Exhibit 99.2
BELDEN INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On December 16, 2010, Belden Inc. (Belden) completed the sale of Trapeze Networks, Inc. (Trapeze) to Juniper Networks, Inc. for a purchase price of approximately $152.1 million. Approximately $15.2 million of the purchase price was deposited into an escrow account according to terms negotiated between the parties. The purchase price is subject to adjustment based on a post-closing analysis of the closing date balance sheet. The following unaudited condensed pro forma consolidated balance sheet of Belden as of October 3, 2010, assumes that the sale of Trapeze had been completed as of such date. The following unaudited condensed pro forma consolidated statements of operations of Belden for the nine months ended October 3, 2010 and for the years ended December 31, 2009 and 2008 assume that the sale of Trapeze had been completed as of July 16, 2008, the date that Belden acquired Trapeze. The unaudited pro forma results do not purport to be indicative of the results that would have been obtained if the sale of Trapeze had been completed as of such dates.
BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
OCTOBER 3, 2010
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
OCTOBER 3, 2010
(Unaudited)
Pro Forma Adjustments | ||||||||||||||||
Belden Inc. | Other | Belden Inc. | ||||||||||||||
Historical | Trapeze (1) | Adjustments (2) | Pro Forma | |||||||||||||
(In thousands) | ||||||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 296,081 | $ | (482 | ) | $ | 136,890 | $ | 432,489 | |||||||
Receivables, net | 291,132 | (8,391 | ) | 15,210 | 297,951 | |||||||||||
Inventories, net | 167,483 | (3,064 | ) | — | 164,419 | |||||||||||
Deferred income taxes | 26,854 | (5,882 | ) | — | 20,972 | |||||||||||
Other current assets | 18,077 | (1,862 | ) | — | 16,215 | |||||||||||
Total current assets | 799,627 | (19,681 | ) | 152,100 | 932,046 | |||||||||||
Property, plant and equipment, less accumulated depreciation | 282,517 | (1,151 | ) | — | 281,366 | |||||||||||
Goodwill | 308,864 | (39,904 | ) | — | 268,960 | |||||||||||
Intangible assets, less accumulated amortization | 128,014 | (21,764 | ) | — | 106,250 | |||||||||||
Deferred income taxes | 36,376 | (29,044 | ) | — | 7,332 | |||||||||||
Other long-lived assets | 70,261 | (543 | ) | — | 69,718 | |||||||||||
$ | 1,625,659 | $ | (112,087 | ) | $ | 152,100 | $ | 1,665,672 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 203,835 | $ | (4,010 | ) | $ | — | $ | 199,825 | |||||||
Accrued liabilities | 140,602 | (10,450 | ) | 12,700 | 142,852 | |||||||||||
Total current liabilities | 344,437 | (14,460 | ) | 12,700 | 342,677 | |||||||||||
Long-term debt | 551,247 | — | — | 551,247 | ||||||||||||
Postretirement benefits | 115,642 | — | — | 115,642 | ||||||||||||
Other long-term liabilities | 31,050 | (1,603 | ) | — | 29,447 | |||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock | 503 | — | — | 503 | ||||||||||||
Other stockholders’ equity | 582,780 | (96,024 | ) | 139,400 | 626,156 | |||||||||||
Total stockholders’ equity | 583,283 | (96,024 | ) | 139,400 | 626,659 | |||||||||||
$ | 1,625,659 | $ | (112,087 | ) | $ | 152,100 | $ | 1,665,672 | ||||||||
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BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED OCTOBER 3, 2010
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED OCTOBER 3, 2010
(Unaudited)
Belden Inc. | Belden Inc. | |||||||||||
Historical | Trapeze (3) | Pro Forma | ||||||||||
(In thousands, except per share data) | ||||||||||||
Revenues | $ | 1,237,961 | $ | 46,047 | $ | 1,191,914 | ||||||
Cost of sales | (868,061 | ) | (22,045 | ) | (846,016 | ) | ||||||
Gross profit | 369,900 | 24,002 | 345,898 | |||||||||
Selling, general and administrative expenses | (219,775 | ) | (16,020 | ) | (203,755 | ) | ||||||
Research and development | (42,991 | ) | (11,885 | ) | (31,106 | ) | ||||||
Amortization of intangibles | (12,558 | ) | (4,657 | ) | (7,901 | ) | ||||||
Income from equity method investment | 8,905 | — | 8,905 | |||||||||
Operating income (loss) | 103,481 | (8,560 | ) | 112,041 | ||||||||
Interest expense | (38,912 | ) | (1 | ) | (38,911 | ) | ||||||
Interest income | 446 | 49 | 397 | |||||||||
Other income | 1,465 | — | 1,465 | |||||||||
Income (loss) from continuing operations before taxes | 66,480 | (8,512 | ) | 74,992 | ||||||||
Income tax benefit (expense) | (14,014 | ) | 2,765 | (16,779 | ) | |||||||
Income (loss) from continuing operations | $ | 52,466 | $ | (5,747 | ) | $ | 58,213 | |||||
Weighted average number of common shares and equivalents: | ||||||||||||
Basic | 46,762 | 46,762 | ||||||||||
Diluted | 47,665 | 47,665 | ||||||||||
Income from continuing operations per share: | ||||||||||||
Basic | $ | 1.12 | $ | 1.24 | ||||||||
Diluted | 1.10 | 1.22 |
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BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2009
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2009
(Unaudited)
Belden Inc. | Belden Inc. | |||||||||||
Historical | Trapeze (3) | Pro Forma | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Revenues | $ | 1,415,262 | $ | 53,246 | $ | 1,362,016 | ||||||
Cost of sales | (1,002,064 | ) | (27,733 | ) | (974,331 | ) | ||||||
Gross profit | 413,198 | 25,513 | 387,685 | |||||||||
Selling, general and administrative expenses | (289,672 | ) | (27,199 | ) | (262,473 | ) | ||||||
Research and development | (60,870 | ) | (20,428 | ) | (40,442 | ) | ||||||
Amortization of intangibles | (16,080 | ) | (6,210 | ) | (9,870 | ) | ||||||
Loss on sale of assets | (17,184 | ) | — | (17,184 | ) | |||||||
Asset impairment | (27,751 | ) | — | (27,751 | ) | |||||||
Operating income (loss) | 1,641 | (28,324 | ) | 29,965 | ||||||||
Interest expense | (41,857 | ) | (3 | ) | (41,854 | ) | ||||||
Interest income | 1,046 | 3 | 1,043 | |||||||||
Other income | 4,756 | — | 4,756 | |||||||||
Loss from continuing operations before taxes | (34,414 | ) | (28,324 | ) | (6,090 | ) | ||||||
Income tax benefit (expense) | 10,909 | 12,399 | (1,490 | ) | ||||||||
Loss from continuing operations | $ | (23,505 | ) | $ | (15,925 | ) | $ | (7,580 | ) | |||
Weighted average number of common shares and equivalents: | ||||||||||||
Basic | 46,594 | 46,594 | ||||||||||
Diluted | 46,594 | 46,594 | ||||||||||
Loss from continuing operations per share: | ||||||||||||
Basic | $ | (0.50 | ) | $ | (0.16 | ) | ||||||
Diluted | (0.50 | ) | (0.16 | ) |
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BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2008
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2008
(Unaudited)
Belden Inc. | Belden Inc. | |||||||||||
Historical | Trapeze (3) | Pro Forma | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Revenues | $ | 2,005,890 | $ | 13,722 | $ | 1,992,168 | ||||||
Cost of sales | (1,442,208 | ) | (9,262 | ) | (1,432,946 | ) | ||||||
Gross profit | 563,682 | 4,460 | 559,222 | |||||||||
Selling, general and administrative expenses | (362,122 | ) | (14,432 | ) | (347,690 | ) | ||||||
Research and development | (50,089 | ) | (8,268 | ) | (41,821 | ) | ||||||
Amortization of intangibles | (13,440 | ) | (3,566 | ) | (9,874 | ) | ||||||
Loss on sale of assets | (3,727 | ) | — | (3,727 | ) | |||||||
Goodwill impairment | (433,737 | ) | (29,541 | ) | (404,196 | ) | ||||||
Other asset impairment | (42,755 | ) | (3,267 | ) | (39,488 | ) | ||||||
Operating loss | (342,188 | ) | (54,614 | ) | (287,574 | ) | ||||||
Interest expense | (37,908 | ) | — | (37,908 | ) | |||||||
Interest income | 5,300 | 15 | 5,285 | |||||||||
Other income | 6,326 | — | 6,326 | |||||||||
Loss from continuing operations before taxes | (368,470 | ) | (54,599 | ) | (313,871 | ) | ||||||
Income tax benefit (expense) | 6,644 | 9,126 | (2,482 | ) | ||||||||
Loss from continuing operations | $ | (361,826 | ) | $ | (45,473 | ) | $ | (316,353 | ) | |||
Weighted average number of common shares and equivalents: | ||||||||||||
Basic | 44,692 | 44,692 | ||||||||||
Diluted | 44,692 | 44,692 | ||||||||||
Loss from continuing operations per share: | ||||||||||||
Basic | $ | (8.10 | ) | $ | (7.08 | ) | ||||||
Diluted | (8.10 | ) | (7.08 | ) |
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BELDEN INC.
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) | Elimination of Trapeze’s assets and liabilities (intercompany balances are excluded) from Belden’s historical net assets as a result of the disposition. | ||
(2) | Reflects other effects of the disposition including: (i) the cash proceeds of $136.9 million received at closing, (ii) the receivable of $15.2 million related to the amount deposited into an escrow account, and (iii) tax adjustments related to the disposition. The estimated after-tax gain on the sale of Trapeze assuming the disposition closed on October 3, 2010 is $43.4 million. The actual gain will be determined as of the closing date, December 16, 2010, and could be materially different than this estimate. | ||
(3) | Deduction of Trapeze’s revenues and expenses from Belden’s historical results as a result of the disposition. |
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