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Segment Information
 3 Months Ended
Apr. 04, 2020
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, 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.  The fiscal period ended March 30, 2019 has 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.  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, the impact of the COVID-19 outbreak, 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
  
Fiscal quarter ended April 4, 2020:
                                            
Net revenues
  
$
116,893
    
$
115,343
    
$
54,179
    
$
159,208
    
$
73,785
    
$
93,433
    
$
-
    
$
612,841
  
                                                                 
Gross profit
  
$
28,152
    
$
19,518
    
$
14,585
    
$
44,773
    
$
22,987
    
$
20,355
    
$
(3,130
)
  
$
147,240
  
                                                                 
Segment operating income
  
$
18,658
    
$
14,422
    
$
10,686
    
$
38,885
    
$
20,310
    
$
15,070
    
$
(3,130
)
  
$
114,901
  
                                                                 
Fiscal quarter ended March 30, 2019:
                                                          
Net revenues
  
$
137,341
    
$
167,840
    
$
60,562
    
$
188,831
    
$
71,640
    
$
118,945
    
$
-
    
$
745,159
  
                                                                 
Gross profit
  
$
36,059
    
$
43,492
    
$
16,017
    
$
62,589
    
$
23,280
    
$
29,722
    
$
-
    
$
211,159
  
                                                                 
Segment operating income
  
$
26,678
    
$
38,128
    
$
11,710
    
$
56,347
    
$
20,640
    
$
24,566
    
$
-
    
$
178,069
  

*Amounts reported in Corporate/Other above represent unallocated costs directly related to the COVID-19 outbreak, which are reported as costs of products sold on the consolidated condensed statement of operations.


  
Fiscal quarters ended
  
   
April 4, 2020
    
March 30, 2019
  
Reconciliation:
            
Segment Operating Income
  
$
114,901
    
$
178,069
  
Impact of COVID-19 Outbreak on Selling, General, and Administrative Expenses
    
(317
)
    
-
  
Unallocated Selling, General, and Administrative Expenses
    
(67,176
)
    
(70,334
)
Consolidated Operating Income
  
$
47,408
    
$
107,735
  
Unallocated Other Income (Expense)
    
(11,274
)
    
(7,787
)
Consolidated Income Before Taxes
  
$
36,134
    
$
99,948
  
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
  
   
April 4, 2020
    
March 30, 2019
  
Distributors
  
$
305,446
    
$
411,560
  
OEMs
    
261,129
      
282,636
  
EMS companies
    
46,266
      
50,963
  
Total Revenue
  
$
612,841
    
$
745,159
  

Net revenues were attributable to customers in the following regions:


  
Fiscal quarters ended
  
   
April 4, 2020
    
March 30, 2019
  
Asia
  
$
217,084
    
$
259,726
  
Europe
    
233,052
      
278,899
  
Americas
    
162,705
      
206,534
  
Total Revenue
  
$
612,841
    
$
745,159
  

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
  
   
April 4, 2020
    
March 30, 2019
  
Industrial
  
$
215,111
    
$
281,590
  
Automotive
    
201,943
      
214,786
  
Telecommunications
    
29,692
      
53,280
  
Computing
    
45,223
      
47,508
  
Consumer Products
    
20,553
      
34,049
  
Power Supplies
    
25,194
      
30,127
  
Military and Aerospace
    
43,935
      
47,561
  
Medical
    
31,190
      
36,258
  
Total revenue
  
$
612,841
    
$
745,159