Operating Segments and Geographic Information | Operating Segments and Geographic Information We are organized around two global businesses: Smart Infrastructure Solutions and Automation Solutions. As Belden continues to advance forward with solutions focused on data infrastructure, we renamed our two reportable segments during 2024 from Enterprise Solutions and Industrial Automation Solutions to Smart Infrastructure Solutions and Automation Solutions, respectively. The composition of the segments did not change as a result of these name changes. Each of the global businesses represents a reportable segment. Our chief operating decision maker is our President and Chief Executive Officer. The key measure of segment profit or loss used by him to review segment operating results is Segment EBITDA. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; adjustments related to acquisitions and divestitures; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation. Segment Revenues represent non-affiliate revenues. Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Operating Segment Information Years Ended December 31, 2024 2023 2022 (In thousands) Smart Infrastructure Solutions Segment Revenues $ 1,143,790 $ 1,122,831 $ 1,198,478 Affiliate Revenues 142 127 633 Segment Cost of Sales (789,272) (774,958) (852,231) Segment Selling, General and Administrative Expenses (177,414) (171,873) (160,802) Segment Research and Development Expenses (37,154) (27,020) (24,561) Segment EBITDA $ 140,092 $ 149,107 $ 161,517 Segment assets $ 663,623 $ 637,105 $ 593,653 Expenditures of property, plant and equipment $ 33,343 $ 36,237 $ 33,535 Items excluded from segment measures: Depreciation expense $ 26,231 $ 24,943 $ 23,387 Amortization of intangibles 28,642 20,085 17,595 Amortization of software development intangible assets 12 — 54 Adjustments related to acquisitions and divestitures 3,572 5,359 5,589 Severance, restructuring, and acquisition integration costs 15,165 11,221 9,200 Years Ended December 31, 2024 2023 2022 (In thousands) Automation Solutions Segment Revenues $ 1,317,189 $ 1,389,253 $ 1,408,007 Affiliate Revenues 801 1,296 442 Segment Cost of Sales (701,251) (739,129) (792,681) Segment Selling, General and Administrative Expenses (275,024) (278,406) (260,694) Segment Research and Development Expenses (71,949) (85,686) (77,995) Segment EBITDA $ 269,766 $ 287,328 $ 277,079 Segment assets $ 783,353 $ 727,477 $ 677,235 Expenditures of property, plant and equipment $ 66,063 $ 64,072 $ 58,713 Items excluded from segment measures: Depreciation expense $ 30,152 $ 26,436 $ 23,282 Amortization of intangibles 20,152 20,290 20,265 Amortization of software development intangible assets 10,552 7,692 3,821 Adjustments related to acquisitions and divestitures 1,192 818 2,244 Severance, restructuring, and acquisition integration costs 7,649 13,931 7,485 Years Ended December 31, 2024 2023 2022 (In thousands) Total Segments Segment Revenues $ 2,460,979 $ 2,512,084 $ 2,606,485 Affiliate Revenues 943 1,423 1,075 Segment Cost of Sales (1,490,523) (1,514,087) (1,644,912) Segment Selling, General and Administrative Expenses (452,438) (450,279) (421,496) Segment Research and Development Expenses (109,103) (112,706) (102,556) Segment EBITDA $ 409,858 $ 436,435 $ 438,596 Segment assets $ 1,446,976 $ 1,364,582 $ 1,270,888 Expenditures of property, plant and equipment $ 99,406 $ 100,309 $ 92,248 Items excluded from segment measures: Depreciation expense $ 56,383 $ 51,379 $ 46,669 Amortization of intangibles 48,794 40,375 37,860 Amortization of software development intangible assets 10,564 7,692 3,875 Adjustments related to acquisitions and divestitures 4,764 6,177 7,833 Severance, restructuring, and acquisition integration costs 22,814 25,152 16,685 The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. Years Ended December 31, 2024 2023 2022 (In thousands) Total segment and consolidated revenues $ 2,460,979 $ 2,512,084 $ 2,606,485 Total Segment EBITDA $ 409,858 $ 436,435 $ 438,596 Depreciation expense (56,383) (51,379) (46,669) Amortization of intangibles (48,794) (40,375) (37,860) Severance, restructuring, and acquisition integration costs (1) (22,814) (25,152) (16,685) Amortization of software development intangible assets (10,564) (7,692) (3,875) Adjustments related to acquisitions and divestitures (2) (4,764) (6,177) (7,833) Gain on sale of assets (3) — 12,056 37,891 Eliminations (79) (198) (231) Consolidated operating income 266,460 317,518 363,334 Interest expense, net (38,303) (33,625) (43,554) Loss on debt extinguishment — — (6,392) Non-operating pension benefit (cost) (215) 1,863 4,005 Consolidated income from continuing operations before taxes $ 227,942 $ 285,756 $ 317,393 (1) Includes costs associated with acquisitions, productivity initiatives, and manufacturing footprint actions. (2) Includes fair value adjustments of acquired assets and costs associated with a former subsidiary that was previously divested. (3) During 2023, we sold certain real estate in Canada for $13.8 million, net of transaction costs and recognized a $12.1 million pre-tax gain on sale. During 2022, we sold certain real estate in the United States for $42.2 million, net of transaction costs and recognized a $37.9 million pre-tax gain on sale. See Note 11, Property, Plant, and Equipment , for details. Below are reconciliations of other segment measures to the consolidated totals. Years Ended December 31, 2024 2023 2022 (In thousands) Total segment assets $ 1,446,976 $ 1,364,582 $ 1,270,888 Cash and cash equivalents 370,302 597,044 687,676 Goodwill 1,018,677 907,331 862,253 Intangible assets, less accumulated amortization 419,074 269,144 246,830 Deferred income taxes 16,353 15,739 14,642 Corporate assets 56,556 86,351 79,386 Total assets $ 3,327,938 $ 3,240,191 $ 3,161,675 Total segment expenditures of property, plant and equipment $ 99,406 $ 100,309 $ 92,248 Corporate expenditures of property, plant and equipment 29,694 16,422 12,846 Total expenditures of property, plant and equipment $ 129,100 $ 116,731 $ 105,094 Geographic Information The Company attributes foreign sales based on the location of the customer purchasing the product. The table below summarizes net sales and long-lived assets for the years ended December 31, 2024, 2023, and 2022 for the following countries: U.S., Canada, China, and Germany. No other individual foreign country’s net sales or long-lived assets are material to the Company. United Canada China Germany All Other Total (In thousands, except percentages) Year ended December 31, 2024 Revenues $ 1,392,262 $ 160,012 $ 92,108 $ 118,256 $ 698,341 $ 2,460,979 Percent of total revenues 57 % 6 % 4 % 5 % 28 % 100 % Long-lived assets $ 290,282 $ 13,799 $ 38,622 $ 62,170 $ 154,180 $ 559,053 Year ended December 31, 2023 Revenues $ 1,383,212 $ 169,122 $ 104,718 $ 134,130 $ 720,902 $ 2,512,084 Percent of total revenues 55 % 7 % 4 % 5 % 29 % 100 % Long-lived assets $ 230,267 $ 13,355 $ 45,326 $ 67,758 $ 144,606 $ 501,312 Year ended December 31, 2022 Revenues $ 1,448,247 $ 188,013 $ 126,904 $ 131,485 $ 711,836 $ 2,606,485 Percent of total revenues 56 % 7 % 5 % 5 % 27 % 100 % Long-lived assets $ 203,070 $ 12,805 $ 45,866 $ 44,061 $ 122,565 $ 428,367 Major Customer Revenues generated in both the Smart Infrastructure Solutions and Automation Solutions segments from our largest customer were approximately $348.1 million (14% of revenues), $378.1 million (15% of revenues), and $387.7 million (15% of revenues) for the years ended December 31, 2024, 2023, and 2022, respectively. At December 31, 2024 and 2023, we had $55.9 million and $61.9 million in accounts receivable outstanding from this customer, which represented approximately 14% and 15% of our total accounts receivable balance as of December 31, 2024 and 2023, respectively. |