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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jul. 03, 2010	Aug. 06, 2010
Statement [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 03, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q2
Trading Symbol	VSH
Entity Registrant Name	VISHAY INTERTECHNOLOGY INC
Entity Central Index Key	0000103730
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Common stock
Statement [Line Items]
Entity Common Stock, Shares Outstanding		172,294,949
Class B common stock
Statement [Line Items]
Entity Common Stock, Shares Outstanding		14,352,839

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	Jul. 03, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	$ 674,581	$ 579,189
Accounts receivable, net	359,588	284,295
Inventories:
Finished goods	116,922	119,723
Work in process	197,051	192,206
Raw materials	135,753	122,940
Total inventories	449,726	434,869
Deferred income taxes	16,935	16,781
Prepaid expenses and other current assets	103,166	92,409
Total current assets	1,603,996	1,407,543
Property and equipment, at cost:
Land	94,834	98,623
Buildings and improvements	503,178	528,438
Machinery and equipment	2,044,985	2,126,226
Construction in progress	47,030	36,193
Allowance for depreciation	(1,762,766)	(1,779,224)
Property, Plant and Equipment, Net, Total	927,261	1,010,256
Intangible assets, net	138,301	153,623
Other assets	111,544	148,124
Total assets	2,781,102	2,719,546
Current liabilities:
Notes payable to banks	572	24
Trade accounts payable	134,001	118,216
Payroll and related expenses	109,535	87,566
Other accrued expenses	185,469	162,083
Income taxes	37,087	23,558
Current portion of long-term debt	78,370	16,054
Total current liabilities	545,034	407,501
Long-term debt less current portion	243,607	320,052
Deferred income taxes	18,281	13,062
Deferred grant income	2,296	2,526
Other liabilities	134,226	152,874
Accrued pension and other postretirement costs	277,255	301,930
Total liabilities	1,220,699	1,197,945
Vishay stockholders' equity
Capital in excess of par value	2,318,953	2,317,613
(Accumulated deficit) retained earnings	(800,726)	(922,805)
Accumulated other comprehensive income (loss)	18,348	102,975
Total Vishay stockholders' equity	1,555,239	1,516,446
Noncontrolling interests	5,164	5,155
Total equity	1,560,403	1,521,601
Total liabilities and equity	2,781,102	2,719,546
Common stock
Vishay stockholders' equity
Common stock	17,229	17,228
Class B Convertible Common Stock
Vishay stockholders' equity
Common stock	$ 1,435	$ 1,435

Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2010	Jun. 27, 2009	Jul. 03, 2010	Jun. 27, 2009
Statement [Line Items]
Net revenues	$ 701,655	$ 460,258	$ 1,342,115	$ 909,769
Costs of products sold	491,062	381,484	964,509	762,971
Gross profit	210,593	78,774	377,606	146,798
Selling, general, and administrative expenses	109,266	83,752	211,154	171,206
Restructuring and severance costs		12,090		31,023
Settlement agreement gain		(28,195)		(28,195)
Executive employment agreement charge		57,824		57,824
Operating income (loss)	101,327	(46,697)	166,452	(85,060)
Other income (expense):
Interest expense	(2,400)	(2,787)	(4,834)	(5,651)
Other	5,956	(5,510)	6,000	7,373
Nonoperating Income (Expense), Total	3,556	(8,297)	1,166	1,722
Income (loss) before taxes	104,883	(54,994)	167,618	(83,338)
Income tax expense	27,918	3,715	45,014	4,425
Net earnings (loss)	76,965	(58,709)	122,604	(87,763)
Less: net earnings attributable to noncontrolling interests	306	156	525	229
Net earnings (loss) attributable to Vishay stockholders	$ 76,659	$ (58,865)	$ 122,079	$ (87,992)
Basic earnings (loss) per share attributable to Vishay stockholders	$ 0.41	$ (0.32)	$ 0.65	$ (0.47)
Diluted earnings (loss) per share attributable to Vishay stockholders	$ 0.40	$ (0.32)	$ 0.63	$ (0.47)
Weighted average shares outstanding - basic	186,667	186,586	186,654	186,572
Weighted average shares outstanding - diluted	193,084	186,586	193,076	186,572

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2010	Jun. 27, 2009
Continuing operating activities
Net earnings (loss)	$ 122,604	$ (87,763)
Adjustments to reconcile net earnings (loss) to net cash provided by continuing operating activities:
Depreciation and amortization	99,262	110,416
(Gain) loss on disposal of property and equipment	(92)	239
Inventory write-offs for obsolescence	10,853	14,089
Deferred grant income	(313)	(367)
Other	13,436	(8,980)
Net change in operating assets and liabilities, net of effects of businesses acquired	(68,199)	41,307
Net cash provided by continuing operating activities	177,551	68,941
Continuing investing activities
Capital expenditures	(49,193)	(18,266)
Proceeds from sale of property and equipment	590	512
Purchase of businesses, net of cash acquired or refunded		28,195
Proceeds from loans receivable	15,000
Other investing activities		150
Net cash (used in) provided by continuing investing activities	(33,603)	10,591
Continuing financing activities
Proceeds from long-term borrowings		15,000
Debt issuance costs	(456)
Principal payments on long-term debt and capital leases	(14,129)	(15,069)
Net changes in short-term borrowings	554	(10,660)
Distributions to noncontrolling interests	(516)	(116)
Net cash used in continuing financing activities	(14,547)	(10,845)
Effect of exchange rate changes on cash and cash equivalents	(33,927)	4,077
Net increase in cash and cash equivalents from continuing activities	95,474	72,764
Net cash used in discontinued operating activities	(82)	(3,187)
Net cash used in discontinued investing activities
Net cash used in discontinued financing activities
Net cash used in discontinued operations	(82)	(3,187)
Net increase in cash and cash equivalents	95,392	69,577
Cash and cash equivalents at beginning of period	579,189	324,164
Cash and cash equivalents at end of period	$ 674,581	$ 393,741

Consolidated Condensed Statement of Equity - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 03, 2010	Jul. 03, 2010
Statement [Line Items]
Beginning Balance		$ 1,521,601
Net earnings (loss)	$ 76,965	122,604
Other comprehensive income (loss)		(84,627)
Comprehensive income (loss)		37,977
Distributions to noncontrolling interests		(516)
Stock compensation expense		1,341
Conversions from Class B to common stock (49 shares)
Ending Balance	1,560,403	1,560,403
Common stock
Statement [Line Items]
Beginning Balance		17,228
Phantom and restricted stock issuances (80,343 shares)		8
Cancellation of shares (68,976 shares)		(7)
Conversions from Class B to common stock (49 shares)
Ending Balance	17,229	17,229
Class B Convertible Common Stock
Statement [Line Items]
Beginning Balance		1,435
Conversions from Class B to common stock (49 shares)
Ending Balance	1,435	1,435
Capital in Excess of Par Value
Statement [Line Items]
Beginning Balance		2,317,613
Phantom and restricted stock issuances (80,343 shares)		(8)
Cancellation of shares (68,976 shares)		7
Stock compensation expense		1,341
Conversions from Class B to common stock (49 shares)
Ending Balance	2,318,953	2,318,953
Retained Earnings (Accumulated Deficit)
Statement [Line Items]
Beginning Balance		(922,805)
Net earnings (loss)		122,079
Conversions from Class B to common stock (49 shares)
Ending Balance	(800,726)	(800,726)
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Beginning Balance		102,975
Other comprehensive income (loss)		(84,627)
Conversions from Class B to common stock (49 shares)
Ending Balance	18,348	18,348
Total Vishay Stockholders' Equity
Statement [Line Items]
Beginning Balance		1,516,446
Net earnings (loss)		122,079
Other comprehensive income (loss)		(84,627)
Comprehensive income (loss)		37,452
Stock compensation expense		1,341
Conversions from Class B to common stock (49 shares)
Ending Balance	1,555,239	1,555,239
Noncontrolling Interests
Statement [Line Items]
Beginning Balance		5,155
Net earnings (loss)		525
Comprehensive income (loss)		525
Distributions to noncontrolling interests		(516)
Conversions from Class B to common stock (49 shares)
Ending Balance	$ 5,164	$ 5,164

Basis of Presentation	6 Months Ended
Basis of Presentation	Jul. 03, 2010
Statement [Line Items]
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 and notes thereto filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. The results of operations for the six fiscal months ended July 3, 2010 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 2010 end on April 3, 2010, July 3, 2010, October 2, 2010, and December 31, 2010. The four fiscal quarters in 2009 ended on March 28, 2009, June 27, 2009, September 26, 2009, and December 31, 2009, respectively. On July 6, 2010, Vishay completed the spin-off of Vishay Precision Group, Inc. (“VPG”) through a tax-free stock dividend to Vishay’s stockholders. Until July 6, 2010, including all periods presented in these consolidated condensed financial statements, VPG was part of Vishay and its assets, liabilities, results of operations, and cash flows are included in the balances reported in these consolidated condensed financial statements. In preparation for the previously-announced spin-off of VPG, the Company realigned its reportable business segments structure to be consistent with changes made to its management reporting. Results for 2009 have been adjusted to reflect the new reporting segment structure. Refer to Note 9 for a description of the new segment reporting structure. Recently Adopted Accounting Pronouncements In January 2010, the Financial Accounting Standards Board (“FASB”) updated the accounting guidance related to fair value measurements disclosures. The updated guidance (i) requires separate disclosure of significant transfers in and out of Levels 1 and 2 fair value measurements, (ii) requires disclosure of Level 3 fair value measurements activity on a gross basis, (iii) clarifies existing disaggregation requirements, (iv) and clarifies existing input and valuation technique disclosure requirements. The updated guidance is effective for interim and annual periods beginning after December 15, 2009, except for the Level 3 fair value measurement disclosure requirements, which are effective for fiscal years beginning after December 15, 2010. Vishay adopted the aspects of the guidance that are currently effective as of January 1, 2010 and will adopt the remaining guidance on January 1, 2011. The adoption of the effective guidance had no effect on the Company’s financial position, results of operations, or liquidity and the adoption of the remaining guidance is not expected to have any effect on the Company’s financial position, results of operations, or liquidity. In February 2010, the FASB updated the accounting guidance related to subsequent events. The updated guidance continues to require evaluation of subsequent events through the date the financial statements are issued, but removes the requirement to disclose the date through which subsequent events have been issued. Vishay adopted this guidance effective January 1, 2010. The adoption of this guidance had no effect on the Company’s financial position, results of operations, or liquidity. Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation.

Acquisition and Divestiture Activities	6 Months Ended
Acquisition and Divestiture Activities	Jul. 03, 2010
Statement [Line Items]
Acquisition and Divestiture Activities	Note 2 – Acquisition and Divestiture Activities As part of its growth strategy, the Company seeks to expand through targeted and synergistic acquisitions of other manufacturers of electronic components that have established positions in major markets, reputations for product quality and reliability, and product lines with which the Company has substantial marketing and technical expertise. Subsequent Event – Consummation of the Spin-off of Vishay Precision Group, Inc. On October 27, 2009, Vishay announced that it intended to spin off its measurements and foil resistors businesses into an independent, publicly-traded company to be named Vishay Precision Group, Inc. On June 15, 2010, the Board of Directors of Vishay approved the spin-off of VPG and on July 6, 2010, Vishay completed the spin-off through a tax-free stock dividend to Vishay’s stockholders. Upon completion of the spin-off certain executive officers received bonuses aggregating approximately $2.1 million, which is reflected in the second fiscal quarter results. See Note 13 for further information on the spin-off transaction. Prepayment of KEMET Loan Receivable In conjunction with the acquisition of the wet tantalum capacitor business of KEMET Corporation (“KEMET”) on September 15, 2008, Vishay issued a three-year term loan of $15 million to KEMET. On May 5, 2010, KEMET prepaid the entire principal amount of the term loan plus interest. Sale of Automotive Modules and Subsystems Business On April 7, 2008, Vishay sold the automotive modules and subsystems business unit (“ASBU”) to a private equity firm. ASBU was originally acquired by Vishay as part of the April 1, 2007 acquisition of International Rectifier Corporation’s (“International Rectifier”) Power Control Systems (“PCS”) business. Vishay determined that ASBU would not satisfactorily complement Vishay’s operations and separately reported the results of ASBU in the consolidated condensed statement of operations as “discontinued operations.” The Company resolved a net working capital adjustment and certain other disputes with the buyer in the fourth fiscal quarter of 2008. A portion of this amount was paid during the first fiscal quarters of 2009 and 2010 and is reflected on the accompanying consolidated condensed statement of cash flows as cash flows from discontinued operations. Settlement with International Rectifier Corporation On April 1, 2007, Vishay completed its acquisition of the PCS business of International Rectifier for approximately $285.6 million, net of cash acquired. The final purchase price was pending the resolution of a net working capital adjustment as of the date of acquisition. Vishay also had notified International Rectifier of certain other claims that it had regarding the sale of the PCS business to Vishay. On June 25, 2009, Vishay and International Rectifier entered into a settlement agreement. Under the settlement, International Rectifier refunded $30.0 million of the purchase price associated with the acquisition, and Vishay released International Rectifier from claims relating to certain outstanding disputes regarding the acquisition. As part of the goodwill impairment charges recorded during 2008, all goodwill associated with the PCS business was written off. Vishay recorded a gain of $28.2 million during the second quarter of 2009, equal to the amount received pursuant to the settlement agreement less certain related expenses.

Restructuring and Severance Costs and Related Asset Write-Downs

6 Months Ended

Jul. 03, 2010

Statement [Line Items]

Restructuring and Severance Costs and Related Asset Write-Downs

Note 3 – Restructuring and Severance Costs and Related Asset Write-Downs

Restructuring and severance costs reflect the cost reduction programs implemented by the Company. These include the closing of facilities and the termination of employees. Restructuring and severance costs include one-time exit costs, severance benefits pursuant to an on-going benefit arrangement, and related pension curtailment and settlement charges. Severance costs also include executive severance and charges for the fair value of stock options of certain former employees which were modified such that they did not expire at termination. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements of accrual are met. Because these costs are recorded based upon estimates, actual expenditures for the restructuring activities may differ from the initially recorded costs. If the initial estimates are too low or too high, the Company could be required either to record additional expenses in future periods or to reverse part of the previously recorded charges. Asset write-downs are principally related to buildings and equipment that will not be used subsequent to the completion of restructuring plans presently being implemented, and cannot be sold for amounts in excess of carrying value.

Second Fiscal Quarter and Six Fiscal Months Ended July 3, 2010

The Company did not initiate any new restructuring projects in the second fiscal quarter or six fiscal months ended July 3, 2010 and thus did not record any restructuring and severance costs expenses during these periods.

Second Fiscal Quarter 2009

The Company recorded restructuring and severance costs of $12,090,000 for the second fiscal quarter of 2009. Employee termination costs were $10,187,000, covering technical, production, administrative, and support employees in nearly every country in which the Company operates. Severance costs include net pension settlement charges and credits for employees in the Republic of China (Taiwan) and the Philippines. The Company also incurred $1,903,000 of other exit costs during the quarter, principally lease termination costs related to facility closures. The restructuring and severance costs were incurred primarily in response to the declining business conditions experienced in the second half of 2008 and recessionary trends that continued into the second fiscal quarter of 2009.

Six Fiscal Months Ended June 27, 2009

The Company recorded restructuring and severance costs of $31,023,000 for the six fiscal months ended June 27, 2009. Employee termination costs were $27,874,000, covering technical, production, administrative, and support employees in nearly every country in which the Company operates. Severance costs include net pension settlement charges and credits for employees in the Republic of China (Taiwan) and the Philippines. The Company also incurred $3,149,000 of other exit costs during the quarter, principally lease termination costs related to facility closures. The restructuring and severance costs were incurred primarily in response to the declining business conditions experienced in the second half of 2008 and recessionary trends which continued into the second fiscal quarter of 2009.

Year Ended December 31, 2009

The Company recorded restructuring and severance costs of $37,874,000 for the year ended December 31, 2009. Employee termination costs were $33,142,000, covering technical, production, administrative, and support employees in nearly every country in which the Company operates. Severance costs include net pension settlement charges and credits for employees in the Republic of China (Taiwan) and the Philippines. The Company also incurred $4,732,000 of other exit costs, principally lease termination costs related to facility closures and $681,000 of asset write-downs during the year ended December 31, 2009. The restructuring and severance costs were incurred primarily in response to the declining business conditions experienced in the second half of 2008 and recessionary trends which continued into 2009.

The following table summarizes activity to date related to restructuring programs initiated in 2009 (in thousands, except for number of employees):

										Employees
	Severance			Other						to be
	Costs			Exit Costs			Total			Terminated
Restructuring and severance costs	$	33,142		$	4,732		$	37,874		2,571
Utilized		(21,293	)		(2,989	)		(24,282	)	(2,321	)
Foreign currency translation		802			15			817		-
Balance at December 31, 2009	$	12,651		$	1,758		$	14,409		250
Utilized		(7,342	)		(565	)		(7,907	)	(208	)
Foreign currency translation		(641	)		(62	)		(703	)	-
Balance at July 3, 2010	$	4,668		$	1,131		$	5,799		42

Most of the accrued restructuring liability, currently shown in other accrued expenses, is expected to be paid by December 31, 2010. The payment terms related to these restructuring programs varies, usually based on local customs and laws. Most severance amounts are paid in a lump sum at termination, while some payments are structured to be paid in installments.

Year Ended December 31, 2008

The Company recorded restructuring and severance costs of $62,537,000 for the year ended December 31, 2008. Employee termination costs were $58,601,000, covering technical, production, administrative, and support employees located in nearly every country in which the Company operates. Through the first nine months of 2008, these restructuring activities were part of the Company’s on-going cost reduction initiatives. The significant increase in restructuring activities during the fourth fiscal quarter of 2008 was substantially attributable to the declining business conditions experienced in the second half of 2008. Severance costs for the year ended December 31, 2008 also include executive severance and a pension settlement charge of $2,894,000 related to employees in the Republic of China (Taiwan). The Company also incurred $3,936,000 of other exit costs, principally related to the closures of facilities in Brazil and Germany. The restructuring and severance costs were incurred as part of the continuing cost reduction programs currently being implemented by the Company and in response to the declining business conditions experienced in the second half of 2008.

As a result of the decision to close its facility in Brazil, the Company completed a long-lived asset impairment analysis during the first fiscal quarter of 2008 and determined that various fixed assets and intangible assets were impaired. The Company recorded fixed asset write-downs of $3,419,000 and intangible asset write-downs of $776,000. During the fourth fiscal quarter of 2008, the Company also recorded asset write-downs of $878,000 to reduce the carrying value of buildings. The buildings had been vacated as part of restructuring activities. These buildings were held-for-sale and classified as “other assets” at December 31, 2008.

Also during the year ended December 31, 2008, the Company sold land and buildings that had been vacated as part of its restructuring programs and recognized a gain of $4,510,000, which is recorded within selling, general, and administrative expenses.

There is a $1.7 million accrued restructuring liability related to restructuring programs initiated in 2008 reported as other accrued expenses in the accompanying consolidated condensed balance sheet as of July 3, 2010. Most of the accrued restructuring liability is expected to be paid by December 31, 2010.

Long-Term Debt	6 Months Ended
Long-Term Debt	Jul. 03, 2010
Statement [Line Items]
Long-Term Debt	Note 5 – Long-Term Debt Amendment of Credit Facility Effective June 11, 2010, Vishay entered into an amendment to its credit facility. Pursuant to the amendment the lenders consented to various items necessary to effectuate the VPG spin-off transaction, including, upon consummation of such spin-off transaction, the release of all collateral related to VPG entities. Additionally, the tangible net worth covenant was revised to reflect the decrease in tangible net worth expected to occur upon the spin-off of VPG, to $1 billion plus 75% of net proceeds of equity offerings since July 6, 2010 plus, commencing with the fiscal quarter ending March 31, 2011, 50% of net income (without offset for losses) for each fiscal quarter ending after December 31, 2010. This amendment also made minor modifications to the collateral arrangements and minor increases to pricing under the Credit Agreement. Other significant terms and conditions of the credit agreement have not been changed. The credit agreement, as amended, will expire April 20, 2012. Subsequent Event – Modification of Exchangeable Notes On December 13, 2002, Vishay issued $105,000,000 in nominal (or principal) amount of its floating rate unsecured exchangeable notes due 2102 in connection with an acquisition. The notes are governed by a note instrument and a put and call agreement dated December 13, 2002. The notes may be put to Vishay in exchange for shares of its common stock and, under certain circumstances, may be called by Vishay for similar consideration. Under the terms of the put and call agreement, by reason of the spin-off, Vishay was required to take action so that the existing notes are deemed exchanged as of the date of the spin-off, for a combination of new notes of Vishay reflecting a lower principal amount of notes and new notes issued by VPG. See Note 13 for further information. Subsequent Event – Call of Convertible Notes In 2003, Vishay sold $500 million aggregate principal amount of 3-5/8% convertible subordinated notes due 2023. Holders of substantially all (99.6%) of the 3-5/8% notes exercised their option to require Vishay to repurchase their notes on August 1, 2008. The remaining notes, with an aggregate principal amount of $1,870,000, were redeemed at Vishay’s option on August 1, 2010. The notes are classified as a current liability as of December 31, 2009 and July 3, 2010 in the accompanying consolidated condensed balance sheets.

Pensions and Other Postretirement Benefits

6 Months Ended

Jul. 03, 2010

Statement [Line Items]

Pensions and Other Postretirement Benefits

Note 7 – Pensions and Other Postretirement Benefits

The Company maintains various retirement benefit plans.

The following table shows the components of the net periodic pension cost for the second fiscal quarters of 2010 and 2009 for the Company’s defined benefit pension plans (in thousands):

	Fiscal quarter ended						Fiscal quarter ended
	July 3, 2010						June 27, 2009
	U.S.			Non-U.S.			U.S.			Non-U.S.
	Plans			Plans			Plans			Plans
Net service cost	$	-		$	757		$	-		$	649
Interest cost		3,992			2,686			4,228			2,663
Expected return on plan assets		(4,648	)		(457	)		(3,807	)		(316	)
Amortization of prior service credit		158			-			(10	)		-
Amortization of losses		2,352			45			2,687			(6	)
Curtailments and settlements		-			-			-			(249	)
Net periodic benefit cost	$	1,854		$	3,031		$	3,098		$	2,741

The following table shows the components of the net periodic pension cost for the six fiscal months ended July 3, 2010 and June 27, 2009 for the Company’s defined benefit pension plans (in thousands):

	Six fiscal months ended						Six fiscal months ended
	July 3, 2010						June 27, 2009
	U.S.			Non-U.S.			U.S.			Non-U.S.
	Plans			Plans			Plans			Plans
Net service cost	$	-		$	1,534		$	-		$	1,406
Interest cost		8,057			5,563			8,357			5,312
Expected return on plan assets		(9,049	)		(923	)		(7,477	)		(736	)
Amortization of prior service credit		202			-			(54	)		-
Amortization of losses		4,657			87			5,656			10
Curtailments and settlements		-			-			-			556
Net periodic benefit cost	$	3,867		$	6,261		$	6,482		$	6,548

The following table shows the components of the net periodic benefit cost for the second fiscal quarters of 2010 and 2009 for the Company’s other postretirement benefit plans (in thousands):

	Fiscal quarter ended					Fiscal quarter ended
	July 3, 2010					June 27, 2009
	U.S.			Non-U.S.		U.S.			Non-U.S.
	Plans			Plans		Plans			Plans
Service cost	$	29		$	61	$	46		$	80
Interest cost		196			70		185			95
Amortization of prior service (credit) cost		(110	)		-		(146	)		-
Amortization of transition obligation		18			-		19			-
Amortization of gains		(51	)		-		(78	)		-
Net periodic benefit cost	$	82		$	131	$	26		$	175

The following table shows the components of the net periodic pension cost for the six fiscal months ended July 3, 2010 and June 27, 2009 for the Company’s other postretirement benefit plans (in thousands):

	Six fiscal months ended					Six fiscal months ended
	July 3, 2010					June 27, 2009
	U.S.			Non-U.S.		U.S.			Non-U.S.
	Plans			Plans		Plans			Plans
Service cost	$	57		$	128	$	88		$	158
Interest cost		391			146		386			188
Amortization of prior service (credit) cost		(220	)		-		(221	)		-
Amortization of transition obligation		37			-		38			-
Amortization of gains		(102	)		-		(148	)		-
Net periodic benefit cost	$	163		$	274	$	143		$	346

Stock-Based Compensation

6 Months Ended

Jul. 03, 2010

Statement [Line Items]

Stock-Based Compensation

Note 8 – Stock-Based Compensation

The Company has various stockholder-approved programs which allow for the grant of stock-based compensation to officers, employees, and non-employee directors.

The amount of compensation cost related to stock-based payment transactions is measured based on the grant-date fair value of the equity instruments issued. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The Company determines compensation cost for restricted stock units (“RSUs”), phantom stock units, and restricted stock based on the grant-date fair value of the underlying common stock. Compensation cost is recognized over the period that an officer, employee, or non-employee director provides service in exchange for the award.

The following table summarizes stock-based compensation expense recognized (in thousands):

	Fiscal quarters ended				Six fiscal months ended
	July 3, 2010		June 27, 2009		July 3, 2010		June 27, 2009
Stock options	$	161	$	178	$	354	$	459
Restricted stock units		592		315		812		586
Phantom stock units		-		-		175		74
Total	$	753	$	493	$	1,341	$	1,119

The following table summarizes unrecognized compensation cost and the weighted average remaining amortization periods at July 3, 2010 (dollars in thousands, amortization periods in years):

			Weighted Average
	Unrecognized		Remaining
	Compensation		Amortization
	Cost		Periods
Stock options	$	917	2.2
Restricted stock units		5,144	2.4
Phantom stock units		-	0.0
Total	$	6,061

2007 Stock Incentive Plan

The Company’s 2007 Stock Incentive Program (the “2007 Program”) permits the grant of up to 3,000,000 shares of restricted stock, unrestricted stock, RSUs, and stock options, to officers, employees, and non-employee directors. Such instruments are available for grant until May 22, 2017.

The 2007 Program was originally approved by stockholders of the Company on May 22, 2007, as the “2007 Stock Option Program.” On May 28, 2008, the Company’s stockholders approved amendments to the 2007 Stock Option Program, which was then renamed the “2007 Stock Incentive Program.”

Stock Options

In addition to stock options outstanding pursuant to the 2007 Program, the Company has stock options outstanding under previous stockholder-approved stock option programs. These programs are more fully described in Note 12 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2009. No additional options may be granted pursuant to these programs.

Option activity under the stock option plans as of July 3, 2010 and changes during the six fiscal months then ended are presented below (number of options in thousands, contractual life in years):

					Weighted
			Weighted		Average
	Number		Average		Remaining
	of		Exercise		Contractual
	Options		Price		Life
Outstanding:
January 1, 2010	2,728		$	19.84
Granted	-			-
Exercised	-			-
Cancelled or forfeited	(178	)		29.50
Outstanding at July 3, 2010	2,550		$	19.17	1.77

Vested and expected to vest
at July 3, 2010	2,550		$	19.17	1.77
Exercisable at July 3, 2010	2,297		$	19.50	1.19

During the six fiscal months ended July 3, 2010, 74,000 options vested. At July 3, 2010, there are 254,000 unvested options outstanding, with a weighted average grant-date fair value of $9.96 per option.

The pretax aggregate intrinsic value (the difference between the closing stock price on the last trading day of the second fiscal quarter of 2010 of $7.43 per share and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on July 3, 2010 is zero because all outstanding options have exercise prices in excess of market value. This amount changes based on changes in the market value of the Company’s common stock. No options were exercised during the six fiscal months ended July 3, 2010.

Restricted Stock Units

RSU activity under the stock incentive plan as of July 3, 2010 and changes during the six fiscal months then ended are presented below (number of RSUs in thousands):

				Weighted Average
	Number			grant date
	of			fair value
	RSUs			per unit
Outstanding:
January 1, 2010		155		$	9.14
Granted		504			10.83
Vested		(76	)		9.68
Cancelled or forfeited		(9	)		10.83
Outstanding at July 3, 2010		574		$	10.52

Expected to vest at July 3, 2010		574

The Company recognizes compensation cost for RSUs that are expected to vest. Of the 504,500 RSUs granted in the first six fiscal months of 2010, 293,000 contain performance-based vesting criteria. The Company expects all performance-based vesting criteria to be achieved.

Phantom Stock Plan

The Company maintains a phantom stock plan for certain senior executives. The Phantom Stock Plan authorizes the grant of up to 300,000 phantom stock units to the extent provided for in employment agreements with the Company. During 2010 and 2009, the Company had such employment arrangements with four of its executives. The arrangements provide for an annual grant of 5,000 shares of phantom stock to each of these executives on the first trading day of the year. If the Company later enters into other employment arrangements with other individuals that provide for the granting of phantom stock, those individuals also will be eligible for grants under the Phantom Stock Plan. No grants may be made under the Phantom Stock Plan other than under the terms of employment arrangements with the Company. Each phantom stock unit entitles the recipient to receive a share of common stock at the individual’s termination of employment or any other future date specified in the employment agreement. The phantom stock units are fully vested at all times.

Phantom stock units activity under the stock incentive plan as of July 3, 2010 and changes during the six fiscal months then ended are presented below (number of phantom stock units in thousands):

	Number			Grant date
	of			fair value
	Units			per unit
Outstanding:
January 1, 2010		120
Granted		20	$	8.76
Redeemed for common stock
Outstanding at July 3, 2010		140

Subsequent Event - Modification of Equity-Based Awards due to the Spin-off of VPG

As a consequence of the spin-off of VPG on July 6, 2010 (see Note 13), all outstanding equity-based awards were modified.

Approximately 102,000 stock options and 5,000 RSUs that were held by VPG employees will expire within 60 days of the completion of the spin-off, and 35,000 phantom stock units held by a VPG employee were adjusted and converted into common stock as a result of the spin-off.

The exercise price of all stock options was reduced 9.48% and 259,000 make-up options were granted to reflect the loss of value to the option holders due to the decrease in the trading price of Vishay’s common stock as result of the spin-off.

Approximately 60,000 make-up RSUs and 15,000 make-up phantom stock units were granted to reflect the loss of value to the unit holders due to the decrease in the trading price of Vishay’s common stock as result of the spin-off.

The performance vesting criteria of the 293,000 RSUs that contain performance-based vesting criteria have been adjusted by 10% to reflect the absence of VPG within Vishay’s consolidated results.

Segment Information

6 Months Ended

Jul. 03, 2010

Statement [Line Items]

Segment Information

Note 9 – Segment Information

In preparation for the previously-announced spin-off of VPG, which was completed in the third fiscal quarter on July 6, 2010, the Company realigned its reportable business segments structure to be consistent with changes made to its management reporting. The changes made to management reporting included separating the former Semiconductors reporting segment into MOSFETs, Diodes, and Optoelectronic Components and separating the former Passive Components reporting segment into Resistors and Inductors, Capacitors, and Vishay Precision Group. The changes were necessary due to the former Passive Components segment no longer being comparable after the completion of the spin-off of VPG, the need for discrete information regarding VPG, and the increased interest of management and outside investors in more discrete financial information. Effective beginning in the second fiscal quarter of 2010, the chief operating decision maker began making strategic and operating decisions with regards to assessing performance and allocating resources based on this new segment structure. Following the completion of the spin-off in the third fiscal quarter, we will have five reporting segments.

The Company evaluates business segment performance on operating income, exclusive of certain items (“segment operating income”). Beginning in the second fiscal quarter of 2010, the Company changed its definition of segment operating income to exclude such costs as global operations, sales and marketing, information systems, finance and administration groups. These costs are managed by executives that report to the chief operating decision maker and were formerly included in segment operating income. Only dedicated, direct selling, general, and administrative expenses of the segments are included in the calculation of segment operating income. Additionally, management has always evaluated segment performance excluding items such as restructuring and severance costs, asset write-downs, goodwill and indefinite-lived intangible asset impairments, inventory write-downs, gains or losses on purchase commitments, and other items. Management believes that evaluating segment performance excluding such items is meaningful because it provides insight with respect to intrinsic operating results of the Company. These items represent reconciling items between segment operating income and consolidated operating income. Business segment assets are the owned or allocated assets used by each business.

Results for 2009 have been adjusted to reflect the new reporting segment structure. The following table sets forth business segment information (in thousands):

					Optoelectronic		Resistors &				Vishay Precision
	MOSFETs		Diodes		Components		Inductors		Capacitors		Group		Corporate / Other		Total
Fiscal quarter ended July 3, 2010:
Product Sales	$	153,207	$	151,026	$	57,657	$	151,941	$	133,346	$	52,914	$	-	$	700,091
Royalty Revenues		48		-		27		1,489		-		-		-	$	1,564
Total Revenue	$	153,255	$	151,026	$	57,684	$	153,430	$	133,346	$	52,914	$	-	$	701,655

Gross Margin	$	46,887	$	35,865	$	20,288	$	54,886	$	32,685	$	19,982	$	-	$	210,593

Fiscal quarter ended June 27, 2009:
Product Sales	$	95,622	$	91,240	$	40,485	$	99,148	$	91,893	$	41,333	$	-	$	459,721
Royalty Revenues		-		-		-		537		-		-		-	$	537
Total Revenue	$	95,622	$	91,240	$	40,485	$	99,685	$	91,893	$	41,333	$	-	$	460,258

Gross Margin	$	13,334	$	10,607	$	8,824	$	19,863	$	15,167	$	10,979	$	-	$	78,774

Six fiscal months ended July 3, 2010:
Product Sales	$	280,831	$	291,272	$	116,053	$	299,398	$	250,677	$	101,089	$	-	$	1,339,320
Royalty Revenues		48		-		60		2,687		-		-		-	$	2,795
Total Revenue	$	280,879	$	291,272	$	116,113	$	302,085	$	250,677	$	101,089	$	-	$	1,342,115

Gross Margin	$	73,905	$	63,511	$	39,944	$	106,806	$	56,410	$	37,030	$	-	$	377,606

Six fiscal months ended June 27, 2009:
Product Sales	$	179,759	$	171,633	$	74,880	$	198,262	$	197,510	$	85,038	$	-	$	907,082
Royalty Revenues		57		-		13		2,617		-		-		-	$	2,687
Total Revenue	$	179,816	$	171,633	$	74,893	$	200,879	$	197,510	$	85,038	$	-	$	909,769

Gross Margin	$	15,954	$	15,372	$	14,613	$	41,855	$	33,974	$	25,030	$	-	$	146,798

Total Assets as of July 3, 2010:	$	566,999	$	519,748	$	131,752	$	596,787	$	695,919	$	226,456	$	43,441	$	2,781,102
Total Assets as of December 31, 2009:	$	566,952	$	522,080	$	132,065	$	572,076	$	668,271	$	209,779	$	48,323	$	2,719,546

	Fiscal quarter ended						Six fiscal months ended
	July 3, 2010			June 27, 2009			July 3, 2010			June 27, 2009
Operating margin reconciliation:
MOSFETs	$	37,864		$	5,724		$	56,154		$	462
Diodes		30,121			5,684			51,956			5,668
Optoelectronic Components		17,454			6,325			34,115			8,866
Resistors & Inductors		48,497			14,454			93,737			30,530
Capacitors		27,111			10,510			44,873			24,113
Vishay Precision Group		10,871			3,684			18,949			9,998
Unallocated Selling, General, and Administrative Expenses		(70,591	)		(51,359	)		(133,332	)		(104,045	)
Restructuring and Severance Costs		-			(12,090	)		-			(31,023	)
Settlement agreement gain		-			28,195			-			28,195
Executive employment agreement charge		-			(57,824	)		-			(57,824	)
Consolidated Operating Income (Loss)	$	101,327		$	(46,697	)	$	166,452		$	(85,060	)

Restructuring and Severance costs:
MOSFETs	$	-		$	4,488		$	-		$	7,625
Diodes		-			2,239			-			4,561
Optoelectronic Components		-			1,154			-			2,903
Resistors & Inductors		-			118			-			7,201
Capacitors		-			612			-			3,842
Vishay Precision Group		-			1,390			-			1,869
Unallocated Selling, General, and Administrative Expenses		-			2,089						3,022
	$	-		$	12,090		$	-		$	31,023

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jul. 03, 2010
Statement [Line Items]
Commitments and Contingencies	Note 10 – Commitments and Contingencies Executive Employment Agreements The Company has employment agreements with certain of its senior executives. These employment agreements provide incremental compensation in the event of termination. The Company does not provide any severance or other benefits specifically upon a change in control except as described below. On June 16, 2010, the terms of certain senior executives’ RSUs and performance-based RSUs were modified such that in the event of (i) the termination of the executive’s employment under certain circumstances, the executive’s outstanding RSUs shall immediately vest and the outstanding performance-based RSUs shall vest on their normal vesting date to the extent applicable performance criteria are realized; and (ii) a change of control of Vishay, all of such executive’s outstanding RSUs and performance-based RSUs shall immediately vest. On June 16, 2010, the Compensation Committee determined to modify Dr. Gerald Paul’s and the Compensation Committee recommended to the Board of Directors, and the Board of Directors determined to modify Mr. Marc Zandman’s employment arrangements such that upon any termination (other than for cause) after attaining age 62, the executive would be entitled to the same payments and benefits he would have received if his respective employment was terminated by Vishay without cause or by the respective executive for good reason. These modifications were included in formal amendments signed on August 8, 2010. The modification of the terms of the RSUs and performance-vested RSUs had no effect on the Company’s financial position, results of operations, or liquidity. The expense associated with the modifications to the employment arrangements of Dr. Gerald Paul and Mr. Marc Zandman effectively represents a defined retirement benefit that will be recognized over the remaining service period of the individuals. On May 13, 2009, the Company entered into an amended and restated employment agreement with Dr. Felix Zandman (the “2009 Agreement”). This agreement amended and restated the existing employment agreement between the Company and Dr. Zandman that was previously amended and restated as of January 1, 2004 (the “2004 Agreement”). The purpose of the 2009 Agreement was to eliminate the right of Dr. Zandman to receive a royalty during the ten years following his termination of employment equal to 5% of gross sales, less returns and allowances, of Vishay products incorporating inventions and any other form of technology created, discovered or developed by him or under his direction. The royalty was payable in the event Dr. Zandman was terminated without “cause” or resigned for “good reason,” as defined in the 2004 Agreement. This provision was carried over from Dr. Zandman’s original employment agreement of March 1985, and could not be modified or eliminated without Dr. Zandman’s consent. It was a reflection, among other things, of Dr. Zandman’s key role in the founding of the Company and in creating, developing and commercializing the Company’s technologies and the absence of any compensation to Dr. Zandman for the core intellectual property that he has contributed to the Company over the years from its inception. Pursuant to the 2009 Agreement, Dr. Zandman’s right to the royalty payments has been terminated. Dr. Zandman received a payment of $10 million as of the effective date of the amended and restated agreement, and is entitled to receive five additional annual payments of $10 million each. The Company recognized compensation expense of $57.8 million during the second quarter of 2009, representing the present value of these payments. This amount is presented on a separate line in the accompanying consolidated condensed statements of operations. Payments pursuant to the 2009 Agreement may be deferred with interest in the event that making such payment would jeopardize the ability of the Company to continue as a going concern. Payments will accelerate if, following a change of control of the Company, Dr. Zandman is terminated without cause or if he terminates employment for good reason. In the event of Dr. Zandman’s death or disability, the unpaid annual installments would accelerate upon a change of control, whether it occurs before or after the death or disability. If an excise tax were imposed under Section 4999 of the Internal Revenue Code due to the acceleration of the payments, the Company will reimburse Dr. Zandman for the excise tax on customary terms. Absent a change of control, if the Company were to terminate Dr. Zandman’s employment without cause or Dr. Zandman were to terminate employment for good reason or in the event of his death or disability, the unpaid annual installment payments would not accelerate and would continue until completed. Dr. Zandman will forfeit future payments if he terminates his employment without good reason or if his employment is terminated for cause. Furthermore, as a result of the 2009 Agreement, Dr. Zandman will not receive any other severance payments upon his termination of employment for any reason. Other terms of the 2004 Agreement remain substantially the same. Dr. Zandman continues to be subject to non-competition, non-solicitation, non-disparagement and confidentiality covenants.

Earnings Per Share

6 Months Ended

Jul. 03, 2010

Statement [Line Items]

Earnings Per Share

Note 11 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to Vishay stockholders (in thousands, except for per share):

	Fiscal quarters ended					Six fiscal months ended
	July 3, 2010		June 27, 2009			July 3, 2010		June 27, 2009
Numerator:
Numerator for basic earnings (loss) per share:
Net earnings (loss)	$	76,659	$	(58,865	)	$	122,079	$	(87,992	)

Adjustment to the numerator for continuing
operations and net earnings (loss):
Interest savings assuming conversion of dilutive
convertible and exchangeable notes, net of tax		50		-			92		-

Numerator for diluted earnings (loss) per share:
Net earnings (loss)	$	76,709	$	(58,865	)	$	122,171	$	(87,992	)

Denominator:
Denominator for basic earnings (loss) per share:
Weighted average shares		186,667		186,586			186,654		186,572

Effect of dilutive securities:
Convertible and exchangeable notes		6,176		-			6,176		-
Employee stock options		7		-			6		-
Other		234		-			240		-
Dilutive potential common shares		6,417		-			6,422		-

Denominator for diluted earnings (loss) per share:
Adjusted weighted average shares		193,084		186,586			193,076		186,572

Basic earnings (loss) per share attributable to Vishay stockholders	$	0.41	$	(0.32	)	$	0.65	$	(0.47	)

Diluted earnings (loss) per share attributable to Vishay stockholders	$	0.40	$	(0.32	)	$	0.63	$	(0.47	)

Diluted earnings (loss) per share for the periods presented do not reflect the following weighted average potential common shares that would have an antidilutive effect or have unsatisfied performance conditions (in thousands):

	Fiscal quarters ended		Six fiscal months ended
	July 3, 2010	June 27, 2009	July 3, 2010	June 27, 2009
Convertible and exchangeable notes:
Convertible Subordinated Notes, due 2023	87	87	87	87
Exchangeable Unsecured Notes, due 2102	-	6,176	-	6,176
Weighted average employee stock options	2,514	3,852	2,595	3,872
Weighted average warrants	8,824	8,824	8,824	8,824
Weighted average other	9	312	47	316

In periods in which they are dilutive, if the potential common shares related to the convertible and exchangeable notes are included in the computation, the related interest savings, net of tax, assuming conversion/exchange is added to the net earnings used to compute earnings per share.

The convertible subordinated notes, due 2023 are only convertible upon the occurrence of certain events. While none of these events has occurred as of July 3, 2010, certain conditions which could trigger conversion have been deemed to be non-substantive, and accordingly, the Company has always assumed the conversion of these notes in its diluted earnings per share computation during periods in which they are dilutive.

The Company intends to waive its rights to settle the principal amount of the Convertible Subordinated Notes, due 2023, in shares of Vishay common stock. Accordingly, the notes would be included in the diluted earnings per share computation using the “treasury stock method” (similar to options and warrants) rather than the “if converted method” otherwise required for convertible debt. If the average market price is less than $21.28, no shares are included in the diluted earnings per share computation. The remaining notes, with an aggregate principal amount of $1,870,000, were redeemed at Vishay’s option on August 1, 2010.

Fair Value Measurements

6 Months Ended

Jul. 03, 2010

Statement [Line Items]

Fair Value Measurements

Note 12 – Fair Value Measurements

The fair value measurement accounting guidance establishes a valuation hierarchy of the inputs used to measure fair value. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs that reflect the Company’s own assumptions.

An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. There have been no changes in the classification of any financial instruments within the fair value hierarchy in the periods presented.

The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis (in thousands):

	Total
	Fair Value		Level 1		Level 2		Level 3
July 3, 2010:
Assets held in rabbi trusts	$	26,390	$	6,838	$	19,552	$	-

December 31, 2009:
Assets held in rabbi trusts	$	27,462	$	7,389	$	20,073	$	-

The Company maintains non-qualified trusts, referred to as “rabbi” trusts, to fund payments under deferred compensation and non-qualified pension plans. Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale and company-owned life insurance assets. The marketable securities held in the rabbi trusts are valued using quoted market prices on the last business day of the year. The Company-owned life insurance assets are valued in consultation with the Company’s insurance brokers using the value of underlying assets of the insurance contracts. The fair value measurement of the marketable securities held in the rabbi trust is considered a Level 1 measurement and the measurement of the Company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy. Effective July 6, 2010, $3,701,000 of these assets were transferred to VPG equal to the deferred compensation and non-qualified pension liabilities of employees of VPG, which were retained by VPG.

The fair value of the long-term debt at July 3, 2010 and December 31, 2009 is approximately $265.1 million and $280.6 million, respectively, compared to its carrying value of $322.0 million and $336.1 million, respectively. The Company estimates the fair value of its long-term debt using a combination of quoted market prices for similar financing arrangements and expected future payments discounted at risk-adjusted rates, which are considered level 2 inputs.

The Company’s financial instruments include cash and cash equivalents, accounts receivable, long-term notes receivable, short-term notes payable, and accounts payable. The carrying amounts for these financial instruments reported in the consolidated balance sheets approximate their fair values.

Subsequent Events

6 Months Ended

Jul. 03, 2010

Statement [Line Items]

Subsequent Events

Note 13 – Subsequent Events

Consummation of the Spin-off of VPG

On October 27, 2009, Vishay announced that it intended to spin off its measurements and foil resistors businesses into an independent, publicly-traded company to be named Vishay Precision Group, Inc.

On June 15, 2010, the Board of Directors of Vishay approved the spin-off of VPG and on July 6, 2010, Vishay completed the spin-off through a tax-free stock dividend to Vishay’s stockholders. Vishay’s common stockholders received 1 share of VPG common stock for every 14 shares of Vishay common stock they held on the record date, June 25, 2010, and Vishay’s Class B common stockholders received 1 share of VPG Class B common stock for every 14 shares of Vishay Class B common stock they held on the record date.

Until July 6, 2010, including all periods presented in these consolidated condensed financial statements, VPG was part of Vishay and its assets, liabilities, results of operations, and cash flows are included in the amounts reported in these consolidated condensed financial statements. The product lines that comprise VPG are included in the VPG reporting segment. See Note 9 for further information on the effect that VPG had on Vishay’s consolidated results.

Relationship with VPG after Spin-off

Following the spin-off, VPG is an independent company and Vishay retains no ownership interest. However, two members of the VPG board of directors also serve on Vishay’s board of directors.

In connection with the completion of the spin-off, on July 6, 2010, Vishay and its subsidiaries entered into several agreements with VPG and its subsidiaries that govern the relationship of the parties following the spin-off. Among the agreements entered into with VPG and its subsidiaries were a transition services agreement, several lease agreements, and supply agreements. None of the agreements are expected to have a material impact on Vishay’s financial position, results of operations, or liquidity.

Vishay also entered into a trademark license agreement with VPG pursuant to which Vishay granted VPG the license to use certain trademarks, service marks, logos, trade names, entity names, and domain names which include the term “Vishay.” The license granted VPG the limited, exclusive, royalty-free right and license to use certain marks and names incorporating the term “Vishay” in connection with the design, development, manufacture, marketing, provision and performance of certain VPG products that do not compete with any products within Vishay’s product range as constituted immediately following the separation and certain services provided in connection with the products. The license cannot be terminated except as a result of willful misconduct or liquidation bankruptcy of VPG.

As a result of this continuing involvement, Vishay will not restate prior periods to present VPG as a discontinued operation.

The table below summarizes the balance sheet information of VPG as of the end of the second fiscal quarter and the date of the spin-off, respectively (in thousands):

	July 3,			July 6,
	2010			2010
	(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	70,979		$	70,600
Accounts receivable, net		32,017			32,017
Net inventories		44,075			44,075
Deferred income taxes		4,968			4,968
Prepaid expenses and other current assets		5,503			5,503
Total current assets		157,542			157,163

Property and equipment, net		45,167			45,167
Intangible assets, net		15,371			15,371
Other assets		8,376			8,376
Total assets	$	226,456		$	226,077

Liabilities and equity
Current liabilities:
Notes payable to banks	$	534		$	534
Trade accounts payable		7,029			7,029
Payroll and related expenses		8,212			8,212
Other accrued expenses		7,235			7,235
Income taxes		4,278			4,278
Total current liabilities		27,288			27,288

Long-term debt, less current portion		1,608			11,566
Deferred income taxes		6,038			6,038
Other liabilities		6,053			6,052
Accrued pension and other postretirement costs		10,432			10,432
Total liabilities		51,419			61,376

Equity:
Vishay Intertechnology, Inc. investment		188,874			178,538
Accumulated other comprehensive income (loss)		(14,003	)		(14,003	)
Total Vishay Intertechnology, Inc. equity		174,871			164,535
Noncontrolling interests		166			166
Total equity		175,037			164,701
Total liabilities and equity	$	226,456		$	226,077

Modification of Exchangeable Notes due 2102

On December 13, 2002, Vishay issued $105,000,000 in nominal (or principal) amount of its floating rate unsecured exchangeable notes due 2102 in connection with an acquisition. The notes are governed by a note instrument and a put and call agreement dated December 13, 2002. The notes may be put to Vishay in exchange for shares of its common stock and, under certain circumstances, may be called by Vishay for similar consideration.

Under the terms of the put and call agreement, by reason of the spin-off, Vishay was required to take action so that the existing notes are deemed exchanged as of the date of the spin-off, for a combination of new notes of Vishay reflecting a lower principal amount of the notes and new notes issued by VPG.

Based on the relative trading prices of Vishay and VPG common stock on the ten trading days following the spin-off, Vishay retained the liability for an aggregate $95,041,540 principal amount of exchangeable notes effective July 6, 2010. The assumption of a portion of the liability by VPG was recorded as a reduction in parent net investment just prior to the completion of the spin-off.

The notes are subject to a put and call agreement under which the holders may at any time put the notes to Vishay in exchange for 6,176,471 shares of Vishay’s common stock in the aggregate, and Vishay may call the notes in exchange for cash or for shares of its common stock at any time after January 2, 2018. The put/call rate of the Vishay notes is $15.39 per share of common stock.

The notes bear interest at LIBOR. Interest continues to be payable quarterly on March 31, June 30, September 30, and December 31 of each calendar year. The interest rate could be further reduced to 50% of LIBOR after December 31, 2010 if the price of Vishay’s common stock is above $40.73 per share for thirty or more consecutive trading days.

Income Taxes	6 Months Ended
Income Taxes	Jul. 03, 2010
Statement [Line Items]
Income Taxes	Note 4 – Income Taxes The provision for income taxes consists of provisions for federal, state, and foreign income taxes. The effective tax rates for the periods ended July 3, 2010 and June 27, 2009 reflect the Company’s expected tax rate on reported income from continuing operations before income tax and tax adjustments. The Company operates in an international environment with significant operations in various locations outside the United States. Accordingly, the consolidated income tax rate is a composite rate reflecting the Company’s earnings and the applicable tax rates in the various locations where the Company operates. During the six fiscal months ended July 3, 2010, the liabilities for unrecognized tax benefits decreased by a net $2.6 million, principally due to settlements and foreign exchange effects. The Company recognized no tax benefit associated with the executive employment agreement charge of $57.8 million discussed in Note 10. The Company recorded no tax expense associated with the gain of $28.2 million recognized upon reimbursement of purchase price described in Note 2.

Consolidated Condensed Statement of Equity (Parenthetical)	6 Months Ended
	Jul. 03, 2010 shares
Statement [Line Items]
Phantom and restricted stock issuances, shares	80,343
Cancellation of shares, shares	68,976
Conversions from Class B to common stock, shares	49