8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): April 6, 2016

Vishay Precision Group, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	1-34679	27-0986328
(State or Other Jurisdiction of	(Commission File Number)	(I.R.S. Employer Identification
Incorporation or Organization)		Number)

3 Great Valley Parkway, Suite 150
Malvern, PA	19355
(Address of Principal Executive Offices)	(Zip Code)

(484) 321-5300

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[   ]	Written communications pursuant to Rule 425 under the Securities Act
[   ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[   ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
[   ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

EXPLANATORY NOTE

This Form 8-K/A, Amendment No. 1, is being filed to provide audited historical financial statements of Pacific Instruments, Inc. ("Pacific") and the related unaudited pro forma financial information of Vishay Precision Group, Inc. (the "Company"). As previously reported in the Company's Current Report on Form 8-K filed on April 7, 2016 (the "Original Report"), the Company completed its acquisition of all the outstanding capital stock of Pacific pursuant to a Stock Purchase Agreement, dated April 6, 2016, by and among the Company and Pacific.

Item 9.01 Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired.

• Attached as Exhibit 99.1 hereto and incorporated herein by reference are the audited financial statements and related notes of Pacific Instruments, Inc. as of and for the years ended January 31, 2016 and January 31, 2015, and report of independent auditors.

(b) Pro Forma Financial Information.

• Attached hereto as Exhibit 99.2 and incorporated by reference is the required unaudited pro forma financial information as of and for the year ended December 31, 2015.

(d) Exhibits

Exhibit No.	Description
23.1	Consent of Moss Adams LLP, independent auditors of Pacific.
99.1	Audited financial statements and related notes of Pacific Instruments, Inc. as of and for the years ended January 31, 2016 and January 31, 2015, and report of independent auditors.
99.2	Unaudited pro forma condensed combined financial statements as of and for the year ended December 31, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Vishay Precision Group, Inc.
Date: June 22, 2016	By:	/s/ William M. Clancy
		Name: William M. Clancy
		Title:    Executive Vice President and Chief
		Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
23.1	Consent of Moss Adams LLP, independent auditors of Pacific.
99.1	Audited financial statements and related notes of Pacific Instruments, Inc. as of and for the years ended January 31, 2016 and January 31, 2015, and report of independent auditors.
99.2	Unaudited pro forma condensed combined financial statements as of and for the year ended December 31, 2015.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT AUDITORS

We consent to the incorporation by reference in the Registration Statements of Vishay Precision Group, Inc. (Form S-3 No. 333-173461, and Form S-8 Nos. 333-168256 and 333-187211) of our report dated June 22, 2016, relating to the financial statements of Pacific Instruments, Inc. as of January 31, 2016 and 2015, and for the years then ended, appearing in this Current Report on Form 8-K of Vishay Precision Group, Inc.

/s/ Moss Adams LLP

Sacramento, California

June 22, 2016

EX-99.1

EXHIBIT 99.1

Financial Statements of

PACIFIC INSTRUMENTS, INC.

January 31, 2016 and January 31, 2015

1

PACIFIC INSTRUMENTS, INC.

January 31, 2016 and January 31, 2015

TABLE OF CONTENTS

	Page Number
Report of Independent Auditors	3
Financial Statements
Balance Sheets	4
Income Statements	5
Statements of Cash Flows	6
Statements of Equity	7
Notes to Financial Statements	8

2

REPORT OF INDEPENDENT AUDITORS

The Stockholders and Management

Pacific Instruments, Inc.

Report on the Financial Statements

We have audited the accompanying financial statements of Pacific Instruments, Inc., which comprise the balance sheetsas of January 31, 2016 and 2015, and the related statements of income, equity, and cash flows for the yearsthen ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pacific Instruments, Inc. as of January 31, 2016 and 2015, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As described in Note 9 to the financial statements, Pacific Instruments, Inc. was acquired by Vishay Precision Group, Inc. in April 2016.

Our opinion is not modified with respect to this matter.

/s/ Moss Adams LLP

Sacramento, California

June 22, 2016

3

PACIFIC INSTRUMENTS, INC. Balance Sheets
	January 31, 2016		January 31, 2015
Assets
Current assets:
Cash and cash equivalents	$	1,743,595	$	1,032,626
Accounts receivable	794,915		325,298
Inventories, net	1,464,537		1,206,939
Prepaid expenses and other current assets	165,920		274,701
Total current assets	4,168,967		2,839,564
Property and equipment, net	20,606		25,472
Other assets	233,479		220,638
Total assets	$	4,423,052	$	3,085,674
Liabilities and equity
Current liabilities:
Trade accounts payable	$	196,856	$	226,575
Other accrued expenses	527,381		546,307
Short-term debt (Note 4)	—		—
Notes payable	878,878		—
Total current liabilities	1,603,115		772,882
Other liabilities	309,770		245,623
Total liabilities	1,912,885		1,018,505
Commitments and contingencies (Note 7)	—		—
Equity:
Common stock	554,802		554,802
Retained earnings	1,955,365		1,512,367
Total equity	2,510,167		2,067,169
Total liabilities and equity	$	4,423,052	$	3,085,674

See accompanying notes.

4

PACIFIC INSTRUMENTS, INC.

Income Statements

	Years ended
	January 31, 2016		January 31, 2015
Net revenues	$	10,726,419	$	6,996,951
Costs of sales	3,545,178		2,701,752
Gross profit	7,181,241		4,295,199
Selling, general, and administrative expenses	3,136,959		2,936,149
Operating income	4,044,282		1,359,050
Other income, net	—		382
Income before taxes	4,044,282		1,359,432
Income tax expense	1,538,654		657,364
Net income	$	2,505,628	$	702,068

See accompanying notes.

5

PACIFIC INSTRUMENTS, INC.

Statements of Cash Flows

	Years ended
	January 31, 2016			January 31, 2015
Operating activities
Net income	$	2,505,628		$	702,068
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,867			4,867
Income taxes	51,306			151,380
Net changes in operating assets and liabilities:
Accounts receivable	(469,617		)	128,534
Inventories	(257,598		)	(414,758		)
Prepaid expenses and other current assets	108,781			(94,733		)
Trade accounts payable	(29,719		)	(17,331		)
Other accrued expenses	(18,927		)	359,330
Net cash provided by operating activities	1,894,721			819,357
Financing activities
Line of credit draw	—			50,000
Repayment of line of credit	—			(50,000		)
Repurchase of stock	(1,183,752		)	—
Net cash used in financing activities	(1,183,752		)	—
Increase in cash and cash equivalents	710,969			819,357
Cash and cash equivalents at beginning of period	1,032,626			213,269
Cash and cash equivalents at end of period	$	1,743,595		$	1,032,626
Supplemental disclosures:
Cash paid for income taxes	$	1,357,984		$	611,600
Non-cash financing activities:
Repurchase of stock in exchange for notes payable	$	878,878		$	—

See accompanying notes.

6

PACIFIC INSTRUMENTS, INC.

Statements of Equity

	Common Stock		Retained Earnings			Total Equity
Balance at February 1, 2014	$	554,802	$	810,299		$	1,365,101
Net income	—		702,068			702,068
Balance at January 31, 2015	$	554,802	$	1,512,367		$	2,067,169
Net income	—		2,505,628			2,505,628
Repurchase of stock	—		(2,062,630		)	(2,062,630		)
Balance at January 31, 2016	$	554,802	$	1,955,365		$	2,510,167

See accompanying notes.

7

PACIFIC INSTRUMENTS, INC.

Notes to Financial Statements

Note 1 – Background and Summary of Significant Accounting Policies

Background

Pacific Instruments, Inc. (“Pacific” or the “Company”) is a C-Corporation incorporated in California with operations in Concord, California. The Company designs and manufactures transducer data acquisition products and systems with specialized knowledge of high-accuracy analog circuit design and implementation of end-user application requirements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ significantly from those estimates.

Revenue Recognition

The Company recognizes revenue on product sales during the period when the sales process is complete. This generally occurs when products are shipped to the customer in accordance with terms of an agreement of sale, title and risk of loss have been transferred, collectability is reasonably assured, and pricing is fixed or determinable. For sales where title and risk of loss pass at the point of delivery, the Company recognizes revenue upon delivery to the customer, assuming all other criteria for revenue recognition are met.

Given the specialized nature of the Company's products, it generally does not allow product returns.

Estimated warranty costs are provided for at the time revenue is recognized. At January 31, 2016 and 2015, the accrual for future warranty obligations was $109,646 and $54,917, respectively. The Company's expense for warranty obligations was $187,361 and $72,208 for the years ended January 31, 2016 and January 31, 2015, respectively. The warranty periods for products sold do not exceed one year. The Company calculates its warranty expense provision based on past warranty experience and adjustments are made periodically to reflect actual warranty expenses.

Changes in the accrued product warranty obligation were as follows at January 31:

	2016			2015
Balance at the beginning of the year	$	54,917		$	31,246
Accruals for warranties issued during the year	187,361			72,208
Settlements made during the year	(132,631		)	(48,537		)
Balance at the end of the year	$	109,647		$	54,917

Research and Development Expenses

Research and development costs are expensed as incurred. The amount charged to expense for research and development was $863,698 and $656,973 for the years ended January 31, 2016 and 2015, respectively.

Income Taxes

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including historic earnings, projected future income, and cost-effective tax-planning strategies. When the Company determines that its ability to realize its deferred tax assets is not more likely than not, the Company adjusts its deferred tax asset valuation allowance, which would increase income tax expense.

The Company records uncertain tax positions in accordance with Accounting Standards Codification ("ASC") Topic 740, Income Taxes, on the basis of a two-step process, whereby the Company first determines whether it is more likely than not that the tax

8

PACIFIC INSTRUMENTS, INC.

Notes to Financial Statements

positions will be sustained based on the technical merits of the position and then measures those tax positions that meet the more-likely-than-not recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the tax authority.

The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying income statements. Accrued interest and penalties are included with the associated tax balance sheet account.

In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". The standard requires that deferred tax assets and liabilities be classified as non-current on the balance sheet rather than being separated into current and non-current. This ASU is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company has early adopted this ASU during the fourth quarter of 2015 on a retrospective basis. Accordingly, the Company reclassified current deferred taxes to non-current on its January 31, 2016 balance sheet which increased non-current deferred tax assets by $217,769 recorded within other assets. The Company reclassified current deferred taxes to non-current on its January 31, 2015 balance sheet which increased non-current deferred tax assets by $204,837 recorded within other assets.

Cash and Cash Equivalents

Cash and cash equivalents include demand deposits and highly liquid investments with original maturities of three months or less when purchased.

Allowance for Doubtful Accounts

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The allowance is determined through an analysis of the aging of accounts receivable and assessments of risk that are based on historical trends and an evaluation of the impact of current and projected economic conditions. The Company evaluates the past-due status of its trade receivables based on contractual terms of sale. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Inventories

Inventories are stated at the lower of cost, determined by the first-in, first-out method, or market based on net realizable value. Inventories are adjusted for estimated excess and obsolescence and written down to net realizable value based upon estimates of future demand, technology developments, and market conditions.

Property and Equipment

Property and equipment is carried at cost and is depreciated principally by the straight-line method based upon the estimated useful lives of the assets. Upon retirement or disposal of assets, the cost of assets disposed of and the related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in net earnings. Repairs and maintenance costs are expensed as incurred.

Commitments and Contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.

9

PACIFIC INSTRUMENTS, INC.

Notes to Financial Statements

Note 2 – Inventories

Inventories consisted of the following at January 31, 2016 and 2015:

	January 31,
	2016		2015
Raw materials	$	631,587	$	534,137
Work in process	715,904		537,335
Finished goods	$	117,046	$	135,467
Inventories, net	$	1,464,537	$	1,206,939

Inventories at January 31, 2016 and 2015 are net of reserves for slow moving and obsolete inventory of $258,686 and $330,554, respectively.

Note 3 – Property and Equipment

Property and equipment consist of the following at January 31, 2016 and 2015:

January 31, 2016
Description	Useful Life	Cost		Accumulated Depreciation		Net book value
Buildings and improvements	10 - 39	$	81,999	$	61,393	$	20,606
Machinery and equipment	3 - 7	58,518		58,518		—
Software	3 - 5	56,092		56,092		—
Total		$	196,609	$	176,003	$	20,606

January 31, 2015
Description	Useful Life	Cost		Accumulated Depreciation		Net book value
Buildings and improvements	10 - 39	$	81,999	$	56,527	$	25,472
Machinery and equipment	3 - 7	58,518		58,518		—
Software	3 - 5	56,092		56,092		—
Total		$	196,609	$	171,137	$	25,472

Depreciation expense was $4,867 for the periods ended January 31, 2016 and 2015, respectively.

Note 4 – Financing Activities

The Company had a Line of Credit "LOC" arrangement in the amount of $600,000 that expired July 2015. As of January 31, 2015, there was no outstanding balance on the LOC. Interest payable on amounts borrowed is at the greater of (i) the floating rate equal to the Prime Rate plus 1.00%, and (ii) the floor rate of 5.00%. The interest rate at January 31, 2015 was 5.00%. The Company recorded interest expense of $0 and $31 for the years ended January 31, 2016 and 2015, respectively.

10

PACIFIC INSTRUMENTS, INC.

Notes to Financial Statements

Note 5 – Income Taxes

Income taxe expense is comprised of the following:

	Years ended January 31,
	2016			2015
Current:
Federal	$	1,209,021		$	499,184
State and local	342,475			143,906
	1,551,496			643,090
Deferred:
Federal	(12,973		)	(25,298		)
State and local	131			39,572
	(12,842		)	14,274
Income tax expense	$	1,538,654		$	657,364

The tax effects of temporary differences that give rise to deferred tax assets at January 31, 2016 and 2015, recorded within other assets in the balance sheets, are presented below:

	January 31,
	2016		2015
Deferred tax assets:
Inventories	$	102,330	$	130,759
Tax credit carryforwards	—		2,200
Other accruals and reserves	115,439		71,878
Total deferred tax assets	$	217,769	$	204,837

Income tax for the periods ended January 31, 2016 and 2015, differs from the amount that would be computed by applying the federal statutory tax rate of 34% to earnings before income taxes as a result of the following:

	Years ended January 31,
	2016			2015
Tax at statutory rate	$	1,337,832		$	499,431
State income taxes, net of U.S. federal tax benefit	227,505			121,756
Change in unrecognized tax benefits, net	(31,192		)	32,304
Other	4,509			3,872
Income tax expense	$	1,538,654		$	657,363

The following table summarizes changes in the Company’s gross liabilities, excluding interest and penalties, associated with unrecognized tax benefits, recorded within other liabilities in the balance sheets:

	January 31,
	2016			2015
Balance at beginning of year	$	236,547		$	103,379
Addition based on tax positions related to current year	91,373			133,168
Reduction for lapses of statute of limitations	(31,020		)	—
Balance at end of year	$	296,900		$	236,547

11

PACIFIC INSTRUMENTS, INC.

Notes to Financial Statements

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Related to the unrecognized tax benefits indicated above, the Company accrued interest of $12,870 and $9,075 as of January 31, 2016 and 2015, respectively. If recognized, the entire benefit would impact the effective tax rate. The Company anticipates that it is reasonably possible that it will reverse approximately $62,000 of unrecognized tax benefits within the next fiscal year due to the expiration of the statutes of limitations.

The Company files U.S. federal and various state tax returns. The statute of limitations for the jurisdictions in which the Company files ranges from three to four years. The Company is not currently subject to an income tax examination.

Note 6 – Defined Contribution Plan

The Company has a defined contribution plan and makes contributions to match the employee contributions under various formulas on regular wages earned or paid salaries and overtime not including bonuses, commissions, or site work adjustments.

The Company contributed $30,267 and $27,157 to the plan for the periods ended January 31, 2016 and 2015, respectively.

Note 7 – Commitments, Contingencies and Concentrations

Obligations under operating leases

The Company leases its corporate office, warehouse and production facilities under an operating lease expiring December 31, 2016. The lease is with trusts controlled by two of the majority stockholders. Additionally, the Company guarantees the debt on the building totaling approximately $470,000 at January 31, 2016, which is held directly by those two stockholders. Such debt was fully paid in April 2016. Rent expense for the periods ended January 31, 2016 and 2015 was $189,600, respectively.

Minimum future annual payment (inclusive of maintenance and other operating costs) to the end of the lease term are as follows:

February 1, 2016 - December 31, 2016 $ 173,800

Credit risk concentrations

(i) Cash and cash equivalents

The Company's financial instruments that are exposed to concentration of credit risk consist primarily of cash and accounts receivable. The Company maintains its cash in bank deposit accounts with certain United States charted banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk in cash and cash equivalents.

(ii) Accounts receivable

Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a financial loss. The Company deals with creditworthy counterparties to mitigate the risk of financial loss from defaults. The Company monitors the credit risk of customers through credit rating reviews and requires letters of credits as applicable. At January 31, 2016 and 2015 the Company had no significant concentrations of receivables or sales to customers.

Liquidity risk concentrations

Liquidity risk is the risk that the Company will be unable to fulfill its obligations on a timely basis or at a reasonable cost. The Company manages its liquidity risk by monitoring its operating requirements. The Company prepares cash forecasts to ensure it has sufficient funds to fulfill its obligations.

12

PACIFIC INSTRUMENTS, INC.

Notes to Financial Statements

Note 8 – Equity

For the periods ended January 31, 2016 and 2015, common stock is comprised of the following:

	January 31,
	2016	2015
Common stock - no par value
Authorized	200,000	200,000
Issued and outstanding	102,374	132,812

On December 31, 2015, 30,498 shares were purchased for an aggregate purchase price of $2,062,631 using $1,183,753 in cash and $878,878 in notes payable. The notes payable contain a provision for an additional payment upon the sale of the Company, prior to December 31, 2016, based on the purchase price, subject to customary post closing adjustments. The notes payable had an interest rate of 3.0% due December 31, 2016. The note was repaid in April 2016.

Note 9 – Subsequent events

Management has evaluated subsequent events through June 22, 2016, the date on which the financial statements were issued.

Stock purchase agreement

On March 30, 2016, Pacific entered into a stock purchase and sale agreement to sell all of the outstanding shares of the Company to Vishay Precision Group, Inc. On April 6, 2016, the Company completed the sale for an aggregate sale price of approximately $11.0 million, subject to customary post-closing adjustments.

13

EX-99.2

EXHIBIT 99.2

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

Index to Unaudited Pro Forma Condensed Combined Financial Statements

	Page Number
Vishay Precision Group, Inc. and Subsidiaries Unaudited Pro Forma Condensed Combined Financial Statements	2
Unaudited Pro Forma Condensed Combined Balance Sheet	3
Unaudited Pro Forma Condensed Combined Statement of Operations	5
Notes to Unaudited Pro Forma Condensed Combined Financial Statements	6

1

Vishay Precision Group, Inc. and Subsidiaries

Unaudited Pro Forma Condensed Combined Financial Statements

The unaudited pro forma condensed combined balance sheet as of December 31, 2015, has been prepared assuming Vishay Precision Group, Inc.'s (the "Company") acquisition of all of the outstanding stock of Pacific Instruments, Inc. ("Pacific") had been consummated on December 31, 2015. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2015 is presented assuming the Company's acquisition of Pacific had occurred on January 1, 2015.

The unaudited pro forma condensed combined financial statements are based upon the historical financial statements of the Company and Pacific, as well as publicly available information, and certain assumptions which the Company believes to be reasonable which are detailed in the "Notes to Unaudited Pro Forma Condensed Combined Financial Statements" below. These statements were prepared using the acquisition method of accounting under accounting principles generally accepted in the United States of America ("U.S. GAAP"), which are subject to change and interpretation. The Company has been treated as the acquirer in the acquisition for accounting purposes. Acquisition accounting is dependent upon certain valuations and other studies that have yet to be finalized, and accordingly, the adjustments to record the assets acquired and liabilities assumed at fair value reflect the Company's best estimate and are subject to change once the detailed analyses are completed. These adjustments may be material.

The unaudited pro forma condensed combined financial statements do not purport to represent what the Company's financial position or results of operations would have been assuming completion of the Company's acquisition of Pacific, nor do they purport to project the Company's financial position or results of operations at any future date or for any future period.

The unaudited pro forma condensed combined financial statements should be read in conjunction with:

a) Notes to Unaudited Pro Forma Condensed Combined Financial Statements;

b) the Company's Form 10-K for the year ended December 31, 2015, filed on March 9, 2016; and

c) the Company's Form 8-K filed on April 7, 2016.

2

Vishay Precision Group, Inc. and Subsidiaries

Unaudited Pro Forma Condensed Combined Balance Sheet

(In thousands)

	Pacific Instruments, Inc. (A)		Vishay Precision Group, Inc. (B)		Pro Forma Adjustments			F/N	Pro Forma
Assets
Current assets:
Cash and cash equivalents	$	1,744	$	62,641	$	(7,470	)	(C) (D)	$	56,915
Accounts receivable, net	795		35,553		—				36,348
Inventories, net	1,465		56,200		150			(C)	57,815
Prepaid expenses and other current assets	165		7,814		—				7,979
Total current assets	4,169		162,208		(7,320		)		159,057
Property and equipment, net	21		56,631		—				56,652
Goodwill	—		12,603		6,513			(C)	19,116
Intangible assets, net	—		17,683		4,100			(C)	21,783
Other assets	233		15,176		(237		)	(E)	15,172
Total assets	$	4,423	$	264,301	$	3,056			$	271,780

See accompanying notes.

3

Vishay Precision Group, Inc. and Subsidiaries

Unaudited Pro Forma Condensed Combined Balance Sheet

(In thousands)

	Pacific Instruments, Inc. (A)		Vishay Precision Group, Inc. (B)			Pro Forma Adjustments			F/N	Pro Forma
Liabilities and equity
Current liabilities:
Trade accounts payable	$	197	$	8,004		$	—			$	8,201
Payroll and related expenses	—		13,888			—				13,888
Other accrued expenses	528		16,604			—				17,131
Income taxes	—		527			—				527
Notes payable	878		—			(878		)	(D)	—
Current portion of long-term debt	—		2,120			—				2,120
Total current liabilities	1,603		41,143			(878		)		41,868
Long-term debt, less current portion	—		31,591			5,000			(C)	36,591
Deferred income taxes	—		334			—				334
Other liabilities	310		7,195			—				7,505
Accrued pension and other postretirement costs	—		11,597			—				11,597
Total liabilities	1,913		91,860			4,122				97,895
Commitments and contingencies
Equity:
Common stock	555		1,276			(555		)	(D)	1,276
Class B convertible common stock	—		103			—				103
Treasury stock	—		(8,765		)	—				(8,765		)
Capital in excess of par value	—		190,436			—				190,436
Retained earnings	1,955		22,327			(511		)	(D) (E)	23,771
Accumulated other comprehensive loss	—		(33,121		)	—				(33,121		)
Total Vishay Precision Group, Inc. stockholders' equity	2,510		172,256			(1,066		)		173,700
Noncontrolling interests	—		185			—				185
Total equity	2,510		172,441			(1,066		)		173,885
Total liabilities and equity	$	4,423	$	264,301		$	3,056			$	271,780

See accompanying notes.

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Vishay Precision Group, Inc. and Subsidiaries

Unaudited Pro Forma Condensed Combined Statement of Operations

(In thousands, except per share amounts)

	Pacific Instruments, Inc. (A)		Vishay Precision Group, Inc. (B)			Pro Forma Adjustments			F/N	Pro Forma
Net revenues	$	10,726	$	232,178		$	—			$	242,904
Costs of products sold	3,545		147,949			150			(C)	151,644
Gross profit	7,181		84,229			(150		)		91,260
Selling, general, and administrative expenses	3,137		71,282			91			(D) (E)	74,510
Acquisition costs	—		185			—				185
Impairment of goodwill and indefinite-lived intangibles	—		4,942			—				4,942
Restructuring costs	—		4,461			—				4,461
Operating income	4,044		3,359			(241		)		7,162
Other income (expense):
Interest expense	—		(771		)	(188		)	(F)	(959		)
Other	—		(2,082		)	—				(2,082		)
Other (expense) income - net	—		(2,853		)	(188		)		(3,041		)
Income before taxes	4,044		506			(429		)		4,121
Income tax expense	1,539		13,500			(1,365		)	(G)	13,674
Net (loss) earnings	2,505		(12,994		)	936				(9,553		)
Less: net earnings attributable to noncontrolling interests	—		14			—				14
Net (loss) earnings attributable to VPG stockholders	$	2,505	$	(13,008	)	$	936			$	(9,567	)
Basic loss per share attributable to VPG stockholders			$	(0.96	)					$	(0.71	)
Diluted loss per share attributable to VPG stockholders			$	(0.96	)					$	(0.71	)
Weighted average shares outstanding - basic			13,485							13,485
Weighted average shares outstanding - diluted			13,485							13,485

See accompanying notes.

5

Vishay Precision Group, Inc. and Subsidiaries

Notes to Unaudited Pro Forma Condensed Combined Financial Statements

Note 1 Description of the Transaction

On April 6, 2016, the Company completed the purchase of Pacific. The aggregate purchase price of approximately $10.7 million, subject to working capital and other adjustments, was financed using a combination of cash on hand as well as borrowings under the Company's credit agreement.

Note 2 Basis of Presentation

The unaudited pro forma condensed combined financial statements have been compiled from underlying financial statements prepared in accordance with U.S. GAAP and reflects the acquisition of Pacific using the acquisition method of accounting under existing U.S. GAAP standards. The fair value of the assets and liabilities of Pacific reflect the Company's best estimate and are subject to change once detailed analyses are completed. These adjustments may be material.

The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. The excess of the purchase price over the estimated fair value of identifiable assets and liabilities of Pacific as of the effective date of the acquisition will be allocated to goodwill. The Company defines fair value in accordance with U.S. GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The preliminary purchase price allocation is subject to finalizing the Company's analysis of the fair value of Pacific's assets and liabilities as of the effective date of the Pacific acquisition and will be adjusted upon completion of the valuation. The use of different estimates could yield materially different results.

The unaudited pro forma condensed combined financial statements are not intended to reflect the financial position or results of operations which would have actually resulted had the acquisition been effected on the dates indicated. Further, the results of operations are not necessarily indicative of the results of operations that may be obtained in the future.

Note 3 Summary of Significant Accounting Policies

The unaudited pro forma condensed combined financial statements have been compiled on a basis consistent with the Company's accounting policies.

Note 4 Pro Forma Adjustments

The following adjustments have been made to the unaudited pro forma condensed combined financial statements related to the Pacific Acquisition:

Notes to Unaudited Pro Forma Condensed Combined Balance Sheet as of December 31, 2015

(A) To reflect the historical balance sheet of Pacific as of January 31, 2016. Due to the difference in the fiscal year ends of Pacific and the Company, the January 31, 2016 balance sheet was utilized for purposes of the pro forma.

(B)    To reflect the historical balance sheet of the Company as of December 31, 2015.

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Vishay Precision Group, Inc. and Subsidiaries

Notes to Unaudited Pro Forma Condensed Combined Financial Statements

(C) To record consideration of $10.7 million for the purchase of Pacific, which was financed through a combination of $5.7 million of cash on hand and $5.0 million in borrowings under the Company's second amended and restated credit facility. These amounts are determined based upon certain valuations and studies that have yet to be finalized, and accordingly, the assets acquired and liabilities assumed as detailed below are subject to adjustments once the detailed analyses are completed. The preliminary estimated fair values of the Pacific assets and liabilities are allocated as follows:

Description	Amount (in thousands)
Accounts receivable	$	795
Inventories	1,465
Prepaid expenses and other assets	166
Trade accounts payable	(197		)
Other accrued expenses	(528		)
Total working capital	1,701
Inventory step-up to fair value	150
Property and equipment	21
Intangible assets	4,100
Other assets	233
Deferred income taxes	(1,681		)
Other liabilities	(310		)
Goodwill	6,513
	$	10,727

Based on the preliminary purchase price allocation for purposes of these pro formas, the Company allocated $4,100 of the purchase price to intangible assets based on historical acquisition allocation results. The Company expects to have patents and acquired technology, non-competition agreements, customer relationship and trade names and the Company estimated a weighted average life of 18 years when estimating the amortization expense in the pro-forma adjustment. The allocation to the intangible assets and the life of the assets are subject to change upon completion of the valuation.

(D) To eliminate assets and liabilities not acquired, including $1,744 of cash and cash equivalents, $878 of notes payable, and Pacific equity.

(E) To record a net reduction in deferred tax assets consisting of deferred tax liabilities associated with the fair value of Pacific assets and liabilities (C) offset by a reduction in the Company's valuation allowance.

Notes to Unaudited Pro Forma Condensed Combined Statement of Operations for the year ended December 31, 2015

(A) To reflect the historical statement of operations of Pacific for the twelve months ended January 31, 2016.

(B)    To reflect the historical statement of operations of the Company for the twelve months ended December 31, 2015.

(C)    To record inventory step-up amortization, based on inventory turning approximately twice per year.

(D) To record one year of amortization expense on the intangible assets of $223. Amortization expense is recorded on a straight-line basis.

(E) To eliminate acquisition costs of $132. Acquisition costs were included within selling, general and administrative expenses for the twelve months ended December 31, 2015.

(F) To record interest expense at a rate of 3.75% on the debt incurred to finance the acquisition. The impact of a 1/8% interest rate change is not material.

7

Vishay Precision Group, Inc. and Subsidiaries

Notes to Unaudited Pro Forma Condensed Combined Financial Statements

(G) To record the tax effect of Pacific being part of the Company's U.S. group. Since the Company established a valuation allowance for all U.S. deferred tax assets in fiscal year 2015, most of the Pacific stand alone tax expense would not be recorded if Pacific was part of the Company's U.S. group in 2015.

8