Segment and Geographic Data

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment and Geographic Data

Segment and Geographic Data

VPG reports in three reportable segments: Sensors segment, Weighing Solutions segment, and Measurement Systems segment. The Sensors reporting segment is comprised of the foil resistor and strain gage operating segments. The Weighing Solutions segment is comprised of specialized modules and systems used to precisely measure weight, force torque, and pressure. The Measurement Systems reporting segment is comprised of highly specialized systems for steel production, materials development, and safety testing.

The chief operating decision maker ("CODM") is our chief executive officer. Starting from the fourth quarter of 2021, the CODM evaluates the operating segments performance based on the new segments structure. The evaluation of the segments performance is based on multiple performance measures including gross profits, revenues, and operating income, exclusive of certain items. Management believes that evaluating segment performance, excluding items such as restructuring and severance costs, impairment of goodwill and indefinite-lived intangible assets, acquisition costs, and other items is meaningful because they relate to occurrences or events that are outside of our core operations, and management believes that the use of these measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1). Reporting segment assets are the owned or allocated assets used by each segment. Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products.

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

	Sensors		Weighing Solutions		Measurement Systems		Corporate/ Other		Total
2021
Net third-party revenues	$	127,861	$	125,390	$	64,668			$	317,919
Intersegment revenues	3,487		—		—		(3,487)		—
Gross profit	45,474		45,900		33,768				125,142
Segment operating income (loss)	26,527		23,184		13,480		(35,819)		27,372
Acquisition costs	—		—		1,198		—		1,198
Impairment of goodwill and indefinite-lived intangibles	—		—		1,223		—		1,223
Restructuring costs	—		76		—		—		76
Depreciation and amortization expense	5,967		3,415		3,834		1,780		14,996
Capital expenditures	13,213		3,434		913		7		17,567
Total assets	142,510		152,399		159,816		7,164		461,889
2020
Net third-party revenues	$	120,754	$	101,386	$	47,672	$	—	$	269,812
Intersegment revenues	3,183		—		—		(3,183)		—
Gross profit	47,530		32,250		24,491		—		104,271
Segment operating income (loss)	29,486		12,145		11,763		(30,737)		22,657
Impairment of goodwill and indefinite-lived intangibles	—		—		2,440		—		2,440
Restructuring costs	551		234		51		82		918
Depreciation and amortization expense	5,227		3,291		2,653		1,336		12,507
Capital expenditures	21,885		1,961		468		13		24,327
Total assets	138,932		160,679		78,810		23,466		401,887
2019
Net third-party revenues	$	121,827	$	119,854	$	42,277	$	—	$	283,958
Intersegment revenues	4,067		26		—		(4,093)		—
Gross profit	49,166		40,664		21,787		—		111,617
Segment operating income (loss)	30,262		19,121		10,191		(30,926)		28,648
Acquisition costs	—		—		443		—		443
Executive severance costs	—		—		—		611		611
Restructuring costs	79		2,041		7		166		2,293
Depreciation and amortization expense	5,228		3,475		1,809		1,283		11,795
Capital expenditures	6,688		2,729		1,074		38		10,529
Total assets	96,316		168,953		86,133		19,011		370,413

The “Corporate/Other” column for segment operating income (loss) includes unallocated selling, general, and administrative expenses and certain items which management excludes from segment results when evaluating segment performance, as follows (in thousands):

	Years ended December 31,
	2021		2020		2019
Unallocated selling, general, and administrative expenses	$	(33,322)	$	(27,379)	$	(27,579)
Acquisition costs	(1,198)		—		(443)
Impairment of goodwill and indefinite-lived intangibles	(1,223)		(2,440)		—
Executive severance costs	—		—		(611)
Restructuring costs	(76)		(918)		(2,293)
	$	(35,819)	$	(30,737)	$	(30,926)

The following geographic data includes property and equipment based on physical location (in thousands):

	December 31,
Property and Equipment - Net	2021		2020
United States	$	12,255	$	11,036
United Kingdom	4,024		4,153
Other Europe	1,774		1,813
Israel	41,540		38,339
Asia	20,057		17,953
Canada and Other	1,570		1,722
	$	81,220	$	75,016