10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended          July 3, 2021

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 1-34679

VISHAY PRECISION GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	27-0986328
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification Number)
3 Great Valley Parkway, Suite 150
Malvern, PA, 19355	484-321-5300
(Address of Principal Executive Offices) (Zip Code)	(Registrant’s Telephone Number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.10 par value	VPG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ý Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files. ý Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ý No

As of August 10, 2021, the registrant had 12,602,755 shares of its common stock and 1,022,887 shares of its Class B convertible common stock outstanding.

VISHAY PRECISION GROUP, INC.

FORM 10-Q

July 3, 2021

CONTENTS

		Page Number
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Condensed Balance Sheets – July 3, 2021 (Unaudited) and December 31, 2020	3
	Consolidated Condensed Statements of Operations (Unaudited) – Fiscal Quarters Ended July 3, 2021 and June 27, 2020	5
	Consolidated Condensed Statements of Operations (Unaudited) – Six Fiscal Months Ended July 3, 2021 and June 27, 2020	6
	Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) – Fiscal Quarters Ended July 3, 2021 and June 27, 2020	7
	Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) – Six Fiscal Months Ended July 3, 2021 and June 27, 2020	8
	Consolidated Condensed Statements of Cash Flows (Unaudited) –Six Fiscal Months Ended July 3, 2021 and June 27, 2020	9
	Consolidated Condensed Statements of Equity (Unaudited) – Fiscal Quarters Ended July 3, 2021 and June 27, 2020	10
	Consolidated Condensed Statements of Equity (Unaudited) – Six Fiscal Months Ended July 3, 2021 and June 27, 2020	11
	Notes to Unaudited Consolidated Condensed Financial Statements	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	42
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44
	SIGNATURES	45

-2-

PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

VISHAY PRECISION GROUP, INC. Consolidated Condensed Balance Sheets (In thousands)
	July 3, 2021		December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	73,456	$	98,438
Accounts receivable, net	51,818		45,339
Inventories:
Raw materials	25,858		21,894
Work in process	27,560		21,534
Finished goods	24,060		18,920
Inventories, net	77,478		62,348
Prepaid expenses and other current assets	15,698		15,761
Total current assets	218,450		221,886
Property and equipment:
Land	4,269		4,282
Buildings and improvements	68,118		67,581
Machinery and equipment	118,543		115,717
Software	9,431		10,026
Construction in progress	3,807		6,341
Accumulated depreciation	(127,611)		(128,931)
Property and equipment, net	76,557		75,016
Goodwill	45,732		31,105
Intangible assets, net	54,474		32,039
Operating lease right-of-use assets	25,451		21,788
Other assets	19,633		20,053
Total assets	$	440,297	$	401,887

Continues on the following page.

-3-

VISHAY PRECISION GROUP, INC. Consolidated Condensed Balance Sheets (In thousands)
	July 3, 2021		December 31, 2020
Liabilities and equity
Current liabilities:
Trade accounts payable	$	11,061	$	10,487
Payroll and related expenses	16,818		17,595
Other accrued expenses	18,138		13,843
Income taxes	969		1,593
Current portion of operating lease liabilities	4,445		4,011
Current portion of long-term debt	—		18
Total current liabilities	51,431		47,547
Long-term debt, less current portion	60,670		40,626
Deferred income taxes	8,345		3,403
Operating lease liabilities	22,346		19,504
Other liabilities	15,747		16,263
Accrued pension and other postretirement costs	15,840		16,687
Total liabilities	174,379		144,030
Commitments and contingencies
Equity:
Common stock	1,322		1,317
Class B convertible common stock	103		103
Treasury stock	(8,765)		(8,765)
Capital in excess of par value	197,856		197,764
Retained earnings	108,956		100,075
Accumulated other comprehensive loss	(33,546)		(32,671)
Total Vishay Precision Group, Inc. stockholders' equity	265,926		257,823
Noncontrolling interests	(8)		34
Total equity	265,918		257,857
Total liabilities and equity	$	440,297	$	401,887

See accompanying notes.

-4-

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Operations

(Unaudited - In thousands, except per share amounts)

	Fiscal quarter ended
	July 3, 2021		June 27, 2020
Net revenues	$	75,339	$	59,146
Costs of products sold	45,541		36,036
Gross profit	29,798		23,110
Selling, general, and administrative expenses	22,453		18,640
Acquisition costs	1,198		—
Impairment of goodwill and indefinite-lived intangibles	1,223		—
Restructuring costs	—		499
Operating income	4,924		3,971
Other income (expense):
Interest expense	(273)		(267)
Other	(326)		(1,273)
Other income (expense)	(599)		(1,540)
Income before taxes	4,325		2,431
Income tax expense	262		684
Net earnings	4,063		1,747
Less: net earnings (loss) attributable to noncontrolling interests	143		(12)
Net earnings attributable to VPG stockholders	$	3,920	$	1,759
Basic earnings per share attributable to VPG stockholders	$	0.29	$	0.13
Diluted earnings per share attributable to VPG stockholders	$	0.29	$	0.13
Weighted average shares outstanding - basic	13,618		13,571
Weighted average shares outstanding - diluted	13,646		13,609

See accompanying notes.

-5-

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Operations

(Unaudited - In thousands, except per share amounts)

	Six fiscal months ended
	July 3, 2021		June 27, 2020
Net revenues	$	145,928	$	126,842
Costs of products sold	87,508		78,667
Gross profit	58,420		48,175
Selling, general, and administrative expenses	44,636		38,931
Acquisition costs	1,198		—
Impairment of goodwill and indefinite-lived intangibles	1,223		—
Restructuring costs	—		629
Operating income	11,363		8,615
Other income (expense):
Interest expense	(578)		(728)
Other	247		(590)
Other income (expense)	(331)		(1,318)
Income before taxes	11,032		7,297
Income tax expense	2,026		2,258
Net earnings	9,006		5,039
Less: net earnings (loss) attributable to noncontrolling interests	125		(32)
Net earnings attributable to VPG stockholders	$	8,881	$	5,071
Basic earnings per share attributable to VPG stockholders	$	0.65	$	0.37
Diluted earnings per share attributable to VPG stockholders	$	0.65	$	0.37
Weighted average shares outstanding - basic	13,605		13,556
Weighted average shares outstanding - diluted	13,638		13,598

See accompanying notes.

-6-

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Comprehensive Income (Loss)

(Unaudited - In thousands)

	Fiscal quarter ended
	July 3, 2021		June 27, 2020
Net earnings	$	4,063	$	1,747
Other comprehensive income (loss):
Foreign currency translation adjustment	607		3,271
Pension and other postretirement actuarial items, net of tax	109		(152)
Other comprehensive income	716		3,119
Comprehensive income	4,779		4,866
Less: comprehensive income (loss) attributable to noncontrolling interests	143		(12)
Comprehensive income attributable to VPG stockholders	$	4,636	$	4,878

See accompanying notes.

-7-

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Comprehensive Income (Loss)

(Unaudited - In thousands)

	Six fiscal months ended
	July 3, 2021		June 27, 2020
Net earnings	$	9,006	$	5,039
Other comprehensive income (loss):
Foreign currency translation adjustment	(1,193)		(2,070)
Pension and other postretirement actuarial items, net of tax	318		(311)
Other comprehensive loss	(875)		(2,381)
Comprehensive income	8,131		2,658
Less: comprehensive income (loss) attributable to noncontrolling interests	125		(32)
Comprehensive income attributable to VPG stockholders	$	8,006	$	2,690

See accompanying notes.

-8-

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Cash Flows

(Unaudited - In thousands)

	Six fiscal months ended
	July 3, 2021		June 27, 2020
Operating activities
Net earnings	$	9,006	$	5,039
Adjustments to reconcile net earnings to net cash provided by operating activities:
Impairment of goodwill and indefinite-lived intangibles	1,223		—
Depreciation and amortization	7,108		6,312
Loss from extinguishment of debt	—		30
Loss (gain) on sale of property and equipment	44		(143)
Share-based compensation expense	942		757
Inventory write-offs for obsolescence	1,135		1,302
Deferred income taxes	(1,110)		(146)
Other	(1,820)		25
Net changes in operating assets and liabilities:
Accounts receivable, net	(776)		2,077
Inventories, net	(7,744)		(1,383)
Prepaid expenses and other current assets	314		(632)
Trade accounts payable	1,715		1,228
Other current liabilities	2,341		2,229
Net cash provided by operating activities	12,378		16,695
Investing activities
Capital expenditures	(8,309)		(11,018)
Proceeds from sale of property and equipment	16		378
Purchase of business, net of cash acquired	(47,216)		156
Net cash used in investing activities	(55,509)		(10,484)
Financing activities
Principal payments on long-term debt	(18)		(3,418)
Proceeds from revolving facility	20,000		—
Debt issuance costs	—		(402)
Purchase of noncontrolling interest	—		(253)
(Distributions to) contributions from noncontrolling interests	(167)		117
Payments of employee taxes on certain share-based arrangements	(846)		(813)
Net cash provided by (used in) financing activities	18,969		(4,769)
Effect of exchange rate changes on cash and cash equivalents	(820)		(1,155)
(Decrease) increase in cash and cash equivalents	(24,982)		287
Cash and cash equivalents at beginning of period	98,438		86,910
Cash and cash equivalents at end of period	$	73,456	$	87,197
Supplemental disclosure of investing transactions:
Capital expenditures purchased	$	(6,353)	$	(10,290)
Capital expenditures accrued but not yet paid	$	606	$	455

See accompanying notes.

-9-

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Equity

(Unaudited - In thousands, except share amounts)

	Fiscal quarter ended    July 3, 2021
	Common Stock		Class B Convertible Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total VPG Inc. Stockholders' Equity		Noncontrolling Interests		Total Equity
Balance at April 3, 2021	$	1,320	$	103	$	(8,765)	$	197,282	$	105,036	$	(34,262)	$	260,714	$	(95)	$	260,619
Net earnings	—		—		—		—		3,920		—		3,920		143		4,063
Other comprehensive income	—		—		—		—		—		716		716		—		716
Share-based compensation expense	—		—		—		576		—		—		576		—		576
Restricted stock issuances ( 15,564 shares)	2		—		—		(2)		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		—		(56)		(56)
Balance at July 3, 2021	$	1,322	$	103	$	(8,765)	$	197,856	$	108,956	$	(33,546)	$	265,926	$	(8)	$	265,918

	Fiscal quarter ended    June 27, 2020
	Common Stock		Class B Convertible Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total VPG Inc. Stockholders' Equity		Noncontrolling Interests		Total Equity
Balance at March 28, 2020	$	1,316	$	103	$	(8,765)	$	196,709	$	92,600	$	(43,203)	$	238,760	$	347	$	239,107
Net earnings	—		—		—		—		1,759		—		1,759		(12)		1,747
Other comprehensive loss	—		—		—		—		—		3,119		3,119		—		3,119
Share-based compensation expense	—		—		—		378		—		—		378		—		378
Restricted stock issuances (8,244 shares)	1		—		—		(1)		—		—		—		—		—
Purchase of noncontrolling interest	—		—		—		48		—		—		48		(301)		(253)
Contribution from noncontrolling interests	—		—		—		—		—		—		—		142		142
Balance at June 27, 2020	$	1,317	$	103	$	(8,765)	$	197,134	$	94,359	$	(40,084)	$	244,064	$	176	$	244,240

See accompanying notes.

-10-

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Equity

(Unaudited - In thousands, except share amounts)

	Six Fiscal Months Ended July 3, 2021
	Common Stock		Class B Convertible Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total VPG, Inc. Stockholders' Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2020	$	1,317	$	103	$	(8,765)	$	197,764	$	100,075	$	(32,671)	$	257,823	$	34	$	257,857
Net earnings	—		—		—		—		8,881		—		8,881		125		9,006
Other comprehensive loss	—		—		—		—		—		(875)		(875)		—		(875)
Share-based compensation expense	—		—		—		942		—		—		942		—		942
Restricted stock issuances (50,316 shares)	5		—		—		(850)		—		—		(845)		—		(845)
Distributions to noncontrolling interests	—		—		—		—		—		—		—		(167)		(167)
Balance at July 3, 2021	$	1,322	$	103	$	(8,765)	$	197,856	$	108,956	$	(33,546)	$	265,926	$	(8)	$	265,918

	Six Fiscal Months Ended June 27, 2020
	Common Stock		Class B Convertible Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total VPG, Inc. Stockholders' Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2019	$	1,312	$	103	$	(8,765)	$	197,125	$	89,288	$	(37,703)	$	241,360	$	392	$	241,752
Net earnings	—		—		—		—		5,071		—		5,071		(32)		5,039
Other comprehensive loss	—		—		—		—		—		(2,381)		(2,381)		—		(2,381)
Share-based compensation expense	—		—		—		757		—		—		757		—		757
Restricted stock issuances (52,433 shares)	5		—		—		(796)		—		—		(791)		—		(791)
Purchase of noncontrolling interest	—		—		—		48		—		—		48		(301)		(253)
Contributions from noncontrolling interests	—		—		—		—		—		—		—		117		117
Balance at June 27, 2020	$	1,317	$	103	$	(8,765)	$	197,134	$	94,359	$	(40,084)	$	244,064	$	176	$	244,240

See accompanying notes.

-11-

Vishay Precision Group, Inc.

Notes to Unaudited Consolidated Condensed Financial Statements

Note 1 – Basis of Presentation

Background

Vishay Precision Group, Inc. (“VPG” or the “Company”) is an internationally recognized designer, manufacturer and marketer of sensors, and sensor-based measurement systems, as well as specialty resistors and strain gages based upon the Company's proprietary technology. The Company provides precision products and solutions, many of which are “designed-in” by its customers, specializing in the growing markets of stress, force, weight, pressure, and current measurements.

Interim Financial Statements

These unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial statements and therefore do not include all information and footnotes necessary for the 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 information furnished reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair summary of the financial position, results of operations, and cash flows for the interim periods presented. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020, included in VPG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on March 11, 2021. The results of operations for the fiscal quarter ended July 3, 2021 are not necessarily indicative of the results to be expected for the full year. VPG reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first quarter, which always begins on January 1, and the fourth quarter, which always ends on December 31. The four fiscal quarters in 2021 and 2020 end on the following dates: 

	2021	2020
Quarter 1	April 3,	March 28,
Quarter 2	July 3,	June 27,
Quarter 3	October 2,	September 26,
Quarter 4	December 31,	December 31,

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. ASU 2019-12, "Simplifying the Accounting for Income Taxes". This ASU amends Accounting Standards Codification ("ASC") 740 by removing certain exceptions to the general principles, clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company adopted this standard in the first quarter of 2021. The adoption of this ASU did not impact our financial statements or the related disclosures.

Note 2 – Revenues

Revenue Recognition

The following table disaggregates net revenue by geographic region from contracts with customers based on net revenues generated by subsidiaries within that geographic location (in thousands):

-12-

Note 2 – Revenues (continued)

	Fiscal quarter ended    July 3, 2021								Fiscal quarter ended    June 27, 2020
	Foil Technology Products		Force Sensors		Weighing and Control Systems		Total		Foil Technology Products		Force Sensors		Weighing and Control Systems		Total
United States	$	11,003	$	8,017	$	10,574	$	29,594	$	10,789	$	4,113	$	6,009	$	20,911
United Kingdom	1,102		514		3,681		5,297		587		1,711		1,723		4,021
Other Europe	6,604		5,018		5,204		16,826		6,973		1,434		3,430		11,837
Israel	5,284		261		—		5,545		5,691		93		—		5,784
Asia	9,315		3,406		2,012		14,733		7,745		1,565		1,859		11,169
Canada	—		—		3,344		3,344		—		—		5,424		5,424
Total	$	33,308	$	17,216	$	24,815	$	75,339	$	31,785	$	8,916	$	18,445	$	59,146
	Six Fiscal Months Ended July 3, 2021								Six Fiscal Months Ended June 27, 2020
	Foil Technology Products		Force Sensors		Weighing and Control Systems		Total		Foil Technology Products		Force Sensors		Weighing and Control Systems		Total
United States	$	21,482	$	15,788	$	18,241	$	55,511	$	22,723	$	12,505	$	14,898	$	50,126
United Kingdom	2,000		1,081		7,694		10,775		1,537		3,691		5,435		10,663
Other Europe	13,870		10,493		9,765		34,128		14,686		3,808		7,174		25,668
Israel	11,725		391		—		12,116		8,646		190		—		8,836
Asia	16,942		6,396		3,613		26,951		14,670		3,417		3,530		21,617
Canada	—		—		6,447		6,447		—		—		9,932		9,932
Total	$	66,019	$	34,149	$	45,760	$	145,928	$	62,262	$	23,611	$	40,969	$	126,842

The following table disaggregates net revenue from contracts with customers by market sector (in thousands).

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Test & Measurement	$	16,279	$	14,027	$	30,695	$	28,372
Avionics, Military & Space	5,872		6,727		11,902		12,887
Transportation	11,930		5,188		21,484		13,432
Other Markets	17,489		12,192		35,034		25,320
Industrial Weighing	12,042		8,583		24,047		21,050
General Industrial	4,173		3,623		8,255		7,662
Steel	7,554		8,806		14,511		18,119
Total	$	75,339	$	59,146	$	145,928	$	126,842

Contract Assets & Liabilities

Contract assets are established when revenues are recognized prior to a contractual payment due from the customer. When a payment becomes due based on the contract terms, the Company will reduce the contract asset and record a receivable. Contract liabilities are deferred revenues that are recorded when cash payments are received or due in advance of our performance obligations. Our payment terms vary by the type and location of the products offered. The term between invoicing and when payment is due is not significant.

The outstanding contract assets and liability accounts were as follows (in thousands):

-13-

Note 2 – Revenues (continued)

	Contract Asset		Contract Liability
	Unbilled Revenue		Accrued Customer Advances
Balance at December 31, 2020	$	3,605	$	2,873
Balance at July 3, 2021	4,656		4,525
(Decrease)/increase	$	1,051	$	1,652

The amount of revenue recognized during the six fiscal months ended July 3, 2021 that was included in the contract liability balance at December 31, 2020 was $2.4 million.

Practical Expedients

The Company does not disclose the value of unsatisfied performance obligations for contracts that have a duration of one year or less and for contracts that are substantially complete. The Company treats shipping and handling activities as fulfillment costs.

Note 3 - Acquisition

On June 1, 2021, VPG completed the acquisition of California-based Diversified Technical Systems, Inc. (“DTS”), a manufacturer of data acquisition systems and sensors for product safety and testing, for a purchase price of $47.2 million, subject to customary adjustments. The Company used cash on hand and borrowings under its revolving credit facility to fund the purchase price under the purchase agreement. DTS reports into the Company's Weighing and Control Systems segment. The following table summarizes the provisional fair values assigned to the assets and liabilities of DTS as of June 1, 2021 (in thousands):

	June 1, 2021
Working capital	$	12,999
Property and equipment	1,209
Deferred income tax liability	(6,274)
Intangible assets:
Acquired technology	13,167
Customer relationships	8,135
Trade names	2,393
Total intangible assets	23,695
Fair value of acquired identifiable assets	31,629
Purchase price	$	47,216
Goodwill	$	15,587

The Company utilizes certain valuations and studies to determine the fair value of the tangible and intangible assets acquired. These valuations and studies are currently being analyzed and have yet to be finalized. Accordingly, the assets and liabilities assumed are subject to adjustment once the detailed analysis is completed. The provisional estimated weighted average useful lives for the acquired technology and customer relationships are 15 years. Trade names are treated as indefinite-lived intangible assets. None of the goodwill associated with DTS will be deductible for income tax purposes.

The Company recorded acquisition costs associated with this transaction as follows (in thousands):

	Fiscal quarter ended		Six fiscal months ended
	July 3, 2021		July 3, 2021
Legal fees	$	341	$	341
Appraisal fees	18		18
Other (investment banker and insurance costs)	839		839
	$	1,198	$	1,198

-14-

Note 3 - Acquisition (continued)

Included in the results of the operations of the Company, starting on June 1, 2021, are net revenues of $3.0 million and a net loss of $0.2 million from DTS for the fiscal quarter and six fiscal months ended July 3, 2021. DTS results include amortization of the inventory step-up of $0.9 million and amortization of intangible assets of $0.1 million.

Following is the supplemental consolidated financial results for the Company on an unaudited pro forma basis, as if the DTS acquisition had been consummated on January 1, 2020:

	Fiscal quarter ended		Six fiscal months ended		Fiscal quarter ended		Six fiscal months ended
	June 27, 2020		June 27, 2020		July 3, 2021		July 3, 2021
Pro forma net revenues	$	64,907	$	139,158	80,243		159,164
Pro forma net earnings attributable to VPG stockholders	$	1,629	$	3,658	6,741		13,411
Pro forma basic earnings per share attributable to VPG stockholders	$	0.12	$	0.27	$	0.50	$	0.99
Pro forma diluted earnings per share attributable to VPG stockholders	$	0.12	$	0.27	$	0.49	$	0.98

Note 4 – Goodwill and Other Intangible Assets

The Company tests the goodwill in each of its goodwill reporting units for impairment at least annually, as of the first day of it's fourth quarter, and whenever events or changes in circumstances occur indicating that a possible impairment may have been incurred. Due to updated financial projections, the Company performed a quantitative impairment test for the instrumentation reporting unit during the second quarter of 2021. In estimating the fair value of our instrumentation reporting unit the Company used the income approach.

The results of the quantitative impairment test for the instrumentation reporting unit's goodwill and indefinite-lived trade name indicated an impairment, and in the second quarter of 2021, the Company recognized a non-cash impairment loss of $1.1 million in goodwill and $0.1 million to the indefinite-lived trade name. The impairment was driven mainly by changes in forecasted projections including a slower growth rate in revenues. After considering the impact of the impairment charges, the carrying amount of goodwill and indefinite-lived trade names as of July 3, 2021 was $0.0 million and $0.3 million, respectively.

The change in the carrying amount of goodwill by segment is as follows (in thousands):

	Total		Weighing and Control Systems Segment								Foil Technology Products Segment
			KELK Acquisition		DSI Acquisition		DTS Acquisition		Stress-Tek Acquisition		Pacific Acquisition
Balance at December 31, 2020	$	31,105	$	6,726	$	16,942			$	6,311	$	1,126
Goodwill acquired	15,587						15,587
Impairment charges	(1,126)										(1,126)
Foreign currency translation adjustment	166		180		(14)				—		—
Balance at July 3, 2021	$	45,732	$	6,906	$	16,928	$	15,587	$	6,311	$	—

-15-

Note 4 – Goodwill and Other Intangible Assets (continued)

Intangible assets were as follows (in thousands):

	July 3, 2021		December 31, 2020
Intangible assets subject to amortization
(Definite-lived):
Patents and acquired technology	$	33,069	$	19,804
Customer relationships	34,393		26,061
Trade names	1,697		1,747
Non-competition agreements	11,646		12,259
	80,805		59,871
Accumulated amortization:
Patents and acquired technology	(6,552)		(5,895)
Customer relationships	(14,191)		(13,363)
Trade names	(1,697)		(1,747)
Non-competition agreements	(11,639)		(12,250)
	(34,079)		(33,255)
Net intangible assets subject to amortization	$	46,726	$	26,616
Intangible assets not subject to amortization
(Indefinite-lived):
Trade names	7,748		5,423
	$	54,474	$	32,039

The increase in net intangible assets from December 31, 2020 is due to the acquisition of DTS on June 1, 2021. The Company has preliminarily allocated $21.3 million of the purchase price to definite-lived intangible assets and $2.4 million to indefinite-lived intangible assets.

Amortization expense for the fiscal quarter and six fiscal months ended July 3, 2021 was $0.7 million and $1.4 million, respectively. The DTS intangible assets accounted for $0.1 million of amortization expense for the fiscal quarter and six fiscal months ended July 3, 2021.

Estimated annual amortization expense for the full year of 2021 and each of the next four years, is as follows ( in thousands):

2021	$	3,280
2022	3,871
2023	3,763
2024	3,728
2025	3,728

Note 5 – Leases

The Company primarily leases office and manufacturing facilities in addition to vehicles, which have remaining terms of less than one year to eleven years. The Company has no finance leases.

Leases recorded on the balance sheet consist of the following (in thousands):

-16-

Note 5 - Leases (continued)

Leases	July 3, 2021		December 31, 2020
Assets
Operating lease right of use asset	$	25,451	$	21,788
Liabilities
Operating lease - current	$	4,445	$	4,011
Operating lease - non-current	$	22,346	$	19,504

Other information related to lease term and discount rate is as follows:

	July 3, 2021
Operating leases weighted average remaining lease term (in years)	8.49 years
Operating leases weighted average discount rate	3.36	%

The components of lease expense are as follows (in thousands):

	Fiscal quarter ended				Six Fiscal Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Operating lease cost	$	1,258	$	1,139	$	2,439	$	2,013
Short-term lease cost	35		34		68		57
Sublease income	(19)		—		(28)		—
Total net lease cost	$	1,274	$	1,173	$	2,479	$	2,070

Right of use assets obtained in exchange for new operating lease liability during 2021 were $5.9 million. The Company paid $2.4 million and $1.7 million for its operating leases for each of the six fiscal months ended July 3, 2021 and June 27, 2020, which are included in operating cash flows on the consolidated condensed statements of cash flows.

Undiscounted maturities of operating lease payments as of July 3, 2021 are summarized as follows (in thousands):

2021 (excluding the six months ended July 3, 2021)	$	2,596
2022	4,500
2023	3,968
2024	3,555
2025	3,083
Thereafter	12,894
Total future minimum lease payments	$	30,596
Less: amount representing interest	(3,805)
Present value of future minimum lease payments	$	26,791

Note 6 – Income Taxes

VPG calculates the tax provision for interim periods using an estimated annual effective tax rate methodology based on projected full-year pre-tax earnings among the taxing jurisdictions in which we operate with adjustments for discrete items. The effective tax rate for the fiscal quarter ended July 3, 2021 was 6.1% compared to 28.1% for the fiscal quarter ended June 27, 2020, and the effective tax rate for the six fiscal months ended July 3, 2021 was 18.4% compared to 30.9% for the six fiscal months ended June 27, 2020. The tax rate for both periods presented in 2021 is lower than the prior year periods primarily due to the acquisition of DTS, which enabled the Company to reduce its valuation allowance against deferred tax assets, tax rate changes in certain foreign jurisdictions, and changes in the mix of worldwide income.

The Company and its subsidiaries are subject to income taxes imposed by the U.S., various states, and the foreign jurisdictions in which we operate. Each jurisdiction establishes rules that set forth the years which are subject to examination by its tax authorities. While the Company believes the tax positions taken on its tax returns for each jurisdiction are supportable, they

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Note 6 - Income Taxes (continued)

may still be challenged by the jurisdiction's tax authorities. In anticipation of such challenges, the Company has established reserves for tax-related uncertainties. These liabilities are based on the Company’s best estimate of the potential tax exposures in each respective jurisdiction. It may take a number of years for a final tax liability in a jurisdiction to be determined, particularly in the event of an audit. If an uncertain matter is determined favorably, there could be a reduction in the Company’s tax expense. An unfavorable determination could increase tax expense and could require a cash payment, including interest and penalties.

Note 7 – Long-Term Debt

Long-term debt consists of the following (in thousands):

	July 3, 2021		December 31, 2020
2020 Credit Agreement - Revolving Facility	$	61,000	$	41,000
Other debt	—		18
Deferred financing costs	(330)		(374)
Total long-term debt	60,670		40,644
Less: current portion	—		18
Long-term debt, less current portion	$	60,670	$	40,626

Note 8 – Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, consist of the following (in thousands):

	Foreign Currency Translation Adjustment		Pension and Other Postretirement Actuarial Items		Total
Balance at January 1, 2021	$	(25,591)	$	(7,080)	$	(32,671)
Other comprehensive loss before reclassifications	(1,193)		—		(1,193)
Amounts reclassified from accumulated other comprehensive income (loss)	—		318		318
Balance at July 3, 2021	$	(26,784)	$	(6,762)	$	(33,546)

	Foreign Currency Translation Adjustment		Pension and Other Postretirement Actuarial Items		Total
Balance at January 1, 2020	$	(30,761)	$	(6,942)	$	(37,703)
Other comprehensive loss before reclassifications	(2,070)		—		(2,070)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(311)		(311)
Balance at June 27, 2020	$	(32,831)	$	(7,253)	$	(40,084)

Reclassifications of pension and other postretirement actuarial items out of accumulated other comprehensive income (loss) are included in the computation of net periodic benefit cost (see Note 9).

Note 9 – Pension and Other Postretirement Benefits

Employees of VPG participate in various defined benefit pension and other postretirement benefit ("OPEB") plans. The following table sets forth the components of the net periodic benefit cost for the Company's defined benefit pension and OPEB plans (in thousands):

-18-

Note 9 - Pension and Other Postretirement Benefits ( continued)

	Fiscal quarter ended    July 3, 2021				Fiscal quarter ended    June 27, 2020
	Pension Plans		OPEB Plans		Pension Plans		OPEB Plans
Net service cost	$	96	$	9	$	99	$	31
Interest cost	103		17		127		33
Expected return on plan assets	(97)		—		(109)		—
Amortization of actuarial losses	102		5		76		34
Net periodic benefit cost	$	204	$	31	$	193	$	98

	Six fiscal months ended July 3, 2021				Six fiscal months ended June 27, 2020
	Pension Plans		OPEB Plans		Pension Plans		OPEB Plans
Net service cost	$	193	$	18	$	198	$	62
Interest cost	206		34		256		66
Expected return on plan assets	(194)		—		(220)		—
Amortization of actuarial losses	204		10		153		68
Net periodic benefit cost	$	409	$	62	$	387	$	196

Note 10 – Share-Based Compensation

The Amended and Restated Vishay Precision Group, Inc. 2010 Stock Incentive Program (as amended and restated, the “Plan”) permits the issuance of up to 1,000,000 shares of common stock. At July 3, 2021, the Company had reserved 320,654 shares of common stock for future grants of equity awards (restricted stock, unrestricted stock, restricted stock units ("RSUs"), or stock options) pursuant to the Plan. If any outstanding awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for re-grant to others.

On March 4, 2021 and in accordance with their respective employment agreements, VPG’s three executive officers were granted annual equity awards in the form of RSUs, of which 50% are performance-based. The awards have an aggregate target grant-date fair value of $1.7 million and were comprised of 52,486 RSUs. Fifty percent of these awards will vest on January 1, 2024, subject to the executives’ continued employment. The performance-based portion of the RSUs will also vest on January 1, 2024, subject to the executives' continued employment and the satisfaction of certain performance objectives relating to three-year cumulative “adjusted free cash flow” and "net earnings goals", each weighted equally.

On March 8, 2021, certain non-executive VPG employees were granted annual equity awards in the form of RSUs. Certain employees received awards, of which 75% are performance-based and certain employees received awards of which 50% are performance-based. The awards have an aggregate grant-date fair value of $0.6 million and were comprised of 17,793 RSUs. The non-performance portion of these awards (twenty-five percent for certain employees and fifty percent for certain employees) will vest on January 1, 2024 subject to the employees' continued employment. The performance-based portion of the RSUs will also vest on January 1, 2024, subject to the employees' continued employment and the satisfaction of certain performance objectives relating to three-year cumulative earnings and cash flow goals, each weighted equally.

On May 27, 2021 and in accordance with the Company's 2017 Non-Employee Director Compensation Plan, the Board of Directors approved the issuance of an aggregate of 9,936 RSUs to the independent board members of the Board of Directors and to the non-executive Chairman of the Board of Directors. The awards have an aggregate grant-date fair value of $0.3 million and will vest on the earlier of the 2022 Annual Stockholders Meeting or May 27, 2022, subject to the directors' continued service on the Board of Directors.

Vesting of equity awards is subject to acceleration under certain circumstances.

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Note 10 - Share-Based Compensation (continued)

The amount of compensation cost related to share-based payment transactions is measured based on the grant-date fair value of the equity instruments issued. VPG determines compensation cost for RSUs based on the grant-date fair value of the underlying common stock. The Company recognizes compensation cost for RSUs that are expected to vest and for which performance criteria are expected to be met. The following table summarizes share-based compensation expense recognized (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Restricted stock units	$	576	$	378	$	942	$	757

Note 11 – Segment Information

VPG reports in three product segments: the Foil Technology Products segment, the Force Sensors segment, and the Weighing and Control Systems segment. The Foil Technology Products reporting segment is comprised of the foil resistor and strain gage operating segments. The Force Sensors reporting segment is comprised of transducers, load cells, and modules. The Weighing and Control Systems reporting segment is comprised of complete systems which include load cells and instrumentation for weighing, force control and force measurement for a variety of uses such as process control on-board weighing applications.

VPG evaluates reporting segment performance based on multiple performance measures including third party net revenues, gross profits and operating income, exclusive of certain items. Management believes that evaluating segment performance, excluding items such as restructuring costs, executive severance costs, and other items is meaningful because it provides insight with respect to the intrinsic operating results of VPG. The following table sets forth reporting segment information (in thousands):

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Note 11 - Segment Information (continued)

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net revenues:
Foil Technology Products	$	33,308	$	31,785	$	66,019	$	62,262
Force Sensors	17,216		8,916		34,149		23,611
Weighing and Control Systems	24,815		18,445		45,760		40,969
Total	$	75,339	$	59,146	$	145,928	$	126,842
Gross profit:
Foil Technology Products	$	12,942	$	13,286	$	25,981	$	24,487
Force Sensors	5,969		1,038		12,008		4,610
Weighing and Control Systems	10,887		8,786		20,431		19,078
Total	$	29,798	$	23,110	$	58,420	$	48,175
Reconciliation of segment operating income to consolidated results:
Foil Technology Products	$	7,219	$	8,070	$	14,052	$	13,454
Force Sensors	3,474		(1,013)		6,977		191
Weighing and Control Systems	4,595		4,019		8,419		8,687
Unallocated G&A expenses	(7,943)		(6,606)		(15,664)		(13,088)
Acquisition costs	(1,198)		—		(1,198)		—
Impairment of goodwill and indefinite-lived intangibles	(1,223)		—		(1,223)		—
Restructuring costs	—		(499)		—		(629)
Operating income	$	4,924	$	3,971	$	11,363	$	8,615
Acquisition costs:
Weighing and Control Systems	(1,198)		—		(1,198)		—
	$	(1,198)	$	—	$	(1,198)	$	—
Impairment of goodwill and indefinite-lived intangibles:
Foil Technology Products	$	(1,223)	$	—	$	(1,223)	$	—
	$	(1,223)	$	—	$	(1,223)	$	—
Restructuring costs:
Foil Technology Products	$	—	$	(341)	$	—	$	(443)
Force Sensors	$	—	$	(80)	$	—	$	(108)
Corporate/Other	—		(78)		—		(78)
	$	—	$	(499)	$	—	$	(629)

Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. The table below summarizes intersegment sales (in thousands):

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Note 11 - Segment Information (continued)

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Foil Technology Products to Force Sensors and Weighing and Control Systems	$	959	$	868	$	1,920	$	1,592
Weighing and Control Systems to Foil Technology Products and Force Sensors	$	150	$	124	$	264	$	211

Note 12 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share attributable to VPG stockholders (in thousands, except earnings per share):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Numerator:
Numerator for basic earnings per share:
Net earnings attributable to VPG stockholders	$	3,920	$	1,759	$	8,881	$	5,071
Denominator:
Denominator for basic earnings per share:
Weighted average shares	13,618		13,571		13,605		13,556
Effect of dilutive securities:
Restricted stock units	28		38		33		42
Dilutive potential common shares	28		38		33		42
Denominator for diluted earnings per share:
Adjusted weighted average shares	13,646		13,609		13,638		13,598
Basic earnings per share attributable to VPG stockholders	$	0.29	$	0.13	$	0.65	$	0.37
Diluted earnings per share attributable to VPG stockholders	$	0.29	$	0.13	$	0.65	$	0.37

-22-

Note 13 – Additional Financial Statement Information

Other Income (Expense) Other

The caption “Other” on the consolidated condensed statements of operations consists of the following (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Foreign exchange (loss) gain	$	(174)	$	(1,185)	$	561	$	(285)
Interest income	20		109		65		176
Pension expense	(143)		(164)		(280)		(323)
Other	(29)		(33)		(99)		(158)
	$	(326)	$	(1,273)	$	247	$	(590)

Foreign currency exchange gains and losses represent the impact of changes in foreign currency exchange rates. For the fiscal quarter ended July 3, 2021, the change in foreign exchange gains and losses during the period, as compared to the prior year period, is largely due to exposure to currency fluctuations with the Canadian dollar, Japanese yen, the Israeli shekel and the British pound.

For the six fiscal months ended July 3, 2021, the change in foreign exchange gains and losses during the period as compared to the prior year period is largely due to exposure to currency fluctuations with the Canadian dollar, the Israeli shekel, the Japanese yen, the euro and the British pound

Note 14 – Fair Value Measurements

ASC Topic 820, Fair Value Measurement, establishes a valuation hierarchy of the inputs used to measure fair value. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs that reflect the Company’s own assumptions.

An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis (in thousands):

			Fair value measurements at reporting date using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
July 3, 2021
Assets
Assets held in rabbi trusts	$	5,995	$	80	$	5,915	$	—
December 31, 2020
Assets
Assets held in rabbi trusts	$	5,601	$	61	$	5,540	$	—

The Company maintains non-qualified trusts, referred to as “rabbi” trusts, to fund payments under deferred compensation and non-qualified pension plans. Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale money market funds at July 3, 2021 and December 31, 2020, and company-owned life insurance assets. The marketable securities held

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Note 14 - Fair Value Measurements (continued)

in the rabbi trusts are valued using quoted market prices on the last business day of the period. The company-owned life insurance assets are valued in consultation with the Company’s insurance brokers using the value of underlying assets of the insurance contracts. The fair value measurement of the marketable securities held in the rabbi trust is considered a Level 1 measurement and the measurement of the company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy.

The fair value of the long-term debt, excluding capitalized deferred financing costs, at July 3, 2021 and December 31, 2020 approximates its carrying value as the revolving debt is reset on a monthly basis based on current market rates, plus a base rate as specified in the debt agreement. The fair value of long-term debt is considered a Level 2 measurement within the fair value hierarchy. The Company’s financial instruments include cash and cash equivalents, accounts receivable, short-term notes payable, and accounts payable. The carrying amounts for these financial instruments reported in the consolidated condensed balance sheets approximate their fair values.

Note 15 – Restructuring Costs

Restructuring costs reflect the cost reduction programs implemented by the Company. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements for accrual are met. Because these costs are recorded based upon estimates, actual expenditures for the restructuring activities may differ from the initially recorded costs. If the initial estimates are too low or too high, the Company could be required to either record additional expense in future periods or to reverse part of the previously recorded charges.

The Company recorded $0.0 million and $0.5 million of restructuring costs during the fiscal quarter ended July 3, 2021 and June 27, 2020, respectively and $0.0 million and $0.6 million of restructuring costs during the six fiscal months ended July 3, 2021 and June 27, 2020, respectively. Restructuring costs were comprised primarily of employee terminations costs, including severance and statutory retirement allowances, and were incurred in connections with various cost reduction programs.

The following table summarizes recent activity related to all restructuring programs. The accrued restructuring liability balance as of July 3, 2021 and December 31, 2020, respectively, is included in Other accrued expenses in the accompanying consolidated condensed balance sheets (in thousands):

Balance at December 31, 2020	$	63
Cash payments	(51)
Balance at July 3, 2021	$	12

-24-

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

VPG is an internationally recognized designer, manufacturer and marketer of sensors, and sensor-based measurement systems, as well as specialty resistors and strain gages based upon our proprietary technology. We provide precision products and solutions, many of which are “designed-in” by our customers, specializing in the growing markets of stress, force, weight, pressure, and current measurements. A significant portion of our products and solutions are primarily based upon our proprietary foil technology and are produced as part of our vertically integrated structure. We believe this strategy results in higher quality, more cost effective and focused solutions for our customers. Our products are marketed under a variety of brand names that we believe are characterized as having a very high level of precision and quality. Our global operations enable us to produce a wide variety of products in strategically effective geographic locations that also optimize our resources for specific technologies, sensors, assemblies, and systems.

The Company also has a long heritage of innovation in precision foil resistors, foil strain gages, and sensors that convert mechanical inputs into an electronic signal for display, processing, interpretation, or control by our instrumentation and systems products. Our advanced sensor product line continues this heritage by offering high-quality foil strain gages produced in a proprietary, highly automated environment. Precision sensors are essential to the accurate measurement, resolution and display of force, weight, pressure, torque, tilt, motion, or acceleration, especially in the legal-for-trade, commercial, and industrial marketplaces. This expertise served as a foundation for our expansion into strain gage instrumentation, load cells, transducers, weighing modules, and complete systems for process control and on-board weighing. Although our products are typically used in the industrial market, our advanced sensors have been used in a consumer electronics product and are being evaluated for other non-industrial applications.

The precision sensor market is integral to the development of intelligent products across a wide variety of end markets upon which we focus, including medical, agricultural, transportation, industrial, avionics, military, and space applications. We believe that as original equipment manufacturers (“OEMs”) continue a drive to make products “smarter,” they will integrate more sensors and related systems into their solutions to link the mechanical/physical world with digital control and/or response. We believe this offers a substantial growth opportunity for our products and expertise.

Impact of COVID-19 on Our Business

As of August 10, 2021, all of the Company’s facilities are open and operational. The Company is continuing to maintain COVID-19 best practices it believes are warranted with respect to working conditions. Nonetheless, given the ongoing uncertainty concerning the magnitude and duration of the COVID-19 pandemic around the world, any ongoing economic disruption may adversely affect the Company’s business and financial results.

Overview of Financial Results

VPG reports in three product segments: the Foil Technology Products segment, the Force Sensors segment, and the Weighing and Control Systems segment. The Foil Technology Products reporting segment is comprised of the foil resistor and strain gage operating segments. The Force Sensors reporting segment is comprised of transducers, load cells, and modules. The Weighing and Control Systems reporting segment is comprised of complete systems which include load cells and instrumentation for weighing, force control and force measurement for a variety of uses such as process control on-board weighing applications. On June 1, 2021, we completed the acquisition of California-based Diversified Technical Systems, Inc. (“DTS”), a manufacturer of data acquisition systems and sensors for product safety and testing. DTS reports into the Company's Weighing and Control Systems segment.

Net revenues for the fiscal quarter ended July 3, 2021 were $75.3 million versus $59.1 million for the comparable prior year period. Net earnings attributable to VPG stockholders for the fiscal quarter ended July 3, 2021 were $3.9 million, or $0.29 per diluted share, versus $1.8 million, or $0.13 per diluted share, for the comparable prior year period.

Net revenues for the six fiscal months ended July 3, 2021 were $145.9 million versus $126.8 million for the comparable prior year period. Net earnings attributable to VPG stockholders for the six fiscal months ended July 3, 2021 were $8.9 million, or $0.65 per diluted share, versus $5.1 million, or $0.37 per diluted share, for the comparable prior year period.

The results of operations for the fiscal quarter ended July 3, 2021 and June 27, 2020 include items affecting comparability as listed in the reconciliations below. The reconciliations below include certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA and adjusted EBITDA. These non-GAAP measures should not be viewed as an alternative to GAAP measures of

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performance. Non-GAAP measures such as adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA and adjusted EBITDA do not have uniform definitions. These measures, as calculated by VPG, may not be comparable to similarly titled measures used by other companies. Management believes that these non-GAAP measures are useful to investors because each presents what management views as our core operating performance for the relevant period. The adjustments to the applicable GAAP measures relate to occurrences or events that are outside of our core operations, and management believes that the use of these non-GAAP measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods. In addition, the Company has historically provided these or similar non-GAAP measures and understands that some investors and financial analysts find this information helpful in analyzing the Company’s performance and in comparing the Company’s financial performance to that of its peer companies and competitors. Management believes that the Company’s non-GAAP measures are regarded as supplemental to its GAAP financial results. Beginning in the fourth quarter of 2020, the Company determined to include the impact of foreign currency exchange rates on its assets and liabilities in certain of its non-GAAP measures for its current and comparative periods.

	Gross Profit						Operating Income						Net Earnings Attributable to VPG Stockholders				Diluted Earnings Per share
Three months ended	July 3, 2021			June 27, 2020			July 3, 2021			June 27, 2020			July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
As reported - GAAP	$	29,798		$	23,110		$	4,924		$	3,971		$	3,920	$	1,759	$	0.29	$	0.13
As reported - GAAP Margins	39.6		%	39.1		%	6.5		%	6.7		%
Acquisition purchase accounting adjustments (a)	919			41			919			41			919		41		0.07		—
Acquisition costs (b)				—			1,198			—			1,198		—		0.09		—
COVID-19 impact (b)	(26)			558			(242)			443			(242)		443		(0.02)		0.03
Start-up costs (c)	1,159			—			1,159			—			1,159		—		0.08		—
Impairment of goodwill and indefinite-lived intangibles				—			1,223			—			1,223		—		0.09		—
Restructuring costs				—			—			499			—		499		—		0.04
Foreign exchange (gain)/loss (d)				—						—			174		1,185		0.01		0.09
Less: Tax effect of reconciling items and discrete tax items				—						—			1,639		340		0.12		0.02
As Adjusted - Non GAAP	$	31,850		$	23,709		$	9,181		$	4,954		$	6,712	$	3,587	$	0.49	$	0.27
As Adjusted - Non GAAP Margins	42.3		%	40.1		%	12.2		%	8.4		%

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	Gross Profit						Operating Income						Net Earnings Attributable to VPG Stockholders				Diluted Earnings Per share
Six fiscal months ended	July 3, 2021			June 27, 2020			July 3, 2021			June 27, 2020			July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
As reported - GAAP	58,420			48,175			11,363			8,615			$	8,881	$	5,071	$	0.65	$	0.37
As reported - GAAP Margins	40.0		%	38.0		%	7.8		%	6.8		%
Acquisition purchase accounting adjustments (a)	930			556			930			556			930		556		0.07		0.04
Acquisition costs (b)				—			1,198			—			1,198		—		0.09		—
COVID-19 impact (b)	(177)			558			(685)			443			(685)		443		(0.05)		0.03
Start-up costs (c)	1,288			—			1,288			—			1,288		—		0.09		—
Impairment of goodwill and indefinite-lived intangibles	—			—			1,223			—			1,223		—		0.09		—
Restructuring costs							—			629			—		629		—		0.05
Foreign exchange (gain)/loss (d)													(561)		285		(0.04)		0.02
Less: Tax effect of reconciling items and discrete tax items													1,406		147		0.10		0.01
As Adjusted - Non GAAP	$	60,461		$	49,289		$	15,317		$	10,243		$	10,868	$	6,837	$	0.80	$	0.50
As Adjusted - Non GAAP Margins	41.4		%	38.9		%	10.5		%	8.1		%

	Three months ended						Six fiscal months ended
	July 3, 2021			June 27, 2020			July 3, 2021			June 27, 2020
Net earnings attributable to VPG stockholders	$	3,920		$	1,759		$	8,881		$	5,071
Interest Expense	273			267			578			728
Income tax expense	262			684			2,026			2,258
Depreciation	2,829			2,509			5,736			5,080
Amortization	757			604			1,372			1,232
EBITDA	8,041			$	5,823		18,593			$	14,369
EBITDA MARGIN	10.7		%	9.8		%	12.7		%	11.3		%
Impairment of goodwill and indefinite-lived intangibles	1,223			—			1,223			—
Acquisition purchase accounting adjustments (a)	919			41			930			556
Acquisition costs	1,198			—			$	1,198		$	—
Restructuring costs	—			499			—			629
COVID-19 impact (b)	(242)			443			(685)			443
Start-up costs (c)	1,159			—			1,288			—
Foreign exchange (gain)/loss (d)	174			1,185			(561)			285
ADJUSTED EBITDA	$	12,472		$	7,991		$	21,986		$	16,282
ADJUSTED EBITDA MARGIN	16.6		%	13.5		%	15.1		%	12.8		%

(a)     Acquisition purchase accounting adjustments include fair market value adjustments associated with inventory recorded as a component of costs of products sold.

(b)    COVID-19 impact is the net impact to the Company of costs incurred as a result of the COVID-19 pandemic, net of government subsidies received.

(c)    Start-up costs in 2021 are associated with the ramp up of our new manufacturing facility in Israel.

(d)    Impact of foreign currency exchange rates on assets and liabilities. Note that impacts in prior year have been added to this table.

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Financial Metrics

We utilize several financial measures and metrics to evaluate performance and assess the future direction of our business. These key financial measures and metrics include net revenues, gross profit margin, end-of-period backlog, book-to-bill ratio, and inventory turnover.

Gross profit margin is computed as gross profit as a percentage of net revenues. Gross profit is generally net revenues less costs of products sold, but could also include certain other period costs. Gross profit margin is a function of net revenues, but also reflects our cost-cutting programs and our ability to contain fixed costs.

End-of-period backlog is one indicator of potential future sales. We include in our backlog only open orders that have been released by the customer for shipment in the next twelve months. If demand falls below customers’ forecasts, or if customers do not control their inventory effectively, they may cancel or reschedule the shipments that are included in our backlog, in many instances without the payment of any penalty. Therefore, backlog is not necessarily indicative of the results expected for future periods.

Another important indicator of demand in our industry is the book-to-bill ratio, which is the ratio of the amount of product ordered during a period compared with the amount of product shipped during that period. A book-to-bill ratio that is greater than one indicates that revenues may increase in future periods. Conversely, a book-to-bill ratio that is less than one is an indicator of lower demand and may foretell declining sales. The book-to-bill ratio is also impacted by the timing of orders, particularly from our project-based product lines.

We focus on inventory turnover as a measure of how well we manage our inventory. We define inventory turnover for a financial reporting period as our costs of products sold for the four fiscal quarters ending on the last day of the reporting period divided by our average inventory (computed using each quarter-end balance) for this same period. A higher level of inventory turnover reflects more efficient use of our capital.

The quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business. The following tables show net revenues, gross profit margin, end-of-period backlog, book-to-bill ratio, and inventory turnover for our business as a whole and by segment during the five quarters beginning with the second quarter of 2020 through the second quarter of 2021 (dollars in thousands):

	2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter
	2020			2020			2020			2021			2021
Net revenues	$	59,146		$	67,525		$	75,445		$	70,589		$	75,339
Gross profit margin	39.1		%	40.5		%	38.1		%	40.5		%	39.6		%
End-of-period backlog	$	92,900		$	90,800		$	87,600		$	100,700		$	130,900
Book-to-bill ratio	0.95			0.95			0.93			1.21			1.40
Inventory turnover	2.20			2.38			2.86			2.67			2.64

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	2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter
	2020			2020			2020			2021			2021
Foil Technology Products
Net revenues	$	31,785		$	32,906		$	36,477		$	32,711		$	33,308
Gross profit margin	41.8		%	41.1		%	38.4		%	39.9		%	38.9		%
End-of-period backlog	$	47,500		$	48,500		$	43,700		$	48,400		$	60,600
Book-to-bill ratio	0.85			1.01			0.84			1.19			1.37
Inventory turnover	2.58			2.63			3.05			2.72			2.67
Force Sensors
Net revenues	$	8,916		$	13,862		$	16,251		$	16,933		$	17,216
Gross profit margin	11.6		%	30.5		%	29.1		%	35.7		%	34.7		%
End-of-period backlog	$	22,300		$	21,300		$	24,700		$	26,800		$	30,700
Book-to-bill ratio	1.58			0.90			1.18			1.14			1.23
Inventory turnover	2.02			2.28			2.74			2.72			2.57
Weighing and Control Systems
Net revenues	$	18,445		$	20,757		$	22,717		$	20,945		$	24,815
Gross profit margin	47.6		%	46.2		%	44.0		%	45.6		%	43.9		%
End-of-period backlog	$	23,100		$	21,000		$	19,200		$	25,500		$	39,600
Book-to-bill ratio	0.82			0.88			0.88			1.30			1.56
Inventory turnover	1.81			2.13			2.67			2.54			2.64

Net revenues for the second quarter of 2021 increased 6.7% from the first quarter of 2021 mainly due to increased volume in all of the Company's reporting segments. Net revenues increased 27.4% from the second quarter of 2020 with increased volume primarily from the Force Sensors reporting segment and the Weighing and Control Systems segment. The increase in the Weighing and Control Systems reporting segment was aided by the addition of revenues from the acquisition of DTS.

Net revenues in the Foil Technology Products reporting segment increased 1.8% compared to the first quarter of 2021 and increased 4.8% from the second quarter of 2020. Sequentially, the increase in revenue was primarily driven by higher sales of precision foil resistors in the test and measurements market, partially offset by lower revenue to the Avionics, Military and Space market. In addition, the sequential increase in revenue in our Pacific Instrument product line in the Avionics, Military and Space market was partially offset by lower revenue of advanced sensors in our other markets. The year-over-year increase in revenue was primarily attributable to an increase in our advanced sensors product line, primarily in our general industrial market and an increase in our Pacific Instrument product line in the Avionics, Military and Space market.

Net revenues in the Force Sensors reporting segment increased 1.7% from the first quarter of 2021 and increased 93.1% from the second quarter of 2020. The sequential increase was primarily due to higher revenue in our Other markets, mainly in consumer and construction. The year-over-year increase primarily reflected operational limitations in the second fiscal quarter of 2020 from the COVID pandemic at our facility in India.

Net revenues in the Weighing and Control Systems reporting segment increased 18.5% from the first quarter of 2021 and increased 34.5% from the second quarter of 2020. The sequential increase in net revenues was primarily due to the acquisition of DTS and higher revenue of process weighing solutions and KELK products. The year-over-year increase in revenue was primarily attributable to the addition of revenue for DTS, higher revenue of our onboard weighing products for the transportation market, higher revenue of our process weighing solutions for the industrial market, and higher revenue of our Dynamic Systems, Inc. ("DSI") products for the steel market, which was partially offset by lower revenue of KELK steel-related products.

Overall gross profit margin in the second quarter of 2021 decreased 0.9% as compared to the first quarter of 2021 and increased 0.5% from the second quarter of 2020.

Sequentially, all reporting segments contributed to the decrease in the gross profit margin. The Foil Technology Products reporting segment gross profit margins decreased sequentially due to the impact of charges related to start-up costs in our new advanced sensors facility and the impact of COVID-19, which were partially offset by manufacturing efficiencies, an increase

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in inventory and higher volume. The Force Sensors reporting segment gross profit margin decreased sequentially due to unfavorable foreign exchange rates, partially offset by increases in inventory and volume. In the Weighing and Control Systems reporting segment, the decrease in gross profit margin compared to the prior sequential quarter was due to the impact of charges related to the purchase accounting adjustment from the DTS acquisition and the impact of COVID-19, which were partially offset by the addition of DTS.

Compared to the second quarter of 2020, the Foil Technology Products reporting segment had a lower gross profit margin. Impacts from charges related to start-up costs in our new advanced sensors facility and the impact of COVID-19 were partially offset by higher volume and favorable product mix. The Force Sensors reporting segment increase in gross profit margin as compared to 2020 was primarily due to higher revenue and an increase in inventory. In the Weighing and Control Systems segment, the decrease in gross profit margin as compared to the second quarter of 2020 was due to the impact of charges related to purchase accounting adjustments from the DTS acquisition and the impact of COVID-19, along with an unfavorable product mix, which were partially offset by the addition of DTS and favorable exchange rates.

Optimize Core Competence

The Company’s core competency and key value proposition is providing customers with proprietary foil technology products and precision measurement sensors and sensor-based systems. Our foil technology resistors and strain gages are recognized as global market leading products that provide high precision and high stability over extreme temperature ranges, and long life. Our force sensor products and our weighing and control systems products are also certified to meet some of the highest levels of precision measurements of force, weight, pressure, torque, tilt, motion, and acceleration. We continue to optimize all aspects of our development, manufacturing and sales processes, including by increasing our technical sales efforts; continuing to innovate in product performance and design; and refining our manufacturing processes

Our foil technology research group developed innovations that enhance the capability and performance of our strain gages, while simultaneously reducing their size and power consumption as part of our advanced sensors product line. We believe this unique foil technology will create new markets as customers “design in” these next generation products in existing and new applications. Our development engineering team is also responsible for creating new processes to further automate manufacturing, and improve productivity and quality. Our advanced sensors manufacturing technology also offers us the capability to produce high-quality foil strain gages in a highly automated environment, which we believe results in reduced manufacturing and lead times, improved quality and increased margins. As a sign of our commitment to these businesses, we signed a long-term lease for a state of the art facility which has been constructed in Israel. Our administrative personnel have moved to the new facility, and we have begun the transition of our advanced sensors business to that facility and we expect to complete the transition to the new facility in the third quarter of 2021.

Our design, research, and product development teams, in partnership with our marketing teams, drive our efforts to bring innovations to market. We intend to leverage our insights into customer demand to continually develop and roll out new, innovative products within our existing lines and to modify our existing core products in ways that make them more appealing, addressing changing customer needs and industry trends in terms of form, fit, and function.

We also seek to achieve significant production cost savings through the transfer, expansion, and construction of manufacturing operations in countries such as India, China, and Israel, where we can benefit from lower labor costs, improved efficiencies, or available tax and other government-sponsored incentives. For example in 2019, we incurred restructuring expense related to closing and downsizing of facilities as part of the manufacturing transitions of our force sensor products to facilities in India and China, which marked key milestones in our ongoing strategic initiatives to align and consolidate our manufacturing footprint.

Acquisition Strategy

We expect to continue to make strategic acquisitions where opportunities present themselves to grow our segments. Historically, our growth and acquisition strategy has been largely focused on vertical product integration, using our foil strain gages in our force sensor products, and incorporating those products into our weighing and control systems. The acquisitions of Stress-Tek and KELK, each of which employs our foil strain gages to manufacture load cells for its systems, continued this strategy. Additionally, the KELK acquisition resulted in the acquisition of certain optical sensor technology. The Pacific Instruments acquisition significantly broadened our existing data acquisition offerings and opened new markets for us. The acquisition of DSI expanded our position in the steel market. On June 1, 2021, we completed the acquisition of California-based Diversified Technical Systems, Inc., a manufacturer of data acquisition systems and sensors for product safety and testing, DTS is an established niched-market leader with a strong brand in automotive, avionics, military and defense markets. DTS adds complementary technology to our platform and brings unique engineering capabilities, centered on miniaturized data acquisition and systems integration with sensor technology for critical testing applications. We expect to expand our expertise, and our acquisition focus, outside our traditional vertical approach to other precision sensor solutions in the fields of

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measurement of force, weight, pressure, torque, tilt, motion, and acceleration. We believe acquired businesses will benefit from improvements we implement to reduce redundant functions and from our current global manufacturing and distribution footprint.

Research and Development

Research and development will continue to play a key role in our efforts to introduce innovative products to generate new sales and to improve profitability. We expect to continue to expand our position as a leading supplier of precision foil technology products. We believe our R&D efforts should provide us with a variety of opportunities to leverage technology, products, and our manufacturing base in order to ultimately improve our financial performance.

Cost Management

To be successful, we believe we must seek new strategies for controlling operating costs. Through automation in our plants, we believe we can optimize our capital and labor resources in production, inventory management, quality control, and warehousing. We are in the process of moving some manufacturing to more cost effective locations. This may enable us to become more efficient and cost competitive, and also maintain tighter controls of the operation.

Production transfers, facility consolidations, and other long-term cost-cutting measures require us to initially incur significant severance and other exit costs. We are realizing the benefits of our restructuring through lower labor costs and other operating expenses, and expect to continue reaping these benefits in future periods. However, these programs to improve our profitability also involve certain risks which could materially impact our future operating results, as further detailed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 11, 2021.

We are evaluating plans to further reduce our costs by consolidating additional manufacturing operations. These plans may require us to incur restructuring and severance costs in future periods. While streamlining and reducing fixed overhead, we are exercising caution so that we will not negatively impact our customer service or our ability to further develop products and processes.

Goodwill

We test the goodwill in each of our reporting units for impairment at least annually, and whenever events or changes in circumstances occur indicating that a possible impairment may have been incurred. Determining whether to test goodwill for impairment, and the application of goodwill impairment tests, require significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Changes in these estimates could materially affect the determination of fair value for each reporting unit. A slowdown or deferral of orders for a business, with which we have goodwill associated, could impact our valuation of that goodwill.

Foreign Currency

We are exposed to foreign currency exchange rate risks, particularly due to transactions in currencies other than the functional currencies of certain subsidiaries. U.S. GAAP requires that entities identify the “functional currency” of each of their subsidiaries and measure all elements of the financial statements in that functional currency. A subsidiary’s functional currency is the currency of the primary economic environment in which it operates. In cases where a subsidiary is relatively self-contained within a particular country, the local currency is generally deemed to be the functional currency. However, a foreign subsidiary that is a direct and integral component or extension of the parent company’s operations generally would have the parent company’s currency as its functional currency. We have subsidiaries that fall into each of these categories.

Foreign Subsidiaries which use the Local Currency as the Functional Currency

Our operations in Europe, Canada, and certain locations in Asia primarily generate and expend cash using local currencies, and accordingly, these subsidiaries utilize the local currency as their functional currency. For those subsidiaries where the local currency is the functional currency, assets and liabilities in the consolidated condensed balance sheets have been translated at the rate of exchange as of the balance sheet date. Translation adjustments do not impact the results of operations and are reported as a separate component of equity.

For those subsidiaries where the local currency is the functional currency, revenues and expenses are translated at the average exchange rate for the period. While the translation of revenues and expenses into U.S. dollars does not directly impact the consolidated condensed statement of operations, the translation effectively increases or decreases the U.S. dollar equivalent of revenues generated and expenses incurred in those foreign currencies.

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Foreign Subsidiaries which use the U.S. Dollar as the Functional Currency

Our operations in Israel and certain locations in Asia primarily generate cash in U.S. dollars, and accordingly, these subsidiaries utilize the U.S. dollar as their functional currency. For those foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency financial statement amounts are remeasured into U.S. dollars. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in the results of operations. While these subsidiaries transact most business in U.S. dollars, they may have significant costs, particularly related to payroll, which are incurred in the local currency and significant lease assets and liabilities.

Effects of Foreign Exchange Rate on Operations

For the fiscal quarter ended July 3, 2021, exchange rates increased net revenues by $2.8 million, and increased costs of products sold and selling, general, and administrative expenses by $3.5 million, when compared to the comparable prior year period.

For the six fiscal months ended July 3, 2021, exchange rates increased net revenues by $4.9 million, and increased costs of products sold and selling, general, and administrative expenses by $5.8 million, when compared to the comparable prior year period.

Off-Balance Sheet Arrangements

As of July 3, 2021 and December 31, 2020, we did not have any off-balance sheet arrangements.

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Results of Operations

Statement of operations’ captions as a percentage of net revenues and the effective tax rates were as follows:

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Costs of products sold	60.4	%	60.9	%	60.0	%	62.0	%
Gross profit	39.6	%	39.1	%	40.0	%	38.0	%
Selling, general, and administrative expenses	29.8	%	31.5	%	30.6	%	30.7	%
Operating income	6.5	%	6.7	%	7.8	%	6.8	%
Income before taxes	5.7	%	4.1	%	7.6	%	5.8	%
Net earnings	5.4	%	3.0	%	6.2	%	4.0	%
Net earnings attributable to VPG stockholders	5.2	%	3.0	%	6.1	%	4.0	%
Effective tax rate	6.1	%	28.1	%	18.4	%	30.9	%

Net Revenues

Net revenues were as follows (dollars in thousands):

	Fiscal quarter ended					Six fiscal months ended
	July 3, 2021			June 27, 2020		July 3, 2021			June 27, 2020
Net revenues	$	75,339		$	59,146	$	145,928		$	126,842
Change versus comparable prior year period	$	16,193				$	19,086
Percentage change versus prior year period	27.4		%			15.0		%

Changes in net revenues were attributable to the following:

	vs. prior year quarter		vs. prior year- to-date
Change attributable to:
Change in volume	16.8	%	8.5	%
Change in average selling prices	(0.1)	%	(0.1)	%
Foreign currency effects	5.6	%	4.2	%
Acquisitions	5.1	%	2.4	%
Net change	27.4	%	15.0	%

During the fiscal quarter ended July 3, 2021, net revenues increased 27.4% as compared to the comparable prior year period, with increased volume primarily from the Force Sensors reporting segment and the Weighing and Control Systems segment. The increase in the Weighing and Control Systems reporting segment was aided by the addition of revenues from the acquisition of DTS.

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During six fiscal months ended July 3, 2021, net revenues increased 15.0%, as compared to the comparable prior year period, mainly due to increased volume in the Foil Technology and Force Sensors reporting segment, and the addition of revenues from the acquisition of DTS on June 1, 2021.

Gross Profit Margin

Gross profit as a percentage of net revenues was as follows:

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Gross profit margin	39.6	%	39.1	%	40.0	%	38.0	%

The gross profit margin for the fiscal quarter ended July 3, 2021 increased 0.5% as compared to the comparable prior year period with higher gross profit margins in the Force Sensors reporting segment being offset by lower margin in the Foil Technology and Weighing and Controls Systems reporting segments.

The gross profit margin for the six fiscal months ended July 3, 2021 increased 2% as compared to the comparable prior year period, mainly from higher gross profit margins in the Force Sensors reporting segment.

Segments

Analysis of revenues and gross profit margins for each of our reportable segments is provided below.

Foil Technology Products

Net revenues of the Foil Technology Products segment were as follows (dollars in thousands):

	Fiscal quarter ended					Six fiscal months ended
	July 3, 2021			June 27, 2020		July 3, 2021			June 27, 2020
Net revenues	$	33,308		$	31,785	$	66,019		$	62,262
Change versus comparable prior year period	$	1,523				$	3,757
Percentage change versus prior year period	4.8		%			6.0		%

Changes in Foil Technology Products segment net revenues were attributable to the following:

	vs. prior year quarter		vs. prior year- to-date
Change attributable to:
Change in volume	1.8	%	3.3	%
Change in average selling prices	0.6	%	0.5	%
Foreign currency effects	2.4	%	2.2	%
Net change	4.8	%	6.0	%

Net revenues increased 4.8% for the fiscal quarter ended July 3, 2021, as compared to the comparable prior year period. The year-over-year increase in revenue was primarily attributable to an increase in our advanced sensors product line, primarily in our general industrial market and an increase in our Pacific Instrument product line in the Avionics, Military and Space market.

Net revenues increased 6.0% for the six fiscal months ended July 3, 2021, as compared to the comparable prior year period. Increases in net revenues are primarily attributable to our advanced sensors product line in other markets, test and measurement markets, and general industrial markets.

Gross profit as a percentage of net revenues for the Foil Technology Products segment was as follows:

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Gross profit margin	38.9	%	41.8	%	39.4	%	39.3	%

The gross profit margin decreased 2.9% for the fiscal quarter ended July 3, 2021, when compared to the comparable prior year period. Impacts from charges related to start-up costs in our new advanced sensors facility and the impact of COVID-19 were partially offset by higher volume and favorable product mix.

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The gross profit margin increased 0.1% for the six fiscal months ended July 3, 2021 as compared to the comparable prior year period. Impacts from charges related to start-up costs in our new advanced sensors facility and the impact COVIID-19 completely offset the higher volume and favorable product mix.

Force Sensors

Net revenues of the Force Sensors segment were as follows (dollars in thousands):

	Fiscal quarter ended					Six fiscal months ended
	July 3, 2021			June 27, 2020		July 3, 2021			June 27, 2020
Net revenues	$	17,216		$	8,916	$	34,149		$	23,611
Change versus comparable prior year period	$	8,300				$	10,538
Percentage change versus prior year period	93.1		%			44.6		%

Changes in Force Sensors segment net revenues were attributable to the following:

	vs. prior year quarter		vs. prior year- to-date
Change attributable to:
Change in volume	88.5	%	41.9	%
Change in average selling prices	(1.7)	%	(1.5)	%
Foreign currency effects	6.3	%	4.2	%
Net change	93.1	%	44.6	%

Net revenues increased 93.1% for the fiscal quarter ended July 3, 2021, and 44.6% for the six fiscal months ended July 3, 2021 as compared to the comparable prior year periods. The year-over-year increase primarily reflected operational limitations in the second fiscal quarter of 2020 from the COVID pandemic at our facility in India.

Gross profit as a percentage of net revenues for the Force Sensors segment was as follows:

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Gross profit margin	34.7	%	11.6	%	35.2	%	19.5	%

The gross profit margin for the fiscal quarter ended July 3, 2021 increased 23.1% as compared to the comparable prior year period primarily due to higher revenue and an increase in inventory.

The gross profit margin for the six fiscal months ended July 3, 2021 increased 15.7% as compared to the prior year period primarily due to higher revenue and an increase in inventory.

Weighing and Control Systems

Net revenues of the Weighing and Control Systems segment were as follows (dollars in thousands):

	Fiscal quarter ended					Six fiscal months ended
	July 3, 2021			June 27, 2020		July 3, 2021			June 27, 2020
Net revenues	$	24,815		$	18,445	$	45,760		$	40,969
Change versus comparable prior year period	$	6,370				$	4,791
Percentage change versus prior year period	34.5		%			11.7		%

-35-

Changes in Weighing and Control Systems segment net revenues were attributable to the following:

	vs. prior year quarter		vs. prior year- to-date
Change attributable to:
Change in volume	7.9	%	(1.8)	%
Change in average selling prices	0.6	%	0.3	%
Foreign currency effects	9.7	%	6.6	%
Acquisitions	16.3	%	6.6	%
Net change	34.5	%	11.7	%

Net revenues increased 34.5% for the fiscal quarter ended July 3, 2021 as compared to the comparable prior year period. The year-over-year increase in revenue was primarily attributable to the addition of revenue for DTS, higher revenue of our onboard weighing products for the transportation market, higher revenue of our process weighing solutions for the industrial market, and higher revenue of our Dynamic Systems, Inc. ("DSI") products for the steel market, which was partially offset by lower revenue of KELK steel-related products.

Net revenues increased 11.7% for the six fiscal months ended July 3, 2021 as compared to the comparable prior year period primarily due to the addition of revenue for DTS and favorable foreign currency effects.

Gross profit as a percentage of net revenues for the Weighing and Control Systems segment were as follows:

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Gross profit margin	43.9	%	47.6	%	44.6	%	46.6	%

The gross profit margin for the fiscal quarter ended July 3, 2021 of 43.9% decreased from the second quarter of 2020 due to the impacts of charges related to purchase accounting adjustments from the DTS acquisitions and the impact of COVID-19, along with an unfavorable product mix, which were partially offset by the addition of DTS and favorable exchange rates.

The gross profit margin for the six fiscal months ended July 3, 2021 of 44.6%, decreased from the prior year period due to the impacts of charges related to purchase accounting adjustments from the DTS acquisitions, lower volume and unfavorable product mix, which were partially offset by the addition of DTS and favorable exchange rate impacts.

Selling, General, and Administrative Expenses

Selling, general, and administrative (“SG&A”) expenses are summarized as follows (dollars in thousands):

	Fiscal quarter ended						Six fiscal months ended
	July 3, 2021			June 27, 2020			July 3, 2021			June 27, 2020
Total SG&A expenses	$	22,453		$	18,640		$	44,636		$	38,931
As a percentage of net revenues	29.8		%	31.5		%	30.6		%	30.7		%

SG&A expenses for the fiscal quarter and six fiscal months ended July 3, 2021 increased compared to the comparable prior year periods with additional SG&A expenses related to personnel costs and foreign currency impacts and SG&A expenses from the acquisition of DTS.

-36-

Impairment of Goodwill and Indefinite-lived Intangible Assets

For the fiscal quarter and six fiscal months ended July 3, 2021, as a result of our interim impairment test, we recorded a $1.2 million pre-tax, non-cash impairment charge which reduced the carrying value of our goodwill and indefinite-lived intangible assets. See Note 4 for further discussion.

Acquisition Costs

Acquisition costs associated with the acquisition of DTS were as follows (in thousands):

	Fiscal quarter ended		Six fiscal months ended
	July 3, 2021		July 3, 2021
Legal fees	$	341	$	341
Appraisal fees	18		18
Other (investment banker and insurance costs)	839		839
	$	1,198	$	1,198

Restructuring Costs

Restructuring costs reflect the cost reduction programs implemented by the Company. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements for accrual are met. Because these costs are recorded based upon estimates, actual expenditures for the restructuring activities may differ from the initially recorded costs. If the initial estimates are too low or too high, the Company could be required to either record additional expense in future periods or to reverse part of the previously recorded charges.

The Company recorded $0.0 million and $0.5 million of restructuring costs during the fiscal quarter ended July 3, 2021 and June 27, 2020, respectively, and $0.0 million and $0.6 million of restructuring costs during the six fiscal months ended July 3, 2021 and June 27, 2020, respectively. Restructuring costs were comprised primarily of employee terminations costs, including severance and statutory retirement allowances, and were incurred in connections with various cost reduction programs.

Other Income (Expense)

Interest expense for the fiscal quarter ended July 3, 2021 was flat when compared with interest expense in the comparable prior year period. The impact of increased borrowings on the Company's revolving credit facility in conjunction with the acquisition of DTS were offset by more favorable borrowing rates in 2021. Interest expense for the six fiscal months ended July 3, 2021 was lower when compared with the comparable prior year period mainly due to more favorable borrowing rates in 2021.

-37-

The following table analyzes the components of the line “Other” on the consolidated condensed statements of operations (in thousands):

	Fiscal quarter ended
	July 3, 2021		June 27, 2020		Change
Foreign exchange loss	$	(174)	$	(1,185)	$	1,011
Interest income	20		109		(89)
Pension expense	(143)		(164)		21
Other	(29)		(33)		4
	$	(326)	$	(1,273)	$	947

	Six fiscal months ended
	July 3, 2021		June 27, 2020		Change
Foreign exchange gain (loss)	$	561	$	(285)	$	846
Interest income	65		176		(111)
Pension expense	(280)		(323)		43
Other	(99)		(158)		59
	$	247	$	(590)	$	837

Foreign currency exchange gains and losses represent the impact of changes in foreign currency exchange rates. For the fiscal quarter ended July 3, 2021, the change in foreign exchange gains and losses during the period, as compared to the prior year period, is largely due to exposure to currency fluctuations with the Canadian dollar, Japanese yen, the Israeli shekel and the British pound.

For the six fiscal months ended July 3, 2021, the change in foreign exchange gains and losses during the period as compared to the prior year period is largely due to exposure to currency fluctuations with the Canadian dollar, the Israeli shekel, the Japanese yen, the euro and the British pound

Income Taxes

VPG calculates the tax provision for interim periods using an estimated annual effective tax rate methodology based on projected full-year pre-tax earnings among the taxing jurisdictions in which we operate with adjustments for discrete items. The effective tax rate for the fiscal quarter ended July 3, 2021 was 6.1% compared to 28.1% for the fiscal quarter ended June 27, 2020 and the effective tax rate for the six fiscal months ended July 3, 2021 was 18.4% compared to 30.9% for the six fiscal months ended June 27, 2020. The tax rate for both periods presented in 2021 is lower than the prior year periods primarily due to the acquisition of DTS, which enabled the Company to reduce its valuation allowance against deferred tax assets, tax rate changes in certain foreign jurisdictions, and changes in the mix of worldwide income.

The Company and its subsidiaries are subject to income taxes imposed by the U.S., various states, and the foreign jurisdictions in which we operate. Each jurisdiction establishes rules that set forth the years which are subject to examination by its tax authorities. While the Company believes the tax positions taken on its tax returns for each jurisdiction are supportable, they may still be challenged by the jurisdiction's tax authorities. In anticipation of such challenges, the Company has established reserves for tax-related uncertainties. These liabilities are based on the Company’s best estimate of the potential tax exposures in each respective jurisdiction. It may take a number of years for a final tax liability in a jurisdiction to be determined, particularly in the event of an audit. If an uncertain matter is determined favorably, there could be a reduction in the Company’s tax expense. An unfavorable determination could increase tax expense and could require a cash payment, including interest and penalties.

-38-

Financial Condition, Liquidity, and Capital Resources

We believe that our current cash and cash equivalents, credit facilities and projected cash from operations will be sufficient to meet our liquidity needs for at least the next 12 months.

In March, 2020, we entered into a third amended and restated credit agreement. The terms of our credit agreement provide for the following facilities: (1) secured revolving facility of $75.0 million, with a sublimit of $10.0 million which can be used for letters of credit for the account of the Company or its subsidiaries that are parties to the Credit Agreement, the proceeds of which may be used for working capital and general corporate purposes. The aggregate principal amount of the 2020 Revolving Facility may be increased by a maximum of $25.0 million upon the request of the Company, subject to the terms of the 2020 Credit Agreement. The 2020 Credit Agreement terminates on March 20, 2025.

Interest payable on amounts borrowed under the 2020 Revolving Facility is based upon, at the Company’s option, (1) the greatest of: the Agent’s prime rate, the Federal Funds rate, or a LIBOR floor (the “Base Rate”), or (2) LIBOR or CDOR plus a specified margin. An interest margin of 0.25% is added to Base Rate loans. Depending upon the Company’s leverage ratio, an interest rate margin ranging from 1.50% to 2.75% per annum is added to the applicable LIBOR or CDOR rate to determine the interest payable on the Libor or CDOR loans. The Company is required to pay a quarterly fee of 0.25% per annum to 0.40% per annum on the unused portion of the 2020 Revolving Facility, which is determined based on the Company’s leverage ratio each quarter. Additional customary fees apply with respect to letters of credit.

The obligations of the Company under the 2020 Credit Agreement are secured by pledges of stock in certain domestic and foreign subsidiaries, as well as guarantees by substantially all of the Company’s domestic subsidiaries. The obligations of the Company and the guarantors under the 2020 Credit Agreement are secured by substantially all the assets (excluding real estate) of the Company and such guarantors. The 2020 Credit Agreement restricts the Company from paying cash dividends and requires the Company to comply with other customary covenants, representations, and warranties, including the maintenance of specific financial ratios. The financial maintenance covenants include interest coverage ratio and a leverage ratio. We were in compliance with these covenants at July 3, 2021. If the Company is not in compliance with any of these covenant restrictions, the credit facility could be terminated by the lenders, and all amounts outstanding pursuant to the credit facility could become immediately payable.

Our business has historically generated significant cash flow. For the six fiscal months ended July 3, 2021, cash provided by operating activities was $12.4 million compared to $16.7 million in the comparable prior year period. Our net cash used in investing activities for the six fiscal months ended July 3, 2021 was higher compared to the prior year period mainly due to the acquisition of DTS. Our net cash provided by financing activities for the six fiscal months ended July 3, 2021 was higher compared to prior year mainly due to the borrowings on the 2020 credit facility for the acquisition of DTS.

Adjusted free cash flow generated during the six fiscal months ended July 3, 2021, was $4.1 million. We refer to the amount of cash provided by operating activities ($12.4 million) in excess of our capital expenditures ($8.3 million) and net of proceeds from the sale of assets ($0.0 million) as “adjusted free cash flow.”

The following table summarizes the components of net cash at July 3, 2021 and December 31, 2020 (in thousands):

	July 3, 2021		December 31, 2020
Cash and cash equivalents	$	73,456	$	98,438
Third-party debt, including current and long-term:
Revolving debt	61,000		41,000
Third-party debt held by Japanese subsidiary	—		18
Deferred financing costs	(330)		(374)
Total third-party debt	60,670		40,644
Net cash	$	12,786	$	57,794

Measurements such as “adjusted free cash flow” and “net cash" do not have uniform definitions and are not recognized in accordance with U.S. GAAP. Such measures should not be viewed as alternatives to GAAP measures of performance or liquidity. However, management believes that “adjusted free cash flow” is a meaningful measure of our ability to fund acquisitions, and that an analysis of “net cash” assists investors in understanding aspects of our cash and debt management. These measures, as calculated by us, may not be comparable to similarly titled measures used by other companies.

Approximately 87% and 90% of our cash and cash equivalents balance at July 3, 2021 and December 31, 2020, respectively, was held by our non-U.S. subsidiaries.

-39-

See the following table for the percentage of cash and cash equivalents, by region, at July 3, 2021 and December 31, 2020:

	July 3, 2021		December 31, 2020
Israel	18	%	26	%
Asia	25	%	18	%
Europe	21	%	16	%
United States	13	%	10	%
United Kingdom	16	%	18	%
Canada	7	%	12	%
	100	%	100	%

We earn a significant amount of our operating income outside the United States, the majority of which is deemed to be indefinitely reinvested in the foreign jurisdictions. As a result, as discussed above, a significant portion of our cash and short-term investments are held by foreign subsidiaries. The Company will continue to evaluate its cash needs, however we currently do not intend, nor do we foresee a need, to repatriate funds in excess of what is already planned. The Company will evaluate the possibility of repatriating future cash provided such repatriation can be accomplished in a tax efficient manner. In addition, we expect existing domestic cash, short-term investments, and cash flows from operations to continue to be sufficient to fund our domestic operating activities and cash commitments for investing and financing activities, such as debt repayment and capital expenditures, for at least the next 12 months and thereafter for the foreseeable future.

If we should require more capital in the United States than is generated by our domestic operations, for example, to fund significant discretionary activities, such as business acquisitions, we could elect to repatriate future earnings from foreign jurisdictions or raise capital in the United States through debt or equity issuances. These alternatives could result in higher tax expense, increased interest expense, or dilution of our earnings. We consider the majority of the undistributed earnings of our foreign subsidiaries, as of July 3, 2021, to be indefinitely reinvested.

Our financial condition as of July 3, 2021 remains strong, with a current ratio (current assets to current liabilities) of 4.2 to 1.0, as compared to a ratio of 4.7 to 1.0 at December 31, 2020.

Cash paid for property and equipment for the six fiscal months ended July 3, 2021 was $8.3 million compared to $11.0 million in the comparable prior year period.

-40-

Safe Harbor Statement

From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those anticipated.

Such statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated, or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; difficulties or delays in identifying, negotiating and completing acquisitions and integrating acquired companies; the inability to realize anticipated synergies and expansion possibilities; difficulties in new product development; changes in competition and technology in the markets that we serve and the mix of our products required to address these changes; changes in foreign currency exchange rates; political, economic, health (including the COVID-19 pandemic) and military instability in the countries in which we operate; difficulties in implementing our cost reduction strategies, such as underutilization of production facilities, labor unrest or legal challenges to our lay-off or termination plans, operation of redundant facilities due to difficulties in transferring production to achieve efficiencies; significant developments from the recent and potential changes in tariffs and trade regulation; our efforts and efforts by governmental authorities to mitigate the COVID-19 pandemic, such as travel bans, shelter-in-place orders and business closures and the related impact on resource allocations, manufacturing and supply chains; the Company’s status as a “critical”, “essential” or “life-sustaining” business in light of COVID-19 business closure laws, orders and guidance being challenged by a governmental body or other applicable authority; the Company’s ability to execute its business continuity, operational and budget plans in light of the COVID-19 pandemic; and other factors affecting our operations, markets, products, services, and prices that are set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

-41-

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the market risks previously disclosed in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on March 11, 2021.

Item 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act are: (1) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms; and (2) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Our management, including our CEO and CFO, believes that any disclosure controls and procedures or internal controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must consider the benefits of controls relative to their costs. Inherent limitations within a control system include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. While the design of any system of controls is to provide reasonable assurance of the effectiveness of disclosure controls, such design is also based in part upon certain assumptions about the likelihood of future events, and such assumptions, while reasonable, may not take into account all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and may not be prevented or detected.

Changes in Internal Control over Financial Reporting

During our last fiscal quarter ended July 3, 2021, there was no change in our internal control over financial reporting that materially affected, or is reasonable likely to materially affect, internal control over financial reporting.

-42-

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

None.

Item 1A. RISK FACTORS

In addition to the other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on March 11, 2021. There have been no material changes in reported risk factors from the information reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Item 5. OTHER INFORMATION

Not applicable.

-43-

Item 6. EXHIBITS

10.1	Stock Purchase Agreement, dated June 1, 2021, by and among Vishay Precision Group, Inc., Diversified Technical Systems, Inc., the sellers identified therein, the guarantors identified therein, and Timothy J. Kippen, not individually but solely in its capacity as the representative of the Sellers and Guarantors (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on June 1, 2021 and incorporated herein by reference).
31.1	Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Ziv Shoshani, Chief Executive Officer.
31.2	Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – William M. Clancy, Chief Financial Officer.
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Ziv Shoshani, Chief Executive Officer.
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – William M. Clancy, Chief Financial Officer.
101	Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended July 3, 2021, furnished in XBRL (eXtensible Business Reporting Language).

-44-

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 thereunto duly authorized.

VISHAY PRECISION GROUP, INC.

/s/ William M. Clancy

William M. Clancy

Executive Vice President and Chief Financial Officer

(as a duly authorized officer and principal financial and accounting officer)

Date: August 10, 2021

-45-

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Ziv Shoshani, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Vishay Precision Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 10, 2021

/s/ Ziv Shoshani

Ziv Shoshani

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, William M. Clancy, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Vishay Precision Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 10, 2021

/s/ William M. Clancy

William M. Clancy

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Vishay Precision Group, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended July 3, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ziv Shoshani, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Ziv Shoshani

Ziv Shoshani

Chief Executive Officer

August 10, 2021

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Vishay Precision Group, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended July 3, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William M. Clancy, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William M. Clancy

William M. Clancy

Chief Financial Officer

August 10, 2021

XML

Cover - shares	6 Months Ended
	Jul. 03, 2021	Aug. 10, 2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 03, 2021
Document Transition Report	false
Entity File Number	1-34679
Entity Registrant Name	VISHAY PRECISION GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0986328
Entity Address, Address Line One	3 Great Valley Parkway, Suite 150
Entity Address, City or Town	Malvern
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19355
City Area Code	484
Local Phone Number	321-5300
Title of 12(b) Security	Common stock, $0.10 par value
Trading Symbol	VPG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001487952
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Entity Common Stock, Shares Outstanding		12,602,755
Class B Convertible Common Stock
Entity Common Stock, Shares Outstanding		1,022,887

XML

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	Jul. 03, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 73,456	$ 98,438
Accounts receivable, net	51,818	45,339
Inventories:
Raw materials	25,858	21,894
Work in process	27,560	21,534
Finished goods	24,060	18,920
Inventories, net	77,478	62,348
Prepaid expenses and other current assets	15,698	15,761
Total current assets	218,450	221,886
Property and equipment:
Land	4,269	4,282
Buildings and improvements	68,118	67,581
Machinery and equipment	118,543	115,717
Software	9,431	10,026
Construction in progress	3,807	6,341
Accumulated depreciation	(127,611)	(128,931)
Property and equipment, net	76,557	75,016
Goodwill	45,732	31,105
Intangible assets, net	54,474	32,039
Operating lease right of use asset	25,451	21,788
Other assets	19,633	20,053
Total assets	440,297	401,887
Current liabilities:
Trade accounts payable	11,061	10,487
Payroll and related expenses	16,818	17,595
Other accrued expenses	18,138	13,843
Income taxes	969	1,593
Current portion of operating lease liabilities	4,445	4,011
Current portion of long-term debt	0	18
Total current liabilities	51,431	47,547
Long-term debt, less current portion	60,670	40,626
Deferred income taxes	8,345	3,403
Operating lease liabilities	22,346	19,504
Other liabilities	15,747	16,263
Accrued pension and other postretirement costs	15,840	16,687
Total liabilities	174,379	144,030
Commitments and contingencies
Equity:
Treasury stock	(8,765)	(8,765)
Capital in excess of par value	197,856	197,764
Retained earnings	108,956	100,075
Accumulated other comprehensive loss	(33,546)	(32,671)
Total Vishay Precision Group, Inc. stockholders' equity	265,926	257,823
Noncontrolling interests	(8)	34
Total equity	265,918	257,857
Total liabilities and equity	440,297	401,887
Common Stock
Equity:
Common stock	1,322	1,317
Class B Convertible Common Stock
Equity:
Common stock	$ 103	$ 103

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Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Income Statement [Abstract]
Net revenues	$ 75,339	$ 59,146	$ 145,928	$ 126,842
Costs of products sold	45,541	36,036	87,508	78,667
Gross profit	29,798	23,110	58,420	48,175
Selling, general, and administrative expenses	22,453	18,640	44,636	38,931
Acquisition costs	1,198	0	1,198	0
Impairment of goodwill and indefinite-lived intangibles	1,223	0	1,223	0
Restructuring costs	0	499	0	629
Operating income	4,924	3,971	11,363	8,615
Other income (expense):
Interest expense	(273)	(267)	(578)	(728)
Other	(326)	(1,273)	247	(590)
Other income (expense)	(599)	(1,540)	(331)	(1,318)
Income before taxes	4,325	2,431	11,032	7,297
Income tax expense	262	684	2,026	2,258
Net earnings	4,063	1,747	9,006	5,039
Less: net earnings (loss) attributable to noncontrolling interests	143	(12)	125	(32)
Net earnings attributable to VPG stockholders	$ 3,920	$ 1,759	$ 8,881	$ 5,071
Basic earnings per share attributable to VPG stockholders (dollars per share)	$ 0.29	$ 0.13	$ 0.65	$ 0.37
Diluted earnings per share attributable to VPG stockholders (dollars per share)	$ 0.29	$ 0.13	$ 0.65	$ 0.37
Weighted average shares outstanding - basic (in shares)	13,618	13,571	13,605	13,556
Weighted average shares outstanding - diluted (in shares)	13,646	13,609	13,638	13,598

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Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Statement of Comprehensive Income [Abstract]
Net earnings	$ 4,063	$ 1,747	$ 9,006	$ 5,039
Other comprehensive income (loss):
Foreign currency translation adjustment	607	3,271	(1,193)	(2,070)
Pension and other postretirement actuarial items, net of tax	109	(152)	318	(311)
Other comprehensive loss	716	3,119	(875)	(2,381)
Comprehensive income	4,779	4,866	8,131	2,658
Less: comprehensive income (loss) attributable to noncontrolling interests	143	(12)	125	(32)
Comprehensive income attributable to VPG stockholders	$ 4,636	$ 4,878	$ 8,006	$ 2,690

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Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Operating activities
Net earnings	$ 9,006	$ 5,039
Adjustments to reconcile net earnings to net cash provided by operating activities:
Impairment of goodwill and indefinite-lived intangibles	1,223	0
Depreciation and amortization	7,108	6,312
Loss from extinguishment of debt	0	30
Loss (gain) on sale of property and equipment	44	(143)
Share-based compensation expense	942	757
Inventory write-offs for obsolescence	1,135	1,302
Deferred income taxes	(1,110)	(146)
Other	(1,820)	25
Net changes in operating assets and liabilities:
Accounts receivable, net	(776)	2,077
Inventories, net	(7,744)	(1,383)
Prepaid expenses and other current assets	314	(632)
Trade accounts payable	1,715	1,228
Other current liabilities	2,341	2,229
Net cash provided by operating activities	12,378	16,695
Investing activities
Capital expenditures	(8,309)	(11,018)
Proceeds from sale of property and equipment	16	378
Purchase of business, net of cash acquired	(47,216)	156
Net cash used in investing activities	(55,509)	(10,484)
Financing activities
Principal payments on long-term debt	(18)	(3,418)
Proceeds from revolving facility	20,000	0
Debt issuance costs	0	(402)
Purchase of noncontrolling interest	0	(253)
(Distributions to) contributions from noncontrolling interests	(167)
(Distributions to) contributions from noncontrolling interests		117
Payments of employee taxes on certain share-based arrangements	(846)	(813)
Net cash provided by (used in) financing activities	18,969	(4,769)
Effect of exchange rate changes on cash and cash equivalents	(820)	(1,155)
(Decrease) increase in cash and cash equivalents	(24,982)	287
Cash and cash equivalents at beginning of period	98,438	86,910
Cash and cash equivalents at end of period	73,456	87,197
Supplemental disclosure of investing transactions:
Capital expenditures purchased	(6,353)	(10,290)
Capital expenditures accrued but not yet paid	$ 606	$ 455

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Consolidated Condensed Statements of Equity - USD ($) $ in Thousands	Total	Total VPG, Inc. Stockholders' Equity	Common Stock	Class B Convertible Common Stock	Treasury Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Balance, beginning at Dec. 31, 2019	$ 241,752	$ 241,360	$ 1,312	$ 103	$ (8,765)	$ 197,125	$ 89,288	$ (37,703)	$ 392
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	5,039	5,071					5,071		(32)
Other comprehensive income (loss)	(2,381)	(2,381)						(2,381)
Share-based compensation expense	757	757				757
Restricted stock issuance (shares)			52,433
Restricted stock issuances	(791)	(791)	$ 5			(796)
Purchase of noncontrolling interest	(253)	48				48			(301)
Contributions from noncontrolling interests	117								117
Balance, ending at Jun. 27, 2020	244,240	244,064	1,317	103	(8,765)	197,134	94,359	(40,084)	176
Balance, beginning at Mar. 28, 2020	239,107	238,760	$ 1,316	103	(8,765)	196,709	92,600	(43,203)	347
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	1,747	1,759					1,759		(12)
Other comprehensive income (loss)	3,119	3,119						3,119
Share-based compensation expense	378	378				378
Restricted stock issuance (shares)			8,244
Restricted stock issuances	0	0	$ 1			(1)
Purchase of noncontrolling interest	(253)	48				48			(301)
Contributions from noncontrolling interests	142								142
Balance, ending at Jun. 27, 2020	244,240	244,064	1,317	103	(8,765)	197,134	94,359	(40,084)	176
Balance, beginning at Dec. 31, 2020	257,857	257,823	$ 1,317	103	(8,765)	197,764	100,075	(32,671)	34
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	9,006	8,881					8,881		125
Other comprehensive income (loss)	(875)	(875)						(875)
Share-based compensation expense	942	942				942
Restricted stock issuance (shares)			50,316
Restricted stock issuances	(845)	(845)	$ 5			(850)
Distributions to noncontrolling interests	(167)								(167)
Balance, ending at Jul. 03, 2021	265,918	265,926	1,322	103	(8,765)	197,856	108,956	(33,546)	(8)
Balance, beginning at Apr. 03, 2021	260,619	260,714	$ 1,320	103	(8,765)	197,282	105,036	(34,262)	(95)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	4,063	3,920					3,920		143
Other comprehensive income (loss)	716	716						716
Share-based compensation expense	576	576				576
Restricted stock issuance (shares)			15,564
Restricted stock issuances	0	0	$ 2			(2)
Distributions to noncontrolling interests	(56)								(56)
Balance, ending at Jul. 03, 2021	$ 265,918	$ 265,926	$ 1,322	$ 103	$ (8,765)	$ 197,856	$ 108,956	$ (33,546)	$ (8)

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Consolidated Condensed Statements of Equity (Parenthetical) - shares	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Common Stock
Restricted stock issuance (shares)	15,564	8,244	50,316	52,433

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Basis of Presentation

6 Months Ended

Jul. 03, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

Background

Vishay Precision Group, Inc. (“VPG” or the “Company”) is an internationally recognized designer, manufacturer and marketer of sensors, and sensor-based measurement systems, as well as specialty resistors and strain gages based upon the Company's proprietary technology. The Company provides precision products and solutions, many of which are “designed-in” by its customers, specializing in the growing markets of stress, force, weight, pressure, and current measurements.

Interim Financial Statements

These unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial statements and therefore do not include all information and footnotes necessary for the 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 information furnished reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair summary of the financial position, results of operations, and cash flows for the interim periods presented. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020, included in VPG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on March 11, 2021. The results of operations for the fiscal quarter ended July 3, 2021 are not necessarily indicative of the results to be expected for the full year. VPG reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first quarter, which always begins on January 1, and the fourth quarter, which always ends on December 31. The four fiscal quarters in 2021 and 2020 end on the following dates: 

	2021	2020
Quarter 1	April 3,	March 28,
Quarter 2	July 3,	June 27,
Quarter 3	October 2,	September 26,
Quarter 4	December 31,	December 31,

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. ASU 2019-12, "Simplifying the Accounting for Income Taxes". This ASU amends Accounting Standards Codification ("ASC") 740 by removing certain exceptions to the general principles, clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company adopted this standard in the first quarter of 2021. The adoption of this ASU did not impact our financial statements or the related disclosures.

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Revenues

6 Months Ended

Jul. 03, 2021

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

Revenue Recognition

The following table disaggregates net revenue by geographic region from contracts with customers based on net revenues generated by subsidiaries within that geographic location (in thousands):

	Fiscal quarter ended    July 3, 2021								Fiscal quarter ended    June 27, 2020
	Foil Technology Products		Force Sensors		Weighing and Control Systems		Total		Foil Technology Products		Force Sensors		Weighing and Control Systems		Total
United States	$	11,003	$	8,017	$	10,574	$	29,594	$	10,789	$	4,113	$	6,009	$	20,911
United Kingdom	1,102		514		3,681		5,297		587		1,711		1,723		4,021
Other Europe	6,604		5,018		5,204		16,826		6,973		1,434		3,430		11,837
Israel	5,284		261		—		5,545		5,691		93		—		5,784
Asia	9,315		3,406		2,012		14,733		7,745		1,565		1,859		11,169
Canada	—		—		3,344		3,344		—		—		5,424		5,424
Total	$	33,308	$	17,216	$	24,815	$	75,339	$	31,785	$	8,916	$	18,445	$	59,146
	Six Fiscal Months Ended July 3, 2021								Six Fiscal Months Ended June 27, 2020
	Foil Technology Products		Force Sensors		Weighing and Control Systems		Total		Foil Technology Products		Force Sensors		Weighing and Control Systems		Total
United States	$	21,482	$	15,788	$	18,241	$	55,511	$	22,723	$	12,505	$	14,898	$	50,126
United Kingdom	2,000		1,081		7,694		10,775		1,537		3,691		5,435		10,663
Other Europe	13,870		10,493		9,765		34,128		14,686		3,808		7,174		25,668
Israel	11,725		391		—		12,116		8,646		190		—		8,836
Asia	16,942		6,396		3,613		26,951		14,670		3,417		3,530		21,617
Canada	—		—		6,447		6,447		—		—		9,932		9,932
Total	$	66,019	$	34,149	$	45,760	$	145,928	$	62,262	$	23,611	$	40,969	$	126,842

The following table disaggregates net revenue from contracts with customers by market sector (in thousands).

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Test & Measurement	$	16,279	$	14,027	$	30,695	$	28,372
Avionics, Military & Space	5,872		6,727		11,902		12,887
Transportation	11,930		5,188		21,484		13,432
Other Markets	17,489		12,192		35,034		25,320
Industrial Weighing	12,042		8,583		24,047		21,050
General Industrial	4,173		3,623		8,255		7,662
Steel	7,554		8,806		14,511		18,119
Total	$	75,339	$	59,146	$	145,928	$	126,842

Contract Assets & Liabilities

Contract assets are established when revenues are recognized prior to a contractual payment due from the customer. When a payment becomes due based on the contract terms, the Company will reduce the contract asset and record a receivable. Contract liabilities are deferred revenues that are recorded when cash payments are received or due in advance of our performance obligations. Our payment terms vary by the type and location of the products offered. The term between invoicing and when payment is due is not significant.

The outstanding contract assets and liability accounts were as follows (in thousands):

	Contract Asset		Contract Liability
	Unbilled Revenue		Accrued Customer Advances
Balance at December 31, 2020	$	3,605	$	2,873
Balance at July 3, 2021	4,656		4,525
(Decrease)/increase	$	1,051	$	1,652

The amount of revenue recognized during the six fiscal months ended July 3, 2021 that was included in the contract liability balance at December 31, 2020 was $2.4 million.

Practical Expedients

The Company does not disclose the value of unsatisfied performance obligations for contracts that have a duration of one year or less and for contracts that are substantially complete. The Company treats shipping and handling activities as fulfillment costs.

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Acquisitions

6 Months Ended

Jul. 03, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisition

On June 1, 2021, VPG completed the acquisition of California-based Diversified Technical Systems, Inc. (“DTS”), a manufacturer of data acquisition systems and sensors for product safety and testing, for a purchase price of $47.2 million, subject to customary adjustments. The Company used cash on hand and borrowings under its revolving credit facility to fund the purchase price under the purchase agreement. DTS reports into the Company's Weighing and Control Systems segment. The following table summarizes the provisional fair values assigned to the assets and liabilities of DTS as of June 1, 2021 (in thousands):

	June 1, 2021
Working capital	$	12,999
Property and equipment	1,209
Deferred income tax liability	(6,274)
Intangible assets:
Acquired technology	13,167
Customer relationships	8,135
Trade names	2,393
Total intangible assets	23,695
Fair value of acquired identifiable assets	31,629
Purchase price	$	47,216
Goodwill	$	15,587

The Company utilizes certain valuations and studies to determine the fair value of the tangible and intangible assets acquired. These valuations and studies are currently being analyzed and have yet to be finalized. Accordingly, the assets and liabilities assumed are subject to adjustment once the detailed analysis is completed. The provisional estimated weighted average useful lives for the acquired technology and customer relationships are 15 years. Trade names are treated as indefinite-lived intangible assets. None of the goodwill associated with DTS will be deductible for income tax purposes.

The Company recorded acquisition costs associated with this transaction as follows (in thousands):

	Fiscal quarter ended		Six fiscal months ended
	July 3, 2021		July 3, 2021
Legal fees	$	341	$	341
Appraisal fees	18		18
Other (investment banker and insurance costs)	839		839
	$	1,198	$	1,198

Included in the results of the operations of the Company, starting on June 1, 2021, are net revenues of $3.0 million and a net loss of $0.2 million from DTS for the fiscal quarter and six fiscal months ended July 3, 2021. DTS results include amortization of the inventory step-up of $0.9 million and amortization of intangible assets of $0.1 million.

Following is the supplemental consolidated financial results for the Company on an unaudited pro forma basis, as if the DTS acquisition had been consummated on January 1, 2020:

	Fiscal quarter ended		Six fiscal months ended		Fiscal quarter ended		Six fiscal months ended
	June 27, 2020		June 27, 2020		July 3, 2021		July 3, 2021
Pro forma net revenues	$	64,907	$	139,158	80,243		159,164
Pro forma net earnings attributable to VPG stockholders	$	1,629	$	3,658	6,741		13,411
Pro forma basic earnings per share attributable to VPG stockholders	$	0.12	$	0.27	$	0.50	$	0.99
Pro forma diluted earnings per share attributable to VPG stockholders	$	0.12	$	0.27	$	0.49	$	0.98

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Goodwill and Other Intangible Assets

6 Months Ended

Jul. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Company tests the goodwill in each of its goodwill reporting units for impairment at least annually, as of the first day of it's fourth quarter, and whenever events or changes in circumstances occur indicating that a possible impairment may have been incurred. Due to updated financial projections, the Company performed a quantitative impairment test for the instrumentation reporting unit during the second quarter of 2021. In estimating the fair value of our instrumentation reporting unit the Company used the income approach.

The results of the quantitative impairment test for the instrumentation reporting unit's goodwill and indefinite-lived trade name indicated an impairment, and in the second quarter of 2021, the Company recognized a non-cash impairment loss of $1.1 million in goodwill and $0.1 million to the indefinite-lived trade name. The impairment was driven mainly by changes in forecasted projections including a slower growth rate in revenues. After considering the impact of the impairment charges, the carrying amount of goodwill and indefinite-lived trade names as of July 3, 2021 was $0.0 million and $0.3 million, respectively.

The change in the carrying amount of goodwill by segment is as follows (in thousands):

	Total		Weighing and Control Systems Segment								Foil Technology Products Segment
			KELK Acquisition		DSI Acquisition		DTS Acquisition		Stress-Tek Acquisition		Pacific Acquisition
Balance at December 31, 2020	$	31,105	$	6,726	$	16,942			$	6,311	$	1,126
Goodwill acquired	15,587						15,587
Impairment charges	(1,126)										(1,126)
Foreign currency translation adjustment	166		180		(14)				—		—
Balance at July 3, 2021	$	45,732	$	6,906	$	16,928	$	15,587	$	6,311	$	—

Intangible assets were as follows (in thousands):

	July 3, 2021		December 31, 2020
Intangible assets subject to amortization
(Definite-lived):
Patents and acquired technology	$	33,069	$	19,804
Customer relationships	34,393		26,061
Trade names	1,697		1,747
Non-competition agreements	11,646		12,259
	80,805		59,871
Accumulated amortization:
Patents and acquired technology	(6,552)		(5,895)
Customer relationships	(14,191)		(13,363)
Trade names	(1,697)		(1,747)
Non-competition agreements	(11,639)		(12,250)
	(34,079)		(33,255)
Net intangible assets subject to amortization	$	46,726	$	26,616
Intangible assets not subject to amortization
(Indefinite-lived):
Trade names	7,748		5,423
	$	54,474	$	32,039

The increase in net intangible assets from December 31, 2020 is due to the acquisition of DTS on June 1, 2021. The Company has preliminarily allocated $21.3 million of the purchase price to definite-lived intangible assets and $2.4 million to indefinite-lived intangible assets.

Amortization expense for the fiscal quarter and six fiscal months ended July 3, 2021 was $0.7 million and $1.4 million, respectively. The DTS intangible assets accounted for $0.1 million of amortization expense for the fiscal quarter and six fiscal months ended July 3, 2021.

Estimated annual amortization expense for the full year of 2021 and each of the next four years, is as follows ( in thousands):

2021	$	3,280
2022	3,871
2023	3,763
2024	3,728
2025	3,728

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Leases

6 Months Ended

Jul. 03, 2021

Leases [Abstract]

Leases

Leases

The Company primarily leases office and manufacturing facilities in addition to vehicles, which have remaining terms of less than one year to eleven years. The Company has no finance leases.

Leases recorded on the balance sheet consist of the following (in thousands):

Leases	July 3, 2021		December 31, 2020
Assets
Operating lease right of use asset	$	25,451	$	21,788
Liabilities
Operating lease - current	$	4,445	$	4,011
Operating lease - non-current	$	22,346	$	19,504

Other information related to lease term and discount rate is as follows:

	July 3, 2021
Operating leases weighted average remaining lease term (in years)	8.49 years
Operating leases weighted average discount rate	3.36	%

The components of lease expense are as follows (in thousands):

	Fiscal quarter ended				Six Fiscal Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Operating lease cost	$	1,258	$	1,139	$	2,439	$	2,013
Short-term lease cost	35		34		68		57
Sublease income	(19)		—		(28)		—
Total net lease cost	$	1,274	$	1,173	$	2,479	$	2,070

Right of use assets obtained in exchange for new operating lease liability during 2021 were $5.9 million. The Company paid $2.4 million and $1.7 million for its operating leases for each of the six fiscal months ended July 3, 2021 and June 27, 2020, which are included in operating cash flows on the consolidated condensed statements of cash flows.

Undiscounted maturities of operating lease payments as of July 3, 2021 are summarized as follows (in thousands):

2021 (excluding the six months ended July 3, 2021)	$	2,596
2022	4,500
2023	3,968
2024	3,555
2025	3,083
Thereafter	12,894
Total future minimum lease payments	$	30,596
Less: amount representing interest	(3,805)
Present value of future minimum lease payments	$	26,791

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Income Taxes

6 Months Ended

Jul. 03, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

VPG calculates the tax provision for interim periods using an estimated annual effective tax rate methodology based on projected full-year pre-tax earnings among the taxing jurisdictions in which we operate with adjustments for discrete items. The effective tax rate for the fiscal quarter ended July 3, 2021 was 6.1% compared to 28.1% for the fiscal quarter ended June 27, 2020, and the effective tax rate for the six fiscal months ended July 3, 2021 was 18.4% compared to 30.9% for the six fiscal months ended June 27, 2020. The tax rate for both periods presented in 2021 is lower than the prior year periods primarily due to the acquisition of DTS, which enabled the Company to reduce its valuation allowance against deferred tax assets, tax rate changes in certain foreign jurisdictions, and changes in the mix of worldwide income.

The Company and its subsidiaries are subject to income taxes imposed by the U.S., various states, and the foreign jurisdictions in which we operate. Each jurisdiction establishes rules that set forth the years which are subject to examination by its tax authorities. While the Company believes the tax positions taken on its tax returns for each jurisdiction are supportable, they

may still be challenged by the jurisdiction's tax authorities. In anticipation of such challenges, the Company has established reserves for tax-related uncertainties. These liabilities are based on the Company’s best estimate of the potential tax exposures in each respective jurisdiction. It may take a number of years for a final tax liability in a jurisdiction to be determined, particularly in the event of an audit. If an uncertain matter is determined favorably, there could be a reduction in the Company’s tax expense. An unfavorable determination could increase tax expense and could require a cash payment, including interest and penalties.

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Long-Term Debt

6 Months Ended

Jul. 03, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consists of the following (in thousands):

	July 3, 2021		December 31, 2020
2020 Credit Agreement - Revolving Facility	$	61,000	$	41,000
Other debt	—		18
Deferred financing costs	(330)		(374)
Total long-term debt	60,670		40,644
Less: current portion	—		18
Long-term debt, less current portion	$	60,670	$	40,626

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jul. 03, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, consist of the following (in thousands):

	Foreign Currency Translation Adjustment		Pension and Other Postretirement Actuarial Items		Total
Balance at January 1, 2021	$	(25,591)	$	(7,080)	$	(32,671)
Other comprehensive loss before reclassifications	(1,193)		—		(1,193)
Amounts reclassified from accumulated other comprehensive income (loss)	—		318		318
Balance at July 3, 2021	$	(26,784)	$	(6,762)	$	(33,546)

	Foreign Currency Translation Adjustment		Pension and Other Postretirement Actuarial Items		Total
Balance at January 1, 2020	$	(30,761)	$	(6,942)	$	(37,703)
Other comprehensive loss before reclassifications	(2,070)		—		(2,070)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(311)		(311)
Balance at June 27, 2020	$	(32,831)	$	(7,253)	$	(40,084)

Reclassifications of pension and other postretirement actuarial items out of accumulated other comprehensive income (loss) are included in the computation of net periodic benefit cost (see Note 9).

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Pensions and Other Postretirement Benefits

6 Months Ended

Jul. 03, 2021

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement BenefitsEmployees of VPG participate in various defined benefit pension and other postretirement benefit ("OPEB") plans. The following table sets forth the components of the net periodic benefit cost for the Company's defined benefit pension and OPEB plans (in thousands):

	Fiscal quarter ended    July 3, 2021				Fiscal quarter ended    June 27, 2020
	Pension Plans		OPEB Plans		Pension Plans		OPEB Plans
Net service cost	$	96	$	9	$	99	$	31
Interest cost	103		17		127		33
Expected return on plan assets	(97)		—		(109)		—
Amortization of actuarial losses	102		5		76		34
Net periodic benefit cost	$	204	$	31	$	193	$	98

	Six fiscal months ended July 3, 2021				Six fiscal months ended June 27, 2020
	Pension Plans		OPEB Plans		Pension Plans		OPEB Plans
Net service cost	$	193	$	18	$	198	$	62
Interest cost	206		34		256		66
Expected return on plan assets	(194)		—		(220)		—
Amortization of actuarial losses	204		10		153		68
Net periodic benefit cost	$	409	$	62	$	387	$	196

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Share-Based Compensation

6 Months Ended

Jul. 03, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

The Amended and Restated Vishay Precision Group, Inc. 2010 Stock Incentive Program (as amended and restated, the “Plan”) permits the issuance of up to 1,000,000 shares of common stock. At July 3, 2021, the Company had reserved 320,654 shares of common stock for future grants of equity awards (restricted stock, unrestricted stock, restricted stock units ("RSUs"), or stock options) pursuant to the Plan. If any outstanding awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for re-grant to others.

On March 4, 2021 and in accordance with their respective employment agreements, VPG’s three executive officers were granted annual equity awards in the form of RSUs, of which 50% are performance-based. The awards have an aggregate target grant-date fair value of $1.7 million and were comprised of 52,486 RSUs. Fifty percent of these awards will vest on January 1, 2024, subject to the executives’ continued employment. The performance-based portion of the RSUs will also vest on January 1, 2024, subject to the executives' continued employment and the satisfaction of certain performance objectives relating to three-year cumulative “adjusted free cash flow” and "net earnings goals", each weighted equally.

On March 8, 2021, certain non-executive VPG employees were granted annual equity awards in the form of RSUs. Certain employees received awards, of which 75% are performance-based and certain employees received awards of which 50% are performance-based. The awards have an aggregate grant-date fair value of $0.6 million and were comprised of 17,793 RSUs. The non-performance portion of these awards (twenty-five percent for certain employees and fifty percent for certain employees) will vest on January 1, 2024 subject to the employees' continued employment. The performance-based portion of the RSUs will also vest on January 1, 2024, subject to the employees' continued employment and the satisfaction of certain performance objectives relating to three-year cumulative earnings and cash flow goals, each weighted equally.

On May 27, 2021 and in accordance with the Company's 2017 Non-Employee Director Compensation Plan, the Board of Directors approved the issuance of an aggregate of 9,936 RSUs to the independent board members of the Board of Directors and to the non-executive Chairman of the Board of Directors. The awards have an aggregate grant-date fair value of $0.3 million and will vest on the earlier of the 2022 Annual Stockholders Meeting or May 27, 2022, subject to the directors' continued service on the Board of Directors.

Vesting of equity awards is subject to acceleration under certain circumstances.

The amount of compensation cost related to share-based payment transactions is measured based on the grant-date fair value of the equity instruments issued. VPG determines compensation cost for RSUs based on the grant-date fair value of the underlying common stock. The Company recognizes compensation cost for RSUs that are expected to vest and for which performance criteria are expected to be met. The following table summarizes share-based compensation expense recognized (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Restricted stock units	$	576	$	378	$	942	$	757

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Segment Information

6 Months Ended

Jul. 03, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

VPG reports in three product segments: the Foil Technology Products segment, the Force Sensors segment, and the Weighing and Control Systems segment. The Foil Technology Products reporting segment is comprised of the foil resistor and strain gage operating segments. The Force Sensors reporting segment is comprised of transducers, load cells, and modules. The Weighing and Control Systems reporting segment is comprised of complete systems which include load cells and instrumentation for weighing, force control and force measurement for a variety of uses such as process control on-board weighing applications.

VPG evaluates reporting segment performance based on multiple performance measures including third party net revenues, gross profits and operating income, exclusive of certain items. Management believes that evaluating segment performance, excluding items such as restructuring costs, executive severance costs, and other items is meaningful because it provides insight with respect to the intrinsic operating results of VPG. The following table sets forth reporting segment information (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net revenues:
Foil Technology Products	$	33,308	$	31,785	$	66,019	$	62,262
Force Sensors	17,216		8,916		34,149		23,611
Weighing and Control Systems	24,815		18,445		45,760		40,969
Total	$	75,339	$	59,146	$	145,928	$	126,842
Gross profit:
Foil Technology Products	$	12,942	$	13,286	$	25,981	$	24,487
Force Sensors	5,969		1,038		12,008		4,610
Weighing and Control Systems	10,887		8,786		20,431		19,078
Total	$	29,798	$	23,110	$	58,420	$	48,175
Reconciliation of segment operating income to consolidated results:
Foil Technology Products	$	7,219	$	8,070	$	14,052	$	13,454
Force Sensors	3,474		(1,013)		6,977		191
Weighing and Control Systems	4,595		4,019		8,419		8,687
Unallocated G&A expenses	(7,943)		(6,606)		(15,664)		(13,088)
Acquisition costs	(1,198)		—		(1,198)		—
Impairment of goodwill and indefinite-lived intangibles	(1,223)		—		(1,223)		—
Restructuring costs	—		(499)		—		(629)
Operating income	$	4,924	$	3,971	$	11,363	$	8,615
Acquisition costs:
Weighing and Control Systems	(1,198)		—		(1,198)		—
	$	(1,198)	$	—	$	(1,198)	$	—
Impairment of goodwill and indefinite-lived intangibles:
Foil Technology Products	$	(1,223)	$	—	$	(1,223)	$	—
	$	(1,223)	$	—	$	(1,223)	$	—
Restructuring costs:
Foil Technology Products	$	—	$	(341)	$	—	$	(443)
Force Sensors	$	—	$	(80)	$	—	$	(108)
Corporate/Other	—		(78)		—		(78)
	$	—	$	(499)	$	—	$	(629)

Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. The table below summarizes intersegment sales (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Foil Technology Products to Force Sensors and Weighing and Control Systems	$	959	$	868	$	1,920	$	1,592
Weighing and Control Systems to Foil Technology Products and Force Sensors	$	150	$	124	$	264	$	211

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Earnings Per Share

6 Months Ended

Jul. 03, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share attributable to VPG stockholders (in thousands, except earnings per share):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Numerator:
Numerator for basic earnings per share:
Net earnings attributable to VPG stockholders	$	3,920	$	1,759	$	8,881	$	5,071
Denominator:
Denominator for basic earnings per share:
Weighted average shares	13,618		13,571		13,605		13,556
Effect of dilutive securities:
Restricted stock units	28		38		33		42
Dilutive potential common shares	28		38		33		42
Denominator for diluted earnings per share:
Adjusted weighted average shares	13,646		13,609		13,638		13,598
Basic earnings per share attributable to VPG stockholders	$	0.29	$	0.13	$	0.65	$	0.37
Diluted earnings per share attributable to VPG stockholders	$	0.29	$	0.13	$	0.65	$	0.37

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Additional Financial Statement Information

6 Months Ended

Jul. 03, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Statement Information

Additional Financial Statement Information

Other Income (Expense) Other

The caption “Other” on the consolidated condensed statements of operations consists of the following (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Foreign exchange (loss) gain	$	(174)	$	(1,185)	$	561	$	(285)
Interest income	20		109		65		176
Pension expense	(143)		(164)		(280)		(323)
Other	(29)		(33)		(99)		(158)
	$	(326)	$	(1,273)	$	247	$	(590)

Foreign currency exchange gains and losses represent the impact of changes in foreign currency exchange rates. For the fiscal quarter ended July 3, 2021, the change in foreign exchange gains and losses during the period, as compared to the prior year period, is largely due to exposure to currency fluctuations with the Canadian dollar, Japanese yen, the Israeli shekel and the British pound.

For the six fiscal months ended July 3, 2021, the change in foreign exchange gains and losses during the period as compared to the prior year period is largely due to exposure to currency fluctuations with the Canadian dollar, the Israeli shekel, the Japanese yen, the euro and the British pound

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Fair Value Measurements

6 Months Ended

Jul. 03, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

ASC Topic 820, Fair Value Measurement, establishes a valuation hierarchy of the inputs used to measure fair value. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs that reflect the Company’s own assumptions.

An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis (in thousands):

			Fair value measurements at reporting date using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
July 3, 2021
Assets
Assets held in rabbi trusts	$	5,995	$	80	$	5,915	$	—
December 31, 2020
Assets
Assets held in rabbi trusts	$	5,601	$	61	$	5,540	$	—

The Company maintains non-qualified trusts, referred to as “rabbi” trusts, to fund payments under deferred compensation and non-qualified pension plans. Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale money market funds at July 3, 2021 and December 31, 2020, and company-owned life insurance assets. The marketable securities held

in the rabbi trusts are valued using quoted market prices on the last business day of the period. The company-owned life insurance assets are valued in consultation with the Company’s insurance brokers using the value of underlying assets of the insurance contracts. The fair value measurement of the marketable securities held in the rabbi trust is considered a Level 1 measurement and the measurement of the company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy.

The fair value of the long-term debt, excluding capitalized deferred financing costs, at July 3, 2021 and December 31, 2020 approximates its carrying value as the revolving debt is reset on a monthly basis based on current market rates, plus a base rate as specified in the debt agreement. The fair value of long-term debt is considered a Level 2 measurement within the fair value hierarchy. The Company’s financial instruments include cash and cash equivalents, accounts receivable, short-term notes payable, and accounts payable. The carrying amounts for these financial instruments reported in the consolidated condensed balance sheets approximate their fair values.

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Restructuring Costs

6 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

Restructuring costs reflect the cost reduction programs implemented by the Company. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements for accrual are met. Because these costs are recorded based upon estimates, actual expenditures for the restructuring activities may differ from the initially recorded costs. If the initial estimates are too low or too high, the Company could be required to either record additional expense in future periods or to reverse part of the previously recorded charges.

The Company recorded $0.0 million and $0.5 million of restructuring costs during the fiscal quarter ended July 3, 2021 and June 27, 2020, respectively and $0.0 million and $0.6 million of restructuring costs during the six fiscal months ended July 3, 2021 and June 27, 2020, respectively. Restructuring costs were comprised primarily of employee terminations costs, including severance and statutory retirement allowances, and were incurred in connections with various cost reduction programs.

The following table summarizes recent activity related to all restructuring programs. The accrued restructuring liability balance as of July 3, 2021 and December 31, 2020, respectively, is included in Other accrued expenses in the accompanying consolidated condensed balance sheets (in thousands):

Balance at December 31, 2020	$	63
Cash payments	(51)
Balance at July 3, 2021	$	12

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Basis of Presentation - (Policies)

6 Months Ended

Jul. 03, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Fiscal Period

VPG reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first quarter, which always begins on January 1, and the fourth quarter, which always ends on December 31. The four fiscal quarters in 2021 and 2020 end on the following dates: 

	2021	2020
Quarter 1	April 3,	March 28,
Quarter 2	July 3,	June 27,
Quarter 3	October 2,	September 26,
Quarter 4	December 31,	December 31,

Recent Accounting Pronouncements

Recently Adopted Accounting PronouncementsIn December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. ASU 2019-12, "Simplifying the Accounting for Income Taxes". This ASU amends Accounting Standards Codification ("ASC") 740 by removing certain exceptions to the general principles, clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company adopted this standard in the first quarter of 2021. The adoption of this ASU did not impact our financial statements or the related disclosures.

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Basis of Presentation - (Tables)

6 Months Ended

Jul. 03, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Fiscal Quarters

VPG reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first quarter, which always begins on January 1, and the fourth quarter, which always ends on December 31. The four fiscal quarters in 2021 and 2020 end on the following dates: 

	2021	2020
Quarter 1	April 3,	March 28,
Quarter 2	July 3,	June 27,
Quarter 3	October 2,	September 26,
Quarter 4	December 31,	December 31,

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Revenues - (Tables)

6 Months Ended

Jul. 03, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates net revenue by geographic region from contracts with customers based on net revenues generated by subsidiaries within that geographic location (in thousands):

	Fiscal quarter ended    July 3, 2021								Fiscal quarter ended    June 27, 2020
	Foil Technology Products		Force Sensors		Weighing and Control Systems		Total		Foil Technology Products		Force Sensors		Weighing and Control Systems		Total
United States	$	11,003	$	8,017	$	10,574	$	29,594	$	10,789	$	4,113	$	6,009	$	20,911
United Kingdom	1,102		514		3,681		5,297		587		1,711		1,723		4,021
Other Europe	6,604		5,018		5,204		16,826		6,973		1,434		3,430		11,837
Israel	5,284		261		—		5,545		5,691		93		—		5,784
Asia	9,315		3,406		2,012		14,733		7,745		1,565		1,859		11,169
Canada	—		—		3,344		3,344		—		—		5,424		5,424
Total	$	33,308	$	17,216	$	24,815	$	75,339	$	31,785	$	8,916	$	18,445	$	59,146
	Six Fiscal Months Ended July 3, 2021								Six Fiscal Months Ended June 27, 2020
	Foil Technology Products		Force Sensors		Weighing and Control Systems		Total		Foil Technology Products		Force Sensors		Weighing and Control Systems		Total
United States	$	21,482	$	15,788	$	18,241	$	55,511	$	22,723	$	12,505	$	14,898	$	50,126
United Kingdom	2,000		1,081		7,694		10,775		1,537		3,691		5,435		10,663
Other Europe	13,870		10,493		9,765		34,128		14,686		3,808		7,174		25,668
Israel	11,725		391		—		12,116		8,646		190		—		8,836
Asia	16,942		6,396		3,613		26,951		14,670		3,417		3,530		21,617
Canada	—		—		6,447		6,447		—		—		9,932		9,932
Total	$	66,019	$	34,149	$	45,760	$	145,928	$	62,262	$	23,611	$	40,969	$	126,842

The following table disaggregates net revenue from contracts with customers by market sector (in thousands).

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Test & Measurement	$	16,279	$	14,027	$	30,695	$	28,372
Avionics, Military & Space	5,872		6,727		11,902		12,887
Transportation	11,930		5,188		21,484		13,432
Other Markets	17,489		12,192		35,034		25,320
Industrial Weighing	12,042		8,583		24,047		21,050
General Industrial	4,173		3,623		8,255		7,662
Steel	7,554		8,806		14,511		18,119
Total	$	75,339	$	59,146	$	145,928	$	126,842

Contract with Customer, Asset and Liability

The outstanding contract assets and liability accounts were as follows (in thousands):

	Contract Asset		Contract Liability
	Unbilled Revenue		Accrued Customer Advances
Balance at December 31, 2020	$	3,605	$	2,873
Balance at July 3, 2021	4,656		4,525
(Decrease)/increase	$	1,051	$	1,652

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Acquisitions - (Tables)

6 Months Ended

Jul. 03, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Assets Acquired and Liabilities Assumed

The following table summarizes the provisional fair values assigned to the assets and liabilities of DTS as of June 1, 2021 (in thousands):

	June 1, 2021
Working capital	$	12,999
Property and equipment	1,209
Deferred income tax liability	(6,274)
Intangible assets:
Acquired technology	13,167
Customer relationships	8,135
Trade names	2,393
Total intangible assets	23,695
Fair value of acquired identifiable assets	31,629
Purchase price	$	47,216
Goodwill	$	15,587

Schedule of Acquisition Costs

The Company recorded acquisition costs associated with this transaction as follows (in thousands):

	Fiscal quarter ended		Six fiscal months ended
	July 3, 2021		July 3, 2021
Legal fees	$	341	$	341
Appraisal fees	18		18
Other (investment banker and insurance costs)	839		839
	$	1,198	$	1,198

Business Acquisition, Pro Forma Information

Following is the supplemental consolidated financial results for the Company on an unaudited pro forma basis, as if the DTS acquisition had been consummated on January 1, 2020:

	Fiscal quarter ended		Six fiscal months ended		Fiscal quarter ended		Six fiscal months ended
	June 27, 2020		June 27, 2020		July 3, 2021		July 3, 2021
Pro forma net revenues	$	64,907	$	139,158	80,243		159,164
Pro forma net earnings attributable to VPG stockholders	$	1,629	$	3,658	6,741		13,411
Pro forma basic earnings per share attributable to VPG stockholders	$	0.12	$	0.27	$	0.50	$	0.99
Pro forma diluted earnings per share attributable to VPG stockholders	$	0.12	$	0.27	$	0.49	$	0.98

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Goodwill and Other Intangible Assets - (Tables)

6 Months Ended

Jul. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The change in the carrying amount of goodwill by segment is as follows (in thousands):

	Total		Weighing and Control Systems Segment								Foil Technology Products Segment
			KELK Acquisition		DSI Acquisition		DTS Acquisition		Stress-Tek Acquisition		Pacific Acquisition
Balance at December 31, 2020	$	31,105	$	6,726	$	16,942			$	6,311	$	1,126
Goodwill acquired	15,587						15,587
Impairment charges	(1,126)										(1,126)
Foreign currency translation adjustment	166		180		(14)				—		—
Balance at July 3, 2021	$	45,732	$	6,906	$	16,928	$	15,587	$	6,311	$	—

Schedule of Finite-Lived Intangible Assets

Intangible assets were as follows (in thousands):

	July 3, 2021		December 31, 2020
Intangible assets subject to amortization
(Definite-lived):
Patents and acquired technology	$	33,069	$	19,804
Customer relationships	34,393		26,061
Trade names	1,697		1,747
Non-competition agreements	11,646		12,259
	80,805		59,871
Accumulated amortization:
Patents and acquired technology	(6,552)		(5,895)
Customer relationships	(14,191)		(13,363)
Trade names	(1,697)		(1,747)
Non-competition agreements	(11,639)		(12,250)
	(34,079)		(33,255)
Net intangible assets subject to amortization	$	46,726	$	26,616
Intangible assets not subject to amortization
(Indefinite-lived):
Trade names	7,748		5,423
	$	54,474	$	32,039

Schedule of Indefinite-Lived Intangible Assets

Intangible assets were as follows (in thousands):

	July 3, 2021		December 31, 2020
Intangible assets subject to amortization
(Definite-lived):
Patents and acquired technology	$	33,069	$	19,804
Customer relationships	34,393		26,061
Trade names	1,697		1,747
Non-competition agreements	11,646		12,259
	80,805		59,871
Accumulated amortization:
Patents and acquired technology	(6,552)		(5,895)
Customer relationships	(14,191)		(13,363)
Trade names	(1,697)		(1,747)
Non-competition agreements	(11,639)		(12,250)
	(34,079)		(33,255)
Net intangible assets subject to amortization	$	46,726	$	26,616
Intangible assets not subject to amortization
(Indefinite-lived):
Trade names	7,748		5,423
	$	54,474	$	32,039

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated annual amortization expense for the full year of 2021 and each of the next four years, is as follows ( in thousands):

2021	$	3,280
2022	3,871
2023	3,763
2024	3,728
2025	3,728

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Leases - (Tables)

6 Months Ended

Jul. 03, 2021

Leases [Abstract]

Leases Recorded on the Balance Sheet

Leases recorded on the balance sheet consist of the following (in thousands):

Leases	July 3, 2021		December 31, 2020
Assets
Operating lease right of use asset	$	25,451	$	21,788
Liabilities
Operating lease - current	$	4,445	$	4,011
Operating lease - non-current	$	22,346	$	19,504

Other Information Related to Lease Term and Discount Rate

Other information related to lease term and discount rate is as follows:

	July 3, 2021
Operating leases weighted average remaining lease term (in years)	8.49 years
Operating leases weighted average discount rate	3.36	%

Components of Lease Expense

The components of lease expense are as follows (in thousands):

	Fiscal quarter ended				Six Fiscal Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Operating lease cost	$	1,258	$	1,139	$	2,439	$	2,013
Short-term lease cost	35		34		68		57
Sublease income	(19)		—		(28)		—
Total net lease cost	$	1,274	$	1,173	$	2,479	$	2,070

Maturities of Operating Lease Liabilities

Undiscounted maturities of operating lease payments as of July 3, 2021 are summarized as follows (in thousands):

2021 (excluding the six months ended July 3, 2021)	$	2,596
2022	4,500
2023	3,968
2024	3,555
2025	3,083
Thereafter	12,894
Total future minimum lease payments	$	30,596
Less: amount representing interest	(3,805)
Present value of future minimum lease payments	$	26,791

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Long-Term Debt - (Tables)

6 Months Ended

Jul. 03, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of the following (in thousands):

	July 3, 2021		December 31, 2020
2020 Credit Agreement - Revolving Facility	$	61,000	$	41,000
Other debt	—		18
Deferred financing costs	(330)		(374)
Total long-term debt	60,670		40,644
Less: current portion	—		18
Long-term debt, less current portion	$	60,670	$	40,626

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Accumulated Other Comprehensive Income (Loss) - (Tables)

6 Months Ended

Jul. 03, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, consist of the following (in thousands):

	Foreign Currency Translation Adjustment		Pension and Other Postretirement Actuarial Items		Total
Balance at January 1, 2021	$	(25,591)	$	(7,080)	$	(32,671)
Other comprehensive loss before reclassifications	(1,193)		—		(1,193)
Amounts reclassified from accumulated other comprehensive income (loss)	—		318		318
Balance at July 3, 2021	$	(26,784)	$	(6,762)	$	(33,546)

	Foreign Currency Translation Adjustment		Pension and Other Postretirement Actuarial Items		Total
Balance at January 1, 2020	$	(30,761)	$	(6,942)	$	(37,703)
Other comprehensive loss before reclassifications	(2,070)		—		(2,070)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(311)		(311)
Balance at June 27, 2020	$	(32,831)	$	(7,253)	$	(40,084)

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Pensions and Other Postretirement Benefits - (Tables)

6 Months Ended

Jul. 03, 2021

Retirement Benefits [Abstract]

Schedule of Net Pension and Other Retirement Plan Costs

The following table sets forth the components of the net periodic benefit cost for the Company's defined benefit pension and OPEB plans (in thousands):

	Fiscal quarter ended    July 3, 2021				Fiscal quarter ended    June 27, 2020
	Pension Plans		OPEB Plans		Pension Plans		OPEB Plans
Net service cost	$	96	$	9	$	99	$	31
Interest cost	103		17		127		33
Expected return on plan assets	(97)		—		(109)		—
Amortization of actuarial losses	102		5		76		34
Net periodic benefit cost	$	204	$	31	$	193	$	98

	Six fiscal months ended July 3, 2021				Six fiscal months ended June 27, 2020
	Pension Plans		OPEB Plans		Pension Plans		OPEB Plans
Net service cost	$	193	$	18	$	198	$	62
Interest cost	206		34		256		66
Expected return on plan assets	(194)		—		(220)		—
Amortization of actuarial losses	204		10		153		68
Net periodic benefit cost	$	409	$	62	$	387	$	196

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Share-Based Compensation - (Tables)

6 Months Ended

Jul. 03, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Compensation Expense

The following table summarizes share-based compensation expense recognized (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Restricted stock units	$	576	$	378	$	942	$	757

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Segment Information - (Tables)

6 Months Ended

Jul. 03, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting

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

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net revenues:
Foil Technology Products	$	33,308	$	31,785	$	66,019	$	62,262
Force Sensors	17,216		8,916		34,149		23,611
Weighing and Control Systems	24,815		18,445		45,760		40,969
Total	$	75,339	$	59,146	$	145,928	$	126,842
Gross profit:
Foil Technology Products	$	12,942	$	13,286	$	25,981	$	24,487
Force Sensors	5,969		1,038		12,008		4,610
Weighing and Control Systems	10,887		8,786		20,431		19,078
Total	$	29,798	$	23,110	$	58,420	$	48,175
Reconciliation of segment operating income to consolidated results:
Foil Technology Products	$	7,219	$	8,070	$	14,052	$	13,454
Force Sensors	3,474		(1,013)		6,977		191
Weighing and Control Systems	4,595		4,019		8,419		8,687
Unallocated G&A expenses	(7,943)		(6,606)		(15,664)		(13,088)
Acquisition costs	(1,198)		—		(1,198)		—
Impairment of goodwill and indefinite-lived intangibles	(1,223)		—		(1,223)		—
Restructuring costs	—		(499)		—		(629)
Operating income	$	4,924	$	3,971	$	11,363	$	8,615
Acquisition costs:
Weighing and Control Systems	(1,198)		—		(1,198)		—
	$	(1,198)	$	—	$	(1,198)	$	—
Impairment of goodwill and indefinite-lived intangibles:
Foil Technology Products	$	(1,223)	$	—	$	(1,223)	$	—
	$	(1,223)	$	—	$	(1,223)	$	—
Restructuring costs:
Foil Technology Products	$	—	$	(341)	$	—	$	(443)
Force Sensors	$	—	$	(80)	$	—	$	(108)
Corporate/Other	—		(78)		—		(78)
	$	—	$	(499)	$	—	$	(629)

Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. The table below summarizes intersegment sales (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Foil Technology Products to Force Sensors and Weighing and Control Systems	$	959	$	868	$	1,920	$	1,592
Weighing and Control Systems to Foil Technology Products and Force Sensors	$	150	$	124	$	264	$	211

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Earnings Per Share - (Tables)

6 Months Ended

Jul. 03, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share attributable to VPG stockholders (in thousands, except earnings per share):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Numerator:
Numerator for basic earnings per share:
Net earnings attributable to VPG stockholders	$	3,920	$	1,759	$	8,881	$	5,071
Denominator:
Denominator for basic earnings per share:
Weighted average shares	13,618		13,571		13,605		13,556
Effect of dilutive securities:
Restricted stock units	28		38		33		42
Dilutive potential common shares	28		38		33		42
Denominator for diluted earnings per share:
Adjusted weighted average shares	13,646		13,609		13,638		13,598
Basic earnings per share attributable to VPG stockholders	$	0.29	$	0.13	$	0.65	$	0.37
Diluted earnings per share attributable to VPG stockholders	$	0.29	$	0.13	$	0.65	$	0.37

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Additional Financial Statement Information - (Tables)

6 Months Ended

Jul. 03, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Other Income (Expense)

The caption “Other” on the consolidated condensed statements of operations consists of the following (in thousands):

	Fiscal quarter ended				Six fiscal months ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Foreign exchange (loss) gain	$	(174)	$	(1,185)	$	561	$	(285)
Interest income	20		109		65		176
Pension expense	(143)		(164)		(280)		(323)
Other	(29)		(33)		(99)		(158)
	$	(326)	$	(1,273)	$	247	$	(590)

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Fair Value Measurements - (Tables)

6 Months Ended

Jul. 03, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities at Fair Value, Recurring

The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis (in thousands):

			Fair value measurements at reporting date using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
July 3, 2021
Assets
Assets held in rabbi trusts	$	5,995	$	80	$	5,915	$	—
December 31, 2020
Assets
Assets held in rabbi trusts	$	5,601	$	61	$	5,540	$	—

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Restructuring Costs - (Tables)

6 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table summarizes recent activity related to all restructuring programs. The accrued restructuring liability balance as of July 3, 2021 and December 31, 2020, respectively, is included in Other accrued expenses in the accompanying consolidated condensed balance sheets (in thousands):

Balance at December 31, 2020	$	63
Cash payments	(51)
Balance at July 3, 2021	$	12

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Revenues - (Disaggregation of Revenue by Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 75,339	$ 59,146	$ 145,928	$ 126,842
United States
Disaggregation of Revenue [Line Items]
Total revenue	29,594	20,911	55,511	50,126
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	5,297	4,021	10,775	10,663
Other Europe
Disaggregation of Revenue [Line Items]
Total revenue	16,826	11,837	34,128	25,668
Israel
Disaggregation of Revenue [Line Items]
Total revenue	5,545	5,784	12,116	8,836
Asia
Disaggregation of Revenue [Line Items]
Total revenue	14,733	11,169	26,951	21,617
Canada
Disaggregation of Revenue [Line Items]
Total revenue	3,344	5,424	6,447	9,932
Foil Technology Products
Disaggregation of Revenue [Line Items]
Total revenue	33,308	31,785	66,019	62,262
Foil Technology Products | United States
Disaggregation of Revenue [Line Items]
Total revenue	11,003	10,789	21,482	22,723
Foil Technology Products | United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	1,102	587	2,000	1,537
Foil Technology Products | Other Europe
Disaggregation of Revenue [Line Items]
Total revenue	6,604	6,973	13,870	14,686
Foil Technology Products | Israel
Disaggregation of Revenue [Line Items]
Total revenue	5,284	5,691	11,725	8,646
Foil Technology Products | Asia
Disaggregation of Revenue [Line Items]
Total revenue	9,315	7,745	16,942	14,670
Foil Technology Products | Canada
Disaggregation of Revenue [Line Items]
Total revenue	0	0	0	0
Force Sensors
Disaggregation of Revenue [Line Items]
Total revenue	17,216	8,916	34,149	23,611
Force Sensors | United States
Disaggregation of Revenue [Line Items]
Total revenue	8,017	4,113	15,788	12,505
Force Sensors | United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	514	1,711	1,081	3,691
Force Sensors | Other Europe
Disaggregation of Revenue [Line Items]
Total revenue	5,018	1,434	10,493	3,808
Force Sensors | Israel
Disaggregation of Revenue [Line Items]
Total revenue	261	93	391	190
Force Sensors | Asia
Disaggregation of Revenue [Line Items]
Total revenue	3,406	1,565	6,396	3,417
Force Sensors | Canada
Disaggregation of Revenue [Line Items]
Total revenue	0	0	0	0
Weighing and Control Systems
Disaggregation of Revenue [Line Items]
Total revenue	24,815	18,445	45,760	40,969
Weighing and Control Systems | United States
Disaggregation of Revenue [Line Items]
Total revenue	10,574	6,009	18,241	14,898
Weighing and Control Systems | United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	3,681	1,723	7,694	5,435
Weighing and Control Systems | Other Europe
Disaggregation of Revenue [Line Items]
Total revenue	5,204	3,430	9,765	7,174
Weighing and Control Systems | Israel
Disaggregation of Revenue [Line Items]
Total revenue	0	0	0	0
Weighing and Control Systems | Asia
Disaggregation of Revenue [Line Items]
Total revenue	2,012	1,859	3,613	3,530
Weighing and Control Systems | Canada
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,344	$ 5,424	$ 6,447	$ 9,932

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Revenues - (Disaggregation of Revenue by Market Sector) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 75,339	$ 59,146	$ 145,928	$ 126,842
Test & Measurement
Disaggregation of Revenue [Line Items]
Total revenue	16,279	14,027	30,695	28,372
Avionics, Military & Space
Disaggregation of Revenue [Line Items]
Total revenue	5,872	6,727	11,902	12,887
Transportation
Disaggregation of Revenue [Line Items]
Total revenue	11,930	5,188	21,484	13,432
Other Markets
Disaggregation of Revenue [Line Items]
Total revenue	17,489	12,192	35,034	25,320
Industrial Weighing
Disaggregation of Revenue [Line Items]
Total revenue	12,042	8,583	24,047	21,050
General Industrial
Disaggregation of Revenue [Line Items]
Total revenue	4,173	3,623	8,255	7,662
Steel
Disaggregation of Revenue [Line Items]
Total revenue	$ 7,554	$ 8,806	$ 14,511	$ 18,119

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Revenues - (Contract Assets and Liabilities) (Details) $ in Thousands	6 Months Ended
	Jul. 03, 2021 USD ($)
Movement in Contract Assets and Liabilities [Roll Forward]
Contract Asset, beginning balance	$ 3,605
(Decrease)/increase in contract asset	1,051
Contract Asset, ending balance	4,656
Contract Liability, beginning balance	2,873
(Decrease)/increase in contract liability	1,652
Contract Liability, ending balance	$ 4,525

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Revenues - (Narrative) (Details) $ in Millions	6 Months Ended
	Jul. 03, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Contract with customer, revenue recognized	$ 2.4

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Acquisitions - (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 01, 2021	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Business Acquisition [Line Items]
Net loss		$ 3,920	$ 1,759	$ 8,881	$ 5,071
Amortization of intangible assets		700		1,400
DTS Acquisition
Business Acquisition [Line Items]
Purchase price	$ 47,216
Revenues		3,000		3,000
Net loss		(200)		(200)
Amortization of inventory step-up costs		900		900
Amortization of intangible assets		$ 100		$ 100
DTS Acquisition | Acquired technology
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	15 years
DTS Acquisition | Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	15 years

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Acquisitions - (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Jun. 01, 2021	Jul. 03, 2021	Dec. 31, 2020
Intangible assets:
Goodwill		$ 45,732	$ 31,105
DTS Acquisition
Business Acquisition [Line Items]
Working capital	$ 12,999
Property and equipment	1,209
Long-term deferred income tax liability	(6,274)
Intangible assets:
Total intangible assets	23,695
Fair value of acquired identifiable assets	31,629
Purchase price	47,216
Goodwill	15,587
DTS Acquisition | Trade names
Intangible assets:
Total intangible assets	2,393
DTS Acquisition | Acquired technology
Intangible assets:
Total intangible assets	13,167
DTS Acquisition | Customer relationships
Intangible assets:
Total intangible assets	$ 8,135

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Acquisitions - (Schedule of Acquisition Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Acquisition costs	$ 1,198	$ 0	$ 1,198	$ 0
DTS Acquisition
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Legal fees	341		341
Appraisal fees	18		18
Other (investment banker and insurance costs)	839		839
Acquisition costs	$ 1,198		$ 1,198

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Acquisitions - (Pro Forma Information) (Details) - DTS Acquisition - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro forma net revenues	$ 80,243	$ 64,907	$ 159,164	$ 139,158
Pro forma net earnings attributable to VPG stockholders	$ 6,741	$ 1,629	$ 13,411	$ 3,658
Pro forma basic earnings per share attributable to VPG stockholders (in dollars per share)	$ 0.50	$ 0.12	$ 0.99	$ 0.27
Pro forma diluted earnings per share attributable to VPG stockholders (in dollars per share)	$ 0.49	$ 0.12	$ 0.98	$ 0.27

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Goodwill and Other Intangible Assets - (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 03, 2021	Jul. 03, 2021	Jun. 01, 2021	Dec. 31, 2020
Goodwill [Line Items]
Impairment charges		$ 1,126
Goodwill	$ 45,732	45,732		$ 31,105
Indefinite-lived intangible assets	54,474	54,474		32,039
Amortization of intangible assets	700	1,400
Trade names
Goodwill [Line Items]
Indefinite-lived intangible assets	7,748	7,748		$ 5,423
Instrumentation
Goodwill [Line Items]
Impairment charges	1,100
Goodwill	0	0
Instrumentation | Trade names
Goodwill [Line Items]
Impairment of indefinite lived intangible assets	100
Indefinite-lived intangible assets	300	300
DTS Acquisition
Goodwill [Line Items]
Goodwill			$ 15,587
Finite-lived intangible assets acquired	21,300	21,300
Indefinite-lived intangible assets acquired	2,400	2,400
Amortization of intangible assets	$ 100	$ 100

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Goodwill and Other Intangible Assets - (Schedule of Goodwill) (Details) $ in Thousands	6 Months Ended
	Jul. 03, 2021 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 31,105
Goodwill acquired	15,587
Impairment charges	(1,126)
Foreign currency translation adjustment	166
Ending balance	45,732
KELK Acquisition | Weighing and Control Systems Segment
Goodwill [Roll Forward]
Beginning balance	6,726
Foreign currency translation adjustment	180
Ending balance	6,906
DSI Acquisition | Weighing and Control Systems Segment
Goodwill [Roll Forward]
Beginning balance	16,942
Foreign currency translation adjustment	(14)
Ending balance	16,928
DTS Acquisition | Weighing and Control Systems Segment
Goodwill [Roll Forward]
Goodwill acquired	15,587
Ending balance	15,587
Stress-Tek Acquisition | Weighing and Control Systems Segment
Goodwill [Roll Forward]
Beginning balance	6,311
Ending balance	6,311
Pacific Acquisition | Foil Technology Products Segment
Goodwill [Roll Forward]
Beginning balance	1,126
Impairment charges	(1,126)
Ending balance	$ 0

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Goodwill and Other Intangible Assets - (Schedule of Finite and Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization	$ 80,805	$ 59,871
Accumulated amortization:	(34,079)	(33,255)
Net intangible assets subject to amortization	46,726	26,616
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	54,474	32,039
Trade names
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	7,748	5,423
Patents and acquired technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization	33,069	19,804
Accumulated amortization:	(6,552)	(5,895)
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization	34,393	26,061
Accumulated amortization:	(14,191)	(13,363)
Trade names
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization	1,697	1,747
Accumulated amortization:	(1,697)	(1,747)
Non-competition agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets subject to amortization	11,646	12,259
Accumulated amortization:	$ (11,639)	$ (12,250)

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Goodwill and Other Intangible Assets - (Schedule of Future Amortization Expense) (Details) $ in Thousands	Jul. 03, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 3,280
2022	3,871
2023	3,763
2024	3,728
2025	$ 3,728

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Leases - (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability	$ 5.9
Operating lease, payments	$ 2.4	$ 1.7
Buildings and Vehicles | Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term (years)	1 year
Buildings and Vehicles | Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term (years)	11 years

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Leases - (Leases Recorded on the Balance Sheet) (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Dec. 31, 2020
Assets
Operating lease right of use asset	$ 25,451	$ 21,788
Liabilities
Operating lease - current	4,445	4,011
Operating lease - non-current	$ 22,346	$ 19,504

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Leases - (Other Information Related to Leases) (Details)	Jul. 03, 2021
Leases [Abstract]
Operating leases weighted average remaining lease term (years)	8 years 5 months 26 days
Operating leases weighted average discount rate (percent)	3.36%

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Leases - (Components of Lease Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Leases [Abstract]
Operating lease cost	$ 1,258	$ 1,139	$ 2,439	$ 2,013
Short-term lease cost	35	34	68	57
Sublease income	(19)	0	(28)	0
Total net lease cost	$ 1,274	$ 1,173	$ 2,479	$ 2,070

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Leases - (Maturities of Operating Lease Liabilities) (Details) $ in Thousands	Jul. 03, 2021 USD ($)
Leases [Abstract]
2021 (excluding the six months ended July 3, 2021)	$ 2,596
2022	4,500
2023	3,968
2024	3,555
2025	3,083
Thereafter	12,894
Total future minimum lease payments	30,596
Less: amount representing interest	(3,805)
Present value of future minimum lease payments	$ 26,791

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Income Taxes - (Details)	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Income Tax Disclosure [Abstract]
Effective tax rate (percent)	6.10%	28.10%	18.40%	30.90%

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Long-Term Debt - (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Other debt	$ 0	$ 18
Deferred financing costs	(330)	(374)
Total long-term debt	60,670	40,644
Less: current portion	0	18
Long-term debt, less current portion	60,670	40,626
Revolving Credit Facility | Credit Agreement 2020
Debt Instrument [Line Items]
Secured debt	$ 61,000	$ 41,000

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Accumulated Other Comprehensive Income (Loss) - (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	$ 257,857	$ 241,752
Other comprehensive loss before reclassifications	(1,193)	(2,070)
Amounts reclassified from accumulated other comprehensive income (loss)	318	(311)
Balance, ending	265,918	244,240
Total
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	(32,671)	(37,703)
Balance, ending	(33,546)	(40,084)
Foreign Currency Translation Adjustment
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	(25,591)	(30,761)
Other comprehensive loss before reclassifications	(1,193)	(2,070)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Balance, ending	(26,784)	(32,831)
Pension and Other Postretirement Actuarial Items
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	(7,080)	(6,942)
Other comprehensive loss before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	318	(311)
Balance, ending	$ (6,762)	$ (7,253)

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Pensions and Other Postretirement Benefits - (Schedule of Net Pension and Other Retirement Plan Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Net service cost	$ 96	$ 99	$ 193	$ 198
Interest cost	103	127	206	256
Expected return on plan assets	(97)	(109)	(194)	(220)
Amortization of actuarial losses	102	76	204	153
Net periodic benefit cost	204	193	409	387
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Net service cost	9	31	18	62
Interest cost	17	33	34	66
Expected return on plan assets	0	0	0	0
Amortization of actuarial losses	5	34	10	68
Net periodic benefit cost	$ 31	$ 98	$ 62	$ 196

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Share-Based Compensation - (Narrative) (Details) $ in Millions	May 27, 2021 USD ($) shares	Mar. 08, 2021 USD ($) shares	Mar. 04, 2021 USD ($) people shares	Jul. 03, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (up to)				1,000,000
Number of shares available for grant (in shares)				320,654
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of people granted awards (people) | people			3
Percentage of performance based units on total units approved			50.00%
Weighted average grant date fair value | $	$ 0.3	$ 0.6	$ 1.7
Number of RSUs granted (in shares)	9,936	17,793	52,486
Award vesting period (in years)		3 years	3 years
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance based units on total units approved		75.00%
Award vesting rights (percentage)		25.00%	50.00%
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance based units on total units approved		50.00%
Award vesting rights (percentage)		50.00%

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Share-Based Compensation - (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Share-based Payment Arrangement [Abstract]
Restricted stock units	$ 576	$ 378	$ 942	$ 757

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Segment Information - (Narrative) (Details)	6 Months Ended
	Jul. 03, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	3

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Segment Information - (Schedule of Segment Reporting) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Segment Reporting Information [Line Items]
Net revenues	$ 75,339	$ 59,146	$ 145,928	$ 126,842
Gross profit	29,798	23,110	58,420	48,175
Operating income	4,924	3,971	11,363	8,615
Acquisition costs	(1,198)	0	(1,198)	0
Impairment of goodwill and indefinite-lived intangibles	(1,223)	0	(1,223)	0
Restructuring costs	0	(499)	0	(629)
Foil Technology Products
Segment Reporting Information [Line Items]
Net revenues	33,308	31,785	66,019	62,262
Force Sensors
Segment Reporting Information [Line Items]
Net revenues	17,216	8,916	34,149	23,611
Weighing and Control Systems
Segment Reporting Information [Line Items]
Net revenues	24,815	18,445	45,760	40,969
Operating Segments
Segment Reporting Information [Line Items]
Net revenues	75,339	59,146	145,928	126,842
Gross profit	29,798	23,110	58,420	48,175
Operating Segments | Foil Technology Products
Segment Reporting Information [Line Items]
Net revenues	33,308	31,785	66,019	62,262
Gross profit	12,942	13,286	25,981	24,487
Operating income	7,219	8,070	14,052	13,454
Impairment of goodwill and indefinite-lived intangibles	(1,223)	0	(1,223)	0
Restructuring costs	0	(341)	0	(443)
Operating Segments | Force Sensors
Segment Reporting Information [Line Items]
Net revenues	17,216	8,916	34,149	23,611
Gross profit	5,969	1,038	12,008	4,610
Operating income	3,474	(1,013)	6,977	191
Restructuring costs	0	(80)	0	(108)
Operating Segments | Weighing and Control Systems
Segment Reporting Information [Line Items]
Net revenues	24,815	18,445	45,760	40,969
Gross profit	10,887	8,786	20,431	19,078
Operating income	4,595	4,019	8,419	8,687
Acquisition costs	(1,198)	0	(1,198)	0
Segment Reconciling Items
Segment Reporting Information [Line Items]
Unallocated G&A expenses	(7,943)	(6,606)	(15,664)	(13,088)
Acquisition costs	(1,198)	0	(1,198)	0
Impairment of goodwill and indefinite-lived intangibles	(1,223)	0	(1,223)	0
Restructuring costs	0	(499)	0	(629)
Corporate/Other
Segment Reporting Information [Line Items]
Restructuring costs	$ 0	$ (78)	$ 0	$ (78)

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Segment Information - (Intersegment Sales) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Segment Reporting Information [Line Items]
Total revenue	$ 75,339	$ 59,146	$ 145,928	$ 126,842
Foil Technology Products
Segment Reporting Information [Line Items]
Total revenue	33,308	31,785	66,019	62,262
Foil Technology Products | Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	959	868	1,920	1,592
Weighing and Control Systems
Segment Reporting Information [Line Items]
Total revenue	24,815	18,445	45,760	40,969
Weighing and Control Systems | Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	$ 150	$ 124	$ 264	$ 211

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Earnings Per Share - (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Numerator:
Net earnings attributable to VPG stockholders	$ 3,920	$ 1,759	$ 8,881	$ 5,071
Denominator:
Weighted average shares (in shares)	13,618	13,571	13,605	13,556
Effect of dilutive securities:
Restricted stock units (in shares)	28	38	33	42
Dilutive potential common shares	28	38	33	42
Denominator for diluted earnings per share:
Adjusted weighted average shares (in shares)	13,646	13,609	13,638	13,598
Basic earnings per share attributable to VPG stockholders (dollars per share)	$ 0.29	$ 0.13	$ 0.65	$ 0.37
Diluted earnings per share attributable to VPG stockholders (dollars per share)	$ 0.29	$ 0.13	$ 0.65	$ 0.37

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Additional Financial Statement Information - (Schedule of Other Items in Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Foreign exchange loss	$ (174)	$ (1,185)	$ 561	$ (285)
Interest income	20	109	65	176
Pension expense	(143)	(164)	(280)	(323)
Other	(29)	(33)	(99)	(158)
Other nonoperating income (expense)	$ (326)	$ (1,273)	$ 247	$ (590)

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Fair Value Measurements - (Schedule of Assets and Liabilities at Fair Value, Recurring) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jul. 03, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held in rabbi trusts	$ 5,995	$ 5,601
Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held in rabbi trusts	80	61
Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held in rabbi trusts	5,915	5,540
Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held in rabbi trusts	$ 0	$ 0

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Restructuring Costs - (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Jul. 03, 2021	Jun. 27, 2020
Restructuring and Related Activities [Abstract]
Restructuring costs	$ 0	$ 499	$ 0	$ 629

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Restructuring Costs - (Details) - Employee Severance $ in Thousands	6 Months Ended
	Jul. 03, 2021 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 63
Cash payments	(51)
Restructuring reserve, ending balance	$ 12