Note 9 – Segment Information

Vishay is a global manufacturer and supplier of electronic components. Vishay operates, and its chief operating decision maker makes strategic and operating decisions with regards to assessing performance and allocating resources based on, five reporting segments: MOSFETs, Diodes, Optoelectronic Components, Resistors & Inductors, and Capacitors. These segments represent groupings of product lines based on their functionality:

●		Metal oxide semiconductor field-effect transistors ("MOSFETs") function as solid-state switches to control power.
●		Diodes route, regulate, and block radio frequency, analog, and power signals; protect systems from surges or electrostatic discharge damage; or provide electromagnetic interference filtering.
●		Optoelectronic components emit light, detect light, or do both.
●		Resistors and inductors both impede electric current. Resistors are basic components used in all forms of electronic circuitry to adjust and regulate levels of voltage and current. Inductors use an internal magnetic field to change alternating current phase and resist alternating current.
●		Capacitors store energy and discharge it when needed.

Vishay's reporting segments generate substantially all of their revenue from product sales to the industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets. A small portion of revenues is from royalties.

The Company evaluates business segment performance on operating income, exclusive of certain items ("segment operating income"). Only dedicated, direct selling, general, and administrative expenses of the segments are included in the calculation of segment operating income. The Company's calculation of segment operating income excludes such selling, general, and administrative costs as global operations, sales and marketing, information systems, finance and administration groups, as well as restructuring and severance costs, goodwill and long-lived asset impairment charges, and other items. Management believes that evaluating segment performance excluding such items is meaningful because it provides insight with respect to intrinsic operating results of the Company. These items represent reconciling items between segment operating income and consolidated operating income. Business segment assets are the owned or allocated assets used by each business.

The Company also regularly evaluates gross profit by segment to assist in the analysis of consolidated gross profit. The Company considers segment operating income to be the more important metric because it more fully captures the business operations of the segments.

The following tables set forth business segment information:

	MOSFETs		Diodes		Optoelectronic Components		Resistors & Inductors		Capacitors		Total
Fiscal quarter ended September 30, 2017:
Product Sales	$	126,522	$	160,711	$	76,740	$	217,593	$	96,309	$	677,875
Royalty Revenues		-		-		-		8		-	$	8
Total Revenue	$	126,522	$	160,711	$	76,740	$	217,601	$	96,309	$	677,883

Gross Profit	$	32,307	$	42,942	$	28,901	$	65,541	$	19,582	$	189,273

Segment Operating Income	$	23,391	$	37,991	$	25,012	$	58,267	$	14,688	$	159,349

Fiscal quarter ended October 1, 2016:
Product Sales	$	101,687	$	141,127	$	72,801	$	191,989	$	84,299	$	591,903
Royalty Revenues		-		-		-		52		-	$	52
Total Revenue	$	101,687	$	141,127	$	72,801	$	192,041	$	84,299	$	591,955

Gross Profit	$	16,443	$	36,444	$	24,250	$	58,768	$	17,996	$	153,901

Segment Operating Income	$	7,493	$	31,832	$	20,340	$	51,861	$	13,210	$	124,736

Nine fiscal months ended September 30, 2017:
Product Sales	$	346,086	$	461,323	$	216,260	$	627,116	$	278,198	$	1,928,983
Royalty Revenues		-		-		-		50		-	$	50
Total Revenue	$	346,086	$	461,323	$	216,260	$	627,166	$	278,198	$	1,929,033

Gross Profit	$	78,298	$	121,601	$	76,668	$	188,801	$	57,743	$	523,111

Segment Operating Income	$	51,789	$	106,906	$	63,401	$	166,852	$	42,988	$	431,936

Nine fiscal months ended October 1, 2016:
Product Sales	$	304,839	$	418,629	$	203,635	$	568,122	$	257,175	$	1,752,400
Royalty Revenues		-		-		-		212		-	$	212
Total Revenue	$	304,839	$	418,629	$	203,635	$	568,334	$	257,175	$	1,752,612

Gross Profit	$	40,914	$	106,364	$	65,049	$	171,808	$	53,203	$	437,338

Segment Operating Income	$	12,671	$	90,025	$	49,838	$	147,315	$	37,145	$	336,994

	Fiscal quarters ended						Nine fiscal months ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Reconciliation:
Segment Operating Income	$	159,349		$	124,736		$	431,936		$	336,994
Restructuring and Severance Costs		(3,244	)		(1,197	)		(5,194	)		(12,139	)
Impairment of Intangible Assets		-			(1,559	)		-			(1,559	)
Unallocated Selling, General, and Administrative Expenses		(63,777	)		(64,751	)		(187,690	)		(176,111	)
Consolidated Operating Income	$	92,328		$	57,229		$	239,052		$	147,185
Unallocated Other Income (Expense)		(6,140	)		(6,545	)		(26,713	)		(11,649	)
Consolidated Income (Loss) Before Taxes	$	86,188		$	50,684		$	212,339		$	135,536