Segment and Geographic Data

12 Months Ended

Dec. 31, 2024

Segment and Geographic Data [Abstract]

Segment and Geographic Data

Note 15 – Segment and Geographic Data

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, six 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 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.  An immaterial portion of revenues are from royalties.

The Company’s chief operating decision maker is its President and Chief Executive Officer.  The chief operating decision maker uses both gross profit and operating income, exclusive of certain items ("segment operating income") to make decisions, allocate resources, and assess performance, and the Company thus considers segment gross profit and operating income to be its measures of segment profit or loss.  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 selling, general, and administrative costs of its global operations, sales and marketing, information systems, finance, and administration groups, as well as restructuring and severance costs, goodwill impairment charges, the direct impact of the COVID-19 pandemic, and other items affecting comparability.  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.

Cost of products sold (excluding depreciation) is defined as the aggregate costs incurred in the production of goods for sale, excluding depreciation expense.

Depreciation expense is defined as the aggregate expense recognized for the allocation of costs of tangible assets used in the production of goods to the periods that benefit from the use of the assets.  It excludes depreciation expense attributed to selling, general, and administrative activities.

Segment gross profit is calculated as net revenues determined based on the U.S. GAAP definition, minus costs of goods sold and depreciation expense, as defined above.

Segment operating expenses is defined as the dedicated, direct selling, general, and administrative expenses, including research and development expenses attributed to the segment.

The following tables set forth business segment information:

	MOSFETs		Diodes		Optoelectronic Components		Resistors		Inductors		Capacitors		Corporate / Other			Total
Year ended December 31, 2024:
Net revenues	$	601,979	$	581,975	$	212,368	$	725,614	$	356,355	$	459,296	$	-		$	2,937,587
Cost of products sold (excluding depreciation)	$	465,536	$	414,893	$	158,742	$	524,808	$	231,456	$	330,460	$	-		$	2,125,895
Depreciation expense in cost of products sold		49,342		45,920		15,374		41,848		17,819		15,097		-			185,400
Total cost of products sold		514,878		460,813		174,116		566,656		249,275		345,557		-			2,311,295
Gross profit		87,101		121,162		38,252		158,958		107,080		113,739		-			626,292
Segment operating expenses	$	80,243	$	25,281	$	21,393	$	33,217	$	14,818	$	23,469	$	-		$	198,421
Segment operating income	$	6,858	$	95,881	$	16,859	$	125,741	$	92,262	$	90,270	$	-		$	427,871
Total depreciation expense	$	51,301	$	47,099	$	15,784	$	42,568	$	17,940	$	15,293	$	8,976		$	198,961
Capital expenditures		224,998		29,534		10,451		30,301		6,339		13,609		4,847			320,079
Total assets as of December 31, 2024:	$	1,033,555	$	724,603	$	346,866	$	958,985	$	342,286	$	430,871	$	273,530		$	4,110,696
Year ended December 31, 2023:
Net revenues	$	778,754	$	690,540	$	243,146	$	843,472	$	347,392	$	498,741	$	-		$	3,402,045
Cost of products sold (excluding depreciation)	$	485,086	$	471,088	$	164,791	$	566,640	$	220,090	$	358,120	$	-		$	2,265,815
Depreciation expense in cost of products sold		34,282		43,831		16,129		38,404		14,888		14,203		-			161,737
Total cost of products sold		519,368		514,919		180,920		605,044		234,978		372,323		-			2,427,552
Gross profit		259,386		175,621		62,226		238,428		112,414		126,418		-			974,493
Segment operating expenses	$	63,593	$	22,159	$	19,263	$	29,003	$	12,730	$	21,433	$	-		$	168,181
Segment operating income	$	195,793	$	153,462	$	42,963	$	209,425	$	99,684	$	104,985	$	-		$	806,312
Total depreciation expense	$	35,965	$	44,904	$	16,496	$	39,781	$	14,963	$	14,269	$	8,079		$	174,457
Capital expenditures		132,543		62,185		23,228		67,085		10,767		21,914		11,688			329,410
Total assets as of December 31, 2023:	$	702,299	$	852,703	$	352,984	$	946,585	$	365,111	$	459,653	$	560,588		$	4,239,923
Year ended December 31, 2022:
Net revenues	$	762,260	$	765,220	$	296,384	$	832,806	$	331,086	$	509,645	$	-		$	3,497,401
Cost of products sold (excluding depreciation)	$	458,283	$	528,278	$	179,848	$	536,514	$	211,969	$	371,766	$	6,661		$	2,293,319
Depreciation expense in cost of products sold		29,479		38,837		13,749		34,220		14,768		14,040		-			145,093
Total cost of products sold		487,762		567,115		193,597		570,734		226,737		385,806		6,661			2,438,412
Gross profit		274,498		198,105		102,787		262,072		104,349		123,839		(6,661	)		1,058,989
Segment operating expenses	$	45,806	$	21,683	$	17,331	$	26,813	$	10,896	$	19,029	$	-		$	141,558
Segment operating income	$	228,692	$	176,422	$	85,456	$	235,259	$	93,453	$	104,810	$	(6,661	)	$	917,431
Total depreciation expense	$	30,551	$	40,014	$	14,065	$	34,903	$	14,927	$	14,286	$	7,118		$	155,864
Capital expenditures		90,297		69,126		27,776		76,702		35,102		15,214		11,091			325,308
Total assets as of December 31, 2022:	$	672,048	$	814,017	$	385,388	$	861,870	$	322,893	$	496,924	$	312,513		$	3,865,653

________________

Note 15 – Segment and Geographic Data (continued)

	Years ended December 31,
	2024			2023			2022
Reconciliation:
Segment Operating Income	$	427,871		$	806,312		$	917,431
Restructuring and Severance Costs		(40,614	)		-			-
Impairment of Goodwill		(66,487	)		-			-
Impact of COVID-19 Pandemic on Selling, General, and Administrative Expenses		-			-			(546	)
Unallocated Selling, General, and Administrative Expenses		(315,143	)		(320,168	)		(301,399	)
Consolidated Operating Income (Loss)	$	5,627		$	486,144		$	615,486
Unallocated Other Income (Expense)		(8,016	)		(18,742	)		(21,981	)
Consolidated Income (Loss) Before Taxes	$	(2,389	)	$	467,402		$	593,505

The Company has a broad line of products that it sells to OEMs, EMS companies, and independent distributors.  The distribution of sales by customer type is shown below:

	Years Ended December 31,
	2024		2023		2022
Distributors	$	1,578,172	$	1,798,291	$	2,019,842
OEMs		1,156,852		1,378,065		1,229,114
EMS companies		202,563		225,689		248,445
	$	2,937,587	$	3,402,045	$	3,497,401

Net revenues were attributable to customers in the following regions:

	Years Ended December 31,
	2024		2023		2022
Asia	$	1,149,138	$	1,255,563	$	1,347,893
Europe		1,029,901		1,255,652		1,146,898
Americas		758,548		890,830		1,002,610
	$	2,937,587	$	3,402,045	$	3,497,401

Note 15 – Segment and Geographic Data (continued)

The Company generates substantially all of its revenue from product sales to end customers in the industrial, automotive, military and aerospace, medical, power supplies, telecommunications, consumer products, and computing end markets.  Sales by end market are presented below:

	Years Ended December 31,
	2024		2023		2022
Industrial	$	992,192	$	1,216,078	$	1,377,043
Automotive		1,097,713		1,202,923		1,067,499
Military and Aerospace		325,318		271,871		215,078
Medical		147,845		152,611		133,808
Other*		374,519		558,562		703,973
	$	2,937,587	$	3,402,045	$	3,497,401

*Power supplies, telecommunications, consumer products, and computing

The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area:

	Years ended December 31,
	2024		2023		2022
United States	$	761,218	$	879,734	$	974,503
Germany		871,479		1,076,812		1,005,796
Other Europe		148,055		151,160		142,454
Israel		22,517		29,560		25,844
Asia		1,134,318		1,264,779		1,348,804
	$	2,937,587	$	3,402,045	$	3,497,401

The following table summarizes property and equipment based on physical location:

	December 31,
	2024		2023
United States	$	149,487	$	162,428
Germany		359,430		305,504
United Kingdom		214,838		755
Other Europe		137,109		147,891
Israel		109,277		98,800
People's Republic of China		236,068		250,209
Republic of China (Taiwan)		204,757		207,515
Other Asia		119,236		108,055
Other		15,536		13,489
	$	1,545,738	$	1,294,646