VISHAY INTERTECHNOLOGY INCVSH
VISHAY INTERTECHNOLOGY INC Goodwill & Intangibles Disclosure
Note 19 – Goodwill and Other Intangible Assets
When required to perform quantitative goodwill impairment assessments, the Company estimates the fair value of each of its business segments, which
represent its reporting units for goodwill impairment testing purposes, using mostly Level 3 inputs. Assessments are performed using a weighting of the income and market approaches to determine fair value. The Company uses a discounted cash flow
(“DCF”) method, using unobservable inputs, as its income approach. The Company uses comparable company market multiples for its market approach. The resulting estimates of fair value from the income approach and the market approach are then
weighted equally in determining the overall estimated fair value of each reporting unit.
The determination of the fair value of the reporting units and the allocation of that value to individual assets and liabilities within those reporting
units requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in
the industries in which the Company competes; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization (components of earnings before interest, taxes, depreciation, amortization, "EBITDA");
and capital expenditures.
Due to the inherent uncertainty involved in making these estimates, actual financial results could differ from those estimates. Changes in assumptions
concerning future financial results or other underlying assumptions could have a significant impact on results of the assessment.
We performed a qualitative annual impairment test in the fourth fiscal quarter of 2025. Based on the evaluation, it was determined that the fair value
of the reporting units were not more likely than not less than their respective carrying amounts. No goodwill impairment charges were recognized in 2025 as a result.
In 2024, the Company determined that the fair value of its MOSFETs reporting unit was less than its carrying value. Accordingly, the Company recorded a
goodwill impairment charge of $66,487. Prior to completing the goodwill impairment assessment, the Company performed a recoverability
test of certain depreciable and amortizable long-lived assets within the MOSFETs reporting unit. There was no impairment identified for the depreciable and amortizable long-lived assets tested for recoverability.
The changes in the carrying amount of goodwill by segment for the years ended December 31, 2025 and 2024 were as follows:
| MOSFETs |
Optoelectronic
Components
|
Resistors
|
Inductors
|
Capacitors |
Total
|
|||||||||||||||||||
|
Balance at December 31, 2023
|
$ | 34,246 |
$
|
96,849
|
$
|
44,506
|
$
|
25,815
|
$ | - |
$
|
201,416
|
||||||||||||
|
Newport acquisition
|
32,241 |
-
|
-
|
-
|
- |
32,241
|
||||||||||||||||||
| Ametherm acquisition |
- | - | 11,685 | - | - | 11,685 | ||||||||||||||||||
| Birkelbach acquisition |
- | - | - | - | 777 |
777 | ||||||||||||||||||
| Impairment of goodwill |
(66,487 | ) | - | - | - | - | (66,487 | ) | ||||||||||||||||
|
Exchange rate effects
|
- |
-
|
(627
|
)
|
-
|
- |
(627
|
)
|
||||||||||||||||
|
Balance at December 31, 2024
|
$ | - |
$
|
96,849
|
$
|
55,564
|
$
|
25,815
|
$ | 777 |
$
|
179,005
|
||||||||||||
| Exchange rate effects |
- | - | 1,327 | - | 58 | 1,385 | ||||||||||||||||||
| Balance at December 31, 2025 |
$ | - | $ | 96,849 | $ | 56,891 | $ | 25,815 | $ | 835 | $ | 180,390 | ||||||||||||
Note 19 – Goodwill and Other Intangible Assets (continued)
Other intangible assets are as follows:
|
December 31,
2025
|
December 31,
2024
|
|||||||
|
Intangible assets subject to amortization:
|
||||||||
|
Patents and acquired technology
|
$
|
23,615
|
$
|
23,160
|
||||
|
Capitalized software
|
70,753
|
62,158
|
||||||
|
Customer relationships
|
103,665
|
103,813
|
||||||
|
Tradenames
|
22,870
|
23,216
|
||||||
|
220,903
|
212,347
|
|||||||
|
Accumulated amortization:
|
||||||||
|
Patents and acquired technology
|
(9,379
|
)
|
(7,316
|
)
|
||||
|
Capitalized software
|
(60,812
|
)
|
(55,476
|
)
|
||||
|
Customer relationships
|
(52,582
|
)
|
(45,053
|
)
|
||||
|
Tradenames
|
(19,643
|
)
|
(17,279
|
)
|
||||
|
(142,416
|
)
|
(125,124
|
)
|
|||||
|
Net intangible assets subject to amortization
|
$
|
78,487
|
$
|
87,223
|
||||
Amortization expense (excluding capitalized software) was $13,196,
$11,684, and $9,916, for
the years ended December 31, 2025, 2024,
and 2023, respectively.
Estimated annual amortization expense of intangible assets on the balance sheet at December 31, 2025 for each of the next five years is as follows:
|
2026
|
$
|
12,474
|
||
|
2027
|
9,510
|
|||
|
2028
|
8,537
|
|||
|
2029
|
8,315
|
|||
|
2030
|
7,154
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 17, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.