13. 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:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Net Sales to External Customers:
North America	$	76,504		$	35,064		$	153,264		$	63,795
Asia		48,610			51,223			94,131			94,271
Europe		20,544			13,152			40,278			24,019
	$	145,658		$	99,439		$	287,673		$	182,085

Net Sales:
North America	$	84,491		$	39,405		$	171,508		$	70,859
Asia		80,189			61,968			153,338			111,860
Europe		41,967			16,550			83,504			27,441
Less intercompany net sales		(60,989	)		(18,484	)		(120,677	)		(28,075	)
	$	145,658		$	99,439		$	287,673		$	182,085

Income from Operations:
North America	$	(1,215	)	$	(1,617	)	$	2,255		$	(734	)
Asia		5,161			4,715			5,713			6,388
Europe		3,506			616			8,530			941
	$	7,452		$	3,714		$	16,498		$	6,595

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 from operations represents net sales less operating costs and expenses and does not include any amounts related to intercompany transactions.

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

Recent Acquisitions – The 2014 Acquisitions contributed to Bel's segment sales and income from operations during the three and six months ended June 30, 2015 and 2014 as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Net Sales to External Customers:
North America:
Power Solutions	$	32,999	$	5,037	$	66,398	$	5,037
Connectivity Solutions		13,986		-		28,475		-
		46,985		5,037		94,873		5,037
Asia:
Power Solutions		292		357		642		357
Connectivity Solutions		1,160		-		2,238		-
		1,452		357		2,880		357
Europe:
Power Solutions		8,065		1,839		15,981		1,839
Connectivity Solutions		1,913		-		3,491		-
		9,978		1,839		19,472		1,839

	$	58,415	$	7,233	$	117,225	$	7,233

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Income (Loss) from Operations:
North America:
Power Solutions	$	(2,954	)	$	(1,125	)	$	(1,855	)	$	(1,125	)
Connectivity Solutions		585			-			1,521			-
		(2,369	)		(1,125	)		(334	)		(1,125	)
Asia:
Power Solutions		(563	)		(162	)		(1,510	)		(162	)
Connectivity Solutions		(327	)		-			(493	)		-
		(890	)		(162	)		(2,003	)		(162	)
Europe:
Power Solutions		1,858			297			6,318			297
Connectivity Solutions		217			-			398			-
		2,075			297			6,716			297

	$	(1,184	)	$	(990	)	$	4,379		$	(990	)