Exhibit 99.2
Vishay Intertechnology, Inc.
Introduction
In preparation for the spin-off of Vishay Precision Group, Inc., (“VPG”) which was completed in the third fiscal quarter on July 6, 2010, the Company realigned its reportable business segments structure to be consistent with changes made to its management reporting. The changes made to management reporting included separating the former Semiconductors reporting segment into MOSFETs, Diodes, and Optoelectronic Components and separating the former Passive Components reporting segment into Resistors and Inductors, Capacitors, and Vishay Precision Group. The changes were necessary due to the former Passive Components segment no longer being comparable after the completion of the spin-off of VPG, the need for discrete information regarding VPG, and due to the increased interest of management and outside investors in more discrete financial information. Effective beginning in the second fiscal quarter of 2010, the chief operating decision maker began making strategic and operating decisions with regards to assessing performance and allocating resources based on this new segment structure. Following the completion of the spin-off in the third fiscal quarter, we will have five reporting segments.
The Company evaluates business segment performance on operating income, exclusive of certain items (“segment operating income”). Beginning in the second fiscal quarter of 2010, the Company changed its definition of segment operating income to exclude such costs as global operations, sales and marketing, information systems, finance and administration groups. These costs are managed by executives that report to the chief operating decision maker and were formerly included in segment operating income. Only dedicated, direct selling, general, and administrative expenses of the segments are included in the calculation of segment operating income. Additionally, management has always evaluated segment performance excluding items such as restructuring and severance costs, asset write-downs, goodwill and indefinite-lived intangible asset impairments, inventory write-downs, gains or losses on purchase commitments, 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 accompanying selected financial data are unaudited and do not include all information and footnotes necessary for 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 selected financial data should be read in conjunction with the consolidated financial statements and notes thereto filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and the Company’s Quarterly Reports on Form 10-Q for the fiscal quarters ended March 28, 2009, June 27, 2009, September 26, 2009, and April 3, 2010.
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
| | | | | | | | Optoelectronic | | Resistors & | | | | | Vishay Precision | | | |
| | MOSFETs | | Diodes | | Components | | Inductors | | Capacitors | | Group | | Total |
| Fiscal quarter ended July 3, 2010: | | | | | | | | | | | | | | | | | | | | | |
| Product sales | | $ | 153,207 | | $ | 151,026 | | $ | 57,657 | | $ | 151,941 | | $ | 133,346 | | $ | 52,914 | | $ | 700,091 |
| Royalty revenues | | | 48 | | | - | | | 27 | | | 1,489 | | | - | | | - | | $ | 1,564 |
| Total revenue | | $ | 153,255 | | $ | 151,026 | | $ | 57,684 | | $ | 153,430 | | $ | 133,346 | | $ | 52,914 | | $ | 701,655 |
| | | | | | | | | | | | | | | | | | | | | | |
| Gross Margin | | $ | 46,887 | | $ | 35,865 | | $ | 20,288 | | $ | 54,886 | | $ | 32,685 | | $ | 19,982 | | $ | 210,593 |
| | | | | | | | | | | | | | | | | | | | | | |
| Six fiscal months ended July 3, 2010: | | | | | | | | | | | | | | | | | | | | | |
| Product Sales | | $ | 280,831 | | $ | 291,272 | | $ | 116,053 | | $ | 299,398 | | $ | 250,677 | | $ | 101,089 | | $ | 1,339,320 |
| Royalty Revenues | | | 48 | | | - | | | 60 | | | 2,687 | | | - | | | - | | $ | 2,795 |
| Total Revenue | | $ | 280,879 | | $ | 291,272 | | $ | 116,113 | | $ | 302,085 | | $ | 250,677 | | $ | 101,089 | | $ | 1,342,115 |
| | | | | | | | | | | | | | | | | | | | | | |
| Gross Margin | | $ | 73,905 | | $ | 63,511 | | $ | 39,944 | | $ | 106,806 | | $ | 56,410 | | $ | 37,030 | | $ | 377,606 |
| | Fiscal quarter ended | | Six fiscal months ended |
| | July 3, 2010 | | July 3, 2010 |
| Operating margin reconciliation: | | | | | | | | |
| MOSFETs | | $ | 37,864 | | | $ | 56,154 | |
| Diodes | | | 30,121 | | | | 51,956 | |
| Optoelectronic Components | | | 17,454 | | | | 34,115 | |
| Resistors & Inductors | | | 48,497 | | | | 93,737 | |
| Capacitors | | | 27,111 | | | | 44,873 | |
| Vishay Precision Group | | | 10,871 | | | | 18,949 | |
| Unallocated Selling, General, and Administrative Expenses | | | (70,591 | ) | | | (133,332 | ) |
| Consolidated Operating Income (Loss) | | $ | 101,327 | | | $ | 166,452 | |
| | | | | | | | | |
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
| | | | | | | Optoelectronic | | Resistors & | | | | | Vishay Precision | | | |
| MOSFETs | | Diodes | | Components | | Inductors | | Capacitors | | Group | | Total |
| Fiscal quarter ended April 3, 2010: | | | | | | | | | | | | | | | | | | | | |
| Product sales | $ | 127,624 | | $ | 140,246 | | $ | 58,396 | | $ | 147,457 | | $ | 117,331 | | $ | 48,175 | | $ | 639,229 |
| Royalty revenues | | - | | | - | | | 33 | | | 1,198 | | | - | | | - | | $ | 1,231 |
| Total revenue | $ | 127,624 | | $ | 140,246 | | $ | 58,429 | | $ | 148,655 | | $ | 117,331 | | $ | 48,175 | | $ | 640,460 |
| |
| Gross Margin | $ | 27,018 | | $ | 27,646 | | $ | 19,656 | | $ | 51,920 | | $ | 23,725 | | $ | 17,048 | | $ | 167,013 |
| | Fiscal quarter ended |
| | April 3, 2010 |
| Operating margin reconciliation: | | | | |
| MOSFETs | | $ | 18,290 | |
| Diodes | | | 21,835 | |
| Optoelectronic Components | | | 16,661 | |
| Resistors & Inductors | | | 45,240 | |
| Capacitors | | | 17,762 | |
| Vishay Precision Group | | | 8,078 | |
| Unallocated Selling, General, and Administrative Expenses | | | (62,741 | ) |
| Consolidated Operating Income (Loss) | | $ | 65,125 | |
| | | | | |
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
| | | | | | | Optoelectronic | | Resistors & | | | | | Vishay Precision | | | | | | |
| MOSFETs | | Diodes | | Components | | Inductors | | Capacitors | | Group | | Corporate / Other | | Total |
| Year ended December 31, 2009: | | | | | | | | | | | | | | | | | | | | | | | | |
| Product sales | $ | 427,110 | | $ | 410,415 | | $ | 167,317 | | $ | 438,600 | | | $ | 420,890 | | $ | 171,991 | | $ | - | | $ | 2,036,323 |
| Royalty revenues | | 71 | | | - | | | 13 | | | 5,626 | | | | - | | | - | | | - | | $ | 5,710 |
| Total revenue | $ | 427,181 | | $ | 410,415 | | $ | 167,330 | | $ | 444,226 | | | $ | 420,890 | | $ | 171,991 | | $ | - | | $ | 2,042,033 |
| |
| Gross Margin | $ | 57,280 | | $ | 51,361 | | $ | 37,180 | | $ | 109,093 | | | $ | 80,533 | | $ | 52,714 | | $ | - | | $ | 388,161 |
| |
| Depreciation expense | | 58,762 | | | 38,638 | | | 14,757 | | | 38,392 | | | | 46,684 | | | 8,446 | | | 330 | | $ | 206,009 |
| Interest expense (income) | | 23 | | | 93 | | | 172 | | | (27 | ) | | | 934 | | | 69 | | | 9,057 | | $ | 10,321 |
| Capital expenditures | | 10,309 | | | 12,474 | | | 3,453 | | | 11,126 | | | | 10,567 | | | 2,181 | | | 230 | | $ | 50,340 |
| |
| Total Assets as of December 31, 2009: | | 566,952 | | | 522,080 | | | 132,065 | | | 572,076 | | | | 668,271 | | | 209,779 | | | 48,323 | | $ | 2,719,546 |
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| | Year ended |
| | December 31, 2009 |
| Operating margin reconciliation: | | | | |
| MOSFETs | | $ | 25,434 | |
| Diodes | | | 31,275 | |
| Optoelectronic Components | | | 24,441 | |
| Resistors & Inductors | | | 85,406 | |
| Capacitors | | | 60,480 | |
| Vishay Precision Group | | | 22,510 | |
| Unallocated Selling, General, and Administrative Expenses | | | (220,547 | ) |
| Restructuring and severance Costs | | | (37,874 | ) |
| Asset write-downs | | | (681 | ) |
| Settlement agreement gain | | | 28,195 | |
| Executive employment agreement charge | | | (57,824 | ) |
| Consolidated Operating Income (Loss) | | $ | (39,185 | ) |
| |
| Restructuring and severance costs: | | | | |
| MOSFETs | | $ | 8,017 | |
| Diodes | | | 4,707 | |
| Optoelectronic Components | | | 2,755 | |
| Resistors & Inductors | | | 9,374 | |
| Capacitors | | | 5,353 | |
| Vishay Precision Group | | | 2,048 | |
| Unallocated Selling, General, and Administrative Expenses | | | 5,620 | |
| | | $ | 37,874 | |
| |
| Asset write-downs: | | | | |
| MOSFETs | | $ | - | |
| Diodes | | | 681 | |
| Optoelectronic Components | | | - | |
| Resistors & Inductors | | | - | |
| Capacitors | | | - | |
| Vishay Precision Group | | | - | |
| | | $ | 681 | |
| | | | | |
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
| | | | | | | Optoelectronic | | Resistors & | | | | | Vishay Precision | | | |
| MOSFETs | | Diodes | | Components | | Inductors | | Capacitors | | Group | | Total |
| Fiscal quarter ended September 26, 2009: | | | | | | | | | | | | | | | | | | | | |
| Product sales | $ | 123,003 | | $ | 110,408 | | $ | 43,320 | | $ | 106,768 | | $ | 100,973 | | $ | 40,105 | | $ | 524,577 |
| Royalty revenues | | 14 | | | - | | | - | | | 713 | | | - | | | - | | $ | 727 |
| Total revenue | $ | 123,017 | | $ | 110,408 | | $ | 43,320 | | $ | 107,481 | | $ | 100,973 | | $ | 40,105 | | $ | 525,304 |
| |
| Gross Margin | $ | 18,485 | | $ | 16,860 | | $ | 10,281 | | $ | 25,316 | | $ | 20,745 | | $ | 12,680 | | $ | 104,367 |
| |
| Nine fiscal months ended September 26, 2009: | | | | | | | | | | | | | | | | | | | | |
| Product sales | $ | 302,762 | | $ | 282,041 | | $ | 118,200 | | $ | 305,030 | | $ | 298,483 | | $ | 125,143 | | $ | 1,431,659 |
| Royalty revenues | | 71 | | | - | | | 13 | | | 3,330 | | | - | | | - | | $ | 3,414 |
| Total revenue | $ | 302,833 | | $ | 282,041 | | $ | 118,213 | | $ | 308,360 | | $ | 298,483 | | $ | 125,143 | | $ | 1,435,073 |
| |
| Gross Margin | $ | 34,439 | | $ | 32,232 | | $ | 24,894 | | $ | 67,171 | | $ | 54,719 | | $ | 37,710 | | $ | 251,165 |
| | Fiscal quarter ended | | Nine fiscal months ended |
| | September 26, 2009 | | September 26, 2009 |
| Operating margin reconciliation: | | | | | | | | |
| MOSFETs | | $ | 10,331 | | | $ | 10,793 | |
| Diodes | | | 11,920 | | | | 17,588 | |
| Optoelectronic Components | | | 5,504 | | | | 14,370 | |
| Resistors & Inductors | | | 19,758 | | | | 50,288 | |
| Capacitors | | | 15,641 | | | | 39,754 | |
| Vishay Precision Group | | | 5,189 | | | | 15,187 | |
| Unallocated Selling, General, and Administrative Expenses | | | (53,643 | ) | | | (157,688 | ) |
| Restructuring and severance Costs | | | (3,478 | ) | | | (34,501 | ) |
| Settlement agreement gain | | | - | | | | 28,195 | |
| Executive employment agreement charge | | | - | | | | (57,824 | ) |
| Consolidated Operating Income (Loss) | | $ | 11,222 | | | $ | (73,838 | ) |
| |
| Restructuring and severance costs: | | | | | | | | |
| MOSFETs | | $ | 680 | | | $ | 8,305 | |
| Diodes | | | 253 | | | | 4,814 | |
| Optoelectronic Components | | | 33 | | | | 2,936 | |
| Resistors & Inductors | | | 857 | | | | 8,058 | |
| Capacitors | | | 824 | | | | 4,666 | |
| Vishay Precision Group | | | 175 | | | | 2,044 | |
| Unallocated Selling, General, and Administrative Expenses | | | 656 | | | | 3,678 | |
| | $ | 3,478 | | | $ | 34,501 | |
| | | | | | | | | |
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
| | | | | | Optoelectronic | | Resistors & | | | | Vishay Precision | | |
| MOSFETs | | Diodes | | Components | | Inductors | | Capacitors | | Group | | Total |
| Fiscal quarter ended June 27, 2009: | | | | | | | | | | | | | | | | | | | | |
| Product sales | $ | 95,622 | | $ | 91,240 | | $ | 40,485 | | $ | 99,148 | | $ | 91,893 | | $ | 41,333 | | $ | 459,721 |
| Royalty revenues | | - | | | - | | | - | | | 537 | | | - | | | - | | $ | 537 |
| Total revenue | $ | 95,622 | | $ | 91,240 | | $ | 40,485 | | $ | 99,685 | | $ | 91,893 | | $ | 41,333 | | $ | 460,258 |
| |
| Gross Margin | $ | 13,334 | | $ | 10,607 | | $ | 8,824 | | $ | 19,863 | | $ | 15,167 | | $ | 10,979 | | $ | 78,774 |
| |
| Six fiscal months ended June 27, 2009: | | | | | | | | | | | | | | | | | | | | |
| Product sales | $ | 179,759 | | $ | 171,633 | | $ | 74,880 | | $ | 198,262 | | $ | 197,510 | | $ | 85,038 | | $ | 907,082 |
| Royalty revenues | | 57 | | | - | | | 13 | | | 2,617 | | | - | | | - | | $ | 2,687 |
| Total revenue | $ | 179,816 | | $ | 171,633 | | $ | 74,893 | | $ | 200,879 | | $ | 197,510 | | $ | 85,038 | | $ | 909,769 |
| |
| Gross Margin | $ | 15,954 | | $ | 15,372 | | $ | 14,613 | | $ | 41,855 | | $ | 33,974 | | $ | 25,030 | | $ | 146,798 |
| | Fiscal quarter ended | | Six fiscal months ended |
| | June 27, 2009 | | June 27, 2009 |
| Operating margin reconciliation: | | | | | | | | |
| MOSFETs | | $ | 5,724 | | | $ | 462 | |
| Diodes | | | 5,684 | | | | 5,668 | |
| Optoelectronic Components | | | 6,325 | | | | 8,866 | |
| Resistors & Inductors | | | 14,454 | | | | 30,530 | |
| Capacitors | | | 10,510 | | | | 24,113 | |
| Vishay Precision Group | | | 3,684 | | | | 9,998 | |
| Unallocated Selling, General, and Administrative Expenses | | | (51,359 | ) | | | (104,045 | ) |
| Restructuring and severance Costs | | | (12,090 | ) | | | (31,023 | ) |
| Settlement agreement gain | | | 28,195 | | | | 28,195 | |
| Executive employment agreement charge | | | (57,824 | ) | | | (57,824 | ) |
| Consolidated Operating Income (Loss) | | $ | (46,697 | ) | | $ | (85,060 | ) |
| |
| Restructuring and severance costs: | | | | | | | | |
| MOSFETs | | $ | 4,488 | | | $ | 7,625 | |
| Diodes | | | 2,239 | | | | 4,561 | |
| Optoelectronic Components | | | 1,154 | | | | 2,903 | |
| Resistors & Inductors | | | 118 | | | | 7,201 | |
| Capacitors | | | 612 | | | | 3,842 | |
| Vishay Precision Group | | | 1,390 | | | | 1,869 | |
| Unallocated Selling, General, and Administrative Expenses | | | 2,089 | | | | 3,022 | |
| | $ | 12,090 | | | $ | 31,023 | |
| | | | | | | | | |
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
| | | | | | | | Optoelectronic | | Resistors & | | | | | Vishay Precision | | | |
| | MOSFETs | | Diodes | | Components | | Inductors | | Capacitors | | Group | | Total |
| Fiscal quarter ended March 28, 2009: | | | | | | | | | | | | | | | | | | | | | |
| Product sales | | $ | 84,137 | | $ | 80,393 | | $ | 34,395 | | $ | 99,114 | | $ | 105,617 | | $ | 43,705 | | $ | 447,361 |
| Royalty revenues | | | 57 | | | - | | | 13 | | | 2,080 | | | - | | | - | | $ | 2,150 |
| Total revenue | | $ | 84,194 | | $ | 80,393 | | $ | 34,408 | | $ | 101,194 | | $ | 105,617 | | $ | 43,705 | | $ | 449,511 |
| |
| Gross Margin | | $ | 2,620 | | $ | 4,765 | | $ | 5,789 | | $ | 21,992 | | $ | 18,807 | | $ | 14,051 | | $ | 68,024 |
| | Fiscal quarter ended |
| | March 28, 2009 |
| Operating margin reconciliation: | | | | |
| MOSFETs | | $ | (5,262 | ) |
| Diodes | | | (16 | ) |
| Optoelectronic Components | | | 2,541 | |
| Resistors & Inductors | | | 16,077 | |
| Capacitors | | | 13,602 | |
| Vishay Precision Group | | | 6,314 | |
| Unallocated Selling, General, and Administrative Expenses | | | (52,686 | ) |
| Restructuring and severance Costs | | | (18,933 | ) |
| Consolidated Operating Income (Loss) | | $ | (38,363 | ) |
| |
| Restructuring and severance costs: | | | | |
| MOSFETs | | $ | 3,137 | |
| Diodes | | | 2,322 | |
| Optoelectronic Components | | | 1,749 | |
| Resistors & Inductors | | | 7,083 | |
| Capacitors | | | 3,230 | |
| Vishay Precision Group | | | 479 | |
| Unallocated Selling, General, and Administrative Expenses | | | 933 | |
| | | $ | 18,933 | |
| | | | | |
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VISHAY INTERTECHNOLOGY, INC.
Selected Segment Information
as recast to reflect the business segment realignment
(Unaudited - in thousands)
| | | | | | | | Optoelectronic | | Resistors & | | | | | Vishay Precision | | | | | | |
| | MOSFETs | | Diodes | | Components | | Inductors | | Capacitors | | Group | | Corporate / Other | | Total |
| Year ended December 31, 2008: | | | | | | | | | | | | | | | | | | | | | | | | |
| Product sales | | $ | 645,712 | | $ | 577,614 | | $ | 235,317 | | $ | 602,665 | | $ | 516,207 | | $ | 241,700 | | $ | - | | $ | 2,819,215 |
| Royalty revenues | | | 2,162 | | | - | | | 21 | | | 813 | | | - | | | - | | | - | | $ | 2,996 |
| Total revenue | | $ | 647,874 | | $ | 577,614 | | $ | 235,338 | | $ | 603,478 | | $ | 516,207 | | $ | 241,700 | | $ | - | | $ | 2,822,211 |
| |
| Gross Margin | | $ | 137,931 | | $ | 100,390 | | $ | 57,317 | | $ | 146,999 | | $ | 74,421 | | $ | 79,909 | | $ | - | | $ | 596,967 |
| |
| Depreciation expense | | | 55,344 | | | 37,871 | | | 16,238 | | | 38,612 | | | 43,025 | | | 8,410 | | | 347 | | $ | 199,847 |
| Interest expense | | | 79 | | | 218 | | | 265 | | | 103 | | | 1,516 | | | 57 | | | 36,430 | | $ | 38,668 |
| Capital expenditures | | | 45,653 | | | 33,185 | | | 13,719 | | | 28,559 | | | 23,425 | | | 7,391 | | | 62 | | $ | 151,994 |
| |
| Total Assets as of December 31, 2008: | | | 605,335 | | | 550,196 | | | 146,432 | | | 545,247 | | | 665,756 | | | 254,863 | | | 48,131 | | $ | 2,815,960 |
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| | Year ended |
| | December 31, 2008 |
| Operating margin reconciliation: | | | | |
| MOSFETs | | $ | 88,310 | |
| Diodes | | | 72,162 | |
| Optoelectronic Components | | | 41,927 | |
| Resistors & Inductors | | | 119,649 | |
| Capacitors | | | 46,307 | |
| Vishay Precision Group | | | 40,570 | |
| Unallocated Selling, General, and Administrative Expenses | | | (261,323 | ) |
| Restructuring and severance Costs | | | (62,537 | ) |
| Asset write-downs | | | (5,073 | ) |
| Goodwill impairment | | | (1,696,174 | ) |
| Indefinite-lived intangible impairment | | | (27,000 | ) |
| Loss on purchase commitments | | | (6,024 | ) |
| Gain on sale of building | | | 4,510 | |
| Terminated tender offer costs | | | (4,000 | ) |
| Consolidated Operating Income (Loss) | | $ | (1,648,696 | ) |
| |
| Restructuring and severance costs: | | | | |
| MOSFETs | | $ | 9,879 | |
| Diodes | | | 7,866 | |
| Optoelectronic Components | | | 6,360 | |
| Resistors & Inductors | | | 18,803 | |
| Capacitors | | | 7,546 | |
| Vishay Precision Group | | | 6,349 | |
| Unallocated Selling, General, and Administrative Expenses | | | 5,734 | |
| | $ | 62,537 | |
| |
| Asset write-downs: | | | | |
| MOSFETs | | $ | - | |
| Diodes | | | 613 | |
| Optoelectronic Components | | | - | |
| Resistors & Inductors | | | 4,460 | |
| Capacitors | | | - | |
| Vishay Precision Group | | | - | |
| | $ | 5,073 | |
| |
| Goodwill impairment: | | | | |
| MOSFETs | | $ | 594,951 | |
| Diodes | | | 295,738 | |
| Optoelectronic Components | | | 153,263 | |
| Resistors & Inductors | | | 178,056 | |
| Capacitors | | | 380,701 | |
| Vishay Precision Group | | | 93,465 | |
| | $ | 1,696,174 | |
| |
| Indefinite-lived intangible impairment: | | | | |
| MOSFETs | | $ | - | |
| Diodes | | | 15,000 | |
| Optoelectronic Components | | | - | |
| Resistors & Inductors | | | 3,824 | |
| Capacitors | | | 8,176 | |
| Vishay Precision Group | | | - | |
| | $ | 27,000 | |
| | | | | |
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