Note 10 – 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 March 31, 2018:
Product Sales	$	127,494	$	167,017	$	71,958	$	244,019	$	106,268	$	716,756
Royalty Revenues		12		-		-		27		-	$	39
Total Revenue	$	127,506	$	167,017	$	71,958	$	244,046	$	106,268	$	716,795

Gross Profit	$	32,022	$	43,200	$	27,233	$	78,530	$	24,315	$	205,300

Segment Operating Income	$	22,558	$	37,931	$	22,794	$	70,002	$	18,893	$	172,178

Fiscal quarter ended April 1, 2017:*
Product Sales	$	104,842	$	144,585	$	65,262	$	200,246	$	89,860	$	604,795
Royalty Revenues		-		-		-		6		-	$	6
Total Revenue	$	104,842	$	144,585	$	65,262	$	200,252	$	89,860	$	604,801

Gross Profit	$	20,717	$	38,162	$	22,442	$	61,215	$	19,213	$	161,749

Segment Operating Income	$	11,803	$	33,442	$	17,117	$	53,958	$	14,190	$	130,510

*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07. See Note 1.

	Fiscal quarters ended
	March 31, 2018			April 1, 2017***
Reconciliation:
Segment Operating Income	$	172,178		$	130,510
Restructuring and Severance Costs		-			(1,469	)
Unallocated Selling, General, and Administrative Expenses		(68,116	)		(61,463	)
Consolidated Operating Income		104,062		$	67,578
Unallocated Other Income (Expense)		(12,043	)		(17,136	)
Consolidated Income Before Taxes	$	92,019			50,442

***Recast for the adoption of ASU 2017-07. See Note 1.

The Company has a broad line of products that it sells to OEMs, EMS companies, and independent distributors. The distribution of sales by customer type is shown below:

	Fiscal quarters ended				Years Ended December 31,
	March 31, 2018		April 1, 2017		2017		2016
Distributors	$	404,060	$	345,703	$	1,484,276	$	1,280,060
OEMs		264,050		214,647		931,291		861,322
EMS companies		48,685		44,451		183,801		175,946
Total Revenue	$	716,795	$	604,801	$	2,599,368	$	2,317,328

Net revenues were attributable to customers in the following regions:

	Fiscal quarters ended				Years Ended December 31,
	March 31, 2018		April 1, 2017		2017		2016
Asia	$	285,478	$	257,058	$	1,091,107	$	948,195
Europe		267,382		206,025		902,357		810,543
Americas		163,935		141,718		605,904		558,590
Total Revenue	$	716,795	$	604,801	$	2,599,368	$	2,317,328

The Company generates substantially all of its revenue from product sales to end customers in the industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets. Sales by end market are presented below:

	Fiscal quarters ended				Years Ended December 31,
	March 31, 2018		April 1, 2017		2017		2016
Industrial	$	280,212	$	216,766	$	934,631	$	796,031
Automotive		208,394		175,343		727,220		640,767
Telecommunications		45,924		45,835		190,682		193,456
Computing		47,431		41,070		198,850		172,481
Consumer Products		37,259		29,607		145,243		150,741
Power Supplies		34,243		34,858		160,038		132,555
Military and Aerospace		35,214		33,176		132,898		128,523
Medical		28,118		28,146		109,806		102,774
Total revenue	$	716,795	$	604,801	$	2,599,368	$	2,317,328