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SEGMENT INFORMATION
 3 Months Ended
Mar. 28, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION
9. SEGMENT INFORMATION
Our business is organized and operated in two operating segments as discussed below. These segments share common business systems and processes, technology centers and technology roadmaps.
•The Materials Solutions segment, or MS, provides materials-based solutions, such as chemical vapor and atomic layer deposition materials, chemical mechanical planarization (“CMP”) slurries and pads, ion implantation specialty gases, formulated etch and clean materials, and other specialty materials that enable our customers to achieve better device performance and faster time to yield, while providing for lower total cost of ownership.
•The Advanced Purity Solutions segment, or APS, offers filtration, purification and contamination-control solutions that improve customers’ yield, device reliability and cost by ensuring the purity of critical liquid chemistries and gases and the cleanliness of wafers and other substrates used throughout semiconductor manufacturing processes, the semiconductor ecosystem and other high-technology industries.
The Company’s method for measuring profitability on a reportable segment basis is segment profit. Segment profit is defined as net sales less direct and indirect segment operating expenses, including certain general and administrative costs for the Company’s human resources, finance and information technology functions. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties. Inter-segment sales are presented as an elimination below. The remaining unallocated expenses consist mainly of the Company’s corporate functions as well as interest expense, interest income, amortization of intangible assets and income tax expense.
The Company’s chief operating decision maker (“CODM”) is the President and Chief Executive Officer. For each of the reportable segments, the CODM uses segment profit (based on each segment’s target model) for determining the allocation of resources (including employees, financial, or capital resources) to the segments to achieve the Company’s strategic plan and to assess the performance of each segment by monitoring actual results against performance targets established in the Company’s annual budget and forecasting process. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not regularly reviewed by the Company’s CODM.
Summarized financial information for the Company’s reportable segments is shown in the following tables for the three months ended March 28, 2026 and March 29, 2025:
Three months ended
March 28, 2026
(In millions)MSAPSInter-segmentTotal
Net sales$351.1 $463.6 $(2.8)$811.9 
Cost of sales194.2 239.7 (2.8)431.1 
Operating expenses81.0 90.3 — 171.3 
Segment profit$75.9 $133.6 $— $209.5 

Three months ended
March 29, 2025
(In millions)MSAPSInter-segmentTotal
Net sales$341.4 $433.9 $(2.1)$773.2 
Cost of sales183.4 235.4 (2.1)416.7 
Operating expenses83.0 90.4 — 173.4 
Segment profit$75.0 $108.1 $— $183.1 


The following table reconciles total segment profit to income before income tax expense for the three months ended March 28, 2026 and March 29, 2025:
(In millions)March 28, 2026March 29, 2025
Total segment profit$209.5 183.1 
Less:
Amortization of intangible assets46.3 46.1 
Unallocated general and administrative expenses21.6 14.7 
Operating income141.6 122.3 
Interest expense48.9 51.0 
Interest income(1.9)(1.4)
Other (income) expense, net1.4 1.3 
Income before income tax expense$93.2 $71.4 
The following tables summarize depreciation and capital expenditures for the Company’s reportable segments for the three months ended March 28, 2026 and March 29, 2025:
(In millions)March 28, 2026March 29, 2025
Depreciation:
MS$14.2 $22.4 
APS19.9 27.5 
Total depreciation $34.1 $49.9 

In the following tables, net sales are disaggregated by customers’ country or region based on the ship to location of the customer for the three months ended March 28, 2026 and March 29, 2025, respectively.
Three months ended March 28, 2026
(In millions)MS APSInter-segment Total
North America$59.2 $78.1 $(2.8)$134.5 
Taiwan73.5 134.4 — 207.9 
China61.9 85.4 — 147.3 
South Korea53.9 56.1 — 110.0 
Japan40.0 49.6 — 89.6 
Europe26.4 28.0 — 54.4 
Southeast Asia36.2 32.0 — 68.2 
$351.1 $463.6 $(2.8)$811.9 

Three months ended March 29, 2025
(In millions)MS APSInter-segmentTotal
North America$66.2 $84.9 $(2.1)$149.0 
Taiwan62.0 113.7 — 175.7 
China71.4 82.0 — 153.4 
South Korea49.5 52.5 — 102.0 
Japan31.9 38.3 — 70.2 
Europe24.8 37.2 — 62.0 
Southeast Asia35.6 25.3 — 60.9 
$341.4 $433.9 $(2.1)$773.2