Segment Information

9 Months Ended

Oct. 01, 2016

Segment Information [Abstract]

Segment Information

Note 11 – Segment Information

Vishay is a global manufacturer and supplier of electronic components.  Vishay operates, and its chief operating decision maker makes strategic and operating decisions with regards to assessing performance and allocating resources based on, five reporting segments: MOSFETs, Diodes, Optoelectronic Components, Resistors & Inductors, and Capacitors.  These segments represent groupings of product lines based on their functionality:

● Metal oxide semiconductor field-effect transistors ("MOSFETs") function as solid-state switches to control power.

● Diodes route, regulate, and block radio frequency, analog, and power signals; protect systems from surges or electrostatic discharge damage; or provide electromagnetic interference filtering.

● Optoelectronic components emit light, detect light, or do both.

● Resistors and inductors both impede electric current.  Resistors are basic components used in all forms of electronic circuitry to adjust and regulate levels of voltage and current.  Inductors use an internal magnetic field to change alternating current phase and resist alternating current.

● Capacitors store energy and discharge it when needed.

Vishay's reporting segments generate substantially all of their revenue from product sales to the industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets.  A small portion of revenues are from royalties.

The Company evaluates business segment performance on operating income, exclusive of certain items ("segment operating income").  Only dedicated, direct selling, general, and administrative expenses of the segments are included in the calculation of segment operating income.  The Company's calculation of segment operating income excludes such selling, general, and administrative costs as global operations, sales and marketing, information systems, finance and administration groups, as well as restructuring and severance costs, goodwill and long-lived asset impairment charges, 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 also regularly evaluates gross profit by segment to assist in the analysis of consolidated gross profit.  The Company considers segment operating income to be the more important metric because it more fully captures the business operations of the segments.

The following tables set forth business segment information:

	MOSFETs		Diodes		Optoelectronic Components		Resistors & Inductors		Capacitors		Total
Fiscal quarter ended October 1, 2016:
Product Sales	$	101,687	$	141,127	$	72,801	$	191,989	$	84,299	$	591,903
Royalty Revenues		-		-		-		52		-	$	52
Total Revenue	$	101,687	$	141,127	$	72,801	$	192,041	$	84,299	$	591,955
Gross Profit	$	16,443	$	36,444	$	24,250	$	58,768	$	17,996	$	153,901
Segment Operating Income	$	7,493	$	31,832	$	20,340	$	51,861	$	13,210	$	124,736
Fiscal quarter ended October 3, 2015:
Product Sales	$	109,446	$	123,922	$	70,008	$	172,995	$	83,547	$	559,918
Royalty Revenues		-		-		-		736		-	$	736
Total Revenue	$	109,446	$	123,922	$	70,008	$	173,731	$	83,547	$	560,654
Gross Profit	$	16,795	$	27,508	$	22,969	$	49,843	$	13,029	$	130,144
Segment Operating Income	$	6,839	$	21,628	$	17,673	$	41,404	$	7,618	$	95,162

Nine fiscal months ended October 1, 2016:
Product Sales	$	304,839	$	418,629	$	203,635	$	568,122	$	257,175	$	1,752,400
Royalty Revenues		-		-		-		212		-	$	212
Total Revenue	$	304,839	$	418,629	$	203,635	$	568,334	$	257,175	$	1,752,612
Gross Profit	$	40,914	$	106,364	$	65,049	$	171,808	$	53,203	$	437,338
Segment Operating Income	$	12,671	$	90,025	$	49,838	$	147,315	$	37,145	$	336,994
Nine fiscal months ended October 3, 2015:
Product Sales	$	322,553	$	399,155	$	211,610	$	538,173	$	270,474	$	1,741,965
Royalty Revenues		11		-		-		2,584		-	$	2,595
Total Revenue	$	322,564	$	399,155	$	211,610	$	540,757	$	270,474	$	1,744,560
Gross Profit	$	45,261	$	88,998	$	69,483	$	162,034	$	50,888	$	416,664
Segment Operating Income	$	16,506	$	70,641	$	53,923	$	135,399	$	33,968	$	310,437

	Fiscal quarters ended						Nine fiscal months ended
	October 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Reconciliation:
Segment Operating Income	$	124,736		$	95,162		$	336,994		$	310,437
Restructuring and Severance Costs		(1,197	)		(2,324	)		(12,139	)		(9,394	)
Impairment of intangible assets		(1,559	)		(57,600	)		(1,559	)		(57,600	)
Impairment of goodwill		-			(5,380	)		-			(5,380	)
Unallocated Selling, General, and Administrative Expenses		(64,751	)		(54,013	)		(176,111	)		(170,490	)
Consolidated Operating Income	$	57,229		$	(24,155	)	$	147,185		$	67,573
Unallocated Other Income (Expense)		(6,545	)		(8,787	)		(11,649	)		(17,264	)
Consolidated Income (Loss) Before Taxes	$	50,684		$	(32,942	)	$	135,536		$	50,309