Other Income (Expense)

6 Months Ended

Jul. 02, 2016

Other Income (Expense) [Abstract]

Other Income (Expense)

Note 6 – Other Income (Expense)

On August 12, 2015, a major explosion occurred in the port of Tianjin, China.  Vishay owns and operates a diodes manufacturing facility in Tianjin near the port.  The shockwave of the explosion resulted in some damage to the facility and caused a temporary shutdown.  Full production resumed on September 8, 2015.  

As a result of this incident, through the end of the second fiscal quarter of 2016, the Company estimates that it has incurred $10,145 for inventory, property, and equipment damage (at net book value) and related repair and clean-up costs.  The Company received a first payment of $716 for a portion of its inventory damage claim in the second fiscal quarter of 2016.  As of July 2, 2016, the Company has recorded a receivable of $4,079 for amounts which are probable of recovery under its insurance policies.  The Company recorded, as a separate line item, a loss related to these items in 2015, which represents the insurance deductible and certain costs which are potentially not recoverable.

The Company's insurance coverage generally provides for replacement cost of damaged items.  The insurance claims process continues as expected.  Any amount expected to be received in excess of the book value of the damaged item will be treated as a gain, but will not be recorded until contingencies are resolved.  The Company also believes that it has valid claims under its business interruption insurance policies, but those claims cannot be quantified at this time.  The Company will not record a receivable for business interruption claims until all contingencies have been resolved.