v3.26.1
Note 10 - Segment Information
6 Months Ended
Jul. 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 July 4, 2026

                    

Net third-party revenues

 $33,418  $30,349  $20,169  $  $83,936 

Intersegment revenues

  617   19      (636)   

Total revenues

  34,035   30,368   20,169   (636)  83,936 

Costs of products sold

  23,512   19,043   9,578   (636)  51,497 

Gross profit

  10,523   11,325   10,591      32,439 

Research and development expenses

  1,235   1,628   2,900      5,763 

Segment selling, general, and administrative expenses (1)

  5,493   5,470   5,000   10   15,973 

Segment operating income

  3,795   4,227   2,691   (10)  10,703 

Other supplemental information:

                    

Restructuring costs

  25   501   141   106   773 

Depreciation and amortization expense

  1,618   739   1,110   610   4,077 

Capital expenditures

  2,244   105   240   155   2,744 
                     

Three Fiscal Months Ended June 28, 2025

                    

Net third-party revenues

 $26,563  $29,428  $19,170  $  $75,161 

Intersegment revenues

  472   362      (834)   

Total revenues

  27,035   29,790   19,170   (834)  75,161 

Costs of products sold

  18,548   18,144   8,709   (834)  44,567 

Gross profit

  8,487   11,646   10,461      30,594 

Research and development expenses

  1,086   1,395   2,911      5,392 

Segment selling, general, and administrative expenses (1)

  3,650   4,893   4,635      13,178 

Segment operating income

  3,751   5,358   2,915      12,024 

Other supplemental information:

                    

Restructuring costs

     (15)  15   185   185 

Depreciation and amortization expense

  1,555   730   1,077   493   3,855 

Capital expenditures

  764   213   504   50   1,531 

 

  

Sensors

  

Weighing Solutions

  

Measurement Systems

  

Corporate/ Other

  

Total

 

Six Fiscal Months Ended July 4, 2026

                    

Net third-party revenues

 $66,732  $60,584  $40,972  $  $168,288 

Intersegment revenues

  954   29      (983)   

Total revenues

  67,686   60,613   40,972   (983)  168,288 

Costs of products sold

  45,574   38,948   19,435   (983)  102,974 

Gross profit

  22,112   21,665   21,537      65,314 

Research and development expenses

  2,393   3,110   5,852      11,355 

Segment selling, general, and administrative expenses (1)

  10,990   10,985   10,157   (36)  32,096 

Segment operating income

  8,729   7,570   5,528   36   21,863 

Other supplemental information:

                    

Restructuring costs

  129   509   342   242   1,222 

Depreciation and amortization expense

  3,302   1,496   2,295   1,194   8,287 

Capital expenditures

  3,483   734   962   539   5,718 
                     

Six Fiscal Months Ended June 28, 2025

                    

Net third-party revenues

 $53,620  $55,866  $37,416  $  $146,902 

Intersegment revenues

  831   362      (1,193)   

Total revenues

  54,451   56,228   37,416   (1,193)  146,902 

Costs of products sold

  37,817   34,865   17,773   (1,193)  89,262 

Gross profit

  16,634   21,363   19,643      57,640 

Research and development expenses

  2,042   2,636   5,579      10,257 

Segment selling, general, and administrative expenses (1)

  7,456   9,450   9,040      25,946 

Segment operating income

  7,136   9,277   5,024      21,437 

Other supplemental information:

                    

Restructuring costs

  152   53   15   360   580 

Depreciation and amortization expense

  3,197   1,543   2,148   1,001   7,889 

Capital expenditures

  1,442   429   636   78   2,585 

 

(1Segment 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  

Six Fiscal Months Ended

 
  

July 4, 2026

  

June 28, 2025

  

July 4, 2026

  

June 28, 2025

 

Segment operating income

 $10,703  $12,024  $21,863  $21,437 

Restructuring costs

 $773  $185  $1,222  $580 

Unallocated G&A expenses

 $10,224  $9,131  $20,596  $18,209 
Operating (loss) income $(294) $2,708  $45  $2,648 

Other expense

 $(1,560) $(1,812) $(2,058) $(3,039)
(Loss) income before taxes $(1,854) $896  $(2,013) $(391)

 

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

  

For the Six Fiscal Months Ended

 
  

July 4, 2026

  

June 28, 2025

  

July 4, 2026

  

June 28, 2025

 

Sensors to Weighing Solutions

 $437  $468  $762  $808 

Sensors to Measurement Systems

  161   3   163   22 
Weighing Solutions to Sensors  19   362   29   362