MKS INSTRUMENTS INC MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q) | MarketScreener

2022-11-08 20:49:07 By : Mr. David Gu

Critical Accounting Policies and Estimates

We account for revenue using Accounting Standards Codification 606 ("ASC 606"). We apply ASC 606 using the following steps: Pcb Fabrication

MKS INSTRUMENTS INC  MANAGEMENT

Identify the contract with a customer

Identify the performance obligations in the contract

Allocate the transaction price to performance obligations in the contract

Recognize revenue when or as we satisfy a performance obligation

As a result of our global operating activities and variable interest rate borrowings, we are exposed to market risks from changes in foreign currency exchange rates and interest rates, which may adversely affect our operating results and financial position. We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments and those utilized as economic hedges. We do not enter into derivative instruments for trading or speculative purposes.

This market primarily relates to sales of products for industrial, life and health sciences, and research and defense applications.

Our products for life and health sciences are used in a diverse array of applications, including bioimaging, medical instrument sterilization, medical device manufacturing, analytical, diagnostic and surgical instrumentation, consumable medical supply manufacturing and pharmaceutical production.

The following table sets forth for the periods indicated the percentage of total net revenues of certain line items included in our condensed consolidated statements of operations and comprehensive income data.

The following table sets forth our net revenues by reportable segment:

The following table sets forth gross margin as a percentage of net revenues by reportable segment:

2022 September 30, 2022 September 30, 2021 Acquisition and integration costs $

30, 2022 September 30, 2022 September 30, 2021 Restructuring and other

2022 September 30, 2022 September 30, 2021 Amortization of intangible assets $

Gain on sale of long-lived assets

For the nine months ended September 30, 2022, we recorded a gain from the sale of a minority interest investment in a private company.

2022 September 30, 2022 September 30, 2021 Interest expense, net

2022 September 30, 2022 September 30, 2021 Other (income) expense, net

2022 September 30, 2022 September 30, 2021 Provision for income taxes

On a quarterly basis, we evaluate both positive and negative evidence that affects the realizability of net deferred tax assets and assess the need for a valuation allowance. The future benefit to be derived from our deferred tax assets is dependent upon our ability to generate sufficient future taxable income in each jurisdiction of the right type to realize the assets.

There is no scheduled amortization under the New Revolving Facility. Any principal amount outstanding under the New Revolving Facility is due and payable in full on the fifth anniversary of the closing date.

The USD Tranche B and the Euro Tranche B are not subject to financial maintenance covenants.

Lines of Credit and Borrowing Arrangements

Interest Rate Swap and Interest Rate Cap Agreements

MKS INSTRUMENTS INC  MANAGEMENT

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