Segment and Geographic Data

12 Months Ended

Dec. 31, 2011

Segment and Geographic Data [Abstract]

Segment and Geographic Data

Note 15 –Segment and Geographic Data

In preparation for the spin-off of VPG, which was completed on July 6, 2010, the Company realigned its reportable business segments structure in the second fiscal quarter of 2010 to be consistent with changes made to its management reporting.  The changes made to management reporting included separating the former Semiconductors reporting segment into MOSFETs, Diodes, and Optoelectronic Components and separating the former Passive components reporting segment into Resistors and Inductors, Capacitors, and VPG.  The changes were necessary due to the former Passive components segment no longer being comparable after the completion of the spin-off of VPG, the need for discrete information regarding VPG, and the increased interest of management and outside investors in more discrete financial information.  Effective beginning in the second fiscal quarter of 2010, the chief operating decision maker began making strategic and operating decisions with regards to assessing performance and allocating resources based on this new segment structure.  Following the completion of the spin-off in the third fiscal quarter, the Company has five reporting segments.

The Company evaluates business segment performance on operating income, exclusive of certain items (“segment operating income”).  Beginning in the second fiscal quarter of 2010, the Company changed its definition of segment operating income to exclude such costs as global operations, sales and marketing, information systems, finance and administration groups.  These costs are managed by executives that report to the chief operating decision maker and were formerly included in segment operating income.  Only dedicated, direct selling, general, and administrative expenses of the segments are included in the calculation of segment operating income.  Additionally, management has always evaluated segment performance excluding items such as restructuring and severance costs, asset write-downs, goodwill and indefinite-lived intangible asset impairments, inventory write-downs, gains or losses on purchase commitments, and other items.  Management believes that evaluating segment performance excluding such items is meaningful because it provides insight with respect to intrinsic operating results of the Company.  These items represent reconciling items between segment operating income and consolidated operating income.  Business segment assets are the owned or allocated assets used by each business.

The Company has also disclosed certain additional items not used to evaluate segment performance.  In some cases, the items are regularly provided to the chief operating decision maker and are required to be disclosed by GAAP.  Additionally, the additional segment disclosures may provide insight to the Company’s future profitability by reportable segment.

The following tables set forth business segment information:

	MOSFETs		Diodes		Optoelectronic Components		Resistors & Inductors			Capacitors		Vishay Precision Group		Corporate / Other		Total
Year ended December 31, 2011:
Product sales	$	537,783	$	607,493	$	229,814	$	634,490		$	577,816	$	-	$	-	$	2,587,396
Royalty revenues		197		-		72		6,364			-		-		-	$	6,633
Total revenue	$	537,980	$	607,493	$	229,886	$	640,854		$	577,816	$	-	$	-	$	2,594,029
Gross Margin	$	125,498	$	143,876	$	74,772	$	213,997		$	161,843	$	-	$	-	$	719,986
Depreciation expense	$	53,808	$	39,577	$	12,384	$	32,039		$	25,979	$	-	$	1,235	$	165,022
Interest expense (income)		12		-		-		223			223		-		18,819	$	19,277
Capital expenditures		61,520		39,444		15,442		28,751			19,676		-		3,808	$	168,641
Total Assets as of December 31, 2011:	$	646,660	$	682,017	$	163,486	$	609,556		$	672,049	$	-	$	219,962	$	2,993,730
Year ended December 31, 2010:
Product sales	$	626,498	$	596,354	$	226,402	$	622,819		$	546,149	$	101,089	$	-	$	2,719,311
Royalty revenues		200		-		96		5,485			-		-		-	$	5,781
Total revenue	$	626,698	$	596,354	$	226,498	$	628,304		$	546,149	$	101,089	$	-	$	2,725,092
Gross Margin	$	189,209	$	138,308	$	75,804	$	222,785		$	144,349	$	37,030	$	-	$	807,485
Depreciation expense	$	51,865	$	39,035	$	12,282	$	30,142		$	31,551	$	3,391	$	1,458	$	169,724
Interest expense (income)		-		-		-		933			762		33		9,308	$	11,036
Capital expenditures		55,457		30,879		13,066		27,874			17,132		918		87	$	145,413
Total Assets as of December 31, 2010:	$	745,641	$	685,490	$	163,584	$	602,466		$	652,742	$	-	$	116,170	$	2,966,093
Year ended December 31, 2009:
Product sales	$	427,110	$	410,415	$	167,317	$	438,600		$	420,890	$	171,991	$	-	$	2,036,323
Royalty revenues		71		-		13		5,626			-		-		-	$	5,710
Total revenue	$	427,181	$	410,415	$	167,330	$	444,226		$	420,890	$	171,991	$	-	$	2,042,033
Gross Margin	$	57,280	$	51,361	$	37,180	$	109,093		$	80,533	$	52,714	$	-	$	388,161
Depreciation expense	$	58,762	$	38,638	$	14,757	$	38,392		$	46,684	$	8,446	$	330	$	206,009
Interest expense (income)		23		93		172		(27	)		934		69		9,057	$	10,321
Capital expenditures		10,309		12,474		3,453		11,126			10,567		2,181		230	$	50,340
Total Assets as of December 31, 2009:	$	566,952	$	522,080	$	132,065	$	572,076		$	668,271	$	209,779	$	48,323	$	2,719,546

Years ended December 31,
	2011			2010			2009
Operating margin reconciliation:
MOSFETs	$	85,336		$	152,794		$	25,434
Diodes		118,111			115,168			31,275
Optoelectronic Components		60,492			64,088			24,441
Resistors & Inductors		185,327			195,730			85,406
Capacitors		136,901			121,714			60,480
Vishay Precision Group		-			18,949			22,510
Unallocated Selling, General, and Administrative Expenses		(233,804	)		(250,505	)		(220,547	)
Restructuring and severance Costs		-			-			(37,874	)
Asset write-downs		-			-			(681	)
Settlement agreement gain		-			-			28,195
Executive compensation charges		(5,762	)		-			(57,824	)
Consolidated Operating Income (Loss)	$	346,601		$	417,938		$	(39,185	)

Restructuring and severance costs:
MOSFETs	$	-	$	-	$	8,017
Diodes		-		-		4,707
Optoelectronic Components		-		-		2,755
Resistors & Inductors		-		-		9,374
Capacitors		-		-		5,353
Vishay Precision Group		-		-		2,048
Unallocated Selling, General, and Administrative Expenses		-		-		5,620
	$	-	$	-	$	37,874

Asset write-downs:
Diodes	$	-	$	-	$	681

Until July 6, 2010, VPG was part of Vishay and its assets, liabilities, results of operations, and cash flows are included in the amounts reported in these consolidated financial statements for periods prior to the completion of the spin-off. Excluding the non-recurring costs of the spin-off incurred by Vishay, VPG contributed $9,716 of income before taxes, $5,811 of net earnings attributable to Vishay stockholders, and $0.03 per diluted share attributable to Vishay stockholders to Vishay’s 2010 results.

The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area:

	Years ended December 31,
	2011		2010		2009
United States	$	363,847	$	345,267	$	312,262
Germany		801,539		726,235		544,364
Other Europe		175,639		217,099		195,212
Israel		219,037		292,025		212,483
Asia		1,033,967		1,144,466		777,712
	$	2,594,029	$	2,725,092	$	2,042,033

In the fourth fiscal quarter of 2011, Vishay made changes to its business model to streamline its sales process such that three main subsidiaries will generate the majority of future third-party sales.

The following table summarizes property and equipment based on physical location:

	December 31,
	2011		2010
United States	$	136,159	$	141,309
Germany		125,905		128,549
Czech Republic		53,126		58,545
Other Europe		97,212		96,313
Israel		125,885		121,070
People's Republic of China		178,877		181,043
Republic of China (Taiwan)		117,450		117,513
Other Asia		71,677		66,093
Other		1,614		1,679
	$	907,905	$	912,114