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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________________________
FORM 10-Q
______________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 3, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-32598
https://cdn.kscope.io/defa5684e905abaf56cb2dabcab1a6ab-entg-20210703_g1.jpg
_______________________________________
Entegris, Inc.
(Exact name of registrant as specified in its charter)
 _________________________________________
Delaware 41-1941551
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
129 Concord Road,Billerica,Massachusetts 01821
(Address of principal executive offices) (Zip Code)
(978) 436-6500
(Registrant’s telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
 _______________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par value per shareENTGThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ýAccelerated filer 
Non-accelerated filer ¨Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ý
As of July 23, 2021, there were 135,597,451 shares of the registrant’s common stock outstanding.



Table of Contents
ENTEGRIS, INC. AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS
FOR THE QUARTER ENDED JULY 3, 2021
DescriptionPage
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Cautionary Statements
This Quarterly Report on Form 10-Q contains “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements may include statements about the impact of the COVID-19 pandemic on the Company’s operations and markets; future period guidance or projections; the Company’s performance relative to its markets, including the drivers of such performance; market and technology trends, including the duration and drivers of any growth trends and the impact of the COVID-19 pandemic on such trends; the development of new products and the success of their introductions; the focus of the Company’s engineering, research and development projects; the Company’s ability to execute on its business strategies, including with respect to Company’s expansion of its manufacturing presence in Taiwan; the Company’s capital allocation strategy, which may be modified at any time for any reason, including share repurchases, dividends, debt repayments and potential acquisitions; the impact of the acquisitions the Company has made and commercial partnerships the Company has established; future capital and other expenditures, including estimates thereof; the Company’s expected tax rate; the impact, financial or otherwise, of any organizational changes; the impact of accounting pronouncements; quantitative and qualitative disclosures about market risk; and other matters. These forward-looking statements are based on current management expectations and assumptions only as of the date of this Quarterly Report, are not guarantees of future performance and involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the COVID-19 pandemic on the global economy and financial markets, as well as on the Company, its customers and suppliers, which may impact its sales, gross margin, customer demand and its ability to supply its products to its customers; weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for the Company’s products and solutions; the Company’s ability to meet rapid demand shifts; the Company’s ability to continue technological innovation and introduce new products to meet customers’ rapidly changing requirements; the Company’s concentrated customer base; the Company’s ability to identify, complete and integrate acquisitions, joint ventures or other transactions; the Company’s ability to effectively implement any organizational changes; the Company’s ability to protect and enforce intellectual property rights; operational, political and legal risks of the Company’s international operations; the Company’s dependence on sole source and limited source suppliers; the increasing complexity of certain manufacturing
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processes; raw material shortages, supply and labor constraints and price increases; changes in government regulations of the countries in which the Company operates, including the imposition of tariffs, export controls and other trade laws and restrictions and changes to foreign and national security policy, especially as they relate to China; fluctuation of currency exchange rates; fluctuations in the market price of the Company’s stock; the level of, and obligations associated with, the Company’s indebtedness; and other risk factors and additional information described in the Company’s filings with the Securities and Exchange Commission, including under the heading “Risks Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed on February 5, 2021, and in the Company’s other periodic filings. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, the Company undertakes no obligation to update publicly any forward-looking statements or information contained herein, which speak as of their respective dates.
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PART 1.    FINANCIAL INFORMATION
Item 1. Financial Statements

ENTEGRIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) 
(In thousands, except share and per share data)July 3, 2021December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents$401,033 $580,893 
Trade accounts and notes receivable, net of allowance for doubtful accounts of $2,225 and $2,384
309,936 264,392 
Inventories, net387,605 323,944 
Deferred tax charges and refundable income taxes22,622 21,136 
Other current assets38,040 43,892 
Total current assets1,159,236 1,234,257 
Property, plant and equipment, net of accumulated depreciation of $611,886 and $574,257
563,258 525,367 
Other assets:
Right-of-use assets59,117 45,924 
Goodwill749,566 748,037 
Intangible assets, net of accumulated amortization of $470,006 and $445,795
314,496 337,632 
Deferred tax assets and other noncurrent tax assets14,994 14,519 
Other12,064 11,960 
Total assets$2,872,731 $2,917,696 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$92,969 $81,618 
Accrued payroll and related benefits66,332 94,364 
Other accrued liabilities80,495 82,648 
Income taxes payable20,734 43,996 
Total current liabilities260,530 302,626 
Long-term debt, excluding current maturities, net of unamortized discount and debt issuance costs of $8,618 and $9,217
936,382 1,085,783 
Pension benefit obligations and other liabilities39,230 36,457 
Deferred tax liabilities and other noncurrent tax liabilities67,511 73,606 
Long-term lease liability53,747 39,730 
Commitments and contingent liabilities  
Equity:
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued and outstanding as of July 3, 2021 and December 31, 2020
  
Common stock, par value $.01; 400,000,000 shares authorized; issued and outstanding shares as of July 3, 2021: 135,823,851 and 135,621,451, respectively; issued and outstanding shares as of December 31, 2020: 135,148,774 and 134,946,374, respectively
1,358 1,351 
Treasury stock, at cost: 202,400 shares held as of July 3, 2021 and December 31, 2020
(7,112)(7,112)
Additional paid-in capital859,520 844,850 
Retained earnings 701,213 577,833 
Accumulated other comprehensive loss(39,648)(37,428)
Total equity1,515,331 1,379,494 
Total liabilities and equity$2,872,731 $2,917,696 
See the accompanying notes to condensed consolidated financial statements.
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ENTEGRIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 Three months endedSix months ended
(In thousands, except per share data)July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Net sales$571,352 $448,405 $1,084,196 $860,732 
Cost of sales305,968 241,033 583,826 467,882 
Gross profit265,384 207,372 500,370 392,850 
Selling, general and administrative expenses72,621 66,872 144,010 125,763 
Engineering, research and development expenses41,972 32,572 79,720 62,204 
Amortization of intangible assets11,902 13,216 23,773 29,427 
Operating income138,889 94,712 252,867 175,456 
Interest expense10,697 13,005 22,349 23,564 
Interest income(54)(213)(125)(534)
Other expense (income), net23,560 (477)27,890 401 
Income before income tax expense 104,686 82,397 202,753 152,025 
Income tax expense15,916 14,361 29,307 22,983 
Net income $88,770 $68,036 $173,446 $129,042 
Basic earnings per common share$0.66 $0.51 $1.28 $0.96 
Diluted earnings per common share$0.65 $0.50 $1.27 $0.95 
Weighted shares outstanding:
Basic135,498134,700135,283134,722
Diluted136,533136,007136,518136,188
See the accompanying notes to condensed consolidated financial statements.

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ENTEGRIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
 Three months endedSix months ended
(In thousands)July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Net income$88,770 $68,036 $173,446 $129,042 
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments1,457 (2,176)(2,259)(11,537)
Pension liability adjustments 9 39 19 
Other comprehensive income (loss)1,457 (2,167)(2,220)(11,518)
Comprehensive income $90,227 $65,869 $171,226 $117,524 
See the accompanying notes to condensed consolidated financial statements.

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ENTEGRIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
(In thousands)Common
shares
outstanding
Common
stock
Treasury sharesTreasury stockAdditional
paid-in
capital
Retained earnings Foreign currency translation adjustmentsDefined benefit pension adjustmentsTotal
Balance at December 31, 2019134,930 $1,349 (202)$(7,112)$842,784 $366,127 $(36,468)$(791)$1,165,889 
Shares issued under stock plans483 5 —  (10,894)   (10,889)
Share-based compensation expense—  —  4,994    4,994 
Repurchase and retirement of common stock(604)(6)—  (3,740)(25,818)  (29,564)
Dividends declared ($0.08 per share)
—  —  15 (10,773)  (10,758)
Pension liability adjustment—  —     10 10 
Foreign currency translation—  —    (9,361) (9,361)
Net income—  —   61,006   61,006 
Balance at March 28, 2020134,809 $1,348 (202)$(7,112)$833,159 $390,542 $(45,829)$(781)$1,171,327 
Shares issued under stock plans139 1  (83)   (82)
Share-based compensation expense—  —  5,655    5,655 
Dividends declared ($0.08 per share)
—  —  8 (10,988)  (10,980)
Pension liability adjustment—  —     9 9 
Foreign currency translation—  —    (2,176) (2,176)
Net income—  —   68,036   68,036 
Balance at June 27, 2020134,948 $1,349 (202)$(7,112)$838,739 $447,590 $(48,005)$(772)$1,231,789 
(In thousands)Common
shares
outstanding
Common
stock
Treasury sharesTreasury stockAdditional
paid-in
capital
Retained earnings Foreign currency translation adjustmentsDefined benefit pension adjustmentsTotal
Balance at December 31, 2020135,149 $1,351 (202)$(7,112)$844,850 $577,833 $(36,588)$(840)$1,379,494 
Shares issued under stock plans392 4 —  (13,470)   (13,466)
Share-based compensation expense—  —  7,138    7,138 
Repurchase and retirement of common stock(145)(1)—  (904)(14,095)  (15,000)
Dividends declared ($0.08 per share)
—  —  8 (10,840)  (10,832)
Pension liability adjustment—  —     39 39 
Foreign currency translation—  —    (3,716) (3,716)
Net income—  —   84,676   84,676 
Balance at April 3, 2021135,396 $1,354 (202)$(7,112)$837,622 $637,574 $(40,304)$(801)$1,428,333 
Shares issued under stock plans559 5  15,185    15,190 
Share-based compensation expense—  —  7,519    7,519 
Repurchase and retirement of common stock(130)(1)—  (813)(14,186)  (15,000)
Dividends declared ($0.08 per share)
—  —  7 (10,945)  (10,938)
Pension liability adjustment—  —       
Foreign currency translation—  —    1,457  1,457 
Net income—  —   88,770   88,770 
Balance at July 3, 2021135,825 $1,358 (202)$(7,112)$859,520 $701,213 $(38,847)$(801)$1,515,331 

See the accompanying notes to condensed consolidated financial statements.
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ENTEGRIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 Six months ended
(In thousands)July 3, 2021June 27, 2020
Operating activities:
Net income $173,446 $129,042 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation44,669 41,287 
Amortization23,773 29,427 
Share-based compensation expense14,657 10,649 
Provision for deferred income taxes(4,920)(859)
Loss on extinguishment of debt and modification23,338 1,470 
Charge for excess and obsolete inventory5,873 8,393 
Other(1,156)3,891 
Changes in operating assets and liabilities:
Trade accounts and notes receivable(48,231)(42,087)
Inventories(69,723)(55,362)
Accounts payable and accrued liabilities(15,347)5,643 
Other current assets10,882 4,871 
Income taxes payable and refundable income taxes(26,442)4,412 
Other4,151 647 
Net cash provided by operating activities134,970 141,424 
Investing activities:
Acquisition of property, plant and equipment(85,101)(46,873)
Acquisition of businesses, net of cash acquired(2,250)(75,645)
Other90 211 
Net cash used in investing activities(87,261)(122,307)
Financing activities:
Proceeds from revolving credit facility51,000 217,000 
Payments of revolving credit facility(51,000)(217,000)
Proceeds from long-term debt400,000 400,000 
Payments of long-term debt(550,000)(151,000)
Payments for debt extinguishment costs(19,080) 
Payments for debt issuance costs(4,691)(3,964)
Payments for dividends(21,797)(21,652)
Issuance of common stock16,817 1,749 
Repurchase and retirement of common stock(30,000)(29,564)
Taxes paid related to net share settlement of equity awards(15,093)(12,720)
Deferred acquisition payments (16,125)
Other(110)(2,891)
Net cash (used in) provided by financing activities(223,954)163,833 
Effect of exchange rate changes on cash and cash equivalents(3,615)(2,194)
(Decrease) increase in cash and cash equivalents(179,860)180,756 
Cash and cash equivalents at beginning of period580,893 351,911 
Cash and cash equivalents at end of period$401,033 $532,667 
See the accompanying notes to condensed consolidated financial statements.
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ENTEGRIS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)
Supplemental Cash Flow InformationSix months ended
(unaudited)
(In thousands)July 3, 2021June 27, 2020
Non-cash transactions:
Deferred acquisition payments$250 $2,033 
Equipment purchases in accounts payable9,165 4,860 
Changes in dividends payable27 86 
Schedule of interest and income taxes paid:
Interest paid28,778 19,365 
Income taxes paid, net of refunds received58,297 19,315 
See the accompanying notes to condensed consolidated financial statements.
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ENTEGRIS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations Entegris, Inc. (“Entegris”, “the Company”, “us”, “we”, or “our”) is a leading supplier of advanced materials and process solutions for the semiconductor and other high-technology industries.
Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Intercompany profits, transactions and balances have been eliminated in consolidation.
Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, right-of-use assets, goodwill, intangibles, accrued expenses, short-term and long-term lease liability, income taxes and related accounts, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Basis of Presentation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and contain all adjustments considered necessary, and are of a normal recurring nature, to present fairly the financial position as of July 3, 2021 and December 31, 2020, and the results of operations and comprehensive income for the three and six months ended July 3, 2021 and June 27, 2020, the equity statements as of and for the three and six months ended July 3, 2021 and June 27, 2020, and cash flows for the six months ended July 3, 2021 and June 27, 2020.
The condensed consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the Company’s annual consolidated financial statements and notes. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2020. The results of operations for the three and six months ended July 3, 2021 are not necessarily indicative of the results to be expected for the full year.
Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable, accrued payroll and related benefits, and other accrued liabilities approximates fair value due to the short maturity of those items. The fair value of long-term debt, including current maturities, was $957.6 million at July 3, 2021, compared to the carrying amount of long-term debt, including current maturities, of $936.4 million at July 3, 2021.
Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” under ASC 740, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. The Company adopted this new guidance in the first quarter of fiscal 2021. The adoption of ASU 2019-12 did not have a material impact on the condensed consolidated financial statements.
Recently Issued Accounting Pronouncements The Company currently has no material recent accounting pronouncements yet to be adopted.
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2. REVENUES
Revenue Recognition Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer.
Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.
Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales.
The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less.
When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from advance payments received on sales of the Company’s products. The Company makes the required disclosures with respect to deferred revenue below.
The Company does not disclose information about remaining performance obligations that have original expected durations of one year or less.
Nature of goods and services The following is a description of principal activities from which the Company generates its revenues. The Company has three reportable segments. For more detailed information about reportable segments, see note 10 to the condensed consolidated financial statements. For each of the three reportable segments, the recognition of revenue regarding the nature of goods and services provided by the segments are similar and described below. The Company recognizes revenue for product sales at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment or delivery, depending on the terms of the underlying contracts. For product sales contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices, or estimates of such prices, and recognizes the related revenue as control of each individual product is transferred to the customer, in satisfaction of the corresponding performance obligations.
The Company generally recognizes revenue for sales of services when the Company has satisfied the performance obligation. The payment terms and revenue recognized is based on time and materials.
The Company also enters into arrangements to license its intellectual property. These arrangements typically permit the customer to use a specialized manufacturing process or patented technology and in return the Company receives a royalty fee. The Company recognizes revenue for a sales-based or usage-based royalty promised in exchange for a license of intellectual property when the subsequent sale or usage occurs.
The Company offers certain customers cash discounts and volume rebates as sales incentives. The discounts and volume rebates are recorded as a reduction in sales at the time revenue is recognized in an amount estimated based on historical experience and contractual obligations. The Company periodically reviews the assumptions underlying its estimates of discounts and volume rebates and adjusts its revenues accordingly.
In addition, the Company offers free product rebates to certain customers. The Company utilizes an adjusted market approach to estimate the stand-alone selling price of the loyalty program and allocates a portion of the consideration received to the free product offering. The free product offering is redeemable upon future purchases of the Company’s products. The amount associated with free product rebates is recorded as deferred revenue on the balance sheet and is recognized as revenue when the free product is redeemed or when the likelihood of redemption is remote. The Company has deemed that the amount is immaterial for disclosure.
The Company provides for the estimated costs of fulfilling its obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical failure rates, projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the product sold and the country in which the Company does business, but generally include parts and labor over a period generally ranging from 90 days to one year. The Company regularly reevaluates its estimates to assess the adequacy of the recorded warranty liabilities and adjusts the amounts as necessary.
The Company’s contracts are generally short-term in nature. Most contracts’ terms do not exceed twelve months. Payment terms vary by the type and location of the Company’s customers and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer. Those customers that prepay are represented by the contract liabilities below until the performance obligations are satisfied.
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The following table provides information about contract liabilities from contracts with customers. The contract liabilities are included in other accrued liabilities balance in the condensed consolidated balance sheet.
(In thousands)July 3, 2021December 31, 2020
Contract liabilities - current$18,606 $13,852 
Significant changes in the contract liabilities balances during the period are as follows:
Six months ended
(In thousands)July 3, 2021
Revenue recognized that was included in the contract liability balance at the beginning of the period$(12,306)
Increases due to cash received, excluding amounts recognized as revenue during the period17,060 

3. ACQUISITIONS
During the six months ended July 3, 2021, the Company completed an acquisition for $2.5 million, substantially all of which was paid in cash and qualified as a business combination. This acquisition has been included in the Company’s condensed consolidated results of operations since its acquisition date. The effect of this business combination was not material to the Company’s condensed consolidated results of operations.
Global Measurement Technologies, Inc.
On July 10, 2020, the Company acquired Global Measurement Technologies, Inc., an analytical instrument provider for critical processes in semiconductor production, and its manufacturing partner Clean Room Plastics, Inc. (collectively, “GMTI”). GMTI reports into the Advanced Materials Handling segment of the Company. The acquisition was accounted for under the acquisition method of accounting, and GMTI’s results of operations are included in the Company’s condensed consolidated financial statements as of and since July 10, 2020. The acquisition does not constitute a material business combination.
The purchase price for GMTI includes cash consideration of $36.3 million, net of cash acquired, which was funded from the Company’s existing cash on hand.
The purchase price of GMTI exceeds the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $16.1 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 non-deductible for income tax purposes.
During the quarter ended September 26, 2020, the Company finalized its fair value determination of the assets acquired and the liabilities assumed. The following table summarizes the final allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed at the date of the acquisition:
(In thousands):July 10, 2020
Trade accounts and note receivable, net$937 
Inventories, net1,079 
Identifiable intangible assets18,180 
Right-of-use assets337 
Accounts payable and accrued liabilities(28)
Short-term lease liability(150)
Long-term lease liability(187)
Net assets acquired20,168 
Goodwill16,099 
Total purchase price, net of cash acquired$36,267 
12


The Company recognized the following finite-lived intangible assets as part of the acquisition of GMTI:
(In thousands)AmountWeighted
average life in
years
Developed technology$3,570 6.5
Trademarks and trade names1,010 11.5
Customer relationships13,600 15.5
$18,180 13.5
Sinmat
On January 10, 2020, the Company acquired Sinmat, a chemical mechanical polishing slurry manufacturer. Sinmat reports into the Specialty Chemicals and Engineered Materials segment of the Company. The acquisition was accounted for under the acquisition method of accounting and Sinmat’s results of operations are included in the Company’s condensed consolidated financial statements as of and since January 10, 2020. Costs associated with the acquisition of Sinmat were $0.7 million for the six months ended June 27, 2020 and were expensed as incurred. These costs are included in the selling, general and administrative expenses in the Company’s condensed consolidated statement of operations. The acquisition does not constitute a material business combination.
The purchase price for Sinmat includes cash consideration of $76.2 million, or $75.6 million net of cash acquired, which was funded from the Company’s existing cash on hand.
The purchase price of Sinmat exceeds the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $31.7 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 non-deductible for income tax purposes.
During the quarter ended June 27, 2020, the Company finalized its fair value determination of the assets acquired and the liabilities assumed. The following table summarizes the provisional and final allocations of the purchase price to the fair values assigned to the assets acquired and liabilities assumed at the date of the acquisition date and as adjusted as of June 27, 2020, respectively:
(In thousands):As of January 10, 2020As of June 27, 2020
Trade accounts and note receivable, net$1,189 $1,189 
Inventories, net1,010 1,010 
Other current assets8 8 
Property, plant and equipment63 63 
Identifiable intangible assets41,680 41,680 
Right-of-use assets1,712 1,712 
Deferred tax asset 102 
Accounts payable and accrued liabilities(58)(58)
Short-term lease liability(150)(150)
Long-term lease liability(1,562)(1,562)
Net assets acquired43,892 43,994 
Goodwill31,751 31,651 
Total purchase price, net of cash acquired$75,643 $75,645 
The Company recognized the following finite-lived intangible assets as part of the acquisition of Sinmat:
(In thousands)AmountWeighted
average life in
years
Developed technology$7,650 7.0
Trademarks and trade names130 1.3
Customer relationships33,900 15.0
$41,680 13.5
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4. INVENTORIES
Inventories consist of the following:
 
(In thousands)July 3, 2021December 31, 2020
Raw materials$139,011 $97,319 
Work-in process37,571 32,316 
Finished goods211,023 194,309 
Total inventories, net$387,605 $323,944 

5. 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 each period was as follows:
(In thousands)Specialty Chemicals and Engineered MaterialsMicrocontamination ControlAdvanced Materials HandlingTotal
December 31, 2020$427,713 $247,154 $73,170 $748,037 
Addition due to acquisitions  932 932 
Foreign currency translation(34)631  597 
July 3, 2021$427,679 $247,785 $74,102 $749,566 
Identifiable intangible assets at July 3, 2021 and December 31, 2020 consist of the following:
July 3, 2021
(In thousands)Gross  carrying
amount
Accumulated
amortization
Net  carrying
value
Developed technology$284,261 $227,093 $57,168 
Trademarks and trade names30,118 19,409 10,709 
Customer relationships449,728 210,192 239,536 
Other20,395 13,312 7,083 
$784,502 $470,006 $314,496 
December 31, 2020
(In thousands)Gross  carrying
amount
Accumulated
amortization
Net  carrying
value
Developed technology$283,272 $221,651 $61,621 
Trademarks and trade names30,100 18,374 11,726 
Customer relationships449,659 193,313 256,346 
Other20,396 12,457 7,939 
$783,427 $445,795 $337,632 
Future amortization expense during the remainder of 2021, each of the succeeding four years and thereafter relating to intangible assets currently recorded in the Company’s condensed consolidated balance sheets is estimated to be the following at July 3, 2021:
(In thousands)Remaining 20212022202320242025ThereafterTotal
Future amortization expense$24,334 47,735 47,047 34,433 27,809 133,138 $314,496 

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6. DEBT