Segment Information

6 Months Ended

Jul. 01, 2017

Segment Information [Abstract]

Segment Information

Note 9 – 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 is 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 July 1, 2017:
Product Sales	$	114,035	$	155,717	$	73,838	$	209,146	$	92,120	$	644,856
Royalty Revenues		-		-		-		36		-	$	36
Total Revenue	$	114,035	$	155,717	$	73,838	$	209,182	$	92,120	$	644,892
Gross Profit	$	25,315	$	41,130	$	25,466	$	62,090	$	18,962	$	172,963
Segment Operating Income	$	16,637	$	36,176	$	21,474	$	54,688	$	14,128	$	143,103
Fiscal quarter ended July 2, 2016:
Product Sales	$	102,219	$	142,118	$	68,059	$	192,717	$	84,856	$	589,969
Royalty Revenues		-		-		-		82		-	$	82
Total Revenue	$	102,219	$	142,118	$	68,059	$	192,799	$	84,856	$	590,051
Gross Profit	$	11,884	$	37,258	$	21,618	$	57,256	$	18,112	$	146,128
Segment Operating Income	$	2,560	$	31,550	$	15,844	$	48,571	$	12,632	$	111,157

Six fiscal months ended July 1, 2017:
Product Sales	$	219,564	$	300,612	$	139,520	$	409,523	$	181,889	$	1,251,108
Royalty Revenues		-		-		-		42		-	$	42
Total Revenue	$	219,564	$	300,612	$	139,520	$	409,565	$	181,889	$	1,251,150
Gross Profit	$	45,991	$	78,659	$	47,767	$	123,260	$	38,161	$	333,838
Segment Operating Income	$	28,398	$	68,915	$	38,389	$	108,585	$	28,300	$	272,587
Six fiscal months ended July 2, 2016:
Product Sales	$	203,152	$	277,502	$	130,834	$	376,133	$	172,876	$	1,160,497
Royalty Revenues		-		-		-		160		-	$	160
Total Revenue	$	203,152	$	277,502	$	130,834	$	376,293	$	172,876	$	1,160,657
Gross Profit	$	24,471	$	69,920	$	40,799	$	113,040	$	35,207	$	283,437
Segment Operating Income	$	5,178	$	58,193	$	29,498	$	95,454	$	23,935	$	212,258

	Fiscal quarters ended						Six fiscal months ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Reconciliation:
Segment Operating Income	$	143,103		$	111,157		$	272,587		$	212,258
Restructuring and Severance Costs		(481	)		(4,467	)		(1,950	)		(10,942	)
Unallocated Selling, General, and Administrative Expenses		(60,586	)		(57,282	)		(123,913	)		(111,360	)
Consolidated Operating Income	$	82,036		$	49,408		$	146,724		$	89,956
Unallocated Other Income (Expense)		(6,327	)		(3,028	)		(20,573	)		(5,104	)
Consolidated Income (Loss) Before Taxes	$	75,709		$	46,380		$	126,151		$	84,852