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Basis of Presentation | 3 Months Ended
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Mar. 31, 2018
New Accounting Pronouncements [Abstract] |
Basis of Presentation | Note 1 – Basis of Presentation The accompanying unaudited consolidated condensed financial statements of Vishay Intertechnology, Inc. ("Vishay" or the "Company") have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for presentation of financial position, results of operations, and cash flows required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. The information furnished reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair summary of the financial position, results of operations, and cash flows for the interim periods presented. The financial statements should be read in conjunction with the consolidated financial statements filed with the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for the fiscal quarter ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year. The Company reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first fiscal quarter, which always begins on January 1, and the fourth fiscal quarter, which always ends on December 31. The four fiscal quarters in 2018 end on March 31, 2018, June 30, 2018, September 29, 2018, and December 31, 2018, respectively. The four fiscal quarters in 2017 ended on April 1, 2017, July 1, 2017, September 30, 2017, and December 31, 2017, respectively. Recently Adopted Accounting Guidance In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU is the result of a convergence project between the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The ASU removes inconsistencies and weaknesses in revenue requirements; provides a more robust framework for addressing revenue issues; improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; provides more useful information to users of financial statements through expanded disclosure requirements; and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The Company retrospectively adopted the ASU on January 1, 2018. The adoption of the ASU did not have a material impact on the Company's results of operations. See Note 2 and "Changes in Accounting Policies" below. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU enhances the reporting model for financial instruments by addressing certain aspects, including requiring equity investments to be measured at fair value with changes in fair value recognized in net income; simplifying the impairment assessment of equity investments without readily determinable fair values; eliminating the requirement to disclose the method and significant assumptions used to estimate the disclosed fair value of financial instruments measured at amortized cost; and requiring the use of the exit price notion for fair value measurements of financial instruments for disclosure purposes. The Company adopted the ASU on January 1, 2018. The Company recognized a cumulative-effect adjustment to January 1, 2018 retained earnings (accumulated deficit) of $1,801 for the cumulative change in fair value of available-for-sale equity investments previously recognized in other comprehensive income. The adoption of the ASU did not have a material impact on the Company's results of operations. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The ASU amends the income statement presentation requirements of net periodic benefit cost of defined benefit pension and other postretirement plans. The Company retrospectively adopted the ASU on January 1, 2018. The adoption of the ASU did not have a material impact on the Company's results of operations. See "Changes in Accounting Policies" below. Recently Issued Accounting Guidance In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU is the result of a project between the FASB and the International Accounting Standards Board to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Upon adoption of the ASU, the Company will recognize lease assets and liabilities for its operating leases which are not currently reported on its consolidated balance sheets. The ASU is effective for the Company for interim and annual periods beginning on or after January 1, 2019, with the ability to early adopt. The Company is currently evaluating the effect of the ASU on its lease contracts. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for the Company for interim and annual periods beginning on or after January 1, 2020, with the ability to early adopt for interim and annual periods beginning on or after January 1, 2019. The Company is currently evaluating the effect of the ASU on its financial assets measured at amortized cost. Changes in Accounting Policies Except for the changes described in "Recently Adopted Accounting Guidance" above and in this section below, the Company has consistently applied the accounting policies described in its Note 1 to its audited consolidated financial statement included in its annual report on Form 10-K for the year ended December 31, 2017, to all periods presented in these consolidated condensed financial statements. Revenue Recognition The Company adopted ASU 2014-09 as of January 1, 2018 using the full retrospective method. As a result, the Company has changed its accounting policy for revenue recognition. The details of significant changes and quantitative impact of the changes are disclosed below. Service-type warranty performance obligations ASU 2014-09 introduces the concept of service-type warranties, which represent separate performance obligations. Upon adoption of ASU No. 2014-09, the Company considers its warranty obligations as service-type warranties and allocates a portion of the estimated consideration to be received from the related contract to the service-type warranty performance obligation and recognizes the related revenue over the warranty period. The impact of accounting for service-type warranties as separate performance obligations was not significant in the retrospective adoption period and is included in the tables below. See further discussion of the warranty obligations in Note 2. Custom products The Company previously recognized revenue when the sales process was completed, which generally occurred when the product was delivered and risk of loss was transferred to the customer. Upon adoption of ASU 2014-09, the Company analyzes its contractual arrangements to determine whether the promise in the contract to construct and transfer goods to the customer is a performance obligation that will be satisfied over time or at a point in time. When the Company's performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date, the Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognizes revenue over time. The Company has a limited number of contracts for custom products that meet the criteria to recognize revenue over time. The dollar amount of these custom products did not materially change during the retrospective adoption period. The Company recorded a cumulative-effect adjustment of $2,210 to January 1, 2016 retained earnings (accumulated deficit) and recorded adjustments to its consolidated balance sheets due to the impact of recognizing revenue for certain custom products over time rather than at a point in time. ASU 2014-09 provides several transition practical expedients. The Company has not restated completed contracts that begin and end in the same annual reporting period; used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods; has not disclosed the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize the amount as revenue for the reporting periods presented prior to January 1, 2016; and has not retrospectively restated the contract for modifications made prior to January 1, 2016 and instead reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price pursuant to the transition practical expedients available. Pension and Other Postretirement Benefits The Company retrospectively adopted ASU 2017-07 as of January 1, 2018. As a result, the Company has changed its accounting policy for pension and other postretirement benefits costs as detailed below. ASU 2017-07 amends the income statement presentation requirements of net periodic benefit cost of defined benefit pension and other postretirement plans. The service cost component of net periodic pension cost is recorded in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period, and other components of net periodic pension cost are included on a separate line within other income (expense). The Company reclassified net benefit costs other than the current service component previously reported as cost of goods sold and selling, general, and administrative expenses to other expenses for each quarter in the retrospective adoption period in the table below. The Company also reclassified the $79,321 U.S. pension settlement charges recorded for the year ended December 31, 2016 to other expenses. See the impact of this change in the tables below. The retrospective adoption of ASUs 2014-09 and 2017-07 did not impact net earnings (loss) attributed to Vishay stockholders. See the combined impact of the retrospective adoption in the tables below:
|  | Fiscal quarters ended |
|  | April 1, 2017 |  |  | July 1, 2017 |  |  | September 30, 2017 |  |  | December 31, 2017 |
|  | As Reported |  |  | Adjustments |  |  | Recast |  |  | As Reported |  |  | Adjustments |  |  | Recast |  |  | As Reported |  |  | Adjustments |  |  | Recast |  |  | As Reported |  |  | Adjustments |  |  | Recast |
Net revenues | $ | 606,258 |  |  | $ | (1,457 | ) |  | $ | 604,801 |  |  | $ | 644,892 |  |  | $ | (1,728 | ) |  | $ | 643,164 |  |  | $ | 677,883 |  |  | $ | 58 |  |  | $ | 677,941 |  |  | $ | 674,489 |  |  | $ | (1,027 | ) |  | $ | 673,462 |
Costs of products sold |  | 445,383 |  |  |  | (2,331 | ) |  |  | 443,052 |  |  |  | 471,929 |  |  |  | (2,602 | ) |  |  | 469,327 |  |  |  | 488,610 |  |  |  | (816 | ) |  |  | 487,794 |  |  |  | 497,988 |  |  |  | (1,902 | ) |  |  | 496,086 |
Gross profit |  | 160,875 |  |  |  | 874 |  |  |  | 161,749 |  |  |  | 172,963 |  |  |  | 874 |  |  |  | 173,837 |  |  |  | 189,273 |  |  |  | 874 |  |  |  | 190,147 |  |  |  | 176,501 |  |  |  | 875 |  |  |  | 177,376 |
Operating income |  | 64,688 |  |  |  | 2,890 |  |  |  | 67,578 |  |  |  | 82,036 |  |  |  | 2,969 |  |  |  | 85,005 |  |  |  | 92,328 |  |  |  | 3,088 |  |  |  | 95,416 |  |  |  | 72,536 |  |  |  | 3,470 |  |  |  | 76,006 |
Total other income (expense) |  | (14,246 | ) |  |  | (2,890 | ) |  |  | (17,136 | ) |  |  | (6,327 | ) |  |  | (2,969 | ) |  |  | (9,296 | ) |  |  | (6,140 | ) |  |  | (3,088 | ) |  |  | (9,228 | ) |  |  | (5,511 | ) |  |  | (3,470 | ) |  |  | (8,981 | )
Income before taxes |  | 50,442 |  |  |  | - |  |  |  | 50,442 |  |  |  | 75,709 |  |  |  | - |  |  |  | 75,709 |  |  |  | 86,188 |  |  |  | - |  |  |  | 86,188 |  |  |  | 67,025 |  |  |  | - |  |  |  | 67,025 |
Income tax expense |  | 13,493 |  |  |  | - |  |  |  | 13,493 |  |  |  | 19,300 |  |  |  | - |  |  |  | 19,300 |  |  |  | 21,605 |  |  |  | - |  |  |  | 21,605 |  |  |  | 244,526 |  |  |  | - |  |  |  | 244,526 |
Net earnings (loss) |  | 36,949 |  |  |  | - |  |  |  | 36,949 |  |  |  | 56,409 |  |  |  | - |  |  |  | 56,409 |  |  |  | 64,583 |  |  |  | - |  |  |  | 64,583 |  |  |  | (177,501 | ) |  |  | - |  |  |  | (177,501 | )
Less: net earnings attributable to noncontrolling interests |  | 230 |  |  |  | - |  |  |  | 230 |  |  |  | 219 |  |  |  | - |  |  |  | 219 |  |  |  | 179 |  |  |  | - |  |  |  | 179 |  |  |  | 156 |  |  |  | - |  |  |  | 156 |
Net earnings (loss) attributable to Vishay stockholders | $ | 36,719 |  |  | $ | - |  |  | $ | 36,719 |  |  | $ | 56,190 |  |  | $ | - |  |  | $ | 56,190 |  |  | $ | 64,404 |  |  | $ | - |  |  | $ | 64,404 |  |  | $ | (177,657 | ) |  | $ | - |  |  | $ | (177,657 | )
|  | Years ended |
|  | December 31, 2016 |  |  | December 31, 2017 |
|  | As Reported |  |  | Adjustments |  |  | Recast |  |  | As Reported |  |  | Adjustments |  |  | Recast |
Net revenues |  | $ | 2,323,431 |  |  | $ | (6,103 | ) |  | $ | 2,317,328 |  |  | $ | 2,603,522 |  |  | $ | (4,154 | ) |  | $ | 2,599,368 |
Costs of products sold |  |  | 1,753,648 |  |  |  | (10,142 | ) |  |  | 1,743,506 |  |  |  | 1,903,910 |  |  |  | (7,651 | ) |  |  | 1,896,259 |
Gross profit |  |  | 569,783 |  |  |  | 4,039 |  |  |  | 573,822 |  |  |  | 699,612 |  |  |  | 3,497 |  |  |  | 703,109 |
Operating income |  |  | 101,717 |  |  |  | 95,341 |  |  |  | 197,058 |  |  |  | 311,588 |  |  |  | 12,417 |  |  |  | 324,005 |
Total other income (expense) |  |  | (7,501 | ) |  |  | (95,341 | ) |  |  | (102,842 | ) |  |  | (32,224 | ) |  |  | (12,417 | ) |  |  | (44,641 | )
Income before taxes |  |  | 94,216 |  |  |  | - |  |  |  | 94,216 |  |  |  | 279,364 |  |  |  | - |  |  |  | 279,364 |
Income tax expense |  |  | 44,843 |  |  |  | - |  |  |  | 44,843 |  |  |  | 298,924 |  |  |  | - |  |  |  | 298,924 |
Net earnings (loss) |  |  | 49,373 |  |  |  | - |  |  |  | 49,373 |  |  |  | (19,560 | ) |  |  | - |  |  |  | (19,560 | )
Less: net earnings attributable to noncontrolling interests |  |  | 581 |  |  |  | - |  |  |  | 581 |  |  |  | 784 |  |  |  | - |  |  |  | 784 |
Net earnings (loss) attributable to Vishay stockholders |  | $ | 48,792 |  |  | $ | - |  |  | $ | 48,792 |  |  | $ | (20,344 | ) |  | $ | - |  |  | $ | (20,344 | )
Reclassifications In addition to the changes due to the retrospective adoption of certain aspects of new accounting guidance described above, certain prior period amounts have been reclassified to conform to the current financial statement presentation.

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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