☒ |
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
|
||||
October 1, 2022
|
December 31, 2021
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
734,992
|
$
|
774,108
|
||||
Short-term investments
|
182,646
|
146,743
|
||||||
Accounts receivable, net
|
425,630
|
396,458
|
||||||
Inventories:
|
||||||||
Finished goods
|
164,252
|
147,293
|
||||||
Work in process
|
252,492
|
226,496
|
||||||
Raw materials
|
199,133
|
162,711
|
||||||
Total inventories
|
615,877
|
536,500
|
||||||
Prepaid expenses and other current assets
|
151,144
|
156,689
|
||||||
Total current assets
|
2,110,289
|
2,010,498
|
||||||
Property and equipment, at cost:
|
||||||||
Land
|
74,118
|
74,646
|
||||||
Buildings and improvements
|
617,784
|
639,879
|
||||||
Machinery and equipment
|
2,743,049
|
2,758,262
|
||||||
Construction in progress
|
167,336
|
145,828
|
||||||
Allowance for depreciation
|
(2,613,506
|
)
|
(2,639,136
|
)
|
||||
Property and equipment, net
|
988,781
|
979,479
|
||||||
Right of use assets
|
118,676
|
117,635
|
||||||
Deferred income taxes |
85,288 | 95,037 | ||||||
Goodwill
|
163,567
|
165,269
|
||||||
Other intangible assets, net
|
59,918
|
67,714
|
||||||
Other assets
|
94,027
|
107,625
|
||||||
Total assets
|
$
|
3,620,546
|
$
|
3,543,257
|
October 1, 2022
|
December 31, 2021
|
|||||||
(Unaudited)
|
||||||||
Liabilities and equity
|
||||||||
Current liabilities:
|
||||||||
Trade accounts payable
|
$
|
223,898
|
$
|
254,049
|
||||
Payroll and related expenses
|
164,303
|
162,694
|
||||||
Lease liabilities
|
23,650
|
23,392
|
||||||
Other accrued expenses
|
220,542
|
218,089
|
||||||
Income taxes
|
84,571
|
35,443
|
||||||
Total current liabilities
|
716,964
|
693,667
|
||||||
Long-term debt less current portion
|
458,120
|
455,666
|
||||||
U.S. transition tax payable
|
83,010
|
110,681
|
||||||
Deferred income taxes
|
52,382
|
69,003
|
||||||
Long-term lease liabilities
|
95,747
|
99,987
|
||||||
Other liabilities
|
84,575
|
95,861
|
||||||
Accrued pension and other postretirement costs
|
229,467
|
271,672
|
||||||
Total liabilities
|
1,720,265
|
1,796,537
|
||||||
Equity:
|
||||||||
Vishay stockholders' equity
|
||||||||
Common stock
|
13,291
|
13,271
|
||||||
Class B convertible common stock
|
1,210
|
1,210
|
||||||
Capital in excess of par value
|
1,351,470
|
1,347,830
|
||||||
Retained earnings
|
714,588
|
401,694
|
||||||
Treasury stock (at cost) |
(54,671 | ) | - | |||||
Accumulated other comprehensive income (loss)
|
(129,093
|
)
|
(20,252
|
)
|
||||
Total Vishay stockholders' equity
|
1,896,795
|
1,743,753
|
||||||
Noncontrolling interests
|
3,486
|
2,967
|
||||||
Total equity
|
1,900,281
|
1,746,720
|
||||||
Total liabilities and equity
|
$
|
3,620,546
|
$
|
3,543,257
|
Fiscal quarters ended
|
||||||||
October 1, 2022
|
October 2, 2021
|
|||||||
Net revenues
|
$
|
924,798
|
$
|
813,663
|
||||
Costs of products sold
|
635,260
|
587,927
|
||||||
Gross profit
|
289,538
|
225,736
|
||||||
Selling, general, and administrative expenses
|
106,436
|
102,215
|
||||||
Operating income
|
183,102
|
123,521
|
||||||
Other income (expense):
|
||||||||
Interest expense
|
(4,110
|
)
|
(4,427
|
)
|
||||
Other
|
2,137
|
(2,679
|
)
|
|||||
Total other income (expense)
|
(1,973
|
)
|
(7,106
|
)
|
||||
Income before taxes
|
181,129
|
116,415
|
||||||
Income tax expense
|
40,566
|
19,333
|
||||||
Net earnings
|
140,563
|
97,082
|
||||||
Less: net earnings attributable to noncontrolling interests
|
502
|
262
|
||||||
Net earnings attributable to Vishay stockholders
|
$
|
140,061
|
$
|
96,820
|
||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.98
|
$
|
0.67
|
||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.98
|
$
|
0.67
|
||||
Weighted average shares outstanding - basic
|
142,887
|
145,017
|
||||||
Weighted average shares outstanding - diluted
|
143,447
|
145,458
|
||||||
Cash dividends per share
|
$
|
0.100
|
$
|
0.095
|
Fiscal quarters ended
|
||||||||
October 1, 2022
|
October 2, 2021
|
|||||||
Net earnings
|
$
|
140,563
|
$
|
97,082
|
||||
Other comprehensive income (loss), net of tax
|
||||||||
Pension and other post-retirement actuarial items
|
1,321
|
1,850
|
||||||
Foreign currency translation adjustment
|
(50,070
|
)
|
(17,242
|
)
|
||||
Other comprehensive income (loss)
|
(48,749
|
)
|
(15,392
|
)
|
||||
Comprehensive income
|
91,814
|
81,690
|
||||||
Less: comprehensive income attributable to noncontrolling interests
|
502
|
262
|
||||||
Comprehensive income attributable to Vishay stockholders
|
$
|
91,312
|
$
|
81,428
|
Nine fiscal months ended
|
||||||||
October 1, 2022
|
October 2, 2021
|
|||||||
Net revenues
|
$
|
2,642,103
|
$
|
2,397,415
|
||||
Costs of products sold
|
1,832,234
|
1,739,458
|
||||||
Gross profit
|
809,869
|
657,957
|
||||||
Selling, general, and administrative expenses
|
329,691
|
311,800
|
||||||
Operating income
|
480,178
|
346,157
|
||||||
Other income (expense):
|
||||||||
Interest expense
|
(12,639
|
)
|
(13,246
|
)
|
||||
Other
|
(2,234
|
)
|
(12,159
|
)
|
||||
Total other income (expense)
|
(14,873
|
)
|
(25,405
|
)
|
||||
Income before taxes
|
465,305
|
320,752
|
||||||
Income tax expense
|
108,023
|
58,646
|
||||||
Net earnings
|
357,282
|
262,106
|
||||||
Less: net earnings attributable to noncontrolling interests
|
1,260
|
659
|
||||||
Net earnings attributable to Vishay stockholders
|
$
|
356,022
|
$
|
261,447
|
||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
2.47
|
$
|
1.80
|
||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
2.46
|
$
|
1.80
|
||||
Weighted average shares outstanding - basic
|
143,983
|
145,000
|
||||||
Weighted average shares outstanding - diluted
|
144,470
|
145,455
|
||||||
Cash dividends per share
|
$
|
0.300
|
$
|
0.285
|
Nine fiscal months ended
|
||||||||
October 1, 2022
|
October 2, 2021
|
|||||||
Net earnings
|
$
|
357,282
|
$
|
262,106
|
||||
Other comprehensive income (loss), net of tax
|
||||||||
Pension and other post-retirement actuarial items
|
4,245
|
5,734
|
||||||
Foreign currency translation adjustment
|
(113,086
|
)
|
(34,906
|
)
|
||||
Other comprehensive income (loss)
|
(108,841
|
)
|
(29,172
|
)
|
||||
Comprehensive income
|
248,441
|
232,934
|
||||||
Less: comprehensive income attributable to noncontrolling interests
|
1,260
|
659
|
||||||
Comprehensive income attributable to Vishay stockholders
|
$
|
247,181
|
$
|
232,275
|
Nine fiscal months ended
|
||||||||
October 1, 2022
|
October 2, 2021
|
|||||||
Operating activities
|
||||||||
Net earnings
|
$
|
357,282
|
$
|
262,106
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
121,301
|
125,095
|
||||||
(Gain) loss on disposal of property and equipment
|
(372
|
)
|
(254
|
)
|
||||
Inventory write-offs for obsolescence
|
18,197
|
14,960
|
||||||
Deferred income taxes
|
8,843
|
(4,208
|
)
|
|||||
Other
|
4,272
|
8,376
|
||||||
Change in U.S. transition tax liability |
(14,757 | ) | (14,757 | ) | ||||
Change in repatriation tax liability |
(25,201 | ) | - | |||||
Net change in operating assets and liabilities
|
(151,773
|
)
|
(80,866
|
)
|
||||
Net cash provided by operating activities
|
317,792
|
310,452
|
||||||
Investing activities
|
||||||||
Capital expenditures
|
(172,175
|
)
|
(118,156
|
)
|
||||
Proceeds from sale of property and equipment
|
472
|
1,257
|
||||||
Purchase of short-term investments
|
(182,079
|
)
|
(55,491
|
)
|
||||
Maturity of short-term investments
|
132,892
|
126,171
|
||||||
Other investing activities
|
(199
|
)
|
347
|
|||||
Net cash used in investing activities
|
(221,089
|
)
|
(45,872
|
)
|
||||
Financing activities
|
||||||||
Repurchase of convertible debt instruments
|
-
|
(300
|
)
|
|||||
Dividends paid to common stockholders
|
(39,433
|
)
|
(37,823
|
)
|
||||
Dividends paid to Class B common stockholders
|
(3,629
|
)
|
(3,448
|
)
|
||||
Repurchase of common stock held in treasury
|
(54,671 | ) | - |
|||||
Distributions to noncontrolling interests |
(741 | ) | (800 | ) | ||||
Cash withholding taxes paid when shares withheld for vested equity awards
|
(2,123
|
)
|
(1,963
|
)
|
||||
Net cash used in financing activities
|
(100,597
|
)
|
(44,334
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(35,222
|
)
|
(8,360
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
(39,116
|
)
|
211,886
|
|||||
Cash and cash equivalents at beginning of period
|
774,108
|
619,874
|
||||||
Cash and cash equivalents at end of period
|
$
|
734,992
|
$
|
831,760
|
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, 2020
|
$
|
13,256
|
$
|
1,210
|
$
|
1,409,200
|
$
|
138,990
|
$
|
13,559
|
|
$
|
1,576,215
|
$
|
2,800
|
$
|
1,579,015
|
|||||||||||||||
Cumulative effect of accounting change for adoption of ASU 2020-06
|
-
|
-
|
(66,078)
|
20,566
|
|
-
|
(45,512
|
)
|
-
|
(45,512
|
)
|
|||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
71,435
|
-
|
71,435
|
208
|
71,643
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
-
|
-
|
(25,085
|
)
|
(25,085
|
)
|
-
|
(25,085
|
)
|
|||||||||||||||||||||
Issuance of stock and related tax withholdings for vested restricted stock units (149,722 shares)
|
15
|
-
|
(1,978
|
)
|
-
|
-
|
(1,963
|
)
|
-
|
(1,963
|
)
|
|||||||||||||||||||||
Dividends declared ($0.095 per share)
|
-
|
-
|
20
|
(13,777
|
)
|
-
|
(13,757
|
)
|
-
|
(13,757
|
)
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
4,120
|
-
|
-
|
4,120
|
-
|
4,120
|
||||||||||||||||||||||||
Balance at April 3, 2021
|
$
|
13,271
|
$
|
1,210
|
$
|
1,345,284
|
$
|
217,214
|
$
|
(11,526
|
)
|
$
|
1,565,453
|
$
|
3,008
|
$
|
1,568,461
|
|||||||||||||||
Net earnings
|
-
|
-
|
-
|
93,192
|
-
|
93,192
|
189
|
93,381
|
||||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
11,305
|
11,305
|
-
|
11,305
|
||||||||||||||||||||||||
Distributions to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(800
|
)
|
(800
|
)
|
||||||||||||||||||||||
Dividends declared ($0.095 per share)
|
-
|
-
|
20
|
(13,777
|
)
|
-
|
(13,757
|
)
|
-
|
(13,757
|
)
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
828
|
-
|
-
|
828
|
-
|
828
|
||||||||||||||||||||||||
Balance at July 3, 2021
|
$
|
13,271
|
$
|
1,210
|
$
|
1,346,132
|
$
|
296,629
|
$
|
(221
|
)
|
$
|
1,657,021
|
$
|
2,397
|
$
|
1,659,418
|
|||||||||||||||
Net earnings
|
-
|
-
|
-
|
96,820
|
-
|
96,820
|
262
|
97,082
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
-
|
-
|
(15,392)
|
(15,392)
|
-
|
(15,392)
|
||||||||||||||||||||||||
Dividends declared ($0.095 per share)
|
-
|
-
|
20
|
(13,777
|
)
|
-
|
(13,757
|
)
|
-
|
(13,757
|
)
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
828
|
-
|
-
|
828
|
-
|
828
|
||||||||||||||||||||||||
Balance at October 2, 2021
|
$
|
13,271
|
$
|
1,210
|
$
|
1,346,980
|
$
|
379,672
|
$
|
(15,613
|
)
|
$
|
1,725,520
|
$
|
2,659
|
$
|
1,728,179
|
Common
Stock
|
Class B
Convertible
Common
Stock
|
Capital in
Excess of Par
Value
|
Retained
Earnings
(Accumulated
Deficit)
|
Treasury Stock |
Accumulated
Other
Comprehensive
Income (Loss)
|
Total Vishay
Stockholders'
Equity
|
Noncontrolling
Interests
|
Total
Equity
|
||||||||||||||||||||||||||||
Balance at December 31, 2021
|
$
|
13,271
|
$
|
1,210
|
$
|
1,347,830
|
$
|
401,694
|
$ | - |
$
|
(20,252
|
)
|
$
|
1,743,753
|
$
|
2,967
|
$
|
1,746,720
|
|||||||||||||||||
Net earnings
|
-
|
-
|
-
|
103,573
|
- |
-
|
103,573
|
377
|
103,950
|
|||||||||||||||||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
-
|
-
|
- |
(11,925
|
)
|
(11,925
|
)
|
-
|
(11,925
|
)
|
||||||||||||||||||||||||
Issuance of stock and related tax withholdings for vested restricted stock units (189,731 shares)
|
19
|
-
|
(2,142
|
)
|
-
|
- |
-
|
(2,123
|
)
|
-
|
(2,123
|
)
|
||||||||||||||||||||||||
Dividends declared ($0.10 per share)
|
-
|
-
|
22
|
(14,491
|
)
|
- |
-
|
(14,469
|
)
|
-
|
(14,469
|
)
|
||||||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
3,842
|
-
|
- |
-
|
3,842
|
-
|
3,842
|
|||||||||||||||||||||||||||
Repurchase of common stock held in treasury (513,227 shares) |
- | - | - | - | (9,873 | ) | - | (9,873 | ) | - | (9,873 | ) | ||||||||||||||||||||||||
Balance at April 2, 2022
|
$ | 13,290 | 1,210 | 1,349,552 | 490,776 | (9,873 | ) | (32,177 | ) | 1,812,778 | 3,344 | 1,816,122 | ||||||||||||||||||||||||
Net earnings
|
- | - | - | 112,388 | - | - | 112,388 | 381 | 112,769 | |||||||||||||||||||||||||||
Other comprehensive income (loss)
|
- | - | - | - | - | (48,167 | ) | (48,167 | ) | - | (48,167 | ) | ||||||||||||||||||||||||
Distributions to noncontrolling interests
|
- | - | - | - | - | - | - | (733 | ) | (733 | ) | |||||||||||||||||||||||||
Issuance of stock and related tax withholdings for vested restricted stock units (11,308 shares) | 1 | - | (1 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||
Dividends declared ($0.10 per share)
|
- | - | 22 | (14,361 | ) | - | - | (14,339 | ) | - | (14,339 | ) | ||||||||||||||||||||||||
Stock compensation expense
|
- | - | 1,047 | - | - | - | 1,047 | - | 1,047 | |||||||||||||||||||||||||||
Repurchase of common stock held in treasury (1,400,039 shares) | - | - | - | - | (26,288 | ) | - | (26,288 | ) | - | (26,288 | ) | ||||||||||||||||||||||||
Balance at July 2, 2022 | $ | 13,291 | 1,210 | 1,350,620 | 588,803 | (36,161 | ) | (80,344 | ) | 1,837,419 | 2,992 | 1,840,411 | ||||||||||||||||||||||||
Net earnings
|
- | - | - | 140,061 | - | - | 140,061 | 502 | 140,563 | |||||||||||||||||||||||||||
Other comprehensive income (loss)
|
- | - | - | - | - | (48,749 | ) | (48,749 | ) | - | (48,749 | ) | ||||||||||||||||||||||||
Distributions to noncontrolling interests |
- | - | - | - | - | - | - | (8 | ) | (8 | ) | |||||||||||||||||||||||||
Dividends declared ($0.10 per share)
|
- | - | 22 | (14,276 | ) | - | - | (14,254 | ) | - | (14,254 | ) | ||||||||||||||||||||||||
Stock compensation expense
|
- | - | 828 | - | - | - | 828 | - | 828 | |||||||||||||||||||||||||||
Repurchase of common stock held in treasury (978,338 shares) | - | - | - | - | (18,510 | ) | - | (18,510 | ) | - | (18,510 | ) | ||||||||||||||||||||||||
Balance at October 1, 2022 |
$ | 13,291 | 1,210 | 1,351,470 | 714,588 | (54,671 | ) | (129,093 | ) | 1,896,795 | 3,486 | 1,900,281 |
October 1, 2022
|
December 31, 2021
|
|||||||
Right of use assets
|
||||||||
Operating Leases
|
||||||||
Buildings and improvements
|
$
|
114,620
|
$
|
112,951
|
||||
Machinery and equipment
|
4,056
|
4,684
|
||||||
Total
|
$
|
118,676
|
$
|
117,635
|
||||
Current lease liabilities
|
||||||||
Operating Leases
|
||||||||
Buildings and improvements
|
$
|
21,395
|
$
|
20,851
|
||||
Machinery and equipment
|
2,255
|
2,541
|
||||||
Total
|
$
|
23,650
|
$
|
23,392
|
||||
Long-term lease liabilities
|
||||||||
Operating Leases
|
||||||||
Buildings and improvements
|
$
|
94,023
|
$
|
97,890
|
||||
Machinery and equipment
|
1,724
|
2,097
|
||||||
Total
|
$
|
95,747
|
$
|
99,987
|
||||
Total lease liabilities
|
$
|
119,397
|
$
|
123,379
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Lease expense
|
||||||||||||||||
Operating lease expense
|
$
|
6,258
|
$
|
6,170
|
$
|
19,014
|
$
|
18,570
|
||||||||
Short-term lease expense
|
212
|
691
|
752
|
1,444
|
||||||||||||
Variable lease expense
|
119
|
97
|
219
|
290
|
||||||||||||
Total lease expense
|
$
|
6,589
|
$
|
6,958
|
$
|
19,985
|
$
|
20,304
|
October 1, 2022
|
||||
2022 (excluding the nine fiscal months ended October 1, 2022)
|
$
|
5,928
|
||
2023
|
23,302
|
|||
2024
|
21,174
|
|||
2025
|
18,072
|
|||
2026
|
16,004
|
|||
Thereafter
|
60,917
|
October 1, 2022
|
December 31, 2021
|
|||||||
Credit facility
|
$
|
-
|
$
|
-
|
||||
Convertible senior notes, due 2025
|
465,344
|
465,344
|
||||||
Deferred financing costs
|
(7,224
|
)
|
(9,678
|
)
|
||||
458,120
|
455,666
|
|||||||
Less current portion
|
-
|
-
|
||||||
$
|
458,120
|
$
|
455,666
|
Convertible
Senior Notes
Due 2025
|
||||
Issuance date
|
June 12, 2018
|
|||
Maturity date
|
June 15, 2025
|
|||
Principal amount as of October 1, 2022
|
$
|
465,344
|
||
Cash coupon rate (per annum)
|
2.25
|
%
|
||
Nonconvertible debt borrowing rate at issuance (per annum)
|
5.50
|
%
|
||
Conversion rate effective September 8, 2022 (per $1 principal amount)
|
32.0259
|
|||
Effective conversion price effective September 8, 2022 (per share)
|
$
|
31.22
|
||
130% of the current effective conversion price (per share)
|
$
|
40.59
|
Fiscal quarter ended
|
Nine fiscal months ended | ||||||
October 1, 2022
|
October 1, 2022 |
||||||
Dividends paid to stockholders
|
$ |
14,254
|
$ | 43,062 | |||
Stock repurchases
|
18,510
|
54,671 | |||||
Total
|
$ |
32,764
|
$ | 97,733 |
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Beginning balance
|
$
|
40,775
|
$
|
41,262
|
$
|
39,759
|
$
|
39,629
|
||||||||
Sales allowances
|
33,015
|
22,850
|
79,432
|
68,689
|
||||||||||||
Credits issued
|
(32,202
|
)
|
(28,948
|
)
|
(76,497
|
)
|
(72,744
|
)
|
||||||||
Foreign currency
|
(849
|
)
|
(314
|
)
|
(1,955
|
)
|
(724
|
)
|
||||||||
Ending balance
|
$
|
40,739
|
$
|
34,850
|
$
|
40,739
|
$
|
34,850
|
Pension and
other post-
retirement
actuarial
items
|
Currency
translation
adjustment
|
Total
|
||||||||||
Balance at January 1, 2022
|
$
|
(58,908
|
)
|
$
|
38,656
|
$
|
(20,252
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
-
|
(113,086
|
)
|
$
|
(113,086
|
)
|
||||||
Tax effect
|
-
|
-
|
$
|
-
|
||||||||
Other comprehensive income before reclassifications, net of tax
|
-
|
(113,086
|
)
|
$
|
(113,086
|
)
|
||||||
Amounts reclassified out of AOCI
|
6,285
|
-
|
$
|
6,285
|
||||||||
Tax effect
|
(2,040
|
)
|
-
|
$
|
(2,040
|
)
|
||||||
Amounts reclassified out of AOCI, net of tax
|
4,245
|
-
|
$
|
4,245
|
||||||||
Net other comprehensive income (loss)
|
$
|
4,245
|
$
|
(113,086
|
)
|
$
|
(108,841
|
)
|
||||
Balance at October 1, 2022
|
$
|
(54,663
|
)
|
$
|
(74,430
|
)
|
$
|
(129,093
|
)
|
Fiscal quarter ended
October 1, 2022
|
Fiscal quarter ended
October 2, 2021
|
|||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Net service cost
|
$
|
-
|
$
|
1,010
|
$
|
-
|
$
|
1,167
|
||||||||
Interest cost
|
280
|
768
|
254
|
738
|
||||||||||||
Expected return on plan assets
|
-
|
(418
|
)
|
-
|
(414
|
)
|
||||||||||
Amortization of prior service cost
|
36
|
50
|
36
|
49
|
||||||||||||
Amortization of losses
|
427
|
1,140
|
447
|
1,851
|
||||||||||||
Curtailment and settlement losses
|
-
|
257
|
-
|
203
|
||||||||||||
Net periodic benefit cost
|
$
|
743
|
$
|
2,807
|
$
|
737
|
$
|
3,594
|
Nine fiscal months ended
October 1, 2022
|
Nine fiscal months ended
October 2, 2021
|
|||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Net service cost
|
$
|
-
|
$
|
3,195
|
$
|
-
|
$
|
3,548
|
||||||||
Interest cost
|
841
|
2,433
|
762
|
2,246
|
||||||||||||
Expected return on plan assets
|
-
|
(1,318
|
)
|
-
|
(1,250
|
)
|
||||||||||
Amortization of prior service cost
|
108
|
159
|
108
|
150
|
||||||||||||
Amortization of losses
|
1,280
|
3,616
|
1,340
|
5,622
|
||||||||||||
Curtailment and settlement losses
|
-
|
801
|
-
|
604
|
||||||||||||
Net periodic benefit cost
|
$
|
2,229
|
$
|
8,886
|
$
|
2,210
|
$
|
10,920
|
Fiscal quarter ended
October 1, 2022
|
Fiscal quarter ended
October 2, 2021
|
|||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Service cost
|
$
|
10
|
$
|
57
|
$
|
25
|
$
|
70
|
||||||||
Interest cost
|
45
|
13
|
41
|
10
|
||||||||||||
Amortization of losses
|
86
|
20
|
13
|
29
|
||||||||||||
Net periodic benefit cost
|
$
|
141
|
$
|
90
|
$
|
79
|
$
|
109
|
Nine fiscal months ended
October 1, 2022
|
Nine fiscal months ended
October 2, 2021
|
|||||||||||||||
U.S. Plans
|
Non-U.S.
Plans
|
U.S. Plans
|
Non-U.S.
Plans
|
|||||||||||||
Service cost
|
$
|
29
|
$
|
180
|
$
|
76
|
$
|
211
|
||||||||
Interest cost
|
134
|
42
|
123
|
32
|
||||||||||||
Amortization of losses
|
257
|
64
|
39
|
88
|
||||||||||||
Net periodic benefit cost
|
$
|
420
|
$
|
286
|
$
|
238
|
$
|
331
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Restricted stock units
|
$
|
828
|
$
|
828
|
$
|
5,495
|
5,567
|
|||||||||
Phantom stock units
|
-
|
-
|
222
|
209
|
||||||||||||
Total
|
$
|
828
|
$
|
828
|
$
|
5,717
|
5,776
|
Unrecognized
Compensation
Cost
|
Weighted
Average
Remaining
Amortization
Periods
|
|||||||
Restricted stock units
|
$
|
4,068
|
0.8
|
|||||
Phantom stock units
|
-
|
n/a
|
||||||
Total
|
$
|
4,068
|
Number of
RSUs
|
Weighted
Average
Grant-date
Fair Value per
Unit
|
|||||||
Outstanding:
|
||||||||
January 1, 2022
|
877
|
$
|
20.08
|
|||||
Granted
|
336
|
19.13
|
||||||
Vested*
|
(306
|
)
|
20.04
|
|||||
Cancelled or forfeited
|
(13
|
)
|
20.50
|
|||||
Outstanding at October 1, 2022
|
894
|
$
|
19.73
|
|||||
Expected to vest at October 1, 2022
|
894
|
Vesting Date
|
Expected
to Vest
|
Not Expected
to Vest
|
Total
|
|||||||||
January 1, 2023
|
152
|
-
|
152
|
|||||||||
January 1, 2024
|
165
|
-
|
165
|
|||||||||
January 1, 2025
|
168
|
-
|
168
|
Number of
units
|
Grant-date
Fair Value per
Unit
|
|||||||
Outstanding:
|
||||||||
January 1, 2022
|
212
|
|||||||
Granted
|
10
|
$
|
22.20
|
|||||
Dividend equivalents issued
|
3
|
|||||||
Outstanding at October 1, 2022
|
225
|
MOSFETs
|
Diodes
|
Optoelectronic
Components
|
Resistors
|
Inductors
|
Capacitors
|
Corporate / Other*
|
Total
|
|||||||||||||||||||||||||
Fiscal quarter ended October 1, 2022:
|
||||||||||||||||||||||||||||||||
Net revenues
|
$
|
225,186
|
$
|
209,012
|
$
|
73,447
|
$
|
207,437
|
$
|
83,503
|
$
|
126,213
|
$
|
-
|
$
|
924,798
|
||||||||||||||||
Segment Operating Income
|
$
|
71,867
|
$
|
51,368
|
$
|
22,021
|
$
|
61,621
|
$
|
22,585
|
$
|
25,310
|
$
|
-
|
$
|
254,772
|
||||||||||||||||
Fiscal quarter ended October 2, 2021:
|
||||||||||||||||||||||||||||||||
Net revenues
|
$
|
175,499
|
$
|
185,306
|
$
|
70,750
|
$
|
181,189
|
$
|
84,816
|
$
|
116,103
|
$
|
-
|
$
|
813,663
|
||||||||||||||||
Segment Operating Income
|
$
|
43,717
|
$
|
41,363
|
$
|
19,708
|
$
|
43,547
|
$
|
24,368
|
$
|
19,913
|
$
|
-
|
$
|
192,616
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Reconciliation:
|
||||||||||||||||
Segment Operating Income
|
$
|
254,772
|
$
|
192,616
|
$
|
706,656
|
$
|
556,460
|
||||||||
Impact of the COVID-19 Pandemic on Selling, General, and Administrative Expenses
|
-
|
-
|
(546
|
)
|
-
|
|||||||||||
Unallocated Selling, General, and Administrative Expenses
|
(71,670
|
)
|
(69,095
|
)
|
(225,932
|
)
|
(210,303
|
)
|
||||||||
Consolidated Operating Income
|
$
|
183,102
|
$
|
123,521
|
$
|
480,178
|
$
|
346,157
|
||||||||
Unallocated Other Income (Expense)
|
(1,973
|
)
|
(7,106
|
)
|
(14,873
|
)
|
(25,405
|
)
|
||||||||
Consolidated Income Before Taxes
|
$
|
181,129
|
$
|
116,415
|
$
|
465,305
|
$
|
320,752
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Distributors
|
$
|
536,289
|
$
|
483,766
|
$
|
1,549,872
|
$
|
1,400,700
|
||||||||
OEMs
|
322,260
|
278,358
|
908,384
|
850,413
|
||||||||||||
EMS companies
|
66,249
|
51,539
|
183,847
|
146,302
|
||||||||||||
Total Revenue
|
$
|
924,798
|
$
|
813,663
|
$
|
2,642,103
|
$
|
2,397,415
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Asia
|
$
|
352,160
|
$
|
365,133
|
$
|
1,040,942
|
$
|
1,034,936
|
||||||||
Europe
|
296,779
|
263,650
|
862,728
|
800,801
|
||||||||||||
Americas
|
275,859
|
184,880
|
738,433
|
561,678
|
||||||||||||
Total Revenue
|
$
|
924,798
|
$
|
813,663
|
$
|
2,642,103
|
$
|
2,397,415
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Industrial
|
$
|
362,380
|
$
|
335,047
|
$
|
1,050,704
|
$
|
927,981
|
||||||||
Automotive
|
286,331
|
240,764
|
799,504
|
743,766
|
||||||||||||
Telecommunications
|
32,288
|
24,580
|
92,184
|
72,438
|
||||||||||||
Computing
|
52,206
|
58,703
|
177,172
|
183,234
|
||||||||||||
Consumer Products
|
50,235
|
43,839
|
132,090
|
128,243
|
||||||||||||
Power Supplies
|
50,822
|
42,082
|
132,248
|
119,373
|
||||||||||||
Military and Aerospace
|
56,861
|
40,198
|
159,062
|
124,909
|
||||||||||||
Medical
|
33,675
|
28,450
|
99,139
|
97,471
|
||||||||||||
Total revenue
|
$
|
924,798
|
$
|
813,663
|
$
|
2,642,103
|
$
|
2,397,415
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net earnings attributable to Vishay stockholders
|
$
|
140,061
|
$
|
96,820
|
$
|
356,022
|
$
|
261,447
|
||||||||
Denominator:
|
||||||||||||||||
Denominator for basic earnings per share:
|
||||||||||||||||
Weighted average shares
|
142,663
|
144,808
|
143,760
|
144,792
|
||||||||||||
Outstanding phantom stock units
|
224
|
209
|
223
|
208
|
||||||||||||
Adjusted weighted average shares
|
142,887
|
145,017
|
143,983
|
145,000
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Convertible debt instruments
|
-
|
-
|
-
|
3
|
||||||||||||
Restricted stock units
|
560
|
441
|
487
|
452
|
||||||||||||
Dilutive potential common shares
|
560
|
441
|
487
|
455
|
||||||||||||
Denominator for diluted earnings per share:
|
||||||||||||||||
Adjusted weighted average shares - diluted
|
143,447
|
145,458
|
144,470
|
145,455
|
||||||||||||
Basic earnings per share attributable to Vishay stockholders
|
$
|
0.98
|
$
|
0.67
|
$
|
2.47
|
$
|
1.80
|
||||||||
Diluted earnings per share attributable to Vishay stockholders
|
$
|
0.98
|
$
|
0.67
|
$
|
2.46
|
$
|
1.80
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||
October 1, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
|||||||||||||
Restricted stock units
|
168
|
317
|
278
|
317
|
Total
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
October 1, 2022
|
||||||||||||||||
Assets:
|
||||||||||||||||
Assets held in rabbi trusts
|
$
|
46,802
|
$
|
25,050
|
$
|
21,752
|
$
|
-
|
||||||||
Available for sale securities
|
$
|
3,317
|
3,317
|
-
|
-
|
|||||||||||
Precious metals |
$ |
3,077 | 3,077 | - | - | |||||||||||
$
|
53,196
|
$
|
31,444
|
$
|
21,752
|
$
|
-
|
|||||||||
December 31, 2021
|
||||||||||||||||
Assets:
|
||||||||||||||||
Assets held in rabbi trusts
|
$
|
59,687
|
$
|
32,713
|
26,974
|
$
|
-
|
|||||||||
Available for sale securities
|
$
|
4,455
|
4,455
|
-
|
-
|
|||||||||||
$
|
64,142
|
$
|
37,168
|
$
|
26,974
|
$
|
-
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
GAAP net earnings attributable to Vishay stockholders
|
$
|
140,061
|
$
|
112,388
|
$
|
96,820
|
$
|
356,022
|
$
|
261,447
|
||||||||||
Reconciling items affecting gross income:
|
||||||||||||||||||||
Impact of COVID-19 pandemic
|
$
|
-
|
$
|
6,661
|
$
|
-
|
$
|
6,661
|
$
|
-
|
||||||||||
Other reconciling items affecting operating income:
|
||||||||||||||||||||
Impact of COVID-19 pandemic
|
$
|
-
|
$
|
546
|
$
|
-
|
$
|
546
|
$
|
-
|
||||||||||
Reconciling items affecting tax expense:
|
||||||||||||||||||||
Effects of changes in uncertain tax positions |
$ |
(5,941) | $ | - | $ |
- | $ |
(5,941) | $ |
- | ||||||||||
Effects of changes in valuation allowances | - | - | (5,714) | - | (5,714) | |||||||||||||||
Changes in tax laws and regulations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(8,276
|
)
|
|||||||||
Tax effects of pre-tax items above
|
-
|
(1,802
|
)
|
-
|
(1,802
|
)
|
-
|
|||||||||||||
Adjusted net earnings
|
$
|
134,120
|
$
|
117,793
|
$
|
91,106
|
$
|
355,486
|
$
|
247,457
|
||||||||||
Adjusted weighted average diluted shares outstanding
|
143,447
|
144,397
|
145,458
|
144,470
|
145,455
|
|||||||||||||||
Adjusted earnings per diluted share
|
$
|
0.93
|
$
|
0.82
|
$
|
0.63
|
$
|
2.46
|
$
|
1.70
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
MOSFETs
|
$
|
83,121
|
$
|
55,438
|
$
|
53,868
|
$
|
197,305
|
$
|
138,410
|
||||||||||
Diodes
|
56,339
|
53,369
|
46,756
|
155,495
|
122,929
|
|||||||||||||||
Optoelectronic Components
|
25,959
|
26,430
|
23,810
|
84,820
|
73,958
|
|||||||||||||||
Resistors
|
68,461
|
70,532
|
49,729
|
204,015
|
161,631
|
|||||||||||||||
Inductors
|
25,692
|
29,690
|
26,857
|
80,231
|
83,288
|
|||||||||||||||
Capacitors
|
29,966
|
32,425
|
24,716
|
94,664
|
77,741
|
|||||||||||||||
Unallocated gross profit (loss)
|
- |
(6,661
|
)
|
-
|
(6,661
|
)
|
-
|
|||||||||||||
Gross profit
|
$
|
289,538
|
$
|
261,223
|
$
|
225,736
|
$
|
809,869
|
$
|
657,957
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net cash provided by continuing operating activities
|
$
|
209,480
|
$
|
74,727
|
$
|
135,669
|
$
|
317,792
|
$
|
310,452
|
||||||||||
Proceeds from sale of property and equipment
|
95
|
305
|
1,023
|
472
|
1,257
|
|||||||||||||||
Less: Capital expenditures
|
(76,475)
|
(59,791
|
)
|
(57,446
|
)
|
(172,175)
|
(118,156
|
)
|
||||||||||||
Free cash
|
$
|
133,100
|
$
|
15,241
|
$
|
79,246
|
$
|
146,089
|
$
|
193,553
|
Fiscal quarter ended | Nine fiscal months ended | |||||||
October 1, 2022
|
October 1, 2022 |
|||||||
Dividends paid to stockholders
|
$
|
14,254
|
$ | 43,062 | ||||
Stock repurchases
|
18,510
|
54,671 | ||||||
Total
|
$
|
32,764
|
$ | 97,733 |
3rd Quarter 2021
|
4th Quarter 2021
|
1st Quarter 2022
|
2nd Quarter 2022
|
3rd Quarter 2022
|
||||||||||||||||
Net revenues
|
$
|
813,663
|
$
|
843,072
|
$
|
853,793
|
$
|
863,512
|
$
|
924,798
|
||||||||||
Gross profit margin(1)
|
27.7
|
%
|
27.3
|
%
|
30.3
|
%
|
30.3
|
%
|
31.3
|
%
|
||||||||||
Operating margin(2)
|
15.2
|
%
|
14.4
|
%
|
17.1
|
%
|
17.5
|
%
|
19.8
|
%
|
||||||||||
End-of-period backlog
|
$
|
2,243,900
|
$
|
2,306,500
|
$
|
2,416,700
|
$
|
2,425,200
|
$
|
2,261,400
|
||||||||||
Book-to-bill ratio
|
1.26
|
1.09
|
1.14
|
1.07
|
0.88
|
|||||||||||||||
Inventory turnover
|
4.5
|
4.5
|
4.2
|
3.8
|
4.1
|
|||||||||||||||
Change in ASP vs. prior quarter
|
1.3
|
%
|
1.3
|
%
|
2.4
|
%
|
2.9
|
%
|
0.0
|
%
|
3rd Quarter 2021
|
4th Quarter 2021
|
1st Quarter 2022
|
2nd Quarter 2022
|
3rd Quarter 2022
|
||||||||||||||||
MOSFETs
|
||||||||||||||||||||
Net revenues
|
$
|
175,499
|
$
|
171,339
|
$
|
172,674
|
$
|
158,395
|
$
|
225,186
|
||||||||||
Book-to-bill ratio
|
1.19
|
1.01
|
1.28
|
1.14
|
0.78
|
|||||||||||||||
Gross profit margin
|
30.7
|
%
|
30.1
|
%
|
34.0
|
%
|
35.0
|
%
|
36.9
|
%
|
||||||||||
Segment operating margin
|
24.9
|
%
|
23.5
|
%
|
28.1
|
%
|
28.2
|
%
|
31.9
|
%
|
||||||||||
Diodes
|
||||||||||||||||||||
Net revenues
|
$
|
185,306
|
$
|
192,117
|
$
|
182,334
|
$
|
192,083
|
$
|
209,012
|
||||||||||
Book-to-bill ratio
|
1.31
|
1.10
|
1.16
|
1.10
|
0.79
|
|||||||||||||||
Gross profit margin
|
25.2
|
%
|
23.7
|
%
|
25.1
|
%
|
27.8
|
%
|
27.0
|
%
|
||||||||||
Segment operating margin
|
22.3
|
%
|
20.6
|
%
|
22.2
|
%
|
25.3
|
%
|
24.6
|
%
|
||||||||||
Optoelectronic Components
|
||||||||||||||||||||
Net revenues
|
$
|
70,750
|
$
|
78,398
|
$
|
81,016
|
$
|
77,936
|
$
|
73,447
|
||||||||||
Book-to-bill ratio
|
1.36
|
1.22
|
0.78
|
0.86
|
0.57
|
|||||||||||||||
Gross profit margin
|
33.7
|
%
|
34.2
|
%
|
40.0
|
%
|
33.9
|
%
|
35.3
|
%
|
||||||||||
Segment operating margin
|
27.9
|
%
|
27.2
|
%
|
34.8
|
%
|
28.7
|
%
|
30.0
|
%
|
||||||||||
Resistors
|
||||||||||||||||||||
Net revenues
|
$
|
181,189
|
$
|
190,041
|
$
|
207,032
|
$
|
213,176
|
$
|
207,437
|
||||||||||
Book-to-bill ratio
|
1.26
|
1.14
|
1.24
|
1.05
|
1.08
|
|||||||||||||||
Gross profit margin
|
27.4
|
%
|
28.5
|
%
|
31.4
|
%
|
33.1
|
%
|
33.0
|
%
|
||||||||||
Segment operating margin
|
24.0
|
%
|
25.6
|
%
|
28.1
|
%
|
29.9
|
%
|
29.7
|
%
|
||||||||||
Inductors
|
||||||||||||||||||||
Net revenues
|
$
|
84,816
|
$
|
81,825
|
$
|
82,777
|
$
|
89,608
|
$
|
83,503
|
||||||||||
Book-to-bill ratio
|
1.11
|
1.13
|
1.14
|
0.97
|
1.02
|
|||||||||||||||
Gross profit margin
|
31.7
|
%
|
29.4
|
%
|
30.0
|
%
|
33.1
|
%
|
30.8
|
%
|
||||||||||
Segment operating margin
|
28.7
|
%
|
26.4
|
%
|
26.8
|
%
|
30.0
|
%
|
27.0
|
%
|
||||||||||
Capacitors
|
||||||||||||||||||||
Net revenues
|
$
|
116,103
|
$
|
129,352
|
$
|
127,960
|
$
|
132,314
|
$
|
126,213
|
||||||||||
Book-to-bill ratio
|
1.37
|
1.04
|
1.02
|
1.17
|
0.95
|
|||||||||||||||
Gross profit margin
|
21.3
|
%
|
21.6
|
%
|
25.2
|
%
|
24.5
|
%
|
23.7
|
%
|
||||||||||
Segment operating margin
|
17.2
|
%
|
17.7
|
%
|
21.4
|
%
|
20.9
|
%
|
20.1
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Cost of products sold
|
68.7
|
%
|
69.7
|
%
|
72.3
|
%
|
69.3
|
%
|
72.6
|
%
|
||||||||||
Gross profit
|
31.3
|
%
|
30.3
|
%
|
27.7
|
%
|
30.7
|
%
|
27.4
|
%
|
||||||||||
Selling, general & administrative expenses
|
11.5
|
%
|
12.8
|
%
|
12.6
|
%
|
12.5
|
%
|
13.0
|
%
|
||||||||||
Operating income
|
19.8
|
%
|
17.5
|
%
|
15.2
|
%
|
18.2
|
%
|
14.4
|
%
|
||||||||||
Income before taxes and noncontrolling interest
|
19.6
|
%
|
17.1
|
%
|
14.3
|
%
|
17.6
|
%
|
13.4
|
%
|
||||||||||
Net earnings attributable to Vishay stockholders
|
15.1
|
%
|
13.0
|
%
|
11.9
|
%
|
13.5
|
%
|
10.9
|
%
|
||||||||||
________
|
||||||||||||||||||||
Effective tax rate
|
22.4
|
%
|
23.8
|
%
|
16.6
|
%
|
23.2
|
%
|
18.3
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net revenues
|
$
|
924,798
|
$
|
863,512
|
$
|
813,663
|
$
|
2,642,103
|
$
|
2,397,415
|
Fiscal quarter ended
October 1, 2022
|
Nine fiscal months ended
October 1, 2022
|
|||||||||||||||
Change in net
revenues
|
% change
|
Change in net
revenues
|
% change
|
|||||||||||||
July 2, 2022
|
$
|
61,286
|
7.1
|
%
|
n/a | n/a |
||||||||||
October 2, 2021
|
$
|
111,135
|
13.7
|
%
|
$
|
244,688
|
10.2
|
%
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
Change attributable to:
|
||||||||||||
Increase in volume
|
9.1
|
%
|
10.1
|
%
|
6.1
|
%
|
||||||
Change in average selling prices
|
0.0
|
%
|
8.0
|
%
|
7.4
|
%
|
||||||
Foreign currency effects
|
-1.7
|
%
|
-5.4
|
%
|
-4.1
|
%
|
||||||
Acquisition
|
0.0
|
%
|
0.3
|
%
|
0.4
|
%
|
||||||
Other
|
-0.3
|
%
|
0.7
|
%
|
0.4
|
%
|
||||||
Net change
|
7.1
|
%
|
13.7
|
%
|
10.2
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net revenues
|
$ |
225,186
|
$ |
158,395
|
$ |
175,499
|
$ |
556,255
|
$ |
496,659
|
||||||||||
Gross profit margin
|
36.9
|
%
|
35.0
|
%
|
30.7
|
%
|
35.5
|
%
|
27.9
|
%
|
||||||||||
Segment operating margin
|
31.9
|
%
|
28.2
|
%
|
24.9
|
%
|
29.7
|
%
|
21.8
|
%
|
Fiscal quarter ended
October 1, 2022
|
Nine fiscal months ended
October 1, 2022
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
July 2, 2022
|
$
|
66,791
|
42.2
|
%
|
n/a
|
n/a
|
||||||||||
October 2, 2021
|
$
|
49,687
|
28.3
|
%
|
$
|
59,596
|
12.0
|
%
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
Change attributable to:
|
||||||||||||
Increase in volume
|
44.9
|
%
|
18.2
|
%
|
2.8
|
%
|
||||||
Increase in average selling prices
|
0.1
|
%
|
10.9
|
%
|
11.3
|
%
|
||||||
Foreign currency effects
|
-1.3
|
%
|
-3.7
|
%
|
-2.4
|
%
|
||||||
Other
|
-1.5
|
%
|
2.9
|
%
|
0.3
|
%
|
||||||
Net change
|
42.2
|
%
|
28.3
|
%
|
12.0
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net revenues
|
$ |
209,012
|
$ |
192,083
|
$ |
185,306
|
$ |
583,429
|
$ |
517,299
|
||||||||||
Gross profit margin
|
27.0
|
%
|
27.8
|
%
|
25.2
|
%
|
26.7
|
%
|
23.8
|
%
|
||||||||||
Segment operating margin
|
24.6
|
%
|
25.3
|
%
|
22.3
|
%
|
24.0
|
%
|
20.5
|
%
|
Fiscal quarter ended
October 1, 2022
|
Nine fiscal months ended
October 1, 2022
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
July 2, 2022
|
$
|
16,929
|
8.8
|
%
|
n/a
|
n/a
|
||||||||||
October 2, 2021
|
$
|
23,706
|
12.8
|
%
|
$
|
66,130
|
12.8
|
%
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
Change attributable to:
|
||||||||||||
Increase in volume
|
10.6
|
%
|
6.5
|
%
|
4.9
|
%
|
||||||
Change in average selling prices
|
-0.1
|
%
|
10.7
|
%
|
11.0
|
%
|
||||||
Foreign currency effects
|
-1.6
|
%
|
-4.9
|
%
|
-3.7
|
%
|
||||||
Other
|
-0.1
|
%
|
0.5
|
%
|
0.6
|
%
|
||||||
Net change
|
8.8
|
%
|
12.8
|
%
|
12.8
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net revenues
|
$
|
$ 73,447
|
$
|
$ 77,936
|
$
|
$ 70,750
|
$ |
232,399
|
$ |
224,316
|
||||||||||
Gross profit margin
|
35.3
|
%
|
33.9
|
%
|
33.7
|
%
|
36.5
|
%
|
33.0
|
%
|
||||||||||
Segment operating margin
|
30.0
|
%
|
28.7
|
%
|
27.9
|
%
|
31.2
|
%
|
27.2
|
%
|
Fiscal quarter ended
October 1, 2022
|
Nine fiscal months ended
October 1, 2022
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
July 2, 2022
|
$
|
-4,489
|
-5.8
|
%
|
n/a
|
n/a
|
||||||||||
October 2, 2021
|
$
|
2,697
|
3.8
|
%
|
8,083
|
3.6
|
%
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
Change attributable to:
|
||||||||||||
Change in volume
|
-3.0
|
%
|
5.2
|
%
|
1.1
|
%
|
||||||
Change in average selling prices
|
-0.5
|
%
|
5.7
|
%
|
7.6
|
%
|
||||||
Foreign currency effects
|
-1.9
|
%
|
-6.4
|
%
|
-4.8
|
%
|
||||||
Other
|
-0.4
|
%
|
-0.7
|
%
|
-0.3
|
%
|
||||||
Net change
|
-5.8
|
%
|
3.8
|
%
|
3.6
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net revenues
|
$ |
207,437
|
$ |
213,176
|
$ |
181,189
|
$ |
627,645
|
$ |
562,513
|
||||||||||
Gross profit margin
|
33.0
|
%
|
33.1
|
%
|
27.4
|
%
|
32.5
|
%
|
28.7
|
%
|
||||||||||
Segment operating margin
|
29.7
|
%
|
29.9
|
%
|
24.0
|
%
|
29.2
|
%
|
25.3
|
%
|
Fiscal quarter ended
October 1, 2022
|
Nine fiscal months ended
October 1, 2022
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
July 2, 2022
|
$
|
-5,739
|
-2.7
|
%
|
n/a
|
n/a
|
||||||||||
October 2, 2021
|
$
|
26,248
|
14.5
|
%
|
$
|
65,132
|
11.6
|
%
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
Change attributable to:
|
||||||||||||
Change in volume
|
-1.4
|
%
|
12.5
|
%
|
10.7
|
%
|
||||||
Increase in average selling prices
|
0.8
|
%
|
7.7
|
%
|
4.7
|
%
|
||||||
Foreign currency effects
|
-2.1
|
%
|
-7.6
|
%
|
-5.7
|
%
|
||||||
Acquisition
|
0.0
|
%
|
1.4
|
%
|
1.7
|
%
|
||||||
Other
|
0.0
|
%
|
0.5
|
%
|
0.2
|
%
|
||||||
Net change
|
-2.7
|
%
|
14.5
|
%
|
11.6
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net revenues
|
$ |
83,503
|
$ |
89,608
|
$ |
84,816
|
$ |
255,888
|
$ |
253,813
|
||||||||||
Gross profit margin
|
30.8
|
%
|
33.1
|
%
|
31.7
|
%
|
31.4
|
%
|
32.8
|
%
|
||||||||||
Segment operating margin
|
27.0
|
%
|
30.0
|
%
|
28.7
|
%
|
28.0
|
%
|
29.9
|
%
|
Fiscal quarter ended
October 1, 2022
|
Nine fiscal months ended
October 1, 2022
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
July 2, 2022
|
$
|
-6,105
|
-6.8
|
%
|
n/a
|
n/a
|
||||||||||
October 2, 2021
|
$
|
-1,313
|
-1.5
|
%
|
$
|
2,075
|
0.8
|
%
|
vs. Prior Quarter
|
vs. Prior Year Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
Change attributable to:
|
||||||||||||
Change in volume
|
-6.1
|
%
|
-0.8
|
%
|
1.1
|
%
|
||||||
Change in average selling prices
|
-0.1
|
%
|
1.6
|
%
|
1.5
|
%
|
||||||
Foreign currency effects
|
-0.8
|
%
|
-2.2
|
%
|
-1.8
|
%
|
||||||
Other
|
0.2
|
%
|
-0.1
|
%
|
0.0
|
%
|
||||||
Net change
|
-6.8
|
%
|
-1.5
|
%
|
0.8
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Net revenues
|
$ |
126,213
|
$ |
132,314
|
$ |
116,103
|
$ |
386,487
|
$ |
342,815
|
||||||||||
Gross profit margin
|
23.7
|
%
|
24.5
|
%
|
21.3
|
%
|
24.5
|
%
|
22.7
|
%
|
||||||||||
Segment operating margin
|
20.1
|
%
|
20.9
|
%
|
17.2
|
%
|
20.8
|
%
|
18.2
|
%
|
Fiscal quarter ended
October 1, 2022
|
Nine fiscal months ended
October 1, 2022
|
|||||||||||||||
Change in net revenues
|
% change
|
Change in net revenues
|
% change
|
|||||||||||||
July 2, 2022
|
$
|
-6,101
|
-4.6
|
%
|
n/a
|
n/a
|
||||||||||
October 2, 2021
|
$
|
10,110
|
8.7
|
%
|
$
|
43,672
|
12.7
|
%
|
vs. Prior
Quarter
|
vs. Prior Year
Quarter
|
vs. Prior
Year-to-Date
|
||||||||||
Change attributable to:
|
||||||||||||
Change in volume
|
-1.7
|
%
|
10.3
|
%
|
13.1
|
%
|
||||||
Change in average selling prices
|
-1.2
|
%
|
5.5
|
%
|
5.2
|
%
|
||||||
Foreign currency effects
|
-2.1
|
%
|
-7.2
|
%
|
-5.7
|
%
|
||||||
Other
|
0.4
|
%
|
0.1
|
%
|
0.1
|
%
|
||||||
Net change
|
-4.6
|
%
|
8.7
|
%
|
12.7
|
%
|
Fiscal quarters ended
|
Nine fiscal months ended
|
|||||||||||||||||||
October 1, 2022
|
July 2, 2022
|
October 2, 2021
|
October 1, 2022
|
October 2, 2021
|
||||||||||||||||
Total SG&A expenses
|
$
|
106,436
|
$
|
110,400
|
$
|
102,215
|
$
|
329,691
|
$
|
311,800
|
||||||||||
as a percentage of revenues
|
11.5
|
%
|
12.8
|
%
|
12.6
|
%
|
12.5
|
%
|
13.0
|
%
|
Fiscal quarters ended
|
||||||||||||
October 1, 2022
|
October 2, 2021
|
Change
|
||||||||||
Foreign exchange gain (loss)
|
$
|
4,462
|
$
|
325
|
$
|
4,137
|
||||||
Interest income
|
1,836
|
295
|
1,541
|
|||||||||
Other components of net periodic pension expense
|
(2,704
|
)
|
(3,257
|
)
|
553
|
|||||||
Investment income
|
(1,462
|
)
|
(41
|
)
|
(1,421
|
)
|
||||||
Other
|
5
|
(1
|
)
|
6
|
||||||||
$
|
2,137
|
$
|
(2,679
|
)
|
$
|
4,816
|
Fiscal quarters ended
|
||||||||||||
October 1, 2022
|
July 2, 2022
|
Change
|
||||||||||
Foreign exchange gain (loss)
|
$
|
4,462
|
$
|
6,514
|
$
|
(2,052
|
)
|
|||||
Interest income
|
1,836
|
789
|
1,047
|
|||||||||
Other components of net periodic pension expense
|
(2,704
|
)
|
(2,803
|
)
|
99
|
|||||||
Investment income (expense)
|
(1,462
|
)
|
(2,858
|
)
|
1,396
|
|||||||
Other
|
5
|
(262
|
)
|
267
|
||||||||
$
|
2,137
|
$
|
1,380
|
$
|
757
|
Nine fiscal months ended
|
||||||||||||
October 1, 2022
|
October 2, 2021
|
Change
|
||||||||||
Foreign exchange gain (loss)
|
$
|
10,695
|
$
|
(2,110
|
)
|
$
|
12,805
|
|||||
Interest income
|
3,186
|
907
|
2,279
|
|||||||||
Other components of net periodic pension expense
|
(8,417
|
)
|
(9,864
|
)
|
1,447
|
|||||||
Investment income (expense)
|
(7,436
|
)
|
(1,107
|
)
|
(6,329
|
)
|
||||||
Other
|
(262
|
)
|
15
|
(277
|
)
|
|||||||
$
|
(2,234
|
)
|
$
|
(12,159
|
)
|
$
|
9,925
|
October 1, 2022
|
December 31, 2021
|
|||||||
Credit facility
|
$
|
-
|
$
|
-
|
||||
Convertible senior notes, due 2025
|
465,344
|
465,344
|
||||||
Deferred financing costs
|
(7,224
|
)
|
(9,678
|
)
|
||||
Total debt
|
458,120
|
455,666
|
||||||
Cash and cash equivalents
|
734,992
|
774,108
|
||||||
Short-term investments
|
182,646
|
146,743
|
||||||
Net cash and short-term investments (debt)
|
$
|
459,518
|
$
|
465,185
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings
|
Item 2. |
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share (including commission)
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Total Dollar Amount Purchased Under the Program
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||||||||||||
July 3 - July 30
|
318,186
|
$
|
18.35
|
318,186
|
$
|
5,839,285
|
|
5,681,814
|
||||||||||||
July 31 - August 27
|
143,888
|
$
|
20.78
|
143,888
|
$
|
2,990,168
|
|
5,537,926
|
||||||||||||
August 28 - October 1
|
516,264
|
$
|
18.75
|
516,264
|
$
|
9,681,200
|
|
5,021,662
|
||||||||||||
Total
|
978,338
|
$
|
18.92
|
978,338
|
$
|
18,510,653
|
|
5,021,662
|
Item 6. |
Exhibits
|
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.
|
BETWEEN: |
Vishay Capacitors Belgium NV,
|
AND: |
Mr. Johan Vandoorn,
|
(i)
|
Mr. Vandoorn’s conviction of a felony or any other crime involving moral turpitude (whether or not involving the Company or its affiliates);
|
(ii)
|
any act or failure to act by Mr. Vandoorn involving dishonesty, fraud, misrepresentation, theft or embezzlement of assets from the Company or
its affiliates; or
|
(iii)
|
Mr. Vandoorn’s (a) willful and repeated failure to substantially perform his duties under the Services Agreement or Transition Agreement (other
than as a result of total or partial incapacity due to physical or mental illness or injury) or (b) willful and repeated failure to substantially comply with any policy of the Company or its affiliates applicable to Mr. Vandoorn;
provided, however, that a termination pursuant to this clause (iii) will not become effective unless Mr. Vandoorn fails to cure such failure to perform or comply within twenty (20) days after written notice thereof from the Company.
|
-
|
his monthly fixed fees, corresponding to EUR 44,508 gross per month, less applicable legal withholdings. The payment of the monthly fixed fees is subject to the effective performance by Mr. Vandoorn of the missions agreed under the Services Agreement and hereunder;
|
-
|
his monthly lump-sum representation allowance of EUR 300; and
|
-
|
the other payments and benefits scheduled on Annex 1 hereto.
|
-
|
the Company shall make a lump sum payment to Mr. Vandoorn equal to all accrued unpaid fixed fee and unpaid expense reimbursement, in accordance
with Company policies, within 15 days following the Termination Date;
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-
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the Company shall pay to Mr. Vandoorn a termination indemnity of EUR 1,602,288 gross, less applicable legal withholdings, to be paid in equal
instalments in accordance with the Company’s standard payroll practices (but no less frequently than monthly) from 1 January 2023 until 31 December 2025. In the event a Change in Control (as defined in the Services Agreement, but that
also constitutes a “change in control event” described in Treas. Reg. § 1.409A-3(i)(5)(i)) occurs prior to the Termination Date, the above-described termination
indemnity will instead be paid in a single lump sum within 60 days following the Termination Date;
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-
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Mr. Vandoorn shall remain eligible to receive an annual bonus in respect of 2022, determined in the same manner and at the same time as would
have been the case in the absence of Mr. Vandoorn’s termination of employment;
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the service-based vesting criteria applicable to Mr. Vandoorn’s outstanding equity awards shall be deemed satisfied, whereas performance-based
vesting criteria will remain in effect through the end of the applicable performance period, and all such awards will be settled in accordance with the applicable award agreements;
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Mr. Vandoorn shall remain entitled to those rights that he is entitled to following a termination of employment without Cause under the terms
of the Company’s benefit plans or arrangements (other than severance benefit plans); and
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in the case of Mr. Vandoorn’s death after the Termination Date, any remaining amounts that would have been paid to him under this Article 4 in
the absence of his death, will instead be paid to his estate.
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Mr. Vandoorn accepts the provisions of the Transition Agreement as final settlement of all claims of a contractual nature or of any other
nature, which he could have against the Company regarding his professional relationship with the Company (and its affiliates) and/or the termination thereof;
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Mr. Vandoorn waives all other rights, which he has or which may arise with regard to the professional relationship that existed between him and
the Company (and its affiliates) or with regard to the termination of the relationship, including, but without being limited to, claims for damages and interest for abusive termination of the contractual relationship, additional
termination indemnity, fees arrears, bonus arrears, premiums, equity investment compensations, etc.;
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Mr. Vandoorn waives his right to file any future court action regarding his professional relationship with the Company (and its affiliates)
and/or the termination thereof;
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Mr. Vandoorn shall refrain from prevailing himself of any legal or factual error or any omission regarding the existence or the scope of his
rights.
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2.
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Resignation letter from the mandates of Director and Managing Director
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3.
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Release to be signed on the Termination Date
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1.
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A monthly automobile gross allowance of EUR 3,600 less applicable legal withholding
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2.
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A monthly gross cash payment of EUR 10,681 (representing 24% of Mr. Vandoorn’s monthly fixed fees), in lieu of any contributions to an
individual pension commitment (“individuele pensioentoezegging”) less applicable legal withholding
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3.
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Continued participation in the Company’s program for hospitalization insurance, as in effect from time to time, in accordance with the
eligibility requirements of such program
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4.
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Continued participation in the Company’s travel insurance program, liability insurance for directors, and other insurance programs, as in
effect from time to time, in accordance with the eligibility requirements of such programs
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I accept the provisions of the Transition Agreement concluded on July 15, 2022 as final settlement of all claims of a contractual nature or of
any other nature, which I could have against Vishay Capacitors Belgium NV (hereafter “the Company”) regarding our professional relationship and/or the termination thereof;
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1.
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I waive all other rights, which I have, or which may arise with regard to the professional relationship that existed between me and the Company
or with regard to the termination of the relationship, including, but without being limited to, claims for damages and interest for abusive termination of the contractual relationship, additional termination indemnity, fees arrears, bonus
arrears, premiums, equity investment compensations, etc.;
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I waive my right to file any future court action regarding my professional relationship with the Company and/or the termination thereof;
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I will refrain from prevailing myself of any legal or factual error or any omission regarding the existence or the scope of my rights.
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TRANSITION AGREEMENT
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BETWEEN
VISHAY SINGAPORE PTE. LTD., AND
VISHAY INTERTECHNOLOGY, INC., on the one hand,
AND
CLARENCE TSE, on the other hand
DATED THE 15th DAY OF JULY, 2022
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(1)
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Vishay Singapore Pte. Ltd. (Company Registration Number 200722858Z), a company incorporated under the laws of Singapore with its registered address at 37A Tampines Street 92, #07-01 Singapore
528886 ("Vishay Singapore" or the “Company”),
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(2) |
Vishay Intertechnology, Inc., a Delaware corporation with its principal executive offices at 63 Lancaster, Avenue, Malvern, Pennsylvania 19355, USA (the “Parent”), and
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(B)
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Vishay Singapore and the Parent (collectively, the “Employer”) desire to terminate the Executive’s employment, effective upon the close of business on 31 December 2022 (the “Termination
Date”).
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(C)
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The Employer and the Executive wish to specify the Executive’s responsibilities from the date of this Transition Agreement through the
Termination Date (the “Transition Period”).
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(D)
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The termination of the Executive’s employment on the Termination Date shall constitute a termination without Cause under Section 6.1(b) of the
Employment Agreements, provided that the Executive’s employment has not been previously terminated during the Transition Period by the Employer for Cause or due to the Executive’s death or Disability.
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(E)
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Notwithstanding that either of the Parties is entitled to terminate the Employment Agreements in accordance with the terms stated therein, the
Parties have mutually agreed to enter into this Transition Agreement to set out the terms and conditions in connection with the Transition Period and the termination of the Employment Agreements.
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2.
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The Executive remains an employee of Vishay Singapore until the Termination Date and shall continue to be entitled to his monthly salary and
benefits. However, should Vishay Singapore have a basis to terminate the Executive’s employment for Cause at any time up to the Termination Date, Vishay Singapore shall, without prejudice to any other rights it may have, be entitled at any
time so terminate the Executive’s employment, without any payment or compensation whatsoever (including but not limited to the Severance Benefits (as defined below).
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3.
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The Parties further agree that during the Transition Period:
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(a)
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Unless otherwise notified by Vishay Singapore, the Executive shall continue to carry out his duties as an employee of Vishay Singapore and in
accordance with the Employment Agreements and existing policies and directives of the Company;
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(b)
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the Executive shall not engage in any work outside the Company, whether by himself or together with others, and whether for his own benefit or
for the benefit of others;
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(c)
|
the Executive shall ensure a smooth handover of his duties and take such steps as may be required by the Company or which may otherwise be
necessary or desirable for the smooth and proper handing over;
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(d)
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if applicable, the Executive shall resign as director or officer in any company within the Group (as defined below),
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(e)
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Vishay Singapore shall be under no obligation to vest in the Executive or assign to him any powers or duties or to provide work for him;
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(f)
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Vishay Singapore may prohibit and/or limit contact between the Executive and the Company's customers and business contacts, suppliers, employees
and/or prospects;
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(g)
|
Vishay Singapore may require the Executive not to attend work for all or any part of the Transition Period and may exclude him from any premises
of the Company or any of its related corporations; and
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(h)
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Vishay Singapore may require the Executive to work from home and/or to carry out exceptional duties or special projects outside the normal scope
of his duties and responsibilities.
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(a)
|
following the Termination Date, (i) the Executive shall be eligible to receive an amount equivalent to the amount he would have received in
respect of a 2022 annual bonus, had he remained employed through the annual bonus payment date, determined in the same manner and at the same time as would have been the case in the absence of the Executive’s termination of employment, (ii)
the Executive shall receive an amount equivalent to three years of his then-current base salary, paid over the three year period commencing on the Termination Date, in accordance with Vishay Singapore’s standard payroll practices, provided
however, that if a Change in Control (as defined in the Employment Agreements, but that also constitutes a “change in control event” described in Treas. Reg. §
1.409A-3(i)(5)(i)) occurs prior to the Termination Date, the amounts otherwise payable under this clause (ii) will instead be paid in a single lump sum within 60 days of the Termination Date, and (iii) service-based vesting
criteria applicable to the Executive’s outstanding equity awards shall be deemed satisfied, whereas performance-based vesting criteria will remain in effect through the end of the applicable performance period, and all such awards will be
settled in accordance with the applicable award agreements (collectively the “Severance Benefits”).
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6.
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The Executive shall:
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(a)
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on or before the Termination Date, return to the Company, all property of any Group company which is in the Executive's control (as the case may
be) and including (without limitation) the following items:
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(i)
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all security cards and keys to any Group company's office premises, cabinets and drawers, and car park discs;
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(ii)
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any and all original and duplicate copies of all the Executive's work products, notes, drawings, memoranda, accounts, records, writing, files,
calendars, books, records, notes, specifications, notebooks, correspondences, client or customer lists, proposals to customers, manuals, computer disks, diskettes, and any other magnetic and other media materials the Executive has in his
possession and/or control belonging to the Group or containing confidential or proprietary information concerning the Group (including without limitation all confidential information). The Executive undertakes that he will not make or
retain copies of any of the same and further undertakes that he will immediately return any such property which subsequently comes into his possession or control in the future;
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(iii)
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all credit cards and charge cards;
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(iv)
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computer equipment (including but not limited to laptops and personal devices) and mobile telephones; and
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(v)
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all and any other property whatsoever belonging to the Group which is in the possession, custody and/or control of the Executive;
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(b)
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on or before the Termination Date,
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(i)
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disclose to the Company all passwords to all password protected files, software and hardware which have been created or protected by the
Executive and which are on his computer;
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(ii)
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submit any outstanding expense claims with supporting invoices, receipts or other evidence of payment which claims shall be dealt with in
accordance with the Company's normal expense claims policy;
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(iii)
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do and execute all such acts, documents and things as the Company may require of him in his capacity as an Executive of the Company.
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(a)
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(d)
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(e)
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(f)
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he will cooperate fully and in a timely manner, both before and after the Termination Date, with the Group and its counsel with respect to any
matter (including, without limitation, litigation, investigations, or governmental proceedings) relating to his tenure with the Group, upon reasonable notice from the Group, so long as, following the Termination Date, the Group exercises
commercially reasonable efforts to schedule and limit its need for Executive’s cooperation under this paragraph so as not to interfere with Executive’s other personal and professional commitments.
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8.
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9.
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11.
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13.
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In the event of any inconsistency between a term of this Transition
Agreement and a term in the Employment Agreements, this Transition Agreement will prevail to the extent of the inconsistency. Any term which is
defined in the Employment Agreements and which is used but not defined in this Transition Agreement shall have the same meaning as the Employment
Agreements.
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14.
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Save for the Released Parties, a person who is not a party to this
Transition Agreement has no rights under the Contracts (Rights of Third Parties) Act 2001 of Singapore.
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1.
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The Executive hereby unconditionally and irrevocably waives, renounces, disclaims, releases and forever discharges each of the Group companies
and their respective current or former shareholders, directors, representatives, officers, employees and agents (collectively, the "Released
Parties") from any and all claims, rights, liabilities, demands, obligations, acts, agreements, costs, expenses, losses, damages, and actions, of whatsoever kind or nature, and howsoever arising, whether in law or equity, whether
under Singapore law or any other laws, whether known or unknown, which the Executive has as at the date hereof or which he at any time hereafter has against the Released Parties arising out of, in connection with or relating to, the
Executive’s employment with the Group or the termination of such employment as at the Termination Date. Notwithstanding anything to the contrary herein, the Executive does not release or discharge the Released Parties from any of the
Group’s obligations under or pursuant to (i) the Company’s employee welfare benefit plans and employee benefit pension plans applicable to the Executive (other than severance plans), subject to the terms and conditions of those plans, or
(ii) claims for indemnification under the by-laws or policies of insurance of the Company or the Parent. It is understood that nothing in this Subsequent Release is to be construed as an admission on behalf of the Released Parties of any
wrongdoing with respect to Executive, any such wrongdoing being expressly denied.
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2.
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The Executive understands that the benefits provided under the Transition Agreement are conditioned on this Subsequent Release becoming binding
and effective.
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3.
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Any term which is defined in the Transition Agreement and which is used but not defined in this Subsequent Release shall have the same meaning as
the Transition Agreement.
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4.
|
This Subsequent Release shall be governed by, and construed in accordance with, the laws of Singapore. In relation to any legal action or
proceedings arising out of or in connection with this Subsequent Release, the Parties hereby irrevocably submit to the non-exclusive jurisdiction of the courts of Singapore.
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