Segment and Geographic Data

12 Months Ended

Dec. 31, 2022

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, 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.

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’s Chief Operating Decision Maker uses operating income, exclusive of certain items ("segment operating income") to make decisions, allocate resources, and assess performance, and the Company thus considers segment operating income to be its measure of segment profit or loss.  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 selling, general, and administrative costs of its global operations, sales and marketing, information systems, finance, and administration groups, as well as restructuring and severance costs, the direct impact of the COVID-19 pandemic, and other items affecting comparability.  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 following tables set forth business segment information:

	MOSFETs		Diodes		Optoelectronic Components		Resistors		Inductors		Capacitors		Corporate / Other			Total
Year ended December 31, 2022:
Net revenues	$	762,260	$	765,220	$	296,384	$	832,806	$	331,086	$	509,645	$	-		$	3,497,401
Segment Operating Income		228,692		176,422		85,456		235,259		93,453		104,810		(6,661	)	$	917,431
Depreciation expense		30,551		40,014		14,065		34,903		14,927		14,286		7,118		$	155,864
Capital expenditures		90,297		69,126		27,776		76,702		35,102		15,214		11,091		$	325,308
Total Assets as of December 31, 2022:	$	672,048	$	814,017	$	385,388	$	861,870	$	322,893	$	496,924	$	312,513		$	3,865,653
Year ended December 31, 2021:
Net revenues	$	667,998	$	709,416	$	302,714	$	752,554	$	335,638	$	472,167	$	-		$	3,240,487
Segment Operating Income		148,652		145,814		82,378		190,953		97,482		85,342		-		$	750,621
Depreciation expense		30,257		40,406		14,585		34,344		14,448		17,129		8,078		$	159,247
Capital expenditures		44,227		45,772		25,068		57,729		24,377		13,099		8,100		$	218,372
Total Assets as of December 31, 2021:	$	503,937	$	815,751	$	377,815	$	783,390	$	355,353	$	496,129	$	210,882		$	3,543,257
Year ended December 31, 2020:
Net revenues	$	501,380	$	502,548	$	236,616	$	606,183	$	293,629	$	361,542	$	-		$	2,501,898
Segment Operating Income		76,548		69,663		50,369		130,700		82,472		50,753		(4,563	)	$	455,942
Depreciation expense		30,835		39,380		16,003		32,531		13,821		17,349		8,198		$	158,117
Capital expenditures		18,621		31,960		12,873		21,298		20,730		11,198		6,919		$	123,599
Total Assets as of December 31, 2020:	$	447,867	$	704,606	$	341,517	$	693,251	$	330,092	$	438,906	$	198,234		$	3,154,473

________________

	Years ended December 31,
	2022			2021			2020
Reconciliation:
Segment Operating Income	$	917,431		$	750,621		$	455,942
Restructuring and Severance Costs		-			-			(743	)
Impact of COVID-19 Pandemic on Selling, General, and Administrative Expenses		(546	)		-			1,451
Unallocated Selling, General, and Administrative Expenses		(301,399	)		(282,819	)		(246,940	)
Consolidated Operating Income (Loss)	$	615,486		$	467,802		$	209,710
Unallocated Other Income (Expense)		(21,981	)		(33,192	)		(51,382	)
Consolidated Income Before Taxes	$	593,505		$	434,610		$	158,328

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,
	2022		2021		2020
Distributors	$	2,019,842	$	1,902,499	$	1,328,953
OEMs		1,229,114		1,138,569		1,003,090
EMS companies		248,445		199,419		169,855
	$	3,497,401	$	3,240,487	$	2,501,898

Net revenues were attributable to customers in the following regions:

	Years Ended December 31,
	2022		2021		2020
Asia	$	1,347,893	$	1,392,267	$	1,028,073
Europe		1,146,898		1,072,025		854,847
Americas		1,002,610		776,195		618,978
	$	3,497,401	$	3,240,487	$	2,501,898

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,
	2022		2021		2020
Industrial	$	1,377,043	$	1,269,150	$	864,032
Automotive		1,067,499		994,039		796,853
Computing		225,746		245,463		204,166
Military and Aerospace		215,078		170,484		162,484
Consumer Products		182,884		165,384		118,896
Power Supplies		175,456		165,190		116,966
Medical		133,808		130,126		129,500
Telecommunications		119,887		100,651		109,001
	$	3,497,401	$	3,240,487	$	2,501,898

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

	Years ended December 31,
	2022		2021		2020
United States	$	974,503	$	750,862	$	592,460
Germany		1,005,796		976,907		772,194
Other Europe		142,454		134,773		103,475
Israel		25,844		20,362		16,609
Asia		1,348,804		1,357,583		1,017,160
	$	3,497,401	$	3,240,487	$	2,501,898

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

	December 31,
	2022		2021
United States	$	144,112	$	115,036
Germany		229,449		203,414
Other Europe		118,672		110,859
Israel		87,174		76,057
People's Republic of China		250,669		218,721
Republic of China (Taiwan)		192,456		168,165
Other Asia		98,332		81,741
Other		9,595		5,486
	$	1,130,459	$	979,479