EX-99.2 3 exhibit99-2.htm SELECTED FINANCIAL DATA REFLECTING THE BUSINESS SEGMENT REALIGNMENT exhibit99-2.htm
Exhibit 99.2
 
Vishay Intertechnology, Inc.
 
Introduction
 
In preparation for the spin-off of Vishay Precision Group, Inc., (“VPG”) which was completed in the third fiscal quarter on July 6, 2010, the Company realigned its reportable business segments structure to be consistent with changes made to its management reporting. The changes made to management reporting included separating the former Semiconductors reporting segment into MOSFETs, Diodes, and Optoelectronic Components and separating the former Passive Components reporting segment into Resistors and Inductors, Capacitors, and Vishay Precision Group. The changes were necessary due to the former Passive Components segment no longer being comparable after the completion of the spin-off of VPG, the need for discrete information regarding VPG, and due to the increased interest of management and outside investors in more discrete financial information. Effective beginning in the second fiscal quarter of 2010, the chief operating decision maker began making strategic and operating decisions with regards to assessing performance and allocating resources based on this new segment structure. Following the completion of the spin-off in the third fiscal quarter, we will have five reporting segments.
 
The Company evaluates business segment performance on operating income, exclusive of certain items (“segment operating income”). Beginning in the second fiscal quarter of 2010, the Company changed its definition of segment operating income to exclude such costs as global operations, sales and marketing, information systems, finance and administration groups. These costs are managed by executives that report to the chief operating decision maker and were formerly included in segment operating income. Only dedicated, direct selling, general, and administrative expenses of the segments are included in the calculation of segment operating income. Additionally, management has always evaluated segment performance excluding items such as restructuring and severance costs, asset write-downs, goodwill and indefinite-lived intangible asset impairments, inventory write-downs, gains or losses on purchase commitments, 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 accompanying selected financial data are unaudited and do not include all information and footnotes necessary for presentation of financial position, results of operations, and cash flows required by accounting principles generally accepted in the United States for complete financial statements. The selected financial data should be read in conjunction with the consolidated financial statements and notes thereto filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and the Company’s Quarterly Reports on Form 10-Q for the fiscal quarters ended March 28, 2009, June 27, 2009, September 26, 2009, and April 3, 2010.
 
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
 
Optoelectronic Resistors & Vishay Precision
       MOSFETs        Diodes        Components        Inductors        Capacitors        Group        Total
Fiscal quarter ended July 3, 2010:
Product sales $     153,207 $     151,026 $     57,657 $     151,941 $     133,346 $     52,914 $     700,091
Royalty revenues 48 - 27 1,489 - -   $ 1,564
       Total revenue   $ 153,255 $ 151,026 $ 57,684 $ 153,430 $ 133,346 $ 52,914 $ 701,655
 
Gross Margin $ 46,887 $ 35,865 $ 20,288   $ 54,886   $ 32,685 $ 19,982 $ 210,593
 
Six fiscal months ended July 3, 2010:            
Product Sales $ 280,831   $ 291,272   $ 116,053 $ 299,398 $ 250,677 $ 101,089 $ 1,339,320
Royalty Revenues 48 - 60 2,687 -   - $ 2,795
       Total Revenue $ 280,879 $ 291,272 $ 116,113 $ 302,085 $ 250,677 $ 101,089 $ 1,342,115
 
Gross Margin $ 73,905 $ 63,511 $ 39,944 $ 106,806 $ 56,410 $ 37,030 $ 377,606

Fiscal quarter ended Six fiscal months ended
       July 3, 2010        July 3, 2010
Operating margin reconciliation:
MOSFETs $ 37,864 $ 56,154
Diodes 30,121 51,956
Optoelectronic Components 17,454   34,115
Resistors & Inductors 48,497   93,737
Capacitors 27,111   44,873
Vishay Precision Group 10,871 18,949  
Unallocated Selling, General, and Administrative Expenses (70,591 ) (133,332 )
Consolidated Operating Income (Loss) $ 101,327 $ 166,452
 

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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
 
Optoelectronic Resistors & Vishay Precision
MOSFETs Diodes Components Inductors Capacitors Group        Total
Fiscal quarter ended April 3, 2010:                                          
Product sales $ 127,624 $ 140,246 $ 58,396 $ 147,457 $ 117,331 $ 48,175 $ 639,229
Royalty revenues - - 33   1,198   - - $ 1,231
       Total revenue $     127,624 $     140,246 $     58,429 $     148,655 $     117,331 $     48,175 $     640,460
 
Gross Margin $ 27,018 $ 27,646 $ 19,656 $ 51,920 $ 23,725 $ 17,048 $ 167,013

  Fiscal quarter ended
       April 3, 2010
Operating margin reconciliation:  
MOSFETs   $ 18,290
Diodes     21,835
Optoelectronic Components   16,661
Resistors & Inductors   45,240  
Capacitors   17,762
Vishay Precision Group   8,078
Unallocated Selling, General, and Administrative Expenses   (62,741 )
Consolidated Operating Income (Loss)   $     65,125
   
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
 
Optoelectronic Resistors & Vishay Precision
MOSFETs Diodes Components Inductors Capacitors Group Corporate / Other Total
Year ended December 31, 2009:                                 
Product sales  $   427,110 $   410,415 $   167,317 $   438,600 $   420,890 $   171,991 $   - $   2,036,323
Royalty revenues 71 -   13   5,626 - - - $ 5,710
       Total revenue $ 427,181 $ 410,415 $ 167,330 $ 444,226 $ 420,890 $ 171,991 $ - $ 2,042,033
 
Gross Margin  $ 57,280 $ 51,361 $ 37,180 $ 109,093 $ 80,533 $ 52,714 $ - $ 388,161
 
Depreciation expense 58,762 38,638 14,757 38,392   46,684 8,446 330 $ 206,009
Interest expense (income) 23 93 172 (27 ) 934   69   9,057 $ 10,321
Capital expenditures 10,309 12,474 3,453 11,126 10,567 2,181 230 $ 50,340
 
Total Assets as of December 31, 2009: 566,952 522,080 132,065 572,076 668,271 209,779 48,323 $ 2,719,546

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  Year ended
     December 31, 2009
Operating margin reconciliation:  
MOSFETs   $     25,434
Diodes   31,275
Optoelectronic Components   24,441
Resistors & Inductors   85,406
Capacitors   60,480
Vishay Precision Group   22,510
Unallocated Selling, General, and Administrative Expenses   (220,547 )
Restructuring and severance Costs   (37,874 )
Asset write-downs   (681 )
Settlement agreement gain   28,195
Executive employment agreement charge   (57,824 )
Consolidated Operating Income (Loss)   $ (39,185 )
 
Restructuring and severance costs:  
MOSFETs   $ 8,017
Diodes   4,707
Optoelectronic Components     2,755
Resistors & Inductors   9,374
Capacitors   5,353
Vishay Precision Group   2,048
Unallocated Selling, General, and Administrative Expenses   5,620
    $ 37,874
 
Asset write-downs:  
MOSFETs   $ -
Diodes   681
Optoelectronic Components   -
Resistors & Inductors   -
Capacitors   -
Vishay Precision Group   -
    $ 681
   
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information 
as recast to reflect the business segment realignment
(Unaudited - in thousands)
 
Optoelectronic Resistors & Vishay Precision
MOSFETs Diodes Components Inductors Capacitors Group Total
Fiscal quarter ended September 26, 2009:                 
Product sales $     123,003 $     110,408    $     43,320 $     106,768 $     100,973 $     40,105 $     524,577
Royalty revenues 14 -   - 713 - - $ 727
       Total revenue $ 123,017 $ 110,408 $ 43,320 $ 107,481 $ 100,973 $ 40,105 $ 525,304
 
Gross Margin $ 18,485 $ 16,860 $ 10,281 $ 25,316 $ 20,745 $ 12,680 $ 104,367
 
Nine fiscal months ended September 26, 2009:  
Product sales $ 302,762 $ 282,041 $ 118,200 $ 305,030 $ 298,483 $ 125,143 $ 1,431,659
Royalty revenues 71 -   13 3,330 - - $ 3,414
       Total revenue $ 302,833 $ 282,041 $ 118,213 $ 308,360 $ 298,483 $ 125,143 $ 1,435,073
 
Gross Margin $ 34,439 $ 32,232 $ 24,894 $ 67,171 $ 54,719 $ 37,710 $ 251,165

  Fiscal quarter ended Nine fiscal months ended
       September 26, 2009        September 26, 2009
Operating margin reconciliation:  
MOSFETs   $ 10,331 $ 10,793
Diodes   11,920   17,588
Optoelectronic Components   5,504 14,370
Resistors & Inductors   19,758 50,288
Capacitors     15,641 39,754
Vishay Precision Group   5,189 15,187
Unallocated Selling, General, and Administrative Expenses   (53,643 ) (157,688 )
Restructuring and severance Costs   (3,478 ) (34,501 )
Settlement agreement gain   - 28,195
Executive employment agreement charge   - (57,824 )
Consolidated Operating Income (Loss)   $ 11,222 $ (73,838 )
 
Restructuring and severance costs:  
MOSFETs   $ 680 $ 8,305
Diodes   253 4,814
Optoelectronic Components   33 2,936
Resistors & Inductors   857 8,058
Capacitors   824 4,666
Vishay Precision Group   175 2,044
Unallocated Selling, General, and Administrative Expenses   656 3,678
  $ 3,478 $ 34,501  
   
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
 
          Optoelectronic   Resistors &       Vishay Precision    
MOSFETs Diodes Components Inductors Capacitors Group    Total
Fiscal quarter ended June 27, 2009:                        
Product sales $ 95,622 $ 91,240 $ 40,485 $ 99,148 $ 91,893 $ 41,333 $     459,721
Royalty revenues   - - - 537 - - $ 537
       Total revenue $ 95,622 $ 91,240 $ 40,485 $ 99,685 $ 91,893 $ 41,333 $ 460,258
 
Gross Margin $ 13,334 $ 10,607 $ 8,824 $ 19,863 $ 15,167 $ 10,979 $ 78,774
 
Six fiscal months ended June 27, 2009:
Product sales $ 179,759 $ 171,633 $ 74,880 $ 198,262 $ 197,510 $ 85,038 $ 907,082
Royalty revenues 57 - 13 2,617 -   - $ 2,687
       Total revenue $ 179,816 $ 171,633 $ 74,893 $ 200,879 $ 197,510 $ 85,038 $ 909,769
 
Gross Margin $ 15,954 $ 15,372 $ 14,613 $ 41,855 $ 33,974 $ 25,030 $ 146,798

  Fiscal quarter ended Six fiscal months ended
     June 27, 2009 June 27, 2009
Operating margin reconciliation:       
MOSFETs   $     5,724 $     462
Diodes   5,684 5,668
Optoelectronic Components     6,325   8,866  
Resistors & Inductors   14,454 30,530
Capacitors   10,510 24,113
Vishay Precision Group   3,684   9,998
Unallocated Selling, General, and Administrative Expenses   (51,359 ) (104,045 )
Restructuring and severance Costs   (12,090 ) (31,023 )
Settlement agreement gain   28,195 28,195
Executive employment agreement charge   (57,824 ) (57,824 )
Consolidated Operating Income (Loss)   $ (46,697 ) $ (85,060 )
 
Restructuring and severance costs:  
MOSFETs   $ 4,488 $ 7,625
Diodes   2,239 4,561
Optoelectronic Components   1,154 2,903
Resistors & Inductors   118 7,201
Capacitors   612 3,842
Vishay Precision Group   1,390 1,869
Unallocated Selling, General, and Administrative Expenses   2,089 3,022
  $ 12,090 $ 31,023
   
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
 
Optoelectronic Resistors & Vishay Precision
       MOSFETs        Diodes        Components        Inductors        Capacitors        Group        Total
Fiscal quarter ended March 28, 2009:  
Product sales $       84,137 $       80,393 $       34,395 $       99,114 $       105,617 $       43,705 $     447,361
Royalty revenues   57   -   13 2,080   -   - $ 2,150
       Total revenue $ 84,194 $ 80,393 $ 34,408 $ 101,194 $ 105,617 $ 43,705 $ 449,511
 
Gross Margin $ 2,620 $ 4,765 $ 5,789 $ 21,992 $ 18,807 $ 14,051 $ 68,024

Fiscal quarter ended
       March 28, 2009
Operating margin reconciliation:
MOSFETs $ (5,262 )
Diodes (16 )
Optoelectronic Components 2,541
Resistors & Inductors 16,077
Capacitors   13,602
Vishay Precision Group 6,314
Unallocated Selling, General, and Administrative Expenses (52,686 )
Restructuring and severance Costs (18,933 )
Consolidated Operating Income (Loss) $ (38,363 )
   
Restructuring and severance costs:
MOSFETs $ 3,137
Diodes 2,322
Optoelectronic Components   1,749
Resistors & Inductors 7,083
Capacitors 3,230
Vishay Precision Group 479
Unallocated Selling, General, and Administrative Expenses 933  
  $ 18,933
 

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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
 
Optoelectronic Resistors & Vishay Precision
    MOSFETs     Diodes     Components     Inductors     Capacitors     Group     Corporate / Other     Total
Year ended December 31, 2008:    
Product sales $   645,712   $   577,614   $   235,317   $   602,665 $   516,207 $ 241,700 $ -   $     2,819,215
Royalty revenues   2,162 -   21   813 - - - $ 2,996
       Total revenue $ 647,874 $ 577,614 $ 235,338 $ 603,478 $ 516,207 $ 241,700   $ - $ 2,822,211
 
Gross Margin $ 137,931 $ 100,390 $ 57,317 $ 146,999 $ 74,421 $ 79,909 $ - $ 596,967
 
Depreciation expense 55,344 37,871 16,238 38,612 43,025 8,410 347 $ 199,847
Interest expense   79 218 265 103   1,516 57 36,430 $ 38,668
Capital expenditures 45,653 33,185 13,719 28,559 23,425 7,391 62 $ 151,994
 
Total Assets as of December 31, 2008: 605,335 550,196 146,432 545,247 665,756 254,863 48,131 $ 2,815,960

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  Year ended
       December 31, 2008
Operating margin reconciliation:  
MOSFETs   $       88,310
Diodes   72,162
Optoelectronic Components   41,927
Resistors & Inductors   119,649
Capacitors   46,307  
Vishay Precision Group   40,570
Unallocated Selling, General, and Administrative Expenses   (261,323 )
Restructuring and severance Costs   (62,537 )
Asset write-downs   (5,073 )
Goodwill impairment   (1,696,174 )
Indefinite-lived intangible impairment   (27,000 )
Loss on purchase commitments   (6,024 )
Gain on sale of building   4,510
Terminated tender offer costs   (4,000 )
Consolidated Operating Income (Loss)   $ (1,648,696 )
 
Restructuring and severance costs:  
MOSFETs   $ 9,879
Diodes   7,866
Optoelectronic Components   6,360
Resistors & Inductors   18,803
Capacitors   7,546
Vishay Precision Group   6,349
Unallocated Selling, General, and Administrative Expenses   5,734
  $ 62,537
 
Asset write-downs:  
MOSFETs   $ -
Diodes   613
Optoelectronic Components   -
Resistors & Inductors     4,460
Capacitors   -
Vishay Precision Group   -
  $ 5,073
 
Goodwill impairment:  
MOSFETs   $ 594,951
Diodes   295,738
Optoelectronic Components   153,263
Resistors & Inductors   178,056
Capacitors   380,701
Vishay Precision Group   93,465
  $ 1,696,174
 
Indefinite-lived intangible impairment:  
MOSFETs   $ -
Diodes   15,000
Optoelectronic Components   -
Resistors & Inductors   3,824
Capacitors   8,176
Vishay Precision Group   -
  $ 27,000
   
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