Vishay Precision Group, Inc. Goodwill & Intangibles Disclosure

Note 4 – Goodwill and Other Intangible Assets

 

The Company has four reporting units to which goodwill was allocated: steel, on-board weighing, DSI, and DTS. In 2025 the Company performed a quantitative impairment test for all its reporting units. In estimating the fair value of our reporting units the Company used the income approach. The income approach to valuation requires management to make significant estimates and assumptions related to future revenues, profitability, working capital requirements and selection of discount rate and long term growth rate. Changes in these estimates and assumptions could have a significant impact on the fair value of the reporting units. If the fair value exceeds the carrying value, no further evaluation is required and no impairment loss is recognized. An impairment charge would be recognized to the extent the carrying value of goodwill exceeds the reporting unit fair value.

 

The Company's required goodwill and indefinite-lived asset annual impairment test is completed as of the first day of the fourth fiscal quarter each year. In 2025, 2024 and 2023, the results of the quantitative impairment test for all reporting units indicated that the fair value of the reporting units exceeded their carrying values, and therefore no impairment was recognized.

 

The change in the carrying value of goodwill by segment is as follows (in thousands):

 

		Total				Measurement Systems																Weighing Solutions
						Steel				Nokra				DSI				DTS				On-board Weighing
Balance at January 1, 2023		$	45,544			$	6,313			$	—			$	16,887			$	16,033			$	6,311
Foreign currency translation adjustment			190				175				—				15				—				—
Balance at January 1, 2024			45,734				6,488				—				16,902				16,033				6,311
Goodwill acquired			1,761				—				1,761				—				—				—
Foreign currency translation adjustment			(676	)			(524	)			(128	)			(24	)			—				—
Balance at December 31, 2024			46,819				5,964				1,633				16,878				16,033				6,311
Adjustment (1)			—				1,633				(1,633	)			—				—				—
Foreign currency translation adjustment			548				502				—				46				—				—
Balance at December 31, 2025		$	47,367			$	8,099			$	—			$	16,924			$	16,033			$	6,311

 

⁽¹⁾ The goodwill resulting from the acquisition of Nokra in September 2024, was assigned to the Steel reporting unit.

 

Note 4 – Goodwill and Other Intangible Assets (continued)

 

Intangible assets were as follows (in thousands):

 

		December 31,
		2025				2024
Intangible assets subject to amortization
(Definite-lived):
Patents and acquired technology		$	31,167			$	31,890
Customer relationships			33,243				32,683
Trade names			3,400				3,236
Non-competition agreements			9,440				9,250
			77,250				77,059
Accumulated amortization:
Patents and acquired technology			(12,106	)			(10,937	)
Customer relationships			(21,754	)			(19,453	)
Trade names			(3,400	)			(3,235	)
Non-competition agreements			(9,408	)			(9,218	)
			(46,668	)			(42,843	)
Net intangible assets subject to amortization		$	30,582			$	34,216
Intangible assets not subject to amortization
(Indefinite-lived):
Trade names			7,645				7,599
		$	38,227			$	41,815

 

Certain intangible assets are subject to foreign currency translation.

 

Amortization expense was $3.9  million, $3.8 million, and $3.8  million, for the years ended December 31, 2025, 2024 and 2023, respectively.

 

Estimated annual amortization expense for each of the next five years is as follows (in thousands):

 

2026		$	3,748
2027			3,748
2028			3,713
2029			3,172
2030			3,128