Note 14 - Segments

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14.  SEGMENTS 

The Company operates in one industry with three reportable operating segments, which represent the Company's three product groups, consisting of Power Solutions and Protection, Connectivity Solutions and Magnetic Solutions:

Power Solutions and Protection Segment: This segment includes internal and external AC/DC power supplies, DC/DC converters and DC/AC inverters utilized in defense, commercial aerospace, industrial, networking and consumer applications. Bel circuit protection products include board level fuses (miniature, micro and surface mount), and Polymeric PTC (Positive Temperature Coefficient) devices, designed for the global electronic and telecommunication markets.

Connectivity Solutions Segment: This segment includes high speed and harsh environment copper and optical fiber connectors and integrated assemblies, providing connectivity solutions within the commercial aerospace, military communications, defense, network infrastructure, structured building cabling and several industrial applications.

Magnetic Solutions Segment:  This segment includes the Company’s ICM products, which integrate RJ45 connectors with discrete magnetic components to provide better performance and a more robust device, substantially reducing board space and optimizing performance. This segment also includes Power Transformers for use in a wide array of applications, including industrial instrumentation, alarm and security systems, motion control, elevators, and medical products.

There are no intercompany sales between the segments.

On a quarterly basis, the Company’s chief operating decision maker (CODM), the Chief Executive Officer, utilizes gross profit (a U.S. GAAP measure) as the profitability measure in assessing segment performance. The CODM uses segment gross profit to make commercial and operational related decisions across the business and when evaluating capital deployment opportunities. In accordance with ASU 2023-07, the Company has elected to disclose gross profit as its required measure of segment profit and loss since it represents the measure of segment performance that is most consistent with U.S. GAAP measurement principles.

The following is a summary of key financial data for each of the three years ended December 31, 2024, 2023 and 2022. In addition to total segment revenues and segment gross profit, the CODM’s quarterly reporting package also includes cost of sales in arriving at the disclosed measure of profitability. The Company has determined that cost of sales is a significant segment expense and is therefore included in the financial data disclosure tables below.

	Year Ended December 31, 2024
	Power Solutions			Connectivity			Magnetic			Corporate/
	and Protection			Solutions			Solutions			Other			Total
Net sales	$	245,551		$	220,370		$	68,871		$	-		$	534,792
Cost of sales		141,425			138,606			51,418			985			332,434
Gross profit		104,126			81,764			17,453			(985	)		202,358
Gross profit %		42.4	%		37.1	%		25.3	%		nm			37.8	%
Research and development costs														23,586
Selling, general and administrative expenses														110,616
Impairment of CUI tradename														400
Restructuring charges														3,459
Interest expense														4,078
Interest income														(4,754	)
Other income/expense, net														3,165
Earnings before provision for income taxes													$	61,808
Other Segment Disclosures:
Total Assets	$	654,131		$	177,443		$	51,415		$	66,800		$	949,789
Capital Expenditures		5,446			7,908			281			473			14,108
Depreciation and Amortization Expense		8,284			6,853			819			501			16,457
Interest Expense		1,327			68			-			2,683			4,078

	Year Ended December 31, 2023
	Power Solutions			Connectivity			Magnetic			Corporate/
	and Protection			Solutions			Solutions			Other			Total
Net sales	$	314,105		$	210,572		$	115,136		$	-		$	639,813
Cost of sales		194,364			138,541			89,822			1,237			423,964
Gross profit		119,741			72,031			25,314			(1,237	)		215,849
Gross profit %		38.1	%		34.2	%		22.0	%		nm			33.7	%
Research and development costs														22,487
Selling, general and administrative expenses														99,091
Restructuring charges														10,114
Gain on sale of properties														(3,819	)
Gain on sale of Czech Republic business														(980	)
Interest expense														2,850
Interest income														(1,697	)
Other income/expense, net														4,503
Earnings before provision for income taxes													$	83,300
Other Segment Disclosures:
Total assets	$	222,068		$	197,045		$	47,900		$	104,618		$	571,631
Capital expenditures		4,563			7,384			160			19			12,126
Depreciation and amortization expense		5,280			6,152			1,094			786			13,312
Interest expense		-			-			-			2,850			2,850

	Year Ended December 31, 2022
	Power Solutions			Connectivity			Magnetic			Corporate/
	and Protection			Solutions			Solutions			Other			Total
Net sales	$288,366			$187,085			$178,782			$-			$654,233
Cost of sales		200,526			138,597			129,492			2,165			470,780
Gross profit		87,840			48,488			49,290			(2,165	)		183,453
Gross profit %		30.5	%		25.9	%		27.6	%		nm			28.0	%
Research and development costs														20,238
Selling, general and administrative expenses														92,342
Restructuring charges														7,322
Gain on sale of properties														(1,596	)
Interest expense														3,379
Interest income														(177	)
Other income/expense, net														2,886
Earnings before provision for income taxes													$	59,059
Other Segment Disclosures:
Total Assets	$	234,095		$	170,895		$	107,891		$	47,585		$	560,466
Capital Expenditures		3,916			4,566			350			-			8,832
Depreciation and Amortization Expense		6,470			6,145			2,133			115			14,863
Interest Expense		-			-			-			3,379			3,379

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. Such information attributes net sales based on markets where revenues are reported.

	Years Ended December 31,
	2024		2023		2022
Net Sales by Geographic Location:
United States	$	362,118	$	447,793	$	409,199
People's Republic of China		23,394		43,109		77,061
Macao		25,130		35,026		61,744
United Kingdom		35,915		25,648		21,903
Slovakia		33,228		35,555		22,120
Germany		15,268		17,327		24,112
India		10,635		15,365		17,608
Switzerland		15,594		11,237		9,893
Israel		8,227		-		-
All other foreign countries		5,283		8,753		10,593
Consolidated net sales		534,792		639,813		654,233
Net Sales by Major Product Line:
Power solutions and protection	$	245,551	$	314,105	$	288,366
Connectivity solutions		220,370		210,572		187,085
Magnetic solutions		68,871		115,136		178,782
Consolidated net sales	$	534,792	$	639,813	$	654,233

The following is a summary of long-lived assets by geographic area as of December 31, 2024 and 2023:

	December 31,
	2024		2023
Long-lived Assets by Geographic Location:
United States	$	40,840	$	34,990
People's Republic of China (PRC)		23,942		23,621
Slovakia		6,553		7,468
Israel		4,125		-
United Kingdom		3,001		3,024
All other foreign countries		4,057		549
Consolidated long-lived assets	$	82,518	$	69,652

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 the current status of these territories, along with evolving political landscape in the region, 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 (including risks arising out of any changes in governmental and economic policy, such as increased or new tariffs, and current or additional trade restrictions, and the potential for adverse developments arising out of any political or economic instability related to Hong Kong or Taiwan). A significant portion of the Company's manufacturing operations and approximately 30.8% of its identifiable assets are located in Asia.

Net Sales to Major Customers

The Company had no direct customers whose net sales represented in excess of ten percent of the Company's consolidated net sales in 2024 or 2023. In 2022, the Company had one direct customer with net sales of $83.9 million (12.8% of sales). Net sales related to this significant customer were primarily reflected in the Magnetic Solutions operating segment.