(20)

Business Segment, Geographic Area, Product Information and Significant Customer Information

Reportable Segments and Products

The Company’s Chief Operating Decision Maker (the “CODM”), which is the Company’s Chief Executive Officer, utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision-making process to assess performance. The Company has a diverse base of customers across its three end markets, semiconductor, electronics and packaging, and specialty industrial. Segment gross margin is the primary measure used by the CODM to assess segment performance and allocate resources. Gross margin, among other measures, is utilized when making decisions about capital and personnel allocations across segments.

The Company has three reporting segments, VSD, PSD and MSD as described below.

VSD delivers foundational technology solutions for semiconductor manufacturing, electronics and packaging, and specialty industrial applications. VSD products are derived from the Company’s core competencies in vacuum technologies, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and fiber optic temperature and position sensing.

PSD provides a broad range of instruments, components and subsystems to leading edge semiconductor manufacturing, electronics and packaging and specialty industrial applications. PSD products are derived from our core competencies in lasers, photonics, optics, precision motion control and vibration control.

MSD develops leading process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing. Applying a comprehensive systems-and-solutions approach, MSD’s portfolio

includes chemistry, equipment and services for innovative and high-technology applications in the electronics and packaging and specialty industrial markets.

The Company derives its segment results directly from the manner in which results are reported in its management reporting system. The accounting policies that the Company uses to derive reportable segment results are substantially the same as those used for external reporting purposes. The Company groups its product offerings by its reportable segments, VSD, PSD, and MSD. For each reportable segment, the Company also provides services relating to the maintenance and repair of its products, installation services and training. Unallocated corporate expenses represent those costs not specifically related to the operations of each segment and are managed separately at the corporate level and primarily relate to labor costs of global functions such as supply chain, quality control and operations.

The following tables set forth the details of gross profit by reportable segment and the reconciliation to income (loss) before income taxes:


	Year Ended December 31, 2025
	VSD			PSD			MSD			Total
Product	$	1,290		$	872		$	1,274		$	3,436
Services		289			157			49			495
Revenues by segment		1,579			1,029			1,323			3,931
Total cost of revenues (exclusive of amortization shown separately below)(1)		894			582			607			2,083
Segment gross profit		685			447			716			1,848
Segment gross profit percentage		43.3	%		43.5	%		54.1	%		47.0	%
Reconciliation to income before income taxes
Operating expenses:
Research and development											299
Selling, general and administrative											724
Restructuring and other											37
Fees and expenses related to amendments to the Term Loan Facility											2
Amortization of intangible assets											247
Unallocated corporate expenses											11
Income from operations											528
Interest income											(14	)
Interest expense											212
Loss on extinguishment of debt											10
Other expense (income), net											16
Income before income taxes										$	304


	Year Ended December 31, 2024
	VSD			PSD			MSD			Total
Product	$	1,144		$	856		$	1,124		$	3,124
Services		240			165			57			462
Revenues by segment		1,384			1,021			1,181			3,586
Total cost of revenues (exclusive of amortization shown separately below)(1)		790			563			519			1,872
Segment gross profit		594			458			662			1,714
Segment gross profit percentage		42.9	%		44.9	%		56.1	%		47.8	%
Reconciliation to income before income taxes
Operating expenses:
Research and development											271
Selling, general and administrative											674
Acquisition and integrated costs											9
Restructuring and other											6
Fees and expenses related to amendments to the Term Loan Facility											5
Amortization of intangible assets											245
Unallocated corporate expenses											6
Income from operations											498
Interest income											(21	)
Interest expense											284
Loss on extinguishment of debt											57
Other (income) expense, net											(2	)
Income before income taxes										$	180


	Year Ended December 31, 2023
	VSD			PSD			MSD			Total
Product	$	1,222		$	824		$	1,154		$	3,200
Services		218			152			52			422
Revenues by segment		1,440			976			1,206			3,622
Total cost of revenues (exclusive of amortization shown separately below)(1)		827			552			586			1,965
Segment gross profit		613			424			620			1,657
Segment gross profit percentage		42.6	%		43.4	%		51.4	%		45.7	%
Reconciliation to loss before income taxes
Operating expenses:
Research and development											288
Selling, general and administrative											675
Acquisition and integrated costs											16
Restructuring and other											20
Fees and expenses related to amendments to the Term Loan Facility											2
Amortization of intangible assets											295
Goodwill and intangible asset impairment											1,902
Gain on sale of long-lived assets											(2	)
Unallocated corporate expenses											15
Loss from operations											(1,554	)
Interest income											(17	)
Interest expense											356
Loss on extinguishment of debt											8
Other expense (income), net											27
Loss before income taxes										$	(1,928	)

(1)

The significant expense category and amount aligns with the segment-level information that is regularly provided to the CODM.

The following table sets forth capital expenditures by reportable segment:


	Years Ended December 31,
	2025		2024		2023
VSD	$	87	$	36	$	26
PSD		21		36		29
MSD		40		53		32
Total capital expenditures	$	148	$	125	$	87

The following table sets forth depreciation and amortization by reportable segment:


	Years Ended December 31,
	2025		2024		2023
VSD	$	40	$	44	$	43
PSD		49		50		60
MSD		255		254		294
Total depreciation and amortization	$	344	$	348	$	397

The following table sets forth segment assets by reportable segment:


	Accounts receivable, net		Inventories		Total
December 31, 2025
VSD	$	190	$	475	$	665
PSD		163		270		433
MSD		298		176		474
Total segment assets	$	651	$	921	$	1,572


	Accounts receivable, net		Inventories		Total
December 31, 2024
VSD	$	200	$	488	$	688
PSD		168		260		428
MSD		247		145		392
Total segment assets	$	615	$	893	$	1,508

The following table reconciles total segment assets to total assets:


	December 31,
	2025		2024
Total segment assets	$	1,572	$	1,508
Cash and cash equivalents		675		714
Other current assets		263		252
Property, plant and equipment, net		810		771
Right-of-use assets		270		238
Goodwill and intangible assets, net		4,714		4,751
Other assets		492		356
Total assets	$	8,796	$	8,590

Geographic Area

Information about the Company’s operations by geographic area is presented in the tables below. Net revenues from unaffiliated customers are based on the shipped-to location of the end customer. Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated revenues.


	Years Ended December 31,
	2025		2024		2023
Net revenues:
United States	$	760	$	804	$	893
China		931		775		745
South Korea		440		358		359
Singapore		265		229		239
Taiwan		260		234		248
Japan		240		250		280
Other		1,035		936		858
	$	3,931	$	3,586	$	3,622

Long-lived assets include property, plant and equipment, net, right-of-use assets, net and certain other assets.


	December 31,
	2025		2024
Long-lived assets:
United States	$	354	$	458
China		199		172
Germany		175		125
Other		435		349
	$	1,163	$	1,104

The Company sells products and services to thousands of customers worldwide, in a wide range of end markets. The Company’s top ten customers accounted for 35%, 32% and 30% of net revenues for 2025, 2024, and 2023, respectively.

Historical Timeline

Fiscal Year	Filed
2025	Feb 24, 2026	Showing above
2024	Feb 25, 2025

2023	Feb 27, 2024

2022	Mar 14, 2023

2021	Feb 28, 2022

2020	Feb 23, 2021

2019	Feb 28, 2020

2018	Feb 26, 2019

2017	Feb 28, 2018

2016	Mar 1, 2017

2015	Feb 26, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

MKS INC Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures