v3.26.1
Note 10 - Segment Information
 3 Months Ended
Apr. 04, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 10 – Segment Information

 

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, share-based compensation, 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.

VPG reports in three reporting segments: Sensors, Weighing Solutions, and Measurement Systems. The Sensors 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 segment is comprised of highly specialized systems for steel production, materials development, and safety testing.

 

Note 10 – Segment Information (continued)

 

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

 

  

Sensors

  

Weighing Solutions

  

Measurement Systems

  

Corporate/ Other

  

Total

 

Three Fiscal Months Ended April 4, 2026

                    

Net third-party revenues

 $33,314  $30,236  $20,803  $—  $84,353 

Intersegment revenues

  337   —   —   (337)  — 

Total revenues

  33,651   30,236   20,803   (337)  84,353 

Costs of products sold

  22,063   19,896   9,857   (337)  51,479 

Gross profit

  11,588   10,340   10,946   0   32,874 

Research and development expenses

  1,158   1,482   2,952   —   5,592 

Segment selling, general, and administrative expenses (1)

  5,497   5,515   5,157   (47)  16,122 

Segment operating income

  4,933   3,343   2,837   47   11,160 

Other supplemental information:

                    

Restructuring costs

  103   7   200   139   449 

Depreciation and amortization expense

  1,684   757   1,185   584   4,210 

Capital expenditures

  1,239   629   722   384   2,974 
                     

Three Fiscal Months Ended March 29, 2025

                    

Net third-party revenues

 $27,055  $26,439  $18,247  $—  $71,741 

Intersegment revenues

  360   —   —   (360)  — 

Total revenues

  27,415   26,439   18,247   (360)  71,741 

Costs of products sold

  19,269   16,722   9,065   (360)  44,696 

Gross profit

  8,146   9,717   9,182   —   27,045 

Research and development expenses

  956   1,241   2,668   —   4,865 

Segment selling, general, and administrative expenses (1)

  3,805   4,557   4,405   —   12,767 

Segment operating income

  3,385   3,919   2,109   —   9,413 

Other supplemental information:

                    

Restructuring costs

  151   69   —   175   395 

Depreciation and amortization expense

  1,642   813   1,071   509   4,035 

Capital expenditures

  678   216   132   28   1,054 

 

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

 

Note 10– Segment Information (continued)

 

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

 

  

Fiscal Quarter Ended

 
  

April 4, 2026

  

March 29, 2025

 

Segment operating income

 $11,160  $9,413 

Restructuring costs

 $449  $395 

Unallocated General and Administrative expenses

 $10,371  $9,078 

Operating income (loss)

 $340  $(60)

Other expense

 $(498) $(1,227)

Loss before taxes

 $(158) $(1,287)

 

Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. The table below summarizes intersegment sales (in thousands):

 

  

Fiscal Quarter Ended

 
  

April 4, 2026

  

March 29, 2025

 

Sensors to Weighing Solutions

 $335  $340 

Sensors to Measurement Systems

  2   19