Segment and Geographic Data

12 Months Ended

Dec. 31, 2019

Segment and Geographic Data [Abstract]

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, six 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 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.

The current six segment alignment reflects a change in reporting structure made during the fourth fiscal quarter of 2019. Prior periods have been recast to separately present Resistors and Inductors.

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. An immaterial 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		Corporate / Other		Total

Year ended December 31, 2019:
Net revenues	$	509,145	$	557,143	$	222,986	$	657,192	$	298,642	$	423,197	$	-	$	2,668,305
Gross Profit		126,026		113,647		53,463		186,707		96,893		94,464		-	$	671,200
Segment Operating Income		88,994		94,130		37,145		162,969		86,395		74,063		-	$	543,696
Depreciation expense		32,614		38,930		16,803		28,909		13,316		17,253		8,160	$	155,985
Capital expenditures		35,131		38,242		12,448		34,395		17,836		9,916		8,673	$	156,641

Total Assets as of December 31, 2019:	$	404,412	$	755,945	$	328,871	$	653,195	$	334,791	$	449,823	$	193,738	$	3,120,775

Year ended December 31, 2018:
Net revenues	$	547,643	$	712,936	$	289,727	$	716,394	$	301,892	$	466,097	$	-	$	3,034,689
Gross Profit		145,923		196,702		100,219		238,356		98,912		108,412		-	$	888,524
Segment Operating Income		106,955		175,752		82,681		214,347		89,224		86,929		-	$	755,888
Depreciation expense		32,104		38,197		16,612		26,416		11,292		17,745		7,690	$	150,056
Capital expenditures		49,557		57,756		19,935		50,978		29,884		12,200		9,589	$	229,899

Total Assets as of December 31, 2018:	$	444,356	$	804,784	$	342,656	$	587,595	$	287,240	$	487,540	$	152,027	$	3,106,198

Year ended December 31, 2017:
Net revenues	$	467,476	$	619,958	$	284,429	$	590,465	$	253,064	$	383,976	$	-	$	2,599,368
Gross Profit		109,603		165,176		98,000		179,443		72,462		78,425		-	$	703,109
Segment Operating Income		74,174		145,645		80,499		159,812		63,066		58,544		-	$	581,740
Depreciation expense		34,731		37,396		16,871		23,853		10,230		17,736		8,066	$	148,883
Capital expenditures		33,475		38,681		16,115		44,214		22,793		11,135		4,019	$	170,432

Total Assets as of December 31, 2017:	$	412,598	$	792,610	$	332,228	$	664,609	$	330,030	$	568,113	$	361,901	$	3,462,089

________________

	Years ended December 31,
	2019			2018			2017
Reconciliation:
Segment Operating Income	$	543,696		$	755,888		$	581,740
Restructuring and Severance Costs		(24,139	)		-			(11,273	)
Unallocated Selling, General, and Administrative Expenses		(257,127	)		(270,768	)		(246,462	)
Consolidated Operating Income (Loss)	$	262,430		$	485,120		$	324,005
Unallocated Other Income (Expense)		(36,132	)		(68,344	)		(44,641	)
Consolidated Income Before Taxes	$	226,298		$	416,776		$	279,364

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:

	Years Ended December 31,
	2019		2018		2017
Distributors	$	1,393,412	$	1,742,262	$	1,484,276
OEMs		1,082,701		1,085,292		931,291
EMS companies		192,192		207,135		183,801
	$	2,668,305	$	3,034,689	$	2,599,368

Net revenues were attributable to customers in the following regions:

	Years Ended December 31,
	2019		2018		2017
Asia	$	965,030	$	1,193,827	$	1,091,107
Europe		993,101		1,081,073		902,357
Americas		710,174		759,789		605,904
	$	2,668,305	$	3,034,689	$	2,599,368

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:

	Years Ended December 31,
	2019		2018		2017
Industrial	$	946,118	$	1,139,880	$	934,631
Automotive		830,876		861,436		727,220
Telecommunications		170,088		200,379		190,682
Computing		182,781		228,831		198,850
Consumer Products		107,983		168,884		145,243
Power Supplies		119,361		144,433		160,038
Military and Aerospace		179,228		162,921		132,898
Medical		131,870		127,925		109,806
	$	2,668,305	$	3,034,689	$	2,599,368

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

	Years ended December 31,
	2019		2018		2017

United States	$	686,985	$	743,647	$	590,839
Germany		910,509		982,082		837,258
Other Europe		113,473		123,846		99,636
Israel		17,787		13,299		11,075
Asia		939,551		1,171,815		1,060,560
	$	2,668,305	$	3,034,689	$	2,599,368

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

	December 31,
	2019		2018

United States	$	100,163	$	117,138
Germany		179,218		169,941
Other Europe		116,883		121,964
Israel		92,636		103,675
People's Republic of China		215,139		217,681
Republic of China (Taiwan)		161,374		145,644
Other Asia		81,338		88,864
Other		4,774		4,094
	$	951,525	$	969,001