2017 2016 2015 Total assets: SCEM $ 749,379 $ 766,126 $ 801,250 MC 251,216 200,399 183,518 AMH 278,079 267,085 259,377 Corporate 697,498 465,922 402,552 Total assets $ 1,976,172 $ 1,699,532 $ 1,646,697 (In thousands) 2017 2016 2015 Depreciation and amortization: SCEM $ 65,559 $ 64,062 $ 65,352 MC 12,881 9,222 8,733 AMH 20,167 22,874 23,604 Corporate 3,624 3,728 3,965 Total depreciation and amortization $ 102,231 $ 99,886 $ 101,654 (In thousands) 2017 2016 2015 Capital expenditures: SCEM $ 41,216 $ 27,348 $ 29,333 MC 24,909 6,281 11,408 AMH 16,078 19,029 23,617 Corporate 11,394 12,602 7,619 Total capital expenditures $ 93,597 $ 65,260 $ 71,977 |
Reconciliation of Total Segment Profit to Operating Income | The following table reconciles total segment profit to income before income taxes and equity in net loss of affiliate: (In thousands) 2017 2016 2015 Total segment profit $ 371,545 $ 279,554 $ 249,865 Less: Amortization of intangibles 44,023 44,263 47,349 Unallocated general and administrative expenses 85,705 79,755 84,448 Operating income 241,817 155,536 118,068 Interest expense 32,343 36,846 38,667 Interest income (715 ) (318 ) (429 ) Other expense (income), net 25,458 (991 ) (12,355 ) Income before income tax expense and equity in net loss of affiliate $ 184,731 $ 119,999 $ 92,185 |
Amortization of Intangibles | The table below sets forth the amortization expense for the years ended December 31, 2017 , 2016 , and 2015 : (In thousands) 2017 2016 2015 Amortization expense $ 44,023 $ 44,263 $ 47,349 The following table presents amortization of intangibles for each of the Company’s segments for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Amortization of intangibles: SCEM $ 38,836 $ 40,034 $ 42,909 MC 881 — — AMH 4,306 4,229 4,440 Total amortization of intangibles $ 44,023 $ 44,263 $ 47,349 |
Summary of Total Net Sales to External Customers | The following table summarizes total net sales, based upon the country or region to which sales to external customers were made for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Net sales: Taiwan $ 289,714 $ 291,309 $ 248,842 United States 286,339 253,868 253,141 South Korea 216,868 145,661 148,016 Japan 169,480 156,021 131,336 China 148,890 118,435 97,148 Europe 120,481 105,779 106,036 Southeast Asia 110,760 104,197 96,602 $ 1,342,532 $ 1,175,270 $ 1,081,121 |
Summary of Property, Plant and Equipment Attributed to Significant Countries | The following table summarizes property, plant and equipment, net, attributed to significant countries for the years ended December 31, 2017 , 2016 and 2015 : (In thousands) 2017 2016 2015 Property, plant and equipment: United States $ 257,584 $ 226,394 $ 229,558 South Korea 39,562 33,441 32,400 Japan 23,648 25,248 23,619 Malaysia 19,212 19,180 19,878 Taiwan 16,073 14,151 11,333 Other 3,444 3,148 4,513 $ 359,523 $ 321,562 $ 321,301 |
Quarterly Information-Unaudit42
Quarterly Information-Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quartely Information | Fiscal quarter ended (In thousands, except per share data) April 1, 2017 July 1, 2017 September 30, 2017 December 31, 2017 Net sales $ 317,377 $ 329,002 $ 345,591 $ 350,562 Gross profit 139,596 150,303 155,407 163,679 Net income (loss) 32,514 39,991 40,902 (28,341 ) Basic net income (loss) per common share 0.23 0.28 0.29 (0.20 ) Diluted net income (loss) per common share 0.23 0.28 0.28 (0.20 ) Fiscal quarter ended (In thousands, except per share data) April 2, 2016 July 2, 2016 October 1, 2016 December 31, 2016 Net sales $ 267,024 $ 303,052 $ 296,692 $ 308,502 Gross profit 114,706 139,205 122,980 131,800 Net income 16,212 32,890 21,947 26,098 Basic net income per common share 0.12 0.23 0.16 0.18 Diluted net income per common share 0.11 0.23 0.15 0.18 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Significant Accounting Policies [Line Items] | ||
Long-term Debt, Fair Value | $ 686,000 | |
Long-term Debt | $ 674,380 | $ 584,677 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 881 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 4,978 | $ 4,153 | $ 3,362 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 700 | ||
ChangeinForfeiturePolicy [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 400 | ||
UnrecognizedExcessTaxBenefit [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1,000 | ||
Tax benefit recognized from adoption of new standard [Member] | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3,600 |
Acquisition Purchase Price Allo
Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Apr. 24, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Other Current Assets | $ 726 | |||
Property, Plant and Equipment | 2,447 | |||
Identifiable Intangible Assets | 8,820 | |||
Net Assets Acquired | 11,993 | |||
Goodwill | $ 359,688 | 8,007 | $ 345,269 | $ 342,111 |
Total Purchase Price | $ 20,000 |
Acquisition Additional Acquisit
Acquisition Additional Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Apr. 24, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||
Total Purchase Price | $ 20,000 | |||
Goodwill | $ 359,688 | $ 8,007 | $ 345,269 | $ 342,111 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Trade Accounts and Notes Rece47
Trade Accounts and Notes Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 179,194 | $ 163,759 |
Notes receivable | 5,100 | 4,390 |
Trade accounts and notes receivable, gross | 184,294 | 168,149 |
Less allowance for doubtful accounts | 860 | 2,474 |
Trade accounts and notes receivable, net | $ 183,434 | $ 165,675 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Net | ||
Raw materials | $ 58,226 | $ 53,109 |
Work-in-process | 16,193 | 15,976 |
Finished goods | 123,670 | 114,444 |
Total inventories | $ 198,089 | $ 183,529 |
Inventories Additional (Detail)
Inventories Additional (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Net [Abstract] | ||
Consignment inventories held by customers | $ 15.6 | $ 16.4 |
Property, Plant and Equipment50
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 16,795 | $ 15,903 | |
Buildings and improvements | 174,615 | 155,769 | |
Manufacturing equipment | 274,723 | 248,201 | |
Canisters and cylinders | 77,325 | 65,100 | |
Molds | 80,198 | 76,782 | |
Office furniture and equipment | 121,345 | 107,194 | |
Construction in progress | 42,288 | 40,136 | |
Property, plant and equipment, gross | 787,289 | 709,085 | |
Less accumulated depreciation | 427,766 | 387,523 | |
Property, plant and equipment, net | $ 359,523 | $ 321,562 | $ 321,301 |
Minimum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 5 years | ||
Minimum | Manufacturing Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 5 years | ||
Minimum | Canisters and cylinders | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 3 years | ||
Minimum | Molds | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 3 years | ||
Minimum | Office Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 3 years | ||
Maximum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 35 years | ||
Maximum | Manufacturing Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 10 years | ||
Maximum | Canisters and cylinders | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 12 years | ||
Maximum | Molds | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 5 years | ||
Maximum | Office Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives in years | 8 years |
Depreciation Expense (Detail)
Depreciation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 58,208 | $ 55,623 | $ 54,305 |
Intangible Assets Goodwill Roll
Intangible Assets Goodwill Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Apr. 24, 2017 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||||
Goodwill | $ 359,688 | $ 345,269 | $ 8,007 | $ 342,111 |
Addition due to acquisition | 8,007 | |||
Addition due to purchase accounting adjustments | 4,434 | |||
Other, including foreign currency translation | 6,412 | (1,276) | ||
SCEM | ||||
Goodwill [Line Items] | ||||
Goodwill | 304,270 | 297,858 | 294,700 | |
Addition due to acquisition | 0 | |||
Addition due to purchase accounting adjustments | 4,434 | |||
Other, including foreign currency translation | 6,412 | (1,276) | ||
MC | ||||
Goodwill [Line Items] | ||||
Goodwill | 8,007 | 0 | 0 | |
Addition due to acquisition | 8,007 | |||
Addition due to purchase accounting adjustments | 0 | |||
Other, including foreign currency translation | 0 | 0 | ||
AMH | ||||
Goodwill [Line Items] | ||||
Goodwill | 47,411 | 47,411 | $ 47,411 | |
Addition due to acquisition | 0 | |||
Addition due to purchase accounting adjustments | 0 | |||
Other, including foreign currency translation | $ 0 | $ 0 |
Intangible Assets Goodwill addi
Intangible Assets Goodwill additional (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Apr. 24, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 359,688 | $ 8,007 | $ 345,269 | $ 342,111 |
Goodwill, Period Increase | $ 14,419 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying Amount | $ 463,869 | $ 454,755 |
Accumulated amortization | 281,439 | 237,207 |
Net carrying value | $ 182,430 | $ 217,548 |
Weighted average life in years | 8 years 6 months | 8 years 6 months |
Developed Technology Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying Amount | $ 206,224 | $ 202,591 |
Accumulated amortization | 149,215 | 126,077 |
Net carrying value | $ 57,009 | $ 76,514 |
Weighted average life in years | 6 years 7 months | 6 years 8 months |
Trademarks and Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying Amount | $ 16,807 | $ 16,661 |
Accumulated amortization | 13,712 | 12,617 |
Net carrying value | $ 3,095 | $ 4,044 |
Weighted average life in years | 9 years 11 months | 9 years 11 months |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying Amount | $ 220,806 | $ 216,918 |
Accumulated amortization | 110,281 | 90,581 |
Net carrying value | $ 110,525 | $ 126,337 |
Weighted average life in years | 10 years 4 months | 10 years 4 months |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying Amount | $ 20,032 | $ 18,585 |
Accumulated amortization | 8,231 | 7,932 |
Net carrying value | $ 11,801 | $ 10,653 |
Weighted average life in years | 6 years 8 months | 6 years 6 months |
Amortization Expense (Detail)
Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 44,023 | $ 44,263 | $ 47,349 |
Estimated Future Amortization E
Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | $ 43,670 | |
2,019 | 41,540 | |
2,020 | 26,767 | |
2,021 | 20,055 | |
2,022 | 19,907 | |
Thereafter | 30,491 | |
Intangible assets, net | $ 182,430 | $ 217,548 |
Long-term debt schedule (Detail
Long-term debt schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Nov. 10, 2017 | Dec. 31, 2016 | Apr. 30, 2014 | Apr. 01, 2014 |
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 683,850 | $ 593,850 | |||
Unamortized discount and debt issuance costs | 9,470 | 9,173 | |||
Long-term Debt | 674,380 | 584,677 | |||
Less current maturities of long-term debt | 100,000 | 100,000 | |||
Long-term debt less current maturities | 574,380 | 484,677 | |||
Senior secured term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 133,850 | 233,850 | $ 460,000 | ||
Senior unsecured notes 2022[Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 0 | 360,000 | $ 360,000 | ||
Senior unsecured notes 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 550,000 | $ 550,000 | $ 0 |
Maturity Schedule (Details)
Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt [Abstract] | ||
2,018 | $ 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 133,850 | |
2,022 | 0 | |
Thereafter | 550,000 | |
Long-term Debt, Gross | $ 683,850 | $ 593,850 |
Additional Debt (Details)
Additional Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 10, 2017 | Apr. 30, 2014 | Apr. 01, 2014 | |
Debt Instrument [Line Items] | ||||||
Long-term debt, current maturities | $ 100,000 | $ 100,000 | ||||
Gain (Loss) on Extinguishment of Debt | (20,687) | 0 | $ 0 | |||
Debt Issuance Cost | 7,333 | 0 | 0 | |||
Amortization of debt issuance costs | 2,864 | 3,947 | $ 3,344 | |||
Long-term Debt, Gross | $ 683,850 | 593,850 | ||||
Senior unsecured notes 2022[Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | ||||
Debt Instrument, Redemption Price, Percentage | 104.50% | |||||
Gain (Loss) on Extinguishment of Debt | $ 20,687 | |||||
Long-term Debt, Gross | $ 0 | 360,000 | $ 360,000 | |||
Senior unsecured notes 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Minimum redemption price on or after November 10, 2020 | 100.00% | |||||
Maximum redemption price on or after November 10, 2020 | 103.469% | |||||
Redemption price, change of control | 101.00% | |||||
Event of default percentage | 25.00% | |||||
Debt Issuance Cost | $ 7,064 | |||||
Long-term Debt, Gross | 550,000 | 0 | $ 550,000 | |||
Senior secured term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increased borrowing capacity under certain conditions | $ 225,000 | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.819% | |||||
Repayments of Debt | $ 100,000 | 75,000 | ||||
Prepayment % of annual excess cash flow | 50.00% | |||||
Prepayment % for asset sales and casualty events | 100.00% | |||||
Long-term Debt, Gross | $ 133,850 | $ 233,850 | $ 460,000 | |||
ABL Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Borrowing Capacity | 75,000 | |||||
Current Borrowing Capacity | 64,977 | |||||
Additional borrowing capacity that may be increased by under ABL | 35,000 | |||||
Letters of credit maximum borrowing capacity | 35,000 | |||||
Swingline loans available | $ 20,000 | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.33% | |||||
Long-term Line of Credit | $ 0 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 9,805 |
2,019 | 7,663 |
2,020 | 5,015 |
2,021 | 4,911 |
2,022 | 3,369 |
Thereafter | 11,794 |
Total minimum lease payments | $ 42,557 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Total rental expense for all equipment and building operating leases | $ 10.6 | $ 13.3 | $ 13.8 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation [Abstract] | ||
Asset Retirement Obligation, Beginning | $ 11,529 | $ 11,334 |
Liabilities Settled | (577) | (975) |
Liabilities Incurred | 412 | 491 |
Accretion Expense | 215 | 188 |
Revision of Estimate | 588 | 491 |
Asset Retirement Obligation, Ending | $ 12,167 | $ 11,529 |
Income Taxes US Tax Cuts and Jo
Income Taxes US Tax Cuts and Jobs Act (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Overview [Member] | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 35.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 66,713 |
Reduction of US Federal Corporate Tax Rate [Member] | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 35.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 10,248 |
Transition Tax on Foreign Earnings [Member] | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 72,993 |
Utilization of Foreign Tax Credit Carryforwards | 10,176 |
Utilization of Research and Development Credit Carryforwards | 11,800 |
Acceleration of Depreciation [Member] | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 1,276 |
Change in Deferred Tax Assets due to 2017 Tax Act | 1,914 |
Change in Other Current Liabilities due to 2017 Tax Act | 3,190 |
Undistributed Foreign Earnings [Member] | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 3,968 |
Undistributed Earnings of Foreign Subsidiaries Subject To Transition Tax | 943,704 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 30,734 |
Tax Act New Rate [Member] | Overview [Member] | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 21.00% |
Tax Act New Rate [Member] | Reduction of US Federal Corporate Tax Rate [Member] | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 21.00% |
Corporate Rate Reduction [Member] | Overview [Member] | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 10,248 |
Transition Tax [Member] | Overview [Member] | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 72,993 |
Incremental Taxes on Unremitted Foreign Earnings Release [Member] | Overview [Member] | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 3,968 |
Income (Loss) Before Income Tax
Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Domestic | $ 13,363 | $ (7,328) | $ (16,751) |
Foreign | 171,368 | 127,327 | 108,936 |
Income before income tax expense and equity in net loss of affiliate | $ 184,731 | $ 119,999 | $ 92,185 |
Components of Income Tax Expens
Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current, Federal | $ 60,529 | $ 7,759 | $ 4,170 |
Current, State | 808 | (10) | 528 |
Current, Foreign | 36,700 | 31,387 | 18,817 |
Current, Total | 98,037 | 39,136 | 23,515 |
Deferred (net of valuation allowance), Federal | 249 | (8,183) | (11,374) |
Deferred (net of valuation allowance), State | (891) | 250 | (738) |
Deferred (net of valuation allowance), Foreign | 2,270 | (8,351) | (1,201) |
Deferred Income Tax Expense (Benefit) | 1,628 | (16,284) | (13,313) |
Income tax expense | $ 99,665 | $ 22,852 | $ 10,202 |
Reconciliation of Income Tax Ex
Reconciliation of Income Tax Expense With Expected Amounts Based Upon Statutory Federal Tax Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Expected federal income tax at statutory rate | $ 64,656 | $ 42,000 | $ 32,265 |
State income taxes before valuation allowance, net of federal tax effect | (1,376) | (769) | (576) |
Effect of foreign source income | (27,581) | (22,242) | (23,374) |
Tax contingencies | 2,816 | 1,103 | 1,483 |
Valuation allowance | 3,195 | 1,713 | 1,109 |
U.S. federal research credit | (4,881) | (1,676) | (3,905) |
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | (2,321) | 815 | 739 |
Transition Tax Due To 2017 Tax Act | 72,993 | 0 | 0 |
Remeasurement of Deferred Tax Assets Due To 2017 Tax Act | (10,248) | 0 | 0 |
Incremental Taxes on Unremitted Foreign Earnings Release Due To 2017 Tax Act | 3,968 | 0 | 0 |
Other items, net | (1,556) | 1,908 | 2,461 |
Income tax expense | $ 99,665 | $ 22,852 | $ 10,202 |
Deferred Tax Assets and Deferre
Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ||
Accounts receivable | $ 32 | $ 470 |
Inventory | 4,132 | 5,061 |
Accruals not currently deductible for tax purposes | 8,641 | 3,729 |
Net operating loss and credit carryforwards | 15,184 | 27,198 |
Capital loss carryforward | 2,391 | 3,134 |
Depreciation | 0 | 8,395 |
Equity compensation | 3,658 | 5,134 |
Asset impairments | 452 | 1,467 |
Other, net | 2,549 | 4,356 |
Gross deferred tax assets | 37,039 | 58,944 |
Valuation allowance | (17,494) | (14,661) |
Total deferred tax assets | 19,545 | 44,283 |
Purchased intangible assets | (28,956) | (55,809) |
Depreciation | (2,512) | 0 |
Gross deferred tax liabilities | (31,468) | (55,809) |
Total deferred tax liabilities | $ (11,923) | $ (11,526) |
Reconciliations of Total Amount
Reconciliations of Total Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Unrecognized Tax Benefits [Line Items] | ||
Gross unrecognized tax benefits at beginning of year | $ 8,293 | $ 7,621 |
Increase in tax positions for prior years | 298 | 14 |
Increases in tax positions for current year | 4,724 | 1,944 |
Lapse in statute of limitations | (754) | (1,286) |
Gross unrecognized tax benefits at end of year | $ 12,561 | $ 8,293 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | |||
Deferred Tax Liabilities, Net | $ 11,923 | $ 11,526 | |
Deferred Tax Assets, Valuation Allowance | 17,494 | 14,661 | |
Unrecognized tax benefits that would impact effective tax rate | 9,900 | ||
Accrued interest and penalties related to unrecognized tax benefits | 1,000 | 700 | |
Interest and penalties recognized in the statement of operations | 300 | 100 | $ 100 |
Gross unrecognized tax benefit decrease within next twelve months | 1,800 | ||
State | |||
Income Tax [Line Items] | |||
State operating loss carryforwards | $ 7,900 | ||
Operating loss carryforwards, expiration date | Dec. 31, 2019 | ||
Year Which Prior Year's Tax Returns Are No Longer Subject to Tax Examination | Dec. 31, 2013 | ||
Foreign | |||
Income Tax [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 6,900 | 5,000 | |
Net deferred tax assets | $ 10,700 | 6,600 | |
Operating loss carryforwards, expiration date | Dec. 31, 2018 | ||
Foreign operating loss carryforwards | $ 25,000 | ||
Year Which Prior Year's Tax Returns Are No Longer Subject to Tax Examination | Dec. 31, 2011 | ||
U.S. | |||
Income Tax [Line Items] | |||
Deferred Tax Liabilities, Net | $ 5,100 | 3,500 | |
Deferred Tax Assets, Valuation Allowance | $ 10,600 | 9,600 | |
Year Which Prior Year's Tax Returns Are No Longer Subject to Tax Examination | Dec. 31, 2013 | ||
Malaysia | |||
Income Tax [Line Items] | |||
Income tax benefit estimate attributable to the tax status of subsidiary | $ 10,200 | ||
Income tax expense benefit per diluted share | $ 0.07 | ||
additional effective tax rate benefit | $ 2,000 | 4,300 | $ 4,400 |
Korea Tax Authority [Member] | |||
Income Tax [Line Items] | |||
Income tax benefit estimate attributable to the tax status of subsidiary | $ 7,400 | $ 3,300 | $ 1,500 |
Income tax expense benefit per diluted share | $ 0.05 | $ 0.02 | $ 0.01 |
additional effective tax rate benefit | $ 4,300 | $ 1,900 | $ 900 |
Inland Revenue, Singapore (IRAS) [Member] | |||
Income Tax [Line Items] | |||
Income tax benefit estimate attributable to the tax status of subsidiary | $ 4,700 | $ 2,300 | $ 1,700 |
Income tax expense benefit per diluted share | $ 0.03 | $ 0.02 | $ 0.01 |
additional effective tax rate benefit | $ 12,400 | $ 6,500 | $ 4,600 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of shares | |||
Number of shares, Options outstanding, beginning of year | 1,907 | 2,139 | 2,034 |
Number of shares, Granted | 335 | 549 | 411 |
Number of shares, Exercised | (359) | (633) | (219) |
Number of shares, Expired or Forfeited | (14) | (148) | (87) |
Number of shares, Options outstanding, end of year | 1,869 | 1,907 | 2,139 |
Number of shares, Options exercisable, end of year | 872 | 776 | 961 |
Weighted average exercise price | |||
Weighted average exercise price, Options outstanding, beginning of year | $ 11.54 | $ 10.57 | $ 9.67 |
Weighted average exercise price, Granted | 21.60 | 12.20 | 13.49 |
Weighted average exercise price, Exercised | 10.89 | 8.66 | 7.62 |
Weighted average exercise price, Expired or Forfeited | 12.78 | 12.32 | 10.72 |
Weighted average exercise price, Options outstanding, end of year | 13.46 | 11.54 | 10.57 |
Weighted average exercise price, Options exercisable, end of year | $ 11.11 | $ 10.65 | $ 9.07 |
Summary of Options Outstanding
Summary of Options Outstanding (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options outstanding | shares | 1,869 |
Options outstanding, Weighted average remaining life in years | 4 years 1 month |
Options outstanding, Weighted-average exercise price | $ 13.46 |
Number of Options exercisable | shares | 872 |
Options exercisable, Weighted average exercise price | $ 11.11 |
Range One | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum | 9.27 |
Range of exercise prices, maximum | $ 9.88 |
Number of Options outstanding | shares | 396 |
Options outstanding, Weighted average remaining life in years | 1 year 11 months |
Options outstanding, Weighted-average exercise price | $ 9.71 |
Number of Options exercisable | shares | 396 |
Options exercisable, Weighted average exercise price | $ 9.71 |
Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum | 11.71 |
Range of exercise prices, maximum | $ 11.71 |
Number of Options outstanding | shares | 382 |
Options outstanding, Weighted average remaining life in years | 3 years 1 month |
Options outstanding, Weighted-average exercise price | $ 11.71 |
Number of Options exercisable | shares | 255 |
Options exercisable, Weighted average exercise price | $ 11.71 |
Range Three | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum | 12.20 |
Range of exercise prices, maximum | $ 12.20 |
Number of Options outstanding | shares | 467 |
Options outstanding, Weighted average remaining life in years | 5 years 1 month |
Options outstanding, Weighted-average exercise price | $ 12.20 |
Number of Options exercisable | shares | 95 |
Options exercisable, Weighted average exercise price | $ 12.20 |
Range Four | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum | 13.49 |
Range of exercise prices, maximum | $ 13.49 |
Number of Options outstanding | shares | 289 |
Options outstanding, Weighted average remaining life in years | 4 years 1 month |
Options outstanding, Weighted-average exercise price | $ 13.49 |
Number of Options exercisable | shares | 126 |
Options exercisable, Weighted average exercise price | $ 13.49 |
Range Five | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum | 21.60 |
Range of exercise prices, maximum | $ 21.60 |
Number of Options outstanding | shares | 335 |
Options outstanding, Weighted average remaining life in years | 6 years 1 month |
Options outstanding, Weighted-average exercise price | $ 21.60 |
Number of Options exercisable | shares | 0 |
Options exercisable, Weighted average exercise price | $ 0 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used in Valuation and Resulting Weighted Average Fair Value Per Option Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 26.90% | 27.60% | 34.60% |
Risk-free interest rate | 1.70% | 1.10% | 1.30% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (years) | 4 years 1 month | 4 years | 3 years 11 months |
Weighted average fair value per option | $ 5.25 | $ 2.85 | $ 3.86 |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of shares | |||
Number of shares, Unvested, beginning of year | 2,164 | 1,882 | 1,613 |
Number of shares, Granted | 659 | 1,249 | 1,043 |
Number of shares, Vested | (801) | (711) | (638) |
Number of shares, Forfeited | (165) | (256) | (136) |
Number of shares, Unvested, end of year | 1,857 | 2,164 | 1,882 |
Weighted average grant date fair value, Unvested | |||
Weighted average grant date fair value, Unvested, beginning of year | $ 12.49 | $ 12.25 | $ 10.53 |
Weighted average grant date fair value, Granted | 22.14 | 12.42 | 13.47 |
Weighted average grant date fair value, Vested | 12.22 | 11.74 | 10.13 |
Weighted average grant date fair value, Forfeited | 14.48 | 12.44 | 11.26 |
Weighted average grant date fair value, Unvested, end of year | $ 15.86 | $ 12.49 | $ 12.25 |
Summary of Allocation of Share
Summary of Allocation of Share Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 15,306 | $ 13,436 | $ 11,033 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 4,978 | 4,153 | 3,362 |
Share-based compensation expense, net of tax | 10,328 | 9,283 | 7,671 |
Cost of Sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 1,031 | 1,579 | 1,317 |
Engineering, Research and Development Expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 1,457 | 1,124 | 1,000 |
Selling, General And Administrative Expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 12,818 | $ 10,733 | $ 8,716 |
Share Based Compensation Expens
Share Based Compensation Expense Recognized in Statement of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 15,306 | $ 13,436 | $ 11,033 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 15, 2017 | |
Equity [Line Items] | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.07 | |||
Dividends | $ 9,896 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||
Payments for Repurchase of Common Stock | $ 28,000 | $ 7,573 | $ 0 | |
Shares absorbed into plan | 5,700 | |||
Term of plan, in years | 10 years | |||
Weighted average remaining contractual term option outstanding | 4 years 1 month | |||
Weighted average remaining contractual term option exercisable | 2 years 11 months | |||
Shares available for future grants | 8,800 | 9,400 | 10,400 | |
Total pre-tax intrinsic value of stock options exercised | $ 4,800 | $ 5,100 | ||
Total pre-tax intrinsic value based on the closing stock price | $ 30.45 | |||
Intrinsic value of stock options outstanding | $ 31,800 | |||
Intrinsic value of stock options exercisable | $ 16,900 | |||
Weighted average remaining contractual term for unvested restricted shares, in years | 2 years 1 month | 2 years 5 months | ||
performance shares granted | 100 | 200 | 200 | |
Share-based payment awards in the form of stock option awards | 335 | 549 | 411 | |
Contractual term of stock options (in years) | 7 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |||
Minimum | ||||
Equity [Line Items] | ||||
Vesting period, in years | 3 years | |||
Maximum | ||||
Equity [Line Items] | ||||
Vesting period, in years | 4 years | |||
Unvested Stock Options | ||||
Equity [Line Items] | ||||
Total compensation cost not yet recognized | $ 2,600 | |||
Restricted Stock | ||||
Equity [Line Items] | ||||
Total compensation cost not yet recognized | $ 21,100 | |||
Employee Stock Purchase Plan | ||||
Equity [Line Items] | ||||
Shares available for future grants | 2,100 | |||
Percentage of employee contribution from compensation | 10.00% | |||
Rate of discount from the fair market value | 15.00% | |||
Shares purchase by employees | 200 | 300 | 300 | |
Weighted-average price per share paid by the employees | $ 16.92 | $ 11.56 | $ 11.21 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum matching contribution | 4.00% | ||
Employer profit sharing and matching contribution expense | $ 5.1 | $ 4.9 | $ 5 |
Estimated Funded Status (Detail
Estimated Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 7,073 | $ 8,194 | |
Service cost | 38 | 66 | $ 65 |
Interest cost | 46 | 91 | 119 |
Actuarial (gain) loss | 302 | (481) | |
Benefits paid | (222) | (1,000) | |
Other | 7 | 0 | |
Foreign exchange impact | 438 | 203 | |
Benefit obligation at end of year | 7,682 | 7,073 | 8,194 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 743 | 718 | |
Return on plan assets | 5 | 7 | |
Employer contributions | 88 | 6 | |
Foreign exchange impact | 72 | 12 | |
Fair value of plan assets at end of year | 908 | 743 | $ 718 |
Plan assets less than benefit obligation - Net amount recognized | $ (6,774) | $ (6,330) |
Amounts Recognized in Consolida
Amounts Recognized in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liability | $ (6,774) | $ (6,330) |
Accumulated Other Comprehensive loss, net of taxes | $ 919 | $ 681 |
Amounts Recognized in Accumulat
Amounts Recognized in Accumulated Other Comprehensive Loss Net of Tax (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 490 | $ 170 |
Prior service cost | 705 | 712 |
Gross amount recognized | 1,195 | 882 |
Deferred income taxes | (276) | (195) |
Net amount recognized | $ 919 | $ 687 |
Pension Plans Accumulated Benef
Pension Plans Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 6,774 | $ 7,073 |
Accumulated benefit obligation | 6,497 | 6,145 |
Fair value of plan assets | $ 908 | $ 743 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 38 | $ 66 | $ 65 |
Interest cost | 46 | 91 | 119 |
Expected return on plan assets | (11) | (10) | (17) |
Amortization of prior service cost | 69 | 65 | 76 |
Amortization of net transition obligation | 22 | 0 | (1) |
Amortization of plan loss | 0 | 0 | 28 |
Recognized actuarial net loss | 0 | 17 | 14 |
Curtailments | 0 | 0 | 160 |
Net periodic pension benefit cost | $ 164 | $ 229 | $ 444 |
Estimated Amount Amortized from
Estimated Amount Amortized from Accumulated Other Comprehensive Income Into Net Periodic Benefit Cost (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | $ 70 |
Net actuarial loss | 21 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year, Total | $ 91 |
Assumptions Used in Determining
Assumptions Used in Determining Benefit Obligation and Net Periodic Benefit Cost for Pension Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations, Discount rate | 0.82% | 0.63% | 1.10% |
Benefit obligations, Rate of compensation increase | 3.05% | 2.90% | 3.70% |
Net periodic benefit cost, Discount rate | 1.45% | 1.70% | 1.94% |
Net periodic benefit cost, Rate of compensation increase | 3.00% | 3.43% | 4.41% |
Net periodic benefit cost, Expected return on plan assets | 1.80% | 1.43% | 1.76% |
Fair Value Measurements of Pens
Fair Value Measurements of Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 908 | $ 743 | $ 718 |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 908 | ||
TAIWAN, PROVINCE OF CHINA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 830 | 743 | |
TAIWAN, PROVINCE OF CHINA | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 830 | $ 743 | |
GERMANY | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 78 | ||
GERMANY | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 78 |
Expected Contribution and Benef
Expected Contribution and Benefit Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution in year 2018 | $ 112 |
Payments in year 2018 | 102 |
Payments in year 2019 | 103 |
Payments in year 2020 | 205 |
Payments in year 2021 | 186 |
Payments in year 2022 | 437 |
Payments in years 2023-2027 | $ 2,021 |
Financial Assets Measured at Fa
Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Foreign exchange forward contracts asset | $ 36 | $ 4,784 |
Total assets measured and recorded at fair value | 36 | 4,784 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Foreign exchange forward contracts asset | 0 | 0 |
Total assets measured and recorded at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Foreign exchange forward contracts asset | 36 | 4,784 |
Total assets measured and recorded at fair value | 36 | 4,784 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Foreign exchange forward contracts asset | 0 | 0 |
Total assets measured and recorded at fair value | $ 0 | $ 0 |
Fair Value Measurements Informa
Fair Value Measurements Information about derivative positions (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross Derivative Asset | $ 36 | $ 4,784 |
Gross Derivative Liability | 0 | 0 |
Foreign exchange forward contracts asset, net | $ 36 | $ 4,784 |
Fair Value Measurements (Losses
Fair Value Measurements (Losses) gains on forward currency contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Losses on foreign exchange forward contracts | $ (2,209) | $ (1,647) | $ (10,787) |
Reconciliation of Share Amount
Reconciliation of Share Amount Used in Computation of Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Basic earnings per share-Weighted common shares outstanding | 141,553 | 141,093 | 140,353 |
Weighted common shares assumed upon exercise of options and vesting of restricted stock units | 1,965 | 957 | 768 |
Diluted earnings per share-Weighted common shares outstanding | 143,518 | 142,050 | 141,121 |
Shares Excluded Underlying Stoc
Shares Excluded Underlying Stock Based Awards from Calculations of Diluted EPS (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from calculations of diluted EPS | 303 | 434 | 998 |
Summary of Financial Informatio
Summary of Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 350,562 | $ 345,591 | $ 329,002 | $ 317,377 | $ 308,502 | $ 296,692 | $ 303,052 | $ 267,024 | $ 1,342,532 | $ 1,175,270 | $ 1,081,121 |
Total segment profit | 371,545 | 279,554 | 249,865 | ||||||||
Total assets | 1,976,172 | 1,699,532 | 1,976,172 | 1,699,532 | 1,646,697 | ||||||
Total depreciation and amortization | 102,231 | 99,886 | 101,654 | ||||||||
Total capital expenditures | 93,597 | 65,260 | 71,977 | ||||||||
SCEM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 485,470 | 428,328 | 418,878 | ||||||||
Total segment profit | 132,859 | 96,060 | 100,370 | ||||||||
Total assets | 749,379 | 766,126 | 749,379 | 766,126 | 801,250 | ||||||
Total depreciation and amortization | 65,559 | 64,062 | 65,352 | ||||||||
Total capital expenditures | 41,216 | 27,348 | 29,333 | ||||||||
MC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 436,225 | 362,658 | 315,817 | ||||||||
Total segment profit | 160,715 | 110,042 | 83,076 | ||||||||
Total assets | 251,216 | 200,399 | 251,216 | 200,399 | 183,518 | ||||||
Total depreciation and amortization | 12,881 | 9,222 | 8,733 | ||||||||
Total capital expenditures | 24,909 | 6,281 | 11,408 | ||||||||
AMH | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 420,837 | 384,284 | 346,426 | ||||||||
Total segment profit | 77,971 | 73,452 | 66,419 | ||||||||
Total assets | 278,079 | 267,085 | 278,079 | 267,085 | 259,377 | ||||||
Total depreciation and amortization | 20,167 | 22,874 | 23,604 | ||||||||
Total capital expenditures | 16,078 | 19,029 | 23,617 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | $ 697,498 | $ 465,922 | 697,498 | 465,922 | 402,552 | ||||||
Total depreciation and amortization | 3,624 | 3,728 | 3,965 | ||||||||
Total capital expenditures | $ 11,394 | $ 12,602 | $ 7,619 |
Reconciliation of Total Segment
Reconciliation of Total Segment Profit to Operating Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment profit | $ 371,545 | $ 279,554 | $ 249,865 |
Amortization of intangibles | 44,023 | 44,263 | 47,349 |
Unallocated general and administrative expenses | 85,705 | 79,755 | 84,448 |
Operating income | 241,817 | 155,536 | 118,068 |
Interest expense | 32,343 | 36,846 | 38,667 |
Interest income | 715 | 318 | 429 |
Other expense (income), net | 25,458 | (991) | (12,355) |
Income before income tax expense and equity in net loss of affiliate | $ 184,731 | $ 119,999 | $ 92,185 |
Amortization of Intangibles (De
Amortization of Intangibles (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | $ 44,023 | $ 44,263 | $ 47,349 |
SCEM | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 38,836 | 40,034 | 42,909 |
MC | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 881 | 0 | 0 |
AMH | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | $ 4,306 | $ 4,229 | $ 4,440 |
Summary of Total Net Sales to E
Summary of Total Net Sales to External Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 350,562 | $ 345,591 | $ 329,002 | $ 317,377 | $ 308,502 | $ 296,692 | $ 303,052 | $ 267,024 | $ 1,342,532 | $ 1,175,270 | $ 1,081,121 |
TAIWAN, PROVINCE OF CHINA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 289,714 | 291,309 | 248,842 | ||||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 286,339 | 253,868 | 253,141 | ||||||||
KOREA, REPUBLIC OF | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 216,868 | 145,661 | 148,016 | ||||||||
JAPAN | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 169,480 | 156,021 | 131,336 | ||||||||
CHINA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 148,890 | 118,435 | 97,148 | ||||||||
EUROPE | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 120,481 | 105,779 | 106,036 | ||||||||
SOUTHEAST ASIA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 110,760 | $ 104,197 | $ 96,602 |
Summary of Property, Plant and
Summary of Property, Plant and Equipment Attributed to Significant Countries (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | $ 359,523 | $ 321,562 | $ 321,301 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | 257,584 | 226,394 | 229,558 |
KOREA, REPUBLIC OF | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | 39,562 | 33,441 | 32,400 |
JAPAN | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | 23,648 | 25,248 | 23,619 |
Malaysia | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | 19,212 | 19,180 | 19,878 |
TAIWAN, PROVINCE OF CHINA | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | 16,073 | 14,151 | 11,333 |
All Other Segments | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | $ 3,444 | $ 3,148 | $ 4,513 |
Sales from Largest Customer (De
Sales from Largest Customer (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TSMC [Member] | |||
Revenues | $ 167,949 | $ 161,880 | $ 134,099 |
Samsung [Member] | |||
Revenues | $ 140,600 |
Quarterly Information (Detail)
Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Quarterly Financial Information [Line Items] | |||||||||||
Net sales | $ 350,562 | $ 345,591 | $ 329,002 | $ 317,377 | $ 308,502 | $ 296,692 | $ 303,052 | $ 267,024 | $ 1,342,532 | $ 1,175,270 | $ 1,081,121 |
Gross profit | 163,679 | 155,407 | 150,303 | 139,596 | 131,800 | 122,980 | 139,205 | 114,706 | 608,985 | 508,691 | 470,231 |
Net (loss) income | $ (28,341) | $ 40,902 | $ 39,991 | $ 32,514 | $ 26,098 | $ 21,947 | $ 32,890 | $ 16,212 | $ 85,066 | $ 97,147 | $ 80,296 |
Basic net income (loss) per common share | $ (0.20) | $ 0.29 | $ 0.28 | $ 0.23 | $ 0.18 | $ 0.16 | $ 0.23 | $ 0.12 | $ 0.60 | $ 0.69 | $ 0.57 |
Diluted net income (loss) per common share | $ (0.20) | $ 0.28 | $ 0.28 | $ 0.23 | $ 0.18 | $ 0.15 | $ 0.23 | $ 0.11 | $ 0.59 | $ 0.68 | $ 0.57 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | Jan. 22, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 13, 2018 | Feb. 15, 2017 |
Subsequent Event [Line Items] | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 20,000 | $ 0 | $ 0 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 37,000 | |||||
Stock Repurchase Program, Authorized Amount | $ 100,000 |