Segment and Geographic Data

12 Months Ended

Dec. 31, 2016

Segment and Geographic Data [Abstract]

Segment and Geographic Data

Note 15 –Segment and Geographic Data

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.

Note 15 –Segment and Geographic Data (continued)

The following tables set forth business segment information:

	MOSFETs		Diodes		Optoelectronic Components		Resistors & Inductors		Capacitors		Corporate / Other		Total
Year ended December 31, 2016:
Product sales	$	406,336	$	553,920	$	272,126	$	753,578	$	337,212	$	-	$	2,323,172
Royalty revenues		-		-		-		259		-		-	$	259
Total revenue	$	406,336	$	553,920	$	272,126	$	753,837	$	337,212	$	-	$	2,323,431
Gross Profit	$	58,155	$	134,937	$	87,022	$	222,786	$	66,883	$	-	$	569,783
Segment Operating Income	$	22,254	$	113,995	$	67,548	$	191,283	$	46,338	$	-	$	441,418
Depreciation expense	$	34,531	$	35,335	$	15,549	$	32,240	$	17,817	$	9,049	$	144,521
Capital expenditures		22,430		29,860		18,276		47,006		14,410		2,653	$	134,635
Total Assets as of December 31, 2016:	$	389,482	$	714,898	$	312,423	$	905,795	$	495,225	$	259,978	$	3,077,801
Year ended December 31, 2015:
Product sales	$	426,672	$	533,931	$	279,553	$	704,109	$	352,900	$	-	$	2,297,165
Royalty revenues		11		-		-		3,312		-		-	$	3,323
Total revenue	$	426,683	$	533,931	$	279,553	$	707,421	$	352,900	$	-	$	2,300,488
Gross Profit	$	58,626	$	119,762	$	88,625	$	208,384	$	66,823	$	-	$	542,220
Segment Operating Income	$	21,366	$	95,887	$	68,410	$	173,805	$	44,863	$	-	$	404,331
Depreciation expense	$	47,172	$	35,526	$	14,118	$	30,576	$	18,168	$	8,780	$	154,340
Capital expenditures		29,289		38,971		21,853		38,169		14,763		4,097	$	147,142
Total Assets as of December 31, 2015:	$	477,984	$	718,548	$	325,600	$	839,249	$	543,507	$	248,098	$	3,152,986
Year ended December 31, 2014:
Product sales	$	470,377	$	579,288	$	258,248	$	755,251	$	425,593	$	-	$	2,488,757
Royalty revenues		160		-		-		4,365		-		-	$	4,525
Total revenue	$	470,537	$	579,288	$	258,248	$	759,616	$	425,593	$	-	$	2,493,282
Gross Profit	$	59,614	$	132,021	$	91,165	$	241,090	$	87,402	$	-	$	611,292
Segment Operating Income	$	21,095	$	106,068	$	73,463	$	203,343	$	62,460	$	-	$	466,429
Depreciation expense	$	53,939	$	39,592	$	13,266	$	32,380	$	20,524	$	1,103	$	160,804
Capital expenditures		33,672		41,713		23,008		42,950		12,694		2,937	$	156,974
Total Assets as of December 31, 2014:	$	499,550	$	732,502	$	422,257	$	812,664	$	605,281	$	201,897	$	3,274,151

________________

Note 15 –Segment and Geographic Data (continued)

	Years ended December 31,
	2016			2015			2014
Reconciliation:
Segment Operating Income	$	441,418		$	404,331		$	466,429
Restructuring and Severance Costs		(19,199	)		(19,215	)		(20,897	)
Impairment of Intangible Assets		(1,559	)		(57,600	)		-
Impairment of Goodwill		-			(5,380	)		-
U.S. Pension Settlement Charges		(79,321	)		-			(15,588	)
Unallocated Selling, General, and Administrative Expenses		(239,622	)		(224,337	)		(240,833	)
Consolidated Operating Income (Loss)	$	101,717		$	97,799		$	189,111
Unallocated Other Income (Expense)		(7,501	)		(23,059	)		(21,968	)
Consolidated Income Before Taxes	$	94,216		$	74,740		$	167,143

See Note 4 for restructuring and severance costs segment information.

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

	Years ended December 31,
	2016		2015		2014
United States	$	542,506	$	560,973	$	590,145
Germany		746,657		719,246		821,005
Other Europe		83,744		88,553		107,598
Israel		10,007		12,597		13,871
Asia		940,517		919,119		960,663
	$	2,323,431	$	2,300,488	$	2,493,282

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

	December 31,
	2016		2015
United States	$	94,589	$	94,512
Germany		120,223		122,817
Czech Republic		29,912		33,352
Other Europe		83,041		85,566
Israel		104,824		107,715
People's Republic of China		183,158		182,411
Republic of China (Taiwan)		124,724		126,780
Other Asia		105,400		109,815
Other		3,000		2,328
	$	848,871	$	865,296