Investor Presentaiton
Light & Motion Division GAAP Operating Income to
Non-GAAP Operating Income Reconciliation
о
о
°
0
о
0
O O
C
Q2'16
Q3'16
Q4'16
Q1'17
Income from operations
Adjustments:
($23.7)
$5.1
$11.0
$18.2
Q2'17
$13.9
Q3'17
$28.9
Q4'17
$40.4
Q1 '18
Q2'18 Q3'18
$43.4
$47.5
$42.3
Acquisition and integration costs (Note 1)
21.7
0.7
(0.3)
0.4
0.2
(0.3)
(1.2)
Acquisition inventory step-up (Note 2)
10.1
5.0
Excess and obsolete inventory charge (Note 3)
Restructuring (Note 4)
Asset impairment (Note 5)
1.2
(0.1)
2.0
6.7
0.8
0.2
0.2
0.7
Environmental costs (Note 6)
Amortization of intangible assets
Non-GAAP income from operations
Sales
% of Sales
1.0
7.9
$16.0
10.8
$21.6
11.0
$21.7
10.8
$29.3
9.8
9.3
$33.8
$38.3
9.1
$50.0
9.5
9.2
9.0
$54.1
$55.7
$52.0
$
151 $
10.6%
151 $
14.3%
153 $
14.2%
159 $
18.4%
171 $
19.8%
178 $
21.5%
201 $
24.9%
206 $ 205 $ 201
26.2% 27.2% 25.8%
••mks
Note 1: Acquisition and integration costs related to the acquisition of Newport Corporation by MKS Instruments, Inc. (the "Newport Merger"), which closed during
the second quarter of 2016. During the second quarter of 2018, we reversed a portion of these costs due to severance provisions that were not met.
Note 2: Step-up adjustments recorded in cost of sales relate to the step-up of inventory to fair value as a result of the Newport Merger.
Note 3: Adjustment recorded in cost of sales related to excess and obsolete inventory charges related to the discontinuation of a product line in connection with
the consolidation of two manufacturing sites.
Note 4: Restructuring costs recorded during fiscal year 2017, primarily relate to the consolidation of two manufacturing plants. Restructuring costs recorded during
fiscal year 2018 primarily relate to severance costs related to a reduction in workforce and also include severance costs related to transferring a portion of our
shared accounting functions in the United States to a third party.
Note 5: An impairment charge was recorded, primarily related to the write-off of goodwill and intangible assets in conjunction with the consolidation of two
manufacturing plants.
Note 6: Environmental costs recorded relate to an EPA-designated Superfund site, which was acquired as part of the Newport Merger.
MKS PROPRIETARY
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