12. Segments

The Company operates in one industry with three reportable operating segments, which are geographic in nature. The segments consist of North America, Asia and Europe. The primary criteria by which financial performance is evaluated and resources are allocated are net sales and income from operations. The following is a summary of key financial data:

	2014			2013			2012
Net Sales to External Customers:
North America	$	217,258		$	116,548		$	126,469
Asia		201,338			193,647			128,319
Europe		68,480			38,994			31,806
	$	487,076		$	349,189		$	286,594

Net Sales:
North America	$	248,007		$	128,472		$	138,966
Asia		275,765			225,151			167,756
Europe		114,748			40,742			33,329
Less intercompany
net sales		(151,444	)		(45,176	)		(53,457	)
	$	487,076		$	349,189		$	286,594

Income (Loss) from Operations:
North America	$	(4,465	)	$	(1,560	)	$	1,336
Asia		13,338			15,356			(42	)
Europe		5,220			1,251			369
	$	14,093		$	15,047		$	1,663

Total Assets:
North America	$	311,298		$	117,261		$	84,609
Asia		254,822			148,780			148,351
Europe		69,905			42,100			42,229
	$	636,025		$	308,141		$	275,189

Capital Expenditures:
North America	$	3,862		$	2,064		$	2,455
Asia		4,089			4,551			2,003
Europe		1,091			325			286
	$	9,042		$	6,940		$	4,744

Depreciation and Amortization Expense:
North America	$	7,921		$	4,282		$	4,081
Asia		8,143			6,540			4,076
Europe		3,682			1,560			956
	$	19,746		$	12,382		$	9,113

Net Sales – Segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales. Intercompany sales include finished products manufactured in foreign countries which are then transferred to the United States and Europe for sale; finished goods manufactured in the United States which are transferred to Europe and Asia for sale; and semi-finished components manufactured in the United States which are sold to Asia for further processing. Income (loss) from operations represents net sales less operating costs and expenses.

The following items are included in the segment data presented above:

Recent Acquisitions – At December 31, 2014, Power Solutions' total assets of $203.7 million and Connectivity Solutions' total assets of $133.1 million are included in the table above. See Note 2, Acquisitions, for further information on the 2014 Acquisitions.

The acquisitions in 2012-2014 contributed to Bel's segment sales and income from operations as follows:

	Year Ended
	December 31,
	2014			2013			2012
Sales to External Customers:
North America:
Power Solutions	$	73,530		$	-		$	-
Connectivity Solutions		28,242			-			-
Array		6,842			2,074			-
		108,614			2,074			-
Asia:
Power Solutions		3,401			-			-
Connectivity Solutions		2,469			-			-
TRP		66,082			65,141			-
		71,952			65,141			-
Europe:
Power Solutions		23,882			-			-
Connectivity Solutions		2,812			-			-
TRP		2,498			1,407			-
GigaCom		8			4			57
Fibreco		6,197			7,483			2,062
Powerbox		2,901			3,252			1,083
		38,298			12,146			3,202
Net sales from 2012-2014 acquisitions		218,864			79,361			3,202

Income (loss) from operations:
North America:
Power Solutions		(712	)		-			-
Connectivity Solutions		(2,808	)		-			-
Array		(801	)		(936	)		-
		(4,321	)		(936	)		-
Asia:
Power Solutions		(3,603	)		-			-
Connectivity Solutions		493			-			-
TRP		13,152			9,007			-
		10,042			9,007			-
Europe:
Power Solutions		4,882			-			-
Connectivity Solutions		(167	)		-			-
TRP		366			289			-
GigaCom		(23	)		(986	)		(392	)
Fibreco		817			2,101			297
Powerbox		(1,869	)		(392	)		10
		4,006			1,012			(85	)
Total income (loss) from operations
from 2012-2014 acquisitions	$	9,727		$	9,083		$	(85	)

Restructuring Charges – The following restructuring charges are included in income (loss) from operations by segment. See Note 3, Restructuring Activities, for further information on the Company's restructuring efforts.

	2014		2013		2012
North America	$	1,539	$	963	$	4,558
Asia		-		249		612
Europe		293		175		75
	$	1,832	$	1,387	$	5,245

Entity-Wide Information

The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line.

	2014		2013		2012
Net Sales by Geographic Location:

United States	$	217,258	$	116,548	$	126,469
Macao		195,469		193,647		128,319
United Kingdom		22,852		16,538		13,203
Germany		18,663		16,585		14,165
Switzerland		15,236		-		-
All other foreign countries		17,598		5,871		4,438
Consolidated net sales	$	487,076	$	349,189	$	286,594

Net Sales by Major Product Line:

Connectivity solutions	$	152,954	$	111,653	$	109,245
Magnetic solutions		174,255		170,166		100,529
Power solutions and protection		159,867		67,370		76,820
Consolidated net sales	$	487,076	$	349,189	$	286,594

The following is a summary of long-lived assets by geographic area as of December 31, 2014 and 2013:

	2014		2013
Long-lived Assets by Geographic Location:

United States	$	43,932	$	30,102
People's Republic of China (PRC)		43,174		20,985
Slovakia		9,675		-
Switzerland		3,321		-
United Kingdom		2,536		1,802
All other foreign countries		1,723		1,455
Consolidated long-lived assets	$	104,361	$	54,344

Long-lived assets consist of property, plant and equipment, net and other assets of the Company that are identified with the operations of each geographic area.

The territory of Hong Kong became a Special Administrative Region ("SAR") of the PRC in the middle of 1997. The territory of Macao became a SAR of the PRC at the end of 1999. Management cannot presently predict what future impact this will have on the Company, if any, or how the political climate in the PRC will affect the Company's contractual arrangements in the PRC. A significant portion of the Company's manufacturing operations and approximately 35.1% of its identifiable assets are located in Asia.

Net Sales to Major Customers

The Company had sales to one customer in excess of ten percent of consolidated net sales in 2014. The revenue associated with this customer was $76.4 million in 2014 (15.7% of sales). The Company had sales to two customers in excess of ten percent of consolidated net sales in each of 2013 and 2012. The combined revenue from these two customers was $103.3 million (29.6% of total sales) during the year ended December 31, 2013 and $70.6 million (24.6% of total sales) during the year ended December 31, 2012. Sales related to these significant customers were primarily reflected in the Asia operating segments during each of the three years discussed.