Segment Information

6 Months Ended

Jul. 02, 2011

Segment Reporting [Abstract]

Segment Information

Note 8 – Segment Information

In preparation for the spin-off of VPG, which was completed on July 6, 2010, the Company realigned its reportable business segments structure in the second fiscal quarter of 2010 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 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 of 2010, the Company has 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.

Until July 6, 2010, VPG was part of Vishay and its results of operations and cash flows are included in the amounts reported in these consolidated condensed financial statements for the six fiscal months ended July 3, 2010. Excluding the non-recurring costs of the spin-off incurred by Vishay, VPG contributed $9,716,000 of income before taxes, $5,811,000 of net earnings attributable to Vishay stockholders, and $0.03 per diluted share attributable to Vishay stockholders to Vishay’s results for the six fiscal months ended July 3, 2010.

The following table sets forth business segment information (in thousands) :

					Optoelectronic
	MOSFETs		Diodes		Components		Resistors And Inductors		Capacitors		Vishay Precision Group		Total
Fiscal quarter ended July 2, 2011:
Product Sales	$	153,180	$	169,613	$	63,761	$	167,430	$	154,295	$	-	$	708,279
Royalty Revenues		65		-		-		1,494		-		-	$	1,559
Total Revenue	$	153,245	$	169,613	$	63,761	$	168,924	$	154,295	$	-	$	709,838
Gross Margin	$	42,811	$	43,699	$	21,961	$	58,956	$	44,763	$	-	$	212,190
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 2, 2011:
Product Sales	$	296,081	$	329,030	$	121,467	$	339,349	$	316,147	$	-	$	1,402,074
Royalty Revenues		162		-		42		2,711		-		-	$	2,915
Total Revenue	$	296,243	$	329,030	$	121,509	$	342,060	$	316,147	$	-	$	1,404,989
Gross Margin	$	82,250	$	82,839	$	41,909	$	120,114	$	99,741	$	-	$	426,853
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 quarters ended						Six fiscal months ended
	July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Operating margin reconciliation:
MOSFETs	$	32,522		$	37,864		$	61,932		$	56,154
Diodes		37,208			30,121			70,008			51,956
Optoelectronic Components		18,330			17,454			34,687			34,115
Resistors And Inductors		51,757			48,497			105,861			93,737
Capacitors		38,584			27,111			86,917			44,873
Vishay Precision Group		-			10,871			-			18,949
Unallocated Selling, General, and Administrative Expenses		(59,007	)		(70,591	)		(117,813	)		(133,332	)
Executive Compensation Charge		(3,889	)		-			(3,889	)		-
Consolidated Operating Income	$	115,505		$	101,327		$	237,703		$	166,452