Vishay Precision Group, Inc. Segments Disclosure

Note 13 – Segment and Geographic Data

 

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

 

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

 

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

 

Note 13 – Segment and Geographic Data (continued)

 

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

 

						Weighing				Measurement				Corporate/
		Sensors				Solutions				Systems				Other				Total
2025
Net third-party revenues		$	115,645			$	111,143			$	80,414			$	—			$	307,202
Intersegment revenues			1,529				660				—				(2,189	)			—
Total revenues			117,174				111,803				80,414				(2,189	)			307,202
Costs of products sold			81,249				70,174				38,538				(2,189	)			187,772
Gross profit			35,925				41,629				41,876				—				119,430
Research and development expenses			4,117				5,494				11,214				—				20,825
Segment selling, general, and administrative expenses (1)			15,927				19,612				17,883				—				53,422
Segment operating income			15,881				16,523				12,779				—				45,183
Other supplemental information:
Restructuring costs			241				215				494				540				1,490
Depreciation and amortization expense			6,404				3,115				4,303				2,099				15,921
Capital expenditures			4,693				2,315				771				216				7,995
2024
Net third-party revenues		$	112,238			$	107,205			$	87,079			$	—			$	306,522
Intersegment revenues			1,756				—				—				(1,756	)			—
Total revenues			113,994				107,205				87,079				(1,756	)			306,522
Costs of products sold			75,236				68,010				39,500				(1,756	)			180,990
Gross profit			38,758				39,195				47,579				—				125,532
Research and development expenses			4,196				5,302				10,461				—				19,959
Segment selling, general, and administrative expenses (1)			16,408				19,516				19,293				—				55,217
Segment operating income			18,154				14,377				17,825				—				50,356
Other supplemental information:
Acquisition costs			—				—				101				—				101
Restructuring costs			686				76				—				300				1,062
Depreciation and amortization expense			6,412				3,377				4,294				1,722				15,805
Capital expenditures			4,602				1,799				1,226				171				7,798
2023
Net third-party revenues		$	139,783			$	122,528			$	92,737			$	—			$	355,048
Intersegment revenues			1,743				—				—				(1,743	)			—
Total revenues			141,526				122,528				92,737				(1,743	)			355,048
Costs of products sold			86,396				77,252				42,801				(1,743	)			204,706
Gross profit			55,130				45,276				49,936				—				150,342
Research and development expenses			4,424				5,518				10,433				—				20,375
Segment selling, general, and administrative expenses(1)			15,881				18,188				18,896				—				52,965
Segment operating income			34,825				21,570				20,607				—				77,002
Other supplemental information:
Restructuring costs			—				1,478				32				50				1,560
Depreciation and amortization expense			6,141				3,389				4,239				1,781				15,550
Capital expenditures			8,181				6,447				1,111				2				15,741

 

⁽¹⁾ Segment selling, general and administrative expenses are direct selling, general and administrative expenses, excluding research and development expenses and amortization of intangible assets attributed to the segment.

 

 

Note 13 – Segment and Geographic Data (continued)

 

The following table reconciles segment profit to consolidated income before taxes (in thousands):

 

		Years ended December 31,
		2025				2024				2023
Segment operating income		$	45,183			$	50,356			$	77,002
Acquisition costs			—				101				—
Restructuring costs			1,490				1,062				1,560
Gain on sale of asset held for sale			(5,544	)			—				—
Unallocated G&A expenses			35,390				32,329				33,488
Operating income		$	13,847			$	16,864			$	41,954
Other (expense) income		$	(5,051	)		$	700			$	(3,518	)
Income before taxes		$	8,796			$	17,564			$	38,436

 

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

 

		December 31,
Property and Equipment - Net		2025				2024
United States		$	6,582			$	7,125
Europe			5,203				5,143
Israel			37,886				40,493
Asia			24,950				25,238
Canada and Other			1,459				1,502
		$	76,080			$	79,501