☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
38-1686453
|
|
(State or Other Jurisdiction of Incorporation)
|
(I.R.S. Employer Identification Number)
|
|
63 Lancaster Avenue
Malvern, Pennsylvania 19355-2143
|
610-644-1300
|
|
(Address of Principal Executive Offices)
|
(Registrant’s Area Code and Telephone Number)
|
|
||||
Title of each class
|
Trading symbol
|
Name of exchange on which registered
|
||
Common stock, par value $0.10 per share
|
VSH
|
New York Stock Exchange LLC
|
Large Accelerated Filer ☒
|
Accelerated filer ◻
|
|
Non-accelerated filer ◻
|
Smaller reporting company ☐
|
|
Emerging growth company ☐
|
|
Page Number
|
|||
July 4, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
599,930
|
$
|
694,133
|
||||
Short-term investments
|
157,246
|
108,822
|
||||||
Accounts receivable, net
|
285,529
|
328,187
|
||||||
Inventories:
|
||||||||
Finished goods
|
125,177
|
122,466
|
||||||
Work in process
|
196,846
|
187,354
|
||||||
Raw materials
|
127,165
|
121,860
|
||||||
Total inventories
|
449,188
|
431,680
|
||||||
Prepaid expenses and other current assets
|
131,125
|
141,294
|
||||||
Total current assets
|
1,623,018
|
1,704,116
|
||||||
Property and equipment, at cost:
|
||||||||
Land
|
74,985
|
75,011
|
||||||
Buildings and improvements
|
596,942
|
585,064
|
||||||
Machinery and equipment
|
2,623,774
|
2,606,355
|
||||||
Construction in progress
|
99,932
|
110,722
|
||||||
Allowance for depreciation
|
(2,474,456
|
)
|
(2,425,627
|
)
|
||||
Property and equipment, net
|
921,177
|
951,525
|
||||||
Right of use assets
|
103,153
|
93,162
|
||||||
Goodwill
|
150,641
|
150,642
|
||||||
Other intangible assets, net
|
58,583
|
60,659
|
||||||
Other assets
|
168,274
|
160,671
|
||||||
Total assets
|
$
|
3,024,846
|
$
|
3,120,775
|
July 4, 2020
|
December 31, 2019
|
|||||||
(Unaudited)
|
||||||||
Liabilities, temporary equity, and equity
|
||||||||
Current liabilities:
|
||||||||
Notes payable to banks
|
$
|
1
|
$
|
2
|
||||
Trade accounts payable
|
148,727
|
173,915
|
||||||
Payroll and related expenses
|
126,302
|
122,100
|
||||||
Lease liabilities
|
21,443
|
20,217
|
||||||
Other accrued expenses
|
166,261
|
186,463
|
||||||
Income taxes
|
40,642
|
17,731
|
||||||
Total current liabilities
|
503,376
|
520,428
|
||||||
Long-term debt less current portion
|
438,494
|
499,147
|
||||||
U.S. transition tax payable
|
125,438
|
140,196
|
||||||
Deferred income taxes
|
4,231
|
22,021
|
||||||
Long-term lease liabilities
|
85,714
|
78,511
|
||||||
Other liabilities
|
98,134
|
100,207
|
||||||
Accrued pension and other postretirement costs
|
270,735
|
272,402
|
||||||
Total liabilities
|
1,526,122
|
1,632,912
|
||||||
Redeemable convertible debentures
|
-
|
174
|
||||||
Equity:
|
||||||||
Vishay stockholders' equity
|
||||||||
Common stock
|
13,256
|
13,235
|
||||||
Class B convertible common stock
|
1,210
|
1,210
|
||||||
Capital in excess of par value
|
1,412,775
|
1,425,170
|
||||||
Retained earnings
|
95,462
|
72,180
|
||||||
Accumulated other comprehensive income (loss)
|
(26,326
|
)
|
(26,646
|
)
|
||||
Total Vishay stockholders' equity
|
1,496,377
|
1,485,149
|
||||||
Noncontrolling interests
|
2,347
|
2,540
|
||||||
Total equity
|
1,498,724
|
1,487,689
|
||||||
Total liabilities, temporary equity, and equity
|
$
|
3,024,846
|
$
|
3,120,775
|
Fiscal quarters ended
|
||||||||
July 4, 2020
|
June 29, 2019
|
|||||||
Net revenues
|
$
|
581,717
|
$
|
685,240
|
||||
Costs of products sold
|
451,047
|
510,639
|
||||||
Gross profit
|
130,670
|
174,601
|
||||||
Selling, general, and administrative expenses
|
89,127
|
95,112
|
||||||
Restructuring and severance costs
|
743
|
-
|
||||||
Operating income
|
40,800
|
79,489
|
||||||
Other income (expense):
|
||||||||
Interest expense
|
(8,430
|
)
|
(8,204
|
)
|
||||
Other
|
(1,484
|
)
|
(397
|
)
|
||||
Loss on early extinguishment of debt
|
(1,146
|
)
|
-
|
|||||
Total other income (expense)
|
(11,060
|
)
|
(8,601
|
)
|
||||
Income before taxes
|
29,740
|
70,888
|
||||||
Income tax expense
|
4,845
|
26,153
|
||||||
Net earnings
|
24,895
|
44,735
|
||||||
Less: net earnings attributable to noncontrolling interests
|
242
|
258
|
||||||
Net earnings attributable to Vishay stockholders
|
$
|
24,653
|
$
|
44,477
|
||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.17
|
$
|
0.31
|
||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.17
|
$
|
0.31
|
||||
Weighted average shares outstanding - basic
|
144,846
|
144,621
|
||||||
Weighted average shares outstanding - diluted
|
145,170
|
145,023
|
||||||
Cash dividends per share
|
$
|
0.095
|
$
|
0.095
|
Fiscal quarters ended
|
||||||||
July 4, 2020
|
June 29, 2019
|
|||||||
Net earnings
|
$
|
24,895
|
$
|
44,735
|
||||
Other comprehensive income, net of tax
|
||||||||
Pension and other post-retirement actuarial items
|
1,760
|
1,623
|
||||||
Foreign currency translation adjustment
|
20,088
|
7,384
|
||||||
Other comprehensive income
|
21,848
|
9,007
|
||||||
Comprehensive income
|
46,743
|
53,742
|
||||||
Less: comprehensive income attributable to noncontrolling interests
|
242
|
258
|
||||||
Comprehensive income attributable to Vishay stockholders
|
$
|
46,501
|
$
|
53,484
|
Six fiscal months ended
|
||||||||
July 4, 2020
|
June 29, 2019
|
|||||||
Net revenues
|
$
|
1,194,558
|
$
|
1,430,399
|
||||
Costs of products sold
|
916,648
|
1,044,639
|
||||||
Gross profit
|
277,910
|
385,760
|
||||||
Selling, general, and administrative expenses
|
188,959
|
198,536
|
||||||
Restructuring and severance costs
|
743
|
-
|
||||||
Operating income
|
88,208
|
187,224
|
||||||
Other income (expense):
|
||||||||
Interest expense
|
(16,982
|
)
|
(16,596
|
)
|
||||
Other
|
(1,286
|
)
|
1,515
|
|||||
Loss on early extinguishment of debt
|
(4,066
|
)
|
(1,307
|
)
|
||||
Total other income (expense)
|
(22,334
|
)
|
(16,388
|
)
|
||||
Income before taxes
|
65,874
|
170,836
|
||||||
Income tax expense
|
13,595
|
50,460
|
||||||
Net earnings
|
52,279
|
120,376
|
||||||
Less: net earnings attributable to noncontrolling interests
|
407
|
440
|
||||||
Net earnings attributable to Vishay stockholders
|
$
|
51,872
|
$
|
119,936
|
||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.36
|
$
|
0.83
|
||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.36
|
$
|
0.83
|
||||
Weighted average shares outstanding - basic
|
144,818
|
144,589
|
||||||
Weighted average shares outstanding - diluted
|
145,232
|
145,158
|
||||||
Cash dividends per share
|
$
|
0.19
|
$
|
0.18
|
Six fiscal months ended
|
||||||||
July 4, 2020
|
June 29, 2019
|
|||||||
Net earnings
|
$
|
52,279
|
$
|
120,376
|
||||
Other comprehensive income (loss), net of tax
|
||||||||
Pension and other post-retirement actuarial items
|
3,361
|
3,080
|
||||||
Foreign currency translation adjustment
|
(3,041
|
)
|
(2,605
|
)
|
||||
Other comprehensive income
|
320
|
475
|
||||||
Comprehensive income
|
52,599
|
120,851
|
||||||
Less: comprehensive income attributable to noncontrolling interests
|
407
|
440
|
||||||
Comprehensive income attributable to Vishay stockholders
|
$
|
52,192
|
$
|
120,411
|
Six fiscal months ended
|
||||||||
July 4, 2020
|
June 29, 2019
|
|||||||
Operating activities
|
||||||||
Net earnings
|
$
|
52,279
|
$
|
120,376
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
82,158
|
81,346
|
||||||
(Gain) loss on disposal of property and equipment
|
(43
|
)
|
(162
|
)
|
||||
Accretion of interest on convertible debt instruments
|
7,125
|
6,985
|
||||||
Inventory write-offs for obsolescence
|
11,587
|
12,643
|
||||||
Deferred income taxes
|
(4,370
|
)
|
(5,601
|
)
|
||||
Loss on extinguishment of debt
|
4,066
|
1,307
|
||||||
Other
|
954
|
4,283
|
||||||
Change in U.S. transition tax liability
|
-
|
(14,757
|
)
|
|||||
Change in repatriation tax liability
|
(16,258
|
)
|
(20,479
|
)
|
||||
Net change in operating assets and liabilities, net of effects of businesses acquired
|
(12,589
|
)
|
(50,122
|
)
|
||||
Net cash provided by operating activities
|
124,909
|
135,819
|
||||||
Investing activities
|
||||||||
Capital expenditures
|
(48,832
|
)
|
(70,148
|
)
|
||||
Proceeds from sale of property and equipment
|
230
|
464
|
||||||
Purchase of businesses, net of cash received
|
-
|
(11,862
|
)
|
|||||
Purchase of short-term investments
|
(157,086
|
)
|
(1,970
|
)
|
||||
Maturity of short-term investments
|
108,044
|
79,694
|
||||||
Other investing activities
|
(529
|
)
|
2,893
|
|||||
Net cash used in investing activities
|
(98,173
|
)
|
(929
|
)
|
||||
Financing activities
|
||||||||
Issuance costs
|
-
|
(5,394
|
)
|
|||||
Repurchase of convertible debt instruments
|
(90,525
|
)
|
(22,695
|
)
|
||||
Net proceeds (payments) on revolving credit lines
|
-
|
28,000
|
||||||
Net changes in short-term borrowings
|
(113
|
)
|
22
|
|||||
Dividends paid to common stockholders
|
(25,185
|
)
|
(23,822
|
)
|
||||
Dividends paid to Class B common stockholders
|
(2,299
|
)
|
(2,178
|
)
|
||||
Distributions to noncontrolling interests
|
(600
|
)
|
(600
|
)
|
||||
Cash withholding taxes paid when shares withheld for vested equity awards
|
(2,016
|
)
|
(2,708
|
)
|
||||
Net cash used in financing activities
|
(120,738
|
)
|
(29,375
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(201
|
)
|
(641
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
(94,203
|
)
|
104,874
|
|||||
Cash and cash equivalents at beginning of period
|
694,133
|
686,032
|
||||||
Cash and cash equivalents at end of period
|
$
|
599,930
|
$
|
790,906
|
Common
Stock
|
Class B
Convertible
Common
Stock
|
Capital in
Excess of Par
Value
|
Retained
Earnings
(Accumulated
Deficit)
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total Vishay
Stockholders'
Equity
|
Noncontrolling
Interests
|
Total
Equity
|
|||||||||||||||||||||||||
Balance at December 31, 2018
|
$
|
13,212
|
$
|
1,210
|
$
|
1,436,011
|
$
|
(61,258
|
)
|
$
|
(6,791
|
)
|
$
|
1,382,384
|
$
|
2,286
|
$
|
1,384,670
|
||||||||||||||
Cumulative effect of accounting change for adoption of ASU 2016-02
|
-
|
-
|
-
|
23,013
|
-
|
23,013
|
-
|
23,013
|
||||||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
75,459
|
-
|
75,459
|
182
|
75,641
|
||||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
(8,532
|
)
|
(8,532
|
)
|
-
|
(8,532
|
)
|
|||||||||||||||||||||
Conversion of Class B shares (18 shares)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Temporary equity reclassification
|
-
|
-
|
3
|
-
|
-
|
3
|
-
|
3
|
||||||||||||||||||||||||
Issuance of stock and related tax withholdings for vested restricted stock units (220,718 shares)
|
22
|
-
|
(2,681
|
)
|
-
|
-
|
(2,659
|
)
|
-
|
(2,659
|
)
|
|||||||||||||||||||||
Dividends declared ($0.085 per share)
|
-
|
-
|
15
|
(12,292
|
)
|
-
|
(12,277
|
)
|
-
|
(12,277
|
)
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
3,536
|
-
|
-
|
3,536
|
-
|
3,536
|
||||||||||||||||||||||||
Repurchase of convertible debentures due 2040 and due 2042
|
-
|
-
|
(11,783
|
)
|
-
|
-
|
(11,783
|
)
|
-
|
(11,783
|
)
|
|||||||||||||||||||||
Balance at March 30, 2019
|
$
|
13,234
|
$
|
1,210
|
$
|
1,425,101
|
$
|
24,922
|
$
|
(15,323
|
)
|
$
|
1,449,144
|
$
|
2,468
|
$
|
1,451,612
|
|||||||||||||||
Net earnings
|
-
|
-
|
-
|
44,477
|
-
|
44,477
|
258
|
44,735
|
||||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
9,007
|
9,007
|
-
|
9,007
|
||||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(600
|
)
|
(600
|
)
|
||||||||||||||||||||||
Temporary equity reclassification
|
-
|
-
|
206
|
-
|
-
|
206
|
-
|
206
|
||||||||||||||||||||||||
Issuance of stock and related tax withholdings for vested restricted stock units (9,906 shares)
|
1
|
-
|
(50
|
)
|
-
|
-
|
(49
|
)
|
-
|
(49
|
)
|
|||||||||||||||||||||
Dividends declared ($0.095 per share)
|
-
|
-
|
17
|
(13,740
|
)
|
-
|
(13,723
|
)
|
-
|
(13,723
|
)
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
890
|
-
|
-
|
890
|
-
|
890
|
||||||||||||||||||||||||
Balance at June 29, 2019
|
$
|
13,235
|
$
|
1,210
|
$
|
1,426,164
|
$
|
55,659
|
$
|
(6,316
|
)
|
$
|
1,489,952
|
$
|
2,126
|
$
|
1,492,078
|
|||||||||||||||
Balance at December 31, 2019
|
$
|
13,235
|
$
|
1,210
|
$
|
1,425,170
|
$
|
72,180
|
$
|
(26,646
|
)
|
$
|
1,485,149
|
$
|
2,540
|
$
|
1,487,689
|
|||||||||||||||
Cumulative effect of accounting change for adoption of ASU 2016-13 (see Note 1)
|
-
|
-
|
-
|
(1,070
|
)
|
-
|
(1,070
|
)
|
-
|
(1,070
|
)
|
|||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
27,219
|
-
|
27,219
|
165
|
27,384
|
||||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
(21,528
|
)
|
(21,528
|
)
|
-
|
(21,528
|
)
|
|||||||||||||||||||||
Temporary equity reclassification
|
-
|
-
|
174
|
-
|
-
|
174
|
-
|
174
|
||||||||||||||||||||||||
Issuance of stock and related tax withholdings for vested restricted stock units (199,251 shares)
|
20
|
-
|
(2,011
|
)
|
-
|
-
|
(1,991
|
)
|
-
|
(1,991
|
)
|
|||||||||||||||||||||
Dividends declared ($0.095 per share)
|
-
|
-
|
18
|
(13,759
|
)
|
-
|
(13,741
|
)
|
-
|
(13,741
|
)
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
2,998
|
-
|
-
|
2,998
|
-
|
2,998
|
||||||||||||||||||||||||
Repurchase of convertible senior debentures due 2041
|
-
|
-
|
(10,089
|
)
|
-
|
-
|
(10,089
|
)
|
-
|
(10,089
|
)
|
|||||||||||||||||||||
Balance at April 4, 2020
|
$
|
13,255
|
$
|
1,210
|
$
|
1,416,260
|
$
|
84,570
|
$
|
(48,174
|
)
|
$
|
1,467,121
|
$
|
2,705
|
$
|
1,469,826
|
|||||||||||||||
Net earnings
|
-
|
-
|
-
|
24,653
|
-
|
24,653
|
242
|
24,895
|
||||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
21,848
|
21,848
|
-
|
21,848
|
||||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(600
|
)
|
(600
|
)
|
||||||||||||||||||||||
Issuance of stock and related tax withholdings for vested restricted stock units (13,141 shares)
|
1
|
-
|
(26
|
)
|
-
|
-
|
(25
|
)
|
-
|
(25
|
)
|
|||||||||||||||||||||
Dividends declared ($0.095 per share)
|
-
|
-
|
18
|
(13,761
|
)
|
-
|
(13,743
|
)
|
-
|
(13,743
|
)
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
875
|
-
|
-
|
875
|
-
|
875
|
||||||||||||||||||||||||
Repurchase of convertible senior notes due 2025
|
-
|
-
|
(4,352
|
)
|
-
|
-
|
(4,352
|
)
|
-
|
(4,352
|
)
|
|||||||||||||||||||||
Balance at July 4, 2020
|
$
|
13,256
|
$
|
1,210
|
$
|
1,412,775
|
$
|
95,462
|
$
|
(26,326
|
)
|
$
|
1,496,377
|
$
|
2,347
|
$
|
1,498,724
|
|
July 4, 2020
|
December 31, 2019
|
||||||
Right of use assets
|
||||||||
Operating Leases
|
||||||||
Buildings and improvements
|
$
|
98,048
|
$
|
87,689
|
||||
Machinery and equipment
|
5,105
|
5,473
|
||||||
Total
|
$
|
103,153
|
$
|
93,162
|
||||
Current lease liabilities
|
||||||||
Operating Leases
|
||||||||
Buildings and improvements
|
$
|
18,716
|
$
|
17,410
|
||||
Machinery and equipment
|
2,727
|
2,807
|
||||||
Total
|
$
|
21,443
|
$
|
20,217
|
||||
Long-term lease liabilities
|
||||||||
Operating Leases
|
||||||||
Buildings and improvements
|
$
|
83,372
|
$
|
75,877
|
||||
Machinery and equipment
|
2,342
|
2,634
|
||||||
Total
|
$
|
85,714
|
$
|
78,511
|
||||
Total lease liabilities
|
$
|
107,157
|
$
|
98,728
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Lease expense
|
||||||||||||||||
Operating lease expense
|
$
|
5,760
|
$
|
5,627
|
$
|
11,412
|
$
|
11,163
|
||||||||
Short-term lease expense
|
225
|
819
|
419
|
1,652
|
||||||||||||
Variable lease expense
|
6
|
9
|
29
|
21
|
||||||||||||
Total lease expense
|
$
|
5,991
|
$
|
6,455
|
$
|
11,860
|
$
|
12,836
|
|
July 4, 2020
|
|||
2020 (excluding the six fiscal months ended July 4, 2020)
|
$
|
11,165
|
||
2021
|
20,498
|
|||
2022
|
16,838
|
|||
2023
|
14,370
|
|||
2024
|
13,218
|
|||
Thereafter
|
63,394
|
Expense recorded in 2019
|
$
|
24,139
|
||
Cash paid
|
(1,330
|
)
|
||
Foreign currency translation
|
35
|
|||
Balance at December 31, 2019
|
$
|
22,844
|
||
Expense recorded in 2020
|
743
|
|||
Cash paid
|
(6,465
|
)
|
||
Foreign currency translation
|
(21
|
)
|
||
Balance at July 4, 2020
|
$
|
17,101
|
|
July 4, 2020
|
December 31, 2019
|
||||||
Credit facility
|
$
|
-
|
$
|
-
|
||||
Convertible senior notes, due 2025
|
451,169
|
509,128
|
||||||
Convertible senior debentures, due 2040
|
128
|
126
|
||||||
Convertible senior debentures, due 2041
|
1,058
|
6,677
|
||||||
Deferred financing costs
|
(13,861
|
)
|
(16,784
|
)
|
||||
438,494
|
499,147
|
|||||||
Less current portion
|
-
|
-
|
||||||
$
|
438,494
|
$
|
499,147
|
|
Convertible
Senior Notes
Due 2025
|
Convertible
Senior
Debentures
Due 2040
|
Convertible
Senior
Debentures
Due 2041
|
|||||||||
Issuance date
|
June 12, 2018
|
November 9, 2010
|
May 13, 2011
|
|||||||||
Maturity date
|
June 15, 2025
|
November 15, 2040
|
May 15, 2041
|
|||||||||
Principal amount as of July 4, 2020
|
$
|
524,230
|
$
|
300
|
$
|
2,640
|
||||||
Cash coupon rate (per annum)
|
2.25
|
%
|
2.25
|
%
|
2.25
|
%
|
||||||
Nonconvertible debt borrowing rate at issuance (per annum)
|
5.50
|
%
|
8.00
|
%
|
8.375
|
%
|
||||||
Conversion rate effective June 11, 2020 (per $1 principal amount)
|
31.8470
|
80.9286
|
59.0575
|
|||||||||
Effective conversion price effective June 11, 2020 (per share)
|
$
|
31.40
|
$
|
12.36
|
$
|
16.93
|
||||||
130% of the conversion price (per share)
|
$
|
40.82
|
$
|
16.07
|
$
|
22.01
|
||||||
Call date
|
n/a
|
November 20, 2020
|
May 20, 2021
|
|
Principal
amount of the
debt
instruments
|
Unamortized
discount
|
Carrying
value of
liability
component
|
Equity
component
(including
temporary
equity) -net
carrying value
|
||||||||||||
July 4, 2020
|
||||||||||||||||
Convertible senior notes due 2025
|
$
|
524,230
|
(73,061
|
)
|
$
|
451,169
|
$
|
74,495
|
||||||||
Convertible senior debentures due 2040 and due 2041
|
$
|
2,940
|
(1,754
|
)
|
$
|
1,186
|
$
|
1,216
|
||||||||
Total
|
$
|
527,170
|
$
|
(74,815
|
)
|
$
|
452,355
|
$
|
75,711
|
|||||||
December 31, 2019
|
||||||||||||||||
Convertible senior notes due 2025
|
$
|
600,000
|
(90,872
|
)
|
$
|
509,128
|
$
|
85,262
|
||||||||
Convertible senior debentures due 2040 and due 2041
|
$
|
17,190
|
(10,387
|
)
|
$
|
6,803
|
$
|
7,129
|
||||||||
Total
|
$
|
617,190
|
$
|
(101,259
|
)
|
$
|
515,931
|
$
|
92,391
|
|
Contractual
coupon
interest
|
Non-cash
amortization
of debt
discount
|
Other non-cash
interest expense
|
Total interest
expense
related to the
debt
instruments
|
||||||||||||
July 4, 2020
|
||||||||||||||||
Convertible senior notes due 2025
|
$
|
3,266
|
3,479
|
435
|
$
|
7,180
|
||||||||||
Convertible senior debentures
|
$
|
16
|
9
|
-
|
$
|
25
|
||||||||||
Total
|
$
|
3,282
|
$
|
3,488
|
$
|
435
|
$
|
7,205
|
||||||||
June 29, 2019
|
||||||||||||||||
Convertible senior notes due 2025
|
$
|
3,375
|
3,442
|
454
|
$
|
7,271
|
||||||||||
Convertible senior debentures
|
$
|
119
|
53
|
(2
|
)
|
$
|
170
|
|||||||||
Total
|
$
|
3,494
|
$
|
3,495
|
$
|
452
|
$
|
7,441
|
|
Contractual
coupon
interest
|
Non-cash
amortization
of debt
discount
|
Other non-cash
interest expense
|
Total interest
expense related to the
debt
instruments
|
||||||||||||
July 4, 2020
|
||||||||||||||||
Convertible senior notes due 2025
|
$
|
6,641
|
7,096
|
889
|
$
|
14,626
|
||||||||||
Convertible senior debentures
|
$
|
60
|
29
|
-
|
$
|
89
|
||||||||||
Total
|
$
|
6,701
|
$
|
7,125
|
$
|
889
|
$
|
14,715
|
||||||||
June 29, 2019
|
||||||||||||||||
Convertible senior notes due 2025
|
$
|
6,750
|
6,868
|
908
|
$
|
14,526
|
||||||||||
Convertible senior debentures
|
$
|
267
|
117
|
(18
|
)
|
$
|
366
|
|||||||||
Total
|
$
|
7,017
|
$
|
6,985
|
$
|
890
|
$
|
14,892
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Beginning balance
|
$
|
34,812
|
$
|
37,577
|
$
|
40,508
|
$
|
42,663
|
||||||||
Sales allowances
|
19,224
|
28,903
|
41,856
|
57,114
|
||||||||||||
Credits issued
|
(14,991
|
)
|
(22,270
|
)
|
(42,973
|
)
|
(55,332
|
)
|
||||||||
Foreign currency
|
387
|
172
|
41
|
(63
|
)
|
|||||||||||
Ending balance
|
$
|
39,432
|
$
|
44,382
|
$
|
39,432
|
$
|
44,382
|
|
Pension and
other post-
retirement
actuarial
items
|
Currency
translation
adjustment
|
Total
|
|||||||||
Balance at January 1, 2020
|
$
|
(68,020
|
)
|
$
|
41,374
|
$
|
(26,646
|
)
|
||||
Other comprehensive income before reclassifications
|
-
|
(3,041
|
)
|
$
|
(3,041
|
)
|
||||||
Tax effect
|
-
|
-
|
$
|
-
|
||||||||
Other comprehensive income before reclassifications, net of tax
|
-
|
(3,041
|
)
|
$
|
(3,041
|
)
|
||||||
Amounts reclassified out of AOCI
|
4,442
|
-
|
$
|
4,442
|
||||||||
Tax effect
|
(1,081
|
)
|
-
|
$
|
(1,081
|
)
|
||||||
Amounts reclassified out of AOCI, net of tax
|
3,361
|
-
|
$
|
3,361
|
||||||||
Net other comprehensive income
|
$
|
3,361
|
$
|
(3,041
|
)
|
$
|
320
|
|||||
Balance at July 4, 2020
|
$
|
(64,659
|
)
|
$
|
38,333
|
$
|
(26,326
|
)
|
|
Fiscal quarter ended
July 4, 2020
|
Fiscal quarter ended
June 29, 2019
|
||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Net service cost
|
$
|
-
|
$
|
1,071
|
$
|
-
|
$
|
845
|
||||||||
Interest cost
|
341
|
919
|
424
|
1,281
|
||||||||||||
Expected return on plan assets
|
-
|
(491
|
)
|
-
|
(489
|
)
|
||||||||||
Amortization of prior service cost
|
36
|
30
|
36
|
50
|
||||||||||||
Amortization of losses
|
297
|
1,588
|
118
|
1,344
|
||||||||||||
Curtailment and settlement losses
|
-
|
231
|
-
|
500
|
||||||||||||
Net periodic benefit cost
|
$
|
674
|
$
|
3,348
|
$
|
578
|
$
|
3,531
|
|
Six fiscal months ended
July 4, 2020
|
Six fiscal months ended
June 29, 2019
|
||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Net service cost
|
$
|
-
|
$
|
2,145
|
$
|
-
|
$
|
1,697
|
||||||||
Interest cost
|
683
|
1,843
|
848
|
2,572
|
||||||||||||
Expected return on plan assets
|
-
|
(986
|
)
|
-
|
(979
|
)
|
||||||||||
Amortization of prior service cost
|
72
|
60
|
72
|
101
|
||||||||||||
Amortization of losses
|
595
|
3,180
|
236
|
2,703
|
||||||||||||
Curtailment and settlement losses
|
-
|
460
|
-
|
1,005
|
||||||||||||
Net periodic benefit cost
|
$
|
1,350
|
$
|
6,702
|
$
|
1,156
|
$
|
7,099
|
Fiscal quarter ended
July 4, 2020
|
Fiscal quarter ended
June 29, 2019
|
|||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Service cost
|
$
|
28
|
$
|
68
|
$
|
35
|
$
|
72
|
||||||||
Interest cost
|
59
|
16
|
78
|
30
|
||||||||||||
Amortization of losses (gains)
|
6
|
31
|
(32
|
)
|
27
|
|||||||||||
Net periodic benefit cost
|
$
|
93
|
$
|
115
|
$
|
81
|
$
|
129
|
|
Six fiscal months ended
July 4, 2020
|
Six fiscal months ended
June 29, 2019
|
||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Service cost
|
$
|
56
|
$
|
137
|
$
|
70
|
$
|
144
|
||||||||
Interest cost
|
118
|
31
|
155
|
60
|
||||||||||||
Amortization of losses (gains)
|
13
|
62
|
(64
|
)
|
54
|
|||||||||||
Net periodic benefit cost
|
$
|
187
|
$
|
230
|
$
|
161
|
$
|
258
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Restricted stock units
|
$
|
875
|
$
|
890
|
$
|
3,658
|
4,249
|
|||||||||
Phantom stock units
|
-
|
-
|
215
|
177
|
||||||||||||
Total
|
$
|
875
|
$
|
890
|
$
|
3,873
|
4,426
|
|
Unrecognized
Compensation
Cost
|
Weighted
Average
Remaining
Amortization
Periods
|
||||||
Restricted stock units
|
$
|
4,162
|
0.9
|
|||||
Phantom stock units
|
-
|
n/a
|
||||||
Total
|
$
|
4,162
|
|
Number of
RSUs
|
Weighted
Average
Grant-date
Fair Value per
Unit
|
||||||
Outstanding:
|
||||||||
January 1, 2020
|
842
|
$
|
17.93
|
|||||
Granted
|
272
|
18.30
|
||||||
Vested*
|
(308
|
)
|
15.70
|
|||||
Cancelled or forfeited
|
(13
|
)
|
19.06
|
|||||
Outstanding at July 4, 2020
|
793
|
$
|
18.90
|
|||||
Expected to vest at July 4, 2020
|
793
|
Vesting Date
|
Expected
to Vest
|
Not Expected
to Vest
|
Total
|
|||||||||
January 1, 2021
|
141
|
-
|
141
|
|||||||||
January 1, 2022
|
174
|
-
|
174
|
|||||||||
January 1, 2023
|
152
|
-
|
152
|
|
Number of
units
|
Grant-date
Fair Value per
Unit
|
||||||
Outstanding:
|
||||||||
January 1, 2020
|
183
|
|||||||
Granted
|
10
|
$
|
21.49
|
|||||
Dividend equivalents issued
|
2
|
|||||||
Outstanding at July 4, 2020
|
195
|
●
|
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.
|
MOSFETs
|
Diodes
|
Optoelectronic
Components
|
Resistors
|
Inductors
|
Capacitors
|
Corporate / Other*
|
Total
|
|||||||||||||||||||||||||
Fiscal quarter ended July 4, 2020:
|
||||||||||||||||||||||||||||||||
Net revenues
|
$
|
118,944
|
$
|
124,187
|
$
|
49,130
|
$
|
140,412
|
$
|
65,185
|
$
|
83,859
|
$
|
-
|
$
|
581,717
|
||||||||||||||||
Gross profit
|
$
|
26,978
|
$
|
24,904
|
$
|
11,728
|
$
|
32,513
|
$
|
20,252
|
$
|
15,218
|
$
|
(923
|
)
|
$
|
130,670
|
|||||||||||||||
Segment operating income
|
$
|
17,602
|
$
|
19,814
|
$
|
7,948
|
$
|
27,879
|
$
|
17,713
|
$
|
10,524
|
$
|
(923
|
)
|
$
|
100,557
|
|||||||||||||||
Fiscal quarter ended June 29, 2019:
|
||||||||||||||||||||||||||||||||
Net revenues
|
$
|
128,842
|
$
|
142,042
|
$
|
60,675
|
$
|
165,359
|
$
|
77,024
|
$
|
111,298
|
$
|
-
|
$
|
685,240
|
||||||||||||||||
Gross profit
|
$
|
31,933
|
$
|
28,857
|
$
|
16,231
|
$
|
46,877
|
$
|
24,538
|
$
|
26,165
|
$
|
-
|
$
|
174,601
|
||||||||||||||||
Segment operating income
|
$
|
22,541
|
$
|
24,010
|
$
|
12,022
|
$
|
41,667
|
$
|
21,776
|
$
|
21,161
|
$
|
-
|
$
|
143,177
|
Six fiscal months ended July 4, 2020:
|
||||||||||||||||||||||||||||||||
Net revenues
|
$
|
235,837
|
$
|
239,530
|
$
|
103,309
|
$
|
299,620
|
$
|
138,970
|
$
|
177,292
|
$
|
-
|
$
|
1,194,558
|
||||||||||||||||
Gross Profit
|
$
|
55,130
|
$
|
44,422
|
$
|
26,313
|
$
|
77,286
|
$
|
43,239
|
$
|
35,573
|
$
|
(4,053
|
)
|
$
|
277,910
|
|||||||||||||||
Segment Operating Income
|
$
|
36,260
|
$
|
34,236
|
$
|
18,634
|
$
|
66,764
|
$
|
38,023
|
$
|
25,594
|
$
|
(4,053
|
)
|
$
|
215,458
|
|||||||||||||||
Six fiscal months ended June 29, 2019:
|
||||||||||||||||||||||||||||||||
Net revenues
|
$
|
266,183
|
$
|
309,882
|
$
|
121,237
|
$
|
354,190
|
$
|
148,664
|
$
|
230,243
|
$
|
-
|
$
|
1,430,399
|
||||||||||||||||
Gross Profit
|
$
|
67,992
|
$
|
72,349
|
$
|
32,248
|
$
|
109,466
|
$
|
47,818
|
$
|
55,887
|
$
|
-
|
$
|
385,760
|
||||||||||||||||
Segment Operating Income
|
$
|
49,219
|
$
|
62,138
|
$
|
23,732
|
$
|
98,014
|
$
|
42,416
|
$
|
45,727
|
$
|
-
|
$
|
321,246
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Reconciliation:
|
||||||||||||||||
Segment Operating Income
|
$
|
100,557
|
$
|
143,177
|
$
|
215,458
|
$
|
321,246
|
||||||||
Restructuring and Severance Costs
|
(743
|
)
|
-
|
(743
|
)
|
-
|
||||||||||
Impact of COVID-19 on Selling, General, and Administrative Expenses
|
747
|
-
|
430
|
-
|
||||||||||||
Unallocated Selling, General, and Administrative Expenses
|
(59,761
|
)
|
(63,688
|
)
|
(126,937
|
)
|
(134,022
|
)
|
||||||||
Consolidated Operating Income
|
$
|
40,800
|
$
|
79,489
|
$
|
88,208
|
$
|
187,224
|
||||||||
Unallocated Other Income (Expense)
|
(11,060
|
)
|
(8,601
|
)
|
(22,334
|
)
|
(16,388
|
)
|
||||||||
Consolidated Income Before Taxes
|
$
|
29,740
|
$
|
70,888
|
$
|
65,874
|
$
|
170,836
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Distributors
|
$
|
349,562
|
$
|
368,420
|
$
|
655,008
|
$
|
779,980
|
||||||||
OEMs
|
190,799
|
269,026
|
451,928
|
551,662
|
||||||||||||
EMS companies
|
41,356
|
47,794
|
87,622
|
98,757
|
||||||||||||
Total Revenue
|
$
|
581,717
|
$
|
685,240
|
$
|
1,194,558
|
$
|
1,430,399
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Asia
|
$
|
260,625
|
$
|
246,193
|
$
|
477,709
|
$
|
505,919
|
||||||||
Europe
|
179,928
|
254,742
|
412,980
|
533,641
|
||||||||||||
Americas
|
141,164
|
184,305
|
303,869
|
390,839
|
||||||||||||
Total Revenue
|
$
|
581,717
|
$
|
685,240
|
$
|
1,194,558
|
$
|
1,430,399
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Industrial
|
$
|
226,877
|
$
|
250,783
|
$
|
441,988
|
$
|
532,373
|
||||||||
Automotive
|
133,834
|
200,580
|
335,777
|
415,366
|
||||||||||||
Telecommunications
|
33,496
|
44,562
|
63,188
|
97,842
|
||||||||||||
Computing
|
55,719
|
48,244
|
100,942
|
95,752
|
||||||||||||
Consumer Products
|
22,571
|
30,486
|
43,124
|
64,535
|
||||||||||||
Power Supplies
|
32,176
|
29,474
|
57,370
|
59,601
|
||||||||||||
Military and Aerospace
|
41,451
|
47,848
|
85,386
|
95,409
|
||||||||||||
Medical
|
35,593
|
33,263
|
66,783
|
69,521
|
||||||||||||
Total revenue
|
$
|
581,717
|
$
|
685,240
|
1,194,558
|
1,430,399
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net earnings attributable to Vishay stockholders
|
$
|
24,653
|
$
|
44,477
|
$
|
51,872
|
$
|
119,936
|
||||||||
Denominator:
|
||||||||||||||||
Denominator for basic earnings per share:
|
||||||||||||||||
Weighted average shares
|
144,651
|
144,441
|
144,624
|
144,409
|
||||||||||||
Outstanding phantom stock units
|
195
|
180
|
194
|
180
|
||||||||||||
Adjusted weighted average shares
|
144,846
|
144,621
|
144,818
|
144,589
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Convertible debt instruments
|
5
|
24
|
50
|
131
|
||||||||||||
Restricted stock units
|
319
|
378
|
364
|
438
|
||||||||||||
Dilutive potential common shares
|
324
|
402
|
414
|
569
|
||||||||||||
Denominator for diluted earnings per share:
|
||||||||||||||||
Adjusted weighted average shares - diluted
|
145,170
|
145,023
|
145,232
|
145,158
|
||||||||||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.17
|
$
|
0.31
|
$
|
0.36
|
$
|
0.83
|
||||||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.17
|
$
|
0.31
|
$
|
0.36
|
$
|
0.83
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||
July 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
|||||||||||||
Convertible debt instruments:
|
||||||||||||||||
Convertible Senior Notes, due 2025
|
18,321
|
19,055
|
18,704
|
19,053
|
||||||||||||
Convertible Senior Debentures, due 2041
|
155
|
-
|
122
|
-
|
||||||||||||
Weighted average other
|
387
|
315
|
356
|
315
|
|
Total
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
July 4, 2020
|
||||||||||||||||
Assets:
|
||||||||||||||||
Assets held in rabbi trusts
|
$
|
53,888
|
$
|
36,822
|
$
|
17,066
|
$
|
-
|
||||||||
Available for sale securities
|
$
|
4,401
|
4,401
|
-
|
-
|
|||||||||||
$
|
58,289
|
$
|
41,223
|
$
|
17,066
|
$
|
-
|
|||||||||
December 31, 2019
|
||||||||||||||||
Assets:
|
||||||||||||||||
Assets held in rabbi trusts
|
$
|
52,148
|
$
|
34,280
|
17,868
|
$
|
-
|
|||||||||
Available for sale securities
|
$
|
4,405
|
4,405
|
-
|
-
|
|||||||||||
$
|
56,553
|
$
|
38,685
|
$
|
17,868
|
$
|
-
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
GAAP net earnings attributable to Vishay stockholders
|
$
|
24,653
|
$
|
27,219
|
$
|
44,477
|
$
|
51,872
|
$
|
119,936
|
||||||||||
Reconciling items affecting gross income:
|
||||||||||||||||||||
Impact of COVID-19 outbreak
|
923
|
3,130
|
-
|
4,053
|
-
|
|||||||||||||||
Other reconciling items affecting operating income:
|
||||||||||||||||||||
Restructuring and severance costs
|
743
|
-
|
-
|
743
|
-
|
|||||||||||||||
Impact of COVID-19 outbreak
|
(747
|
)
|
317
|
-
|
(430
|
)
|
-
|
|||||||||||||
Reconciling items affecting other income (expense):
|
||||||||||||||||||||
Loss on early extinguishment of debt
|
1,146
|
2,920
|
-
|
4,066
|
1,307
|
|||||||||||||||
Reconciling items affecting tax expense:
|
||||||||||||||||||||
Effects of tax-basis foreign exchange gain
|
$
|
-
|
$
|
-
|
$
|
7,554
|
$
|
-
|
$
|
7,554
|
||||||||||
Effects of cash repatriation program
|
(190
|
)
|
-
|
(48
|
)
|
(190
|
)
|
(633
|
)
|
|||||||||||
Change in deferred taxes due to early extinguishment of debt
|
-
|
(1,346
|
)
|
-
|
(1,346
|
)
|
(1,312
|
)
|
||||||||||||
Tax effects of pre-tax items above
|
(589
|
)
|
(1,482
|
)
|
-
|
(2,071
|
)
|
(290
|
)
|
|||||||||||
Adjusted net earnings
|
$
|
25,939
|
$
|
30,758
|
$
|
51,983
|
$
|
56,697
|
$
|
126,562
|
||||||||||
Adjusted weighted average diluted shares outstanding
|
145,170
|
145,295
|
145,023
|
145,232
|
145,158
|
|||||||||||||||
Adjusted earnings per diluted share
|
$
|
0.18
|
$
|
0.21
|
$
|
0.36
|
$
|
0.39
|
$
|
0.87
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net cash provided by continuing operating activities
|
$
|
90,431
|
$
|
34,478
|
$
|
56,301
|
$
|
124,909
|
$
|
135,819
|
||||||||||
Proceeds from sale of property and equipment
|
177
|
53
|
69
|
230
|
464
|
|||||||||||||||
Less: Capital expenditures
|
(24,504
|
)
|
(24,328
|
)
|
(33,781
|
)
|
(48,832
|
)
|
(70,148
|
)
|
||||||||||
Free cash
|
$
|
66,104
|
$
|
10,203
|
$
|
22,589
|
$
|
76,307
|
$
|
66,135
|
2nd Quarter 2019
|
3rd Quarter 2019
|
4th Quarter 2019
|
1st Quarter 2020
|
2nd Quarter 2020
|
||||||||||||||||
Net revenues
|
$
|
685,240
|
$
|
628,329
|
$
|
609,577
|
$
|
612,841
|
$
|
581,717
|
||||||||||
Gross profit margin(1)
|
25.5
|
%
|
23.9
|
%
|
22.2
|
%
|
24.0
|
%
|
22.5
|
%
|
||||||||||
Operating margin(2)
|
11.6
|
%
|
8.1
|
%
|
4.0
|
%
|
7.7
|
%
|
7.0
|
%
|
||||||||||
End-of-period backlog
|
$
|
1,126,700
|
$
|
935,400
|
$
|
911,300
|
$
|
1,005,200
|
$
|
914,300
|
||||||||||
Book-to-bill ratio
|
0.69
|
0.72
|
0.94
|
1.17
|
0.82
|
|||||||||||||||
Inventory turnover
|
4.3
|
4.1
|
4.3
|
4.2
|
3.9
|
|||||||||||||||
Change in ASP vs. prior quarter
|
(0.9
|
)%
|
(1.1
|
)%
|
(0.8
|
)%
|
(1.1
|
)%
|
0.1
|
%
|
2nd Quarter 2019
|
3rd Quarter 2019
|
4th Quarter 2019
|
1st Quarter 2020
|
2nd Quarter 2020
|
||||||||||||||||
MOSFETs
|
||||||||||||||||||||
Net revenues
|
$
|
128,842
|
$
|
126,747
|
$
|
116,215
|
$
|
116,893
|
$
|
118,944
|
||||||||||
Book-to-bill ratio
|
0.54
|
0.54
|
0.94
|
1.12
|
0.97
|
|||||||||||||||
Gross profit margin
|
24.8
|
%
|
24.1
|
%
|
23.7
|
%
|
24.1
|
%
|
22.7
|
%
|
||||||||||
Segment operating margin
|
17.5
|
%
|
16.6
|
%
|
16.1
|
%
|
16.0
|
%
|
14.8
|
%
|
||||||||||
Diodes
|
||||||||||||||||||||
Net revenues
|
$
|
142,042
|
$
|
123,879
|
$
|
123,382
|
$
|
115,343
|
$
|
124,187
|
||||||||||
Book-to-bill ratio
|
0.52
|
0.57
|
0.88
|
1.36
|
0.61
|
|||||||||||||||
Gross profit margin
|
20.3
|
%
|
17.1
|
%
|
16.3
|
%
|
16.9
|
%
|
20.1
|
%
|
||||||||||
Segment operating margin
|
16.9
|
%
|
13.3
|
%
|
12.6
|
%
|
12.5
|
%
|
16.0
|
%
|
||||||||||
Optoelectronic Components
|
||||||||||||||||||||
Net revenues
|
$
|
60,675
|
$
|
50,702
|
$
|
51,047
|
$
|
54,179
|
$
|
49,130
|
||||||||||
Book-to-bill ratio
|
0.70
|
0.86
|
1.11
|
1.40
|
0.96
|
|||||||||||||||
Gross profit margin
|
26.8
|
%
|
21.5
|
%
|
20.2
|
%
|
26.9
|
%
|
23.9
|
%
|
||||||||||
Segment operating margin
|
19.8
|
%
|
13.7
|
%
|
12.7
|
%
|
19.7
|
%
|
16.2
|
%
|
||||||||||
Resistors
|
||||||||||||||||||||
Net revenues
|
$
|
165,359
|
$
|
155,119
|
$
|
147,883
|
$
|
159,208
|
$
|
140,412
|
||||||||||
Book-to-bill ratio
|
0.81
|
0.82
|
0.95
|
1.05
|
0.73
|
|||||||||||||||
Gross profit margin
|
28.3
|
%
|
27.4
|
%
|
23.5
|
%
|
28.1
|
%
|
23.2
|
%
|
||||||||||
Segment operating margin
|
25.2
|
%
|
23.8
|
%
|
19.0
|
%
|
24.4
|
%
|
19.9
|
%
|
||||||||||
Inductors
|
||||||||||||||||||||
Net revenues
|
$
|
77,024
|
$
|
73,458
|
$
|
76,520
|
$
|
73,785
|
$
|
65,185
|
||||||||||
Book-to-bill ratio
|
1.01
|
0.95
|
1.05
|
0.98
|
0.96
|
|||||||||||||||
Gross profit margin
|
31.9
|
%
|
31.9
|
%
|
33.5
|
%
|
31.2
|
%
|
31.1
|
%
|
||||||||||
Segment operating margin
|
28.3
|
%
|
28.3
|
%
|
30.3
|
%
|
27.5
|
%
|
27.2
|
%
|
||||||||||
Capacitors
|
||||||||||||||||||||
Net revenues
|
$
|
111,298
|
$
|
98,424
|
$
|
94,530
|
$
|
93,433
|
$
|
83,859
|
||||||||||
Book-to-bill ratio
|
0.68
|
0.76
|
0.84
|
1.20
|
0.90
|
|||||||||||||||
Gross profit margin
|
23.5
|
%
|
22.0
|
%
|
17.9
|
%
|
21.8
|
%
|
18.1
|
%
|
||||||||||
Segment operating margin
|
19.0
|
%
|
16.9
|
%
|
12.3
|
%
|
16.1
|
%
|
12.5
|
%
|
|
Fiscal quarters ended
|
Six fiscal months ended
|
||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Cost of products sold
|
77.5
|
%
|
76.0
|
%
|
74.5
|
%
|
76.7
|
%
|
73.0
|
%
|
||||||||||
Gross profit
|
22.5
|
%
|
24.0
|
%
|
25.5
|
%
|
23.3
|
%
|
27.0
|
%
|
||||||||||
Selling, general & administrative expenses
|
15.3
|
%
|
16.3
|
%
|
13.9
|
%
|
15.8
|
%
|
13.9
|
%
|
||||||||||
Operating income
|
7.0
|
%
|
7.7
|
%
|
11.6
|
%
|
7.4
|
%
|
13.1
|
%
|
||||||||||
Income before taxes and noncontrolling interest
|
5.1
|
%
|
5.9
|
%
|
10.3
|
%
|
5.5
|
%
|
11.9
|
%
|
||||||||||
Net earnings attributable to Vishay stockholders
|
4.2
|
%
|
4.4
|
%
|
6.5
|
%
|
4.3
|
%
|
8.4
|
%
|
||||||||||
________
|
||||||||||||||||||||
Effective tax rate
|
16.3
|
%
|
24.2
|
%
|
36.9
|
%
|
20.6
|
%
|
29.5
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net revenues
|
$
|
581,717
|
$
|
612,841
|
$
|
685,240
|
$
|
1,194,558
|
$
|
1,430,399
|
Fiscal quarter ended
July 4, 2020
|
Six fiscal months ended
July 4, 2020
|
|||||||||||||||
Change in net
revenues
|
% change
|
Change in net
revenues
|
% change
|
|||||||||||||
April 4, 2020
|
$
|
(31,124
|
)
|
-5.1
|
%
|
|||||||||||
June 29, 2019
|
$
|
(103,523
|
)
|
-15.1
|
%
|
$
|
(235,841
|
)
|
-16.5
|
%
|
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
|||||||||
Change attributable to:
|
||||||||||||
Decrease in volume
|
-5.2
|
%
|
-12.7
|
%
|
-13.9
|
%
|
||||||
Change in average selling prices
|
0.1
|
%
|
-2.7
|
%
|
-2.8
|
%
|
||||||
Foreign currency effects
|
0.0
|
%
|
-0.5
|
%
|
-0.7
|
%
|
||||||
Other
|
0.0
|
%
|
0.8
|
%
|
0.9
|
%
|
||||||
Net change
|
-5.1
|
%
|
-15.1
|
%
|
-16.5
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net revenues
|
$
|
118,944
|
$
|
116,893
|
$
|
128,842
|
$
|
235,837
|
$
|
266,183
|
||||||||||
Gross profit margin
|
22.7
|
%
|
24.1
|
%
|
24.8
|
%
|
23.4
|
%
|
25.5
|
%
|
Fiscal quarter ended
July 4, 2020
|
Six fiscal months ended
July 4, 2020
|
|||||||||||||||
Change in net
revenues
|
% change
|
Change in net
revenues
|
% change
|
|||||||||||||
April 4, 2020
|
$
|
2,051
|
1.8
|
%
|
||||||||||||
June 29, 2019
|
$
|
(9,898
|
)
|
-7.7
|
%
|
$
|
(30,346
|
)
|
-11.4
|
%
|
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
|||||||||
Change attributable to:
|
||||||||||||
Change in volume
|
3.0
|
%
|
-1.6
|
%
|
-5.8
|
%
|
||||||
Decrease in average selling prices
|
-1.3
|
%
|
-6.0
|
%
|
-5.9
|
%
|
||||||
Foreign currency effects
|
0.0
|
%
|
-0.3
|
%
|
-0.4
|
%
|
||||||
Other
|
0.1
|
%
|
0.2
|
%
|
0.7
|
%
|
||||||
Net change
|
1.8
|
%
|
-7.7
|
%
|
-11.4
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net revenues
|
$
|
124,187
|
$
|
115,343
|
$
|
142,042
|
$
|
239,530
|
$
|
309,882
|
||||||||||
Gross profit margin
|
20.1
|
%
|
16.9
|
%
|
20.3
|
%
|
18.5
|
%
|
23.3
|
%
|
Fiscal quarter ended
July 4, 2020
|
Six fiscal months ended
July 4, 2020
|
|||||||||||||||
Change in net
revenues
|
% change
|
Change in net
revenues
|
% change
|
|||||||||||||
April 4, 2020
|
$
|
8,844
|
7.7
|
%
|
||||||||||||
June 29, 2019
|
$
|
(17,855
|
)
|
-12.6
|
%
|
$
|
(70,352
|
)
|
-22.7
|
%
|
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
|||||||||
Change attributable to:
|
||||||||||||
Change in volume
|
6.5
|
%
|
-8.9
|
%
|
-19.3
|
%
|
||||||
Change in average selling prices
|
0.9
|
%
|
-3.9
|
%
|
-4.7
|
%
|
||||||
Foreign currency effects
|
-0.1
|
%
|
-0.4
|
%
|
-0.5
|
%
|
||||||
Other
|
0.4
|
%
|
0.6
|
%
|
1.8
|
%
|
||||||
Net change
|
7.7
|
%
|
-12.6
|
%
|
-22.7
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net revenues
|
$
|
49,130
|
$
|
54,179
|
$
|
60,675
|
$
|
103,309
|
$
|
121,237
|
||||||||||
Gross profit margin
|
23.9
|
%
|
26.9
|
%
|
26.8
|
%
|
25.5
|
%
|
26.6
|
%
|
Fiscal quarter ended
July 4, 2020
|
Six fiscal months ended
July 4, 2020
|
|||||||||||||||
Change in net
revenues
|
% change
|
Change in net
revenues
|
% change
|
|||||||||||||
April 4, 2020
|
$
|
(5,049
|
)
|
-9.3
|
%
|
|||||||||||
June 29, 2019
|
$
|
(11,545
|
)
|
-19.0
|
%
|
$
|
(17,928
|
)
|
-14.8
|
%
|
|
vs. Prior
Quarter
|
vs. Prior
Year Quarter
|
vs. Prior
Year-to-Date
|
|||||||||
Change attributable to:
|
||||||||||||
Decrease in volume
|
-9.2
|
%
|
-17.3
|
%
|
-12.6
|
%
|
||||||
Decrease in average selling prices
|
-0.3
|
%
|
-2.1
|
%
|
-2.2
|
%
|
||||||
Foreign currency effects
|
0.2
|
%
|
-0.3
|
%
|
-0.7
|
%
|
||||||
Other
|
0.0
|
%
|
0.7
|
%
|
0.7
|
%
|
||||||
Net change
|
-9.3
|
%
|
-19.0
|
%
|
-14.8
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net revenues
|
$
|
140,412
|
$
|
159,208
|
$
|
165,359
|
$
|
299,620
|
$
|
354,190
|
||||||||||
Gross profit margin
|
23.2
|
%
|
28.1
|
%
|
28.3
|
%
|
25.8
|
%
|
30.9
|
%
|
Fiscal quarter ended
July 4, 2020
|
Six fiscal months ended
July 4, 2020
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
April 4, 2020
|
$
|
(18,796
|
)
|
-11.8
|
%
|
|||||||||||
June 29, 2019
|
$
|
(24,947
|
)
|
-15.1
|
%
|
$
|
(54,570
|
)
|
-15.4
|
%
|
|
vs. Prior Quarter
|
vs. Prior Year Quarter
|
vs. Prior Year-to-Date
|
|||||||||
Change attributable to:
|
||||||||||||
Change in volume
|
-14.8
|
%
|
-15.9
|
%
|
-13.8
|
%
|
||||||
Decrease in average selling prices
|
0.0
|
%
|
-2.1
|
%
|
-1.5
|
%
|
||||||
Foreign currency effects
|
0.0
|
%
|
-0.7
|
%
|
-1.0
|
%
|
||||||
Other
|
3.0
|
%
|
3.6
|
%
|
0.9
|
%
|
||||||
Net change
|
-11.8
|
%
|
-15.1
|
%
|
-15.4
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net revenues
|
$
|
65,185
|
$
|
73,785
|
$
|
77,024
|
$
|
138,970
|
$
|
148,664
|
||||||||||
Gross profit margin
|
31.1
|
%
|
31.2
|
%
|
31.9
|
%
|
31.1
|
%
|
32.2
|
%
|
Fiscal quarters ended
July 4, 2020
|
Six fiscal months ended
July 4, 2020
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
April 4, 2020
|
$
|
(8,600
|
)
|
-11.7
|
%
|
|||||||||||
June 29, 2019
|
$
|
(11,839
|
)
|
-15.4
|
%
|
$
|
(9,694
|
)
|
-6.5
|
%
|
|
vs. Prior Quarter
|
vs. Prior Year Quarter
|
vs. Prior Year-to-Date
|
|||||||||
Change attributable to:
|
||||||||||||
Decrease in volume
|
-12.5
|
%
|
-14.9
|
%
|
-4.7
|
%
|
||||||
Change in average selling prices
|
1.2
|
%
|
-0.5
|
%
|
-1.7
|
%
|
||||||
Foreign currency effects
|
0.0
|
%
|
-0.1
|
%
|
-0.3
|
%
|
||||||
Other
|
-0.4
|
%
|
0.1
|
%
|
0.2
|
%
|
||||||
Net change
|
-11.7
|
%
|
-15.4
|
%
|
-6.5
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Net revenues
|
$
|
83,859
|
$
|
93,433
|
$
|
111,298
|
$
|
177,292
|
$
|
230,243
|
||||||||||
Gross profit margin
|
18.1
|
%
|
21.8
|
%
|
23.5
|
%
|
20.1
|
%
|
24.3
|
%
|
Fiscal quarter ended
July 4, 2020
|
Six fiscal months ended
July 4, 2020
|
|||||||||||||||
Change in net
revenues
|
% change
|
Change in net
revenues
|
% change
|
|||||||||||||
April 4, 2020
|
$
|
(9,574
|
)
|
-10.2
|
%
|
|||||||||||
June 29, 2019
|
$
|
(27,439
|
)
|
-24.7
|
%
|
$
|
(52,951
|
)
|
-23.0
|
%
|
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
|||||||||
Change attributable to:
|
||||||||||||
Decrease in volume
|
-10.6
|
%
|
-24.8
|
%
|
-22.9
|
%
|
||||||
Increase in average selling prices
|
0.1
|
%
|
0.8
|
%
|
1.0
|
%
|
||||||
Foreign currency effects
|
-0.2
|
%
|
-0.6
|
%
|
-0.9
|
%
|
||||||
Other
|
0.5
|
%
|
-0.1
|
%
|
-0.2
|
%
|
||||||
Net change
|
-10.2
|
%
|
-24.7
|
%
|
-23.0
|
%
|
Fiscal quarters ended
|
Six fiscal months ended
|
|||||||||||||||||||
July 4, 2020
|
April 4, 2020
|
June 29, 2019
|
July 4, 2020
|
June 29, 2019
|
||||||||||||||||
Total SG&A expenses
|
$
|
89,127
|
$
|
99,832
|
$
|
95,112
|
$
|
188,959
|
$
|
198,536
|
||||||||||
as a percentage of revenues
|
15.3
|
%
|
16.3
|
%
|
13.9
|
%
|
15.8
|
%
|
13.9
|
%
|
Fiscal quarters ended
|
||||||||||||
July 4, 2020
|
June 29, 2019
|
Change
|
||||||||||
Foreign exchange gain (loss)
|
$
|
(1,183
|
)
|
$
|
(481
|
)
|
$
|
(702
|
)
|
|||
Interest income
|
956
|
2,147
|
(1,191
|
)
|
||||||||
Other components of net periodic pension expense
|
(3,063
|
)
|
(3,367
|
)
|
304
|
|||||||
Investment income (expense)
|
1,806
|
1,399
|
407
|
|||||||||
Other
|
-
|
(95
|
)
|
95
|
||||||||
$
|
(1,484
|
)
|
$
|
(397
|
)
|
$
|
(1,087
|
)
|
Fiscal quarters ended
|
||||||||||||
July 4, 2020
|
April 4, 2020
|
Change
|
||||||||||
Foreign exchange gain (loss)
|
$
|
(1,183
|
)
|
$
|
1,864
|
$
|
(3,047
|
)
|
||||
Interest income
|
956
|
1,854
|
(898
|
)
|
||||||||
Other components of net periodic pension expense
|
(3,063
|
)
|
(3,068
|
)
|
5
|
|||||||
Investment income (expense)
|
1,806
|
(437
|
)
|
2,243
|
||||||||
Other
|
-
|
(15
|
)
|
15
|
||||||||
$
|
(1,484
|
)
|
$
|
198
|
$
|
(1,682
|
)
|
Six fiscal months ended
|
||||||||||||
July 4, 2020
|
June 29, 2019
|
Change
|
||||||||||
Foreign exchange gain (loss)
|
$
|
681
|
$
|
(951
|
)
|
$
|
1,632
|
|||||
Interest income
|
2,810
|
4,346
|
(1,536
|
)
|
||||||||
Other components of net periodic pension expense
|
(6,131
|
)
|
(6,763
|
)
|
632
|
|||||||
Investment income (expense)
|
1,369
|
4,989
|
(3,620
|
)
|
||||||||
Other
|
(15
|
)
|
(106
|
)
|
91
|
|||||||
$
|
(1,286
|
)
|
$
|
1,515
|
$
|
(2,801
|
)
|
July 4, 2020
|
December 31, 2019
|
|||||||
Credit facility
|
$
|
-
|
$
|
-
|
||||
Convertible senior notes, due 2025*
|
451,169
|
509,128
|
||||||
Convertible senior debentures, due 2040*
|
128
|
126
|
||||||
Convertible senior debentures, due 2041*
|
1,058
|
6,677
|
||||||
Deferred financing costs
|
(13,861
|
)
|
(16,784
|
)
|
||||
Total debt
|
438,494
|
499,147
|
||||||
Cash and cash equivalents
|
599,930
|
694,133
|
||||||
Short-term investments
|
157,246
|
108,822
|
||||||
Net cash and short-term investments (debt)
|
$
|
318,682
|
$
|
303,808
|
|
Payments due by period
|
|||||||||||||||||||
|
Total
|
2020
|
2021 - 2022
|
2023 - 2024
|
2025 and beyond
|
|||||||||||||||
|
||||||||||||||||||||
Long-term debt (1)
|
527,170
|
-
|
-
|
-
|
527,170
|
|||||||||||||||
Interest payments on long-term debt (2)
|
67,232
|
6,868
|
27,473
|
26,405
|
6,486
|
|||||||||||||||
|
||||||||||||||||||||
(1) Excludes unamortized debt discount associated with our convertible senior notes due 2025 and our convertible senior debentures due 2040 and due 2041.
|
||||||||||||||||||||
(2) Excludes the non-cash interest expense related to the amortization of the discount associated with our convertible senior notes due 2025 and our convertible senior debentures due 2040 and due 2041.
|
|
Payments due by period
|
|||||||||||||||||||
|
Total
|
2020
|
2021 - 2022
|
2023 - 2024
|
2025 and beyond
|
|||||||||||||||
|
||||||||||||||||||||
Long-term debt (1)
|
617,190
|
-
|
-
|
-
|
617,190
|
|||||||||||||||
Interest payments on long-term debt (2)
|
90,260
|
15,762
|
31,524
|
30,456
|
12,518
|
|||||||||||||||
|
||||||||||||||||||||
(1) Excludes unamortized debt discount associated with our convertible senior notes due 2025 and our convertible senior debentures due 2040 and due 2041.
|
||||||||||||||||||||
(2) Excludes the non-cash interest expense related to the amortization of the discount associated with our convertible senior notes due 2025 and our convertible senior debentures due 2040 and due 2041.
|
Fiscal Period
|
Amount
|
Month of Payment
|
|||
Three fiscal months ended April 4, 2020
|
$
|
13,741
|
March
|
||
Three fiscal months ended July 4, 2020
|
13,743
|
June
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
•
|
Adverse impact on our customers and supply channels;
|
•
|
Decrease in sales, product demand and pricing and unfavorable economic and market conditions;
|
•
|
Increased costs, including higher shipping costs due to reduced shipping capacity;
|
•
|
Restrictions on our manufacturing, support operations or workforce, or similar limitations for our customers, vendors, and suppliers, that could limit our ability to meet customer demand;
|
•
|
Potential increased credit risk if customers, distributors, and resellers are unable to pay us, or must delay paying their obligations to us;
|
•
|
Restrictions or disruptions of transportation, such as reduced availability of air transport, port closures, and increased border controls or closures could result in delays;
|
•
|
Impact on our workforce/employees due to the ease with which the virus spreads and the current shelter-in-place orders; and
|
•
|
Cybersecurity risks as a result of extended periods of remote work arrangements.
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3. |
Defaults Upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
101
|
Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended July 4, 2020, furnished in iXBRL (Inline eXtensible Business Reporting Language)).
|
104
|
Cover Page Interactive Data File (formatted as Inline eXtensible Business Reporting Language and contained in Exhibit 101)
|
|
VISHAY INTERTECHNOLOGY, INC.
|
|
/s/ Lori Lipcaman
|
||
Lori Lipcaman
|
||
Executive Vice President and Chief Financial Officer
|
||
(as a duly authorized officer and principal financial and
|
||
accounting officer)
|
1. | I have reviewed this quarterly report on Form 10-Q of Vishay Intertechnology, 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: |
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):
|
1. | I have reviewed this quarterly report on Form 10-Q of Vishay Intertechnology, 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: |
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):
|
(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.
|
(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.
|
By:
|
VISHAY AMERICAS, INC.
/s/ Michael S. O'Sullivan
|
|
Name: Michael S. O'Sullivan
Title: Senior Vice President
|
By:
|
VISHAY INTERTECHNOLOGY, INC.
/s/ Gerald Paul
|
|
Name: Dr. Gerald Paul
Title: CEO
|
By:
|
VISHAY DALE ELECTRONICS, LLC
/s/ Michael S. O'Sullivan
|
|
Name: Michael S. O'Sullivan
Title: Manager and SVP
|
/s/ Joel Smejkal
|
JOEL SMEJKAL
DATE:
|
To Vishay: |
Vishay Israel Ltd. c/o
7 Hatnufa Street |
With CC: |
Vishay Intertechnology, Inc.
63 Lancaster Avenue Malvern, Pennsylvania 19355-2120 Attention: General Counsel |
To Executive: |
At Executive’s address of record in the personnel files of Vishay Israel.
|
July 8, 2020
|
By:
|
VISHAY ISRAEL LTD.
/s/ Marc Zandman
|
|
Date
|
Name: Marc Zandman
Title: President
|
||
July 16, 2020
|
By:
|
VISHAY INTERTECHNOLOGY, INC.
/s/ Gerald Paul
|
|
Date
|
Name: Dr. Gerald Paul
Title: Chief Executive Officer
|
||
July 8, 2020
|
EXECUTIVE
/s/ Jeffrey Webster
|
||
Date
|
JEFFREY WEBSTER
|
1.
|
Executive agrees to the following general undertakings:
|
1.1.
|
Executive and the Company acknowledge and agree that Executive's prior period of employment by Vishay, from January 31,
2000 through June 30, 2017 (the "Prior Employment Period"), should not – and will not – count towards, or constitute part of,
Executive's term of service for the Company for any purpose, including, without limitation, for the purpose of calculating statutory or contractual seniority-based employment benefits. Executive acknowledges and agrees that his exclusive
employment with the Company began, for all intents and purposes, on July 2, 2017. As used in this Exhibit A, “Company” shall mean Vishay Israel Ltd.
|
1.2.
|
Executive undertakes to comply with all Company disciplinary regulations, work rules, policies, procedures and objectives,
as in effect from time to time, including the applicable Code of Ethics and Prevention of Sexual Harassment Rules (the "Rules").
|
1.3.
|
Executive consents, of his own free will and although not required to do so under law, that the information in the
Agreement and this Exhibit A and any information concerning Executive gathered by the Company will be held and managed by the Company or on its behalf, inter alia, on databases according to law and that the Company shall be entitled to transfer such information to third parties, in Israel or abroad. The Company undertakes that the information will be used
and transferred for legitimate business purposes only. Without derogating from the generality of the above, such purposes may include human resources management and assessment of potential transactions, to the extent required while
maintaining Executive's right to privacy.
|
1.4.
|
Executive agrees that the Company may monitor his use of its Systems and copy, transfer and disclose all electronic
communications and content transmitted by or stored in such Systems, in pursuit of the Company's legitimate business interests, all in accordance with the Company's policy as in force from time to time and subject to applicable law. For
the purposes of this Section, the term "Systems" includes telephone, computers, computer system, internet server, electronic database and software, whether under Executive's direct control or otherwise.
|
2.
|
Executive's entitlements under the Agreement shall be clarified as follows:
|
2.1.
|
Israeli Notice of Termination / Payment in
Lieu of Notice – For the sake of good order, notwithstanding any other provision in this Exhibit A or the Agreement, the parties hereby clarify that each party may terminate the Agreement at any time by providing the other
party a prior written notice of 30 days and that this prior notice period shall not derogate from Section 6 of the Agreement. The Company reserves the right to terminate Executive's employment by making a payment to him of salary in lieu
of any prior notice period as set out in the Agreement. In addition, the Company may instruct Executive not to attend work during any prior notice period or any part of it.
|
2.2.
|
Vacation - Executive shall be
entitled to 22 working days' vacation in each calendar year. Vacation days may be carried forward from one calendar year to the next to the extent permitted by law, provided that Executive uses at least 7 vacation days each year.
|
2.3.
|
Sick pay – Executive shall be
entitled to sick leave according to law. Notwithstanding the aforesaid, Executive will be entitled to his full Base Salary from the first day of his sick leave. Executive shall not be entitled to any compensation with respect to unused
sick leave.
|
2.4.
|
Recuperation pay – Executive
shall be entitled to recuperation pay in accordance with applicable law.
|
2.5.
|
Car
|
2.5.1.
|
The Company provides Executive with a Company car (the "Company Car"), as determined by the Company at its sole discretion, with all maintenance and usage expenses paid by the Company, subject to Company's policy and with Executive to bear any
and all liability and costs in relation to traffic, parking and other fines and any damage or other costs not covered by the Company Car insurance policy, including self-participation fee.
|
2.5.2.
|
Executive shall take good care of the Company Car and undertakes not to allow others to use the Company Car, except for
members of his immediate family and employees of the Company approved by the Company.
|
2.5.3.
|
Executive shall act in accordance with applicable law, the Company Car policy and any insurance policy applicable to the
Company Car, all as in effect from time to time.
|
2.5.4.
|
The Company shall bear all taxes associated with this car benefit under any applicable law.
|
2.5.5.
|
Executive shall return the Company Car, and any keys thereto, to the Company no later than the termination date of his
employment or at any other time as directed. Executive shall have no rights of lien with respect to the Company Car.
|
2.5.6.
|
The receipt of this car benefit is in place of any travel expenses to which Executive would otherwise be entitled at law.
|
2.6.
|
Pension Arrangement – Executive
is entitled to contributions to a pension arrangement of his choice (the "Pension Arrangement"), at the following monthly rates:
|
2.6.1.
|
The Company currently contributes:
|
2.6.2.
|
The Company shall also deduct 6% of the Base Salary to be paid on Executive's account towards the Pension Arrangement.
|
2.6.3.
|
In addition to any payments specified in Section 6 of the Agreement, the Company and Executive agree to adopt the
provisions of the "General Approval Regarding the Payments by Employers to Pension Funds and to Insurance Funds in Lieu of Payment of Severance Compensation", which was issued in accordance with the Severance Compensation Law, 1963 ("General Approval"). The General Approval (translated in English) is attached to this Agreement as Exhibit B. Executive represents, confirms and undertakes that under the provisions of the General Approval, all payments, which were made by the Company to
Executive’s Pension Arrangement shall be in lieu of payment of severance pay, if Executive shall be entitled to such, according to Section 14 of the Severance Compensation Law, 1963 and in accordance with the General Approval.
|
2.6.4.
|
The Company waives all rights to have its payments refunded, unless Executive’s right to severance pay is denied by a
judgment according to sections 16 or 17 of the Severance Pay Law or in the event that Executive withdraws monies from the Pension Arrangement in circumstances other than an Entitling Event, where an “Entitling Event” means death,
disablement or retirement at the age of 60 or over.
|
2.7.
|
Further education fund
|
2.7.1.
|
The Company shall make monthly Further Education Fund contributions as follows: 7.5% of Base Salary paid by the Company on
its account and 2.5% of Base Salary to be deducted by the Company from such Base Salary to be paid on Executive's account, in each case up to the ceiling recognized by the income tax authorities from time to time (the "Ceiling"), but not otherwise.
|
2.7.2.
|
Executive shall bear any and all taxes applicable in connection with amounts payable by him or Company to the said Further
Education Fund.
|
2.8.
|
Laptop
|
2.9.
|
Cell phone
|
2.9.1.
|
The Company shall provide Executive with a cell phone for his use in order to perform his obligations under this
Agreement. The Company shall pay the monthly charges for the cell phone, according to its policy, as in effect from time to time.
|
2.9.2.
|
Without derogating from the generality of the above, Executive specifically undertakes to use the cell phone abroad in
accordance with Company's policy in this regard.
|
2.9.3.
|
The Company shall bear all taxes applicable to Executive in connection with the said cell phone. No later than the termination date of Executive's employment for any reason, or earlier upon receipt of a written request by the Company, Executive shall return possession of
the cell phone to the Company.
|
3.
|
Intellectual Property Undertakings
|
3.1.
|
Executive undertakes to disclose and shall promptly disclose, to the Company, all Intellectual Property which he has or
which he may solely or jointly conceive, develop or reduce to practice or cause to be conceived, developed or reduced to practice during the course of and/or in connection with his employment with the Company and/or which use confidential
information (as set out in the Agreement) or other Group property (“Inventions”).
|
3.2.
|
For the purposes of this Exhibit A, "Intellectual Property" shall include all intellectual property rights, whether or not
patentable, including without limitation rights in algorithms, binary code, brands, business methods, business plans, computer programs, computer software, concepts, confidential information, content, databases, developments, firmware,
composition of matter or materials, certification marks, collective marks, copyright, customer lists, data, designs (whether registered or unregistered), derivative works, discoveries, distributor lists, documents, domain names, file
layouts, formulae, goodwill, ideas, improvements, industrial designs, information, innovations, inventions (including, but not limited to, Service Inventions as defined in Section 132 of the Patent Law-1967 (the "Patent Law")), integrated circuits, know-how, logos, look and feel, manufacturing information, mask works, materials, methods, moral rights, object code,
original works of authorship, patents, patent applications, patent rights, including but not limited to any and all continuations, divisions, reissues, re-examinations or extensions, plans, processes, proprietary technology, reputation,
research data, research results, research records, semiconductor chips, service marks, software, source code, specifications, statistical models, supplier lists, systems, techniques, technology, trade secrets, trademarks, trade dress,
trade names, trade styles, technical information, utility models, and any rights analogous to the foregoing.
|
3.3.
|
Executive further confirms that all Inventions, and any and all rights, interests and title therein, have been and shall
be the exclusive property of the Company and Executive has not been and shall not be entitled to, and he has waived and hereby waives, now and in the future, any claim to any right, moral rights, compensation or reward, including any
right to royalties in Service Inventions in accordance with the Patent Law, that he may have or have had in connection therewith and that all Inventions will be considered “works made for hire” as that term is defined in Section 101 of
the United States Copyright Act (17 U.S.C. § 101). This clause constitutes an express waiver of any rights Executive may have under Section 134 of the Patent Law.
|
3.4.
|
Without derogating from the Group's rights under this Undertaking or any law, Executive agrees to assign, and
automatically assign, to the Company and/or its designee, any and all rights, titles and interests in respect of any Inventions, to the extent that he may have or have had such rights, on a worldwide basis, and he has acknowledged and
acknowledges now and in the future, the Company’s full and exclusive ownership in all such Inventions. Executive shall, at any time hereafter, execute all documents and take all steps necessary to effectuate the assignment to the Company
and/or its designee or to assist them to obtain the exclusive and absolute right, title and interest in and to all Inventions, including by the registration of patents or trademarks, protection of trade secrets, copyright, or any other
applicable legal protection, and to protect the same against infringement by any third party, including by assisting in any legal action requested by the Group with respect to the foregoing.
|
4.
|
The Agreement, together with this Exhibit A, constitutes an “employee notice” as required under the Notice to the Employee
and Job Candidate Law (Employment Conditions and Candidate Screening and Selection), 5762-2002, and the parties agree that they serve as a notification under this law. Nothing in the Agreement, as amended by this Exhibit A, shall derogate
from any right granted to Executive under any law, extension order or collective agreement. The Company is not (and is not a member of an Employer's
organization which is) party to a collective agreement which sets out Executive's terms of employment.
|
5.
|
Except as set forth herein, this Exhibit A shall not affect any provisions in the Agreement, which shall remain in full
force and effect. In the event of any inconsistency between the provisions of this Exhibit A and the terms of the Agreement, the provisions of this Exhibit A shall prevail.
|
6.
|
Executive hereby confirms that he has complied with all of his undertakings according to the Agreement and this Exhibit A
from the commencement date of his employment by the Company.
|
|
(A) |
for Pension Funds are not less than 14.33 % of the Exempt Wages or 12% of the Exempt Wages, if the employer pays for his employee an additional payment on behalf of
the severance pay completion for a providence fund or Insurance Fund at the rate of 2.33% of the Exempt Wages. If an employer does not pay the additional 2.33% on top of the 12%, then the payment will constitute only 72% of the Severance
Pay.
|
|
(B) |
to the Insurance Fund are not less than one of the following:
|
|
(1) |
13.33% of the Exempt Wages if the employer pays the employee additional payments to insure his monthly income in case of work disability, in a plan approved by the
Supervisor of the Capital Market, Insurance and Savings in the Finance Ministry, at the lower of, a rate required to insure 75% of the Exempt Wages or 2.5% of the Exempt Wages (“Disability Payment”).
|
|
(2) |
11% of the Exempt Wages if the employer pays an additional Disability Payment and in this case the Employer Payments will constitute only 72% of the employee’s
severance pay; if, in addition to the abovementioned sum, the employer pays 2.33% of the Exempt Wages for the purpose of Severance Pay completion to providence fund or Insurance Funds, the Employer Payments will constitute 100% of the
severance pay.
|
(2) |
A written agreement must be made between the employer and employee no later than 3 months after the commencement of the Employer Payments that include –
|
|
(A) |
the agreement of the employee to the arrangement pursuant to this confirmation which details the Employer Payments and the name of the Pension Fund or Insurance Fund;
this agreement must include a copy of this confirmation;
|
|
(B) |
an advanced waiver of the employer for any right that he could have to have his payments refunded unless the employee’s right to severance pay is denied by judgment
according to sections 16 or 17 of the Law, or in case the employee withdrew monies from the Pension Fund or Insurance Fund not for an Entitling Event; for this matter, Entitling Event or purpose means death, disablement or retirement at the
age of 60 or over.
|
1.
|
Definitions.
|
2.
|
Employment; Term.
|
3.
|
Duties.
|
4.
|
Compensation.
|
5.
|
Additional Rights.
|
6.
|
Compensation Upon
Termination.
|
7.
|
Garden Leave.
|
8.
|
Miscellaneous.
|
June 26, 2020
|
By:
|
VISHAY ELECTRONIC GMBH
/s/ Werner Gebhardt /s/ Torsten Muellner
|
|
Date
|
Name: W. Gebhardt T. Muellner
Title: Managing Director Managing Director
|
||
June 26, 2020
|
By:
|
VISHAY INTERTECHNOLOGY, INC.
/s/ Gerald Paul
|
|
Date
|
Name: Dr. Gerald Paul
Title: CEO
|
||
June 26, 2020
|
EXECUTIVE
/s/ Andreas Randebrock
|
||
Date
|
ANDREAS RANDEBROCK
|