Reportable Business Segments and International Operations

12 Months Ended

Dec. 31, 2025

Reportable Business Segments and International Operations

Reportable Business Segments and International Operations

Note 13—Reportable Business Segments and International Operations

The Company aligns its businesses into three reportable business segments: (i) Communications Solutions, (ii) Harsh Environment Solutions and (iii) Interconnect and Sensor Systems. This segment structure reflects (i) the manner in which the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, regularly assesses information for decision-making purposes, including the allocation of resources, and (ii) how the Company operates its businesses, assesses performance, and communicates results and strategy, among other items, to the Board and its stockholders. The Company has three segment managers to lead their respective reportable business segments, each reporting directly to the Chief Executive Officer. The Company organizes its reportable business segments based on the manner in which management evaluates the performance of the Company, combined with the nature of the individual business activities and the product-based solutions offered.

The Company aligns its businesses into the following three reportable business segments:

●Communications Solutions – the Communications Solutions segment designs, manufactures and markets a broad range of connector and interconnect systems, including high speed, radio frequency, power, fiber optic and other interconnect products; coaxial, fiber optic and high-speed cable; antennas; and other products for use in the information technology and data communications, mobile devices, industrial, communications networks, automotive, commercial aerospace and defense end markets.

●Harsh Environment Solutions – the Harsh Environment Solutions segment designs, manufactures and markets a broad range of ruggedized interconnect products, including connectors and interconnect systems, specialty cable, printed circuits and printed circuit assemblies and other products for use in the industrial, defense, commercial aerospace, automotive, communications networks and information technology and data communications end markets.

●Interconnect and Sensor Systems – the Interconnect and Sensor Systems segment designs, manufactures and markets a broad range of sensors, sensor-based systems, connectors and value-add interconnect systems used in the automotive, industrial, information technology and data communications, communications networks, defense and commercial aerospace end markets.

The accounting policies of the segments are the same as those for the Company as a whole, as described in Note 1 herein. The Company’s CODM assesses each segment’s performance and allocates resources to each of them based on a single measure of profit and loss, which is operating income as adjusted for certain corporate and other related items and before interest, stock-based compensation expense, income taxes, amortization related to certain intangible assets and other non-cash purchase accounting costs, and nonrecurring gains and losses, as outlined in the table below (we refer to this measure as segment operating income). Intersegment net sales and operating expenses have been eliminated in the computation of consolidated net sales and operating income.

The CODM considers budget-to-actual variances in net sales and segment operating income on a quarterly basis and uses that information when making decisions about the allocation of operating and capital resources to each segment. Other than segment operating expenses (which is easily computable from the difference between net sales and segment operating income), our CODM is not regularly provided disaggregated segment level expense information as such information is not used in our CODM’s decision-making related to the allocation of operating and capital resources to our segments. The Company also incurs general corporate expenses and costs which are not allocated to the reportable business segments but have been included in “Corporate / Other” in the following tables for reconciliation purposes. Assets are reviewed by the CODM on a consolidated basis and therefore are not presented by reportable business segment.

The following tables (i) summarize, by segment, total sales, intersegment sales and external net sales and (ii) reconcile each segment’s external net sales to their respective segment operating income, including segment operating expenses, for each of the years ended December 31, 2025, 2024 and 2023:

	Communications Solutions		Harsh Environment Solutions		Interconnect and Sensor Systems		Total
2025
Total sales	$	12,160.6	$	6,001.9	$	5,216.1	$	23,378.6
Less: Intersegment sales		104.6		120.2		59.1		283.9
External net sales		12,056.0		5,881.7		5,157.0		23,094.7
Less: Segment operating expenses (1)		8,309.4		4,340.3		4,151.9		16,801.6
Segment operating income	$	3,746.6	$	1,541.4	$	1,005.1	$	6,293.1
2024
Total sales	$	6,375.6	$	4,508.6	$	4,510.6	$	15,394.8
Less: Intersegment sales		51.8		91.2		29.1		172.1
External net sales		6,323.8		4,417.4		4,481.5		15,222.7
Less: Segment operating expenses (1)		4,754.2		3,324.2		3,655.6		11,734.0
Segment operating income	$	1,569.6	$	1,093.2	$	825.9	$	3,488.7
2023
Total sales	$	4,963.0	$	3,621.6	$	4,129.3	$	12,713.9
Less: Intersegment sales		50.2		90.8		18.2		159.2
External net sales		4,912.8		3,530.8		4,111.1		12,554.7
Less: Segment operating expenses (1)		3,849.3		2,586.9		3,357.4		9,793.6
Segment operating income	$	1,063.5	$	943.9	$	753.7	$	2,761.1

(1)

The aggregated amount is comprised of cost of sales, selling, general and administrative expenses, and other segment related expenses.

Segment operating income and the reconciliation of segment operating income to consolidated income before income taxes for the years ended December 31, 2025, 2024 and 2023 are as follows:

	2025		2024		2023
Total segment operating income	$	6,293.1	$	3,488.7	$	2,761.1
Corporate / Other:
Stock-based compensation expense		(135.4)		(109.5)		(99.0)
Amortization of acquisition-related inventory step-up costs		(77.8)		(18.2)		—
Acquisition-related expenses		(103.4)		(127.4)		(34.6)
Other operating expenses		(107.9)		(76.7)		(67.9)
Operating income		5,868.6		3,156.9		2,559.6
Interest expense		(367.8)		(217.0)		(139.5)
Gain on bargain purchase acquisition		—		—		5.4
Other income (expense), net		99.9		72.0		29.3
Income before income taxes	$	5,600.7	$	3,011.9	$	2,454.8

Depreciation and amortization expense by segment for the years ended December 31, 2025, 2024 and 2023 is as follows:

	2025		2024		2023
Communications Solutions	$	486.9	$	226.5	$	177.0
Harsh Environment Solutions		166.5		126.7		91.0
Interconnect and Sensor Systems		150.0		136.6		131.1
Corporate / Other (1)		119.0		82.7		7.3
Total	$	922.4	$	572.5	$	406.4

(1)

Amortization of acquired backlog associated with acquisitions for the years ended December 31, 2025 and 2024 is reported under “Corporate / Other”.

For the year ended December 31, 2025, depreciation and amortization expense in Corporate / Other includes (i) $28.2 related to the amortization of acquired backlog resulting from the 2025 Acquisitions, which is primarily included in Acquisition-related expenses in the Consolidated Statements of Income, and (ii) $77.8 of amortization of acquisition-related inventory step-up costs associated with the Andrew acquisition, which is included in Cost of sales in the Consolidated Statements of Income, as discussed in Note 11 herein. For the year ended December 31, 2024, depreciation and amortization expense in Corporate / Other includes (i) $55.0 related to the amortization of acquired backlog resulting from the CIT acquisition, which is included in Acquisition-related expenses in the Consolidated Statements of Income, and (ii) $18.2 of amortization of acquisition-related inventory step-up costs associated with the CIT acquisition, which is included in Cost of sales in the Consolidated Statements of Income, as discussed in Note 11 herein. These expenses are reported in Corporate / Other, since they are not components in the determination of segment operating income.

Net sales by geographic area for the years ended December 31, 2025, 2024 and 2023 and long-lived assets by geographic area as of December 31 were as follows:

	2025		2024		2023
Net sales
United States	$	7,987.7	$	5,272.3	$	4,405.4
China		3,673.1		3,399.9		2,884.0
Other foreign locations		11,433.9		6,550.5		5,265.3
Total	$	23,094.7	$	15,222.7	$	12,554.7
Long-lived assets(1)
United States	$	598.8	$	576.4	$	442.6
China		1,050.4		617.9		455.5
Other foreign locations		1,215.4		901.9		718.1
Total	$	2,864.6	$	2,096.2	$	1,616.2

(1)

Long-lived assets included in this table are comprised of property, plant and equipment, net, and operating lease right-of-use assets for all years presented.

Disaggregation of Net Sales

The following tables show our net sales disaggregated into categories the Company considers meaningful to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors for the years ended December 31, 2025, 2024 and 2023:

Net sales by sales channel:	2025		2024		2023
End customers and contract manufacturers:
Communications Solutions	$	9,545.8	$	4,960.9	$	3,933.2
Harsh Environment Solutions		4,285.9		3,172.6		2,581.6
Interconnect and Sensor Systems		4,965.8		4,311.0		3,947.4
		18,797.5		12,444.5		10,462.2
Distributors and resellers:
Communications Solutions		2,510.2		1,362.9		979.6
Harsh Environment Solutions		1,595.8		1,244.8		949.2
Interconnect and Sensor Systems		191.2		170.5		163.7
		4,297.2		2,778.2		2,092.5
Total Net sales	$	23,094.7	$	15,222.7	$	12,554.7

Net sales by geography:	2025		2024		2023
United States:
Communications Solutions	$	3,215.6	$	1,582.3	$	1,395.8
Harsh Environment Solutions		3,211.0		2,384.7		1,790.5
Interconnect and Sensor Systems		1,561.1		1,305.3		1,219.1
		7,987.7		5,272.3		4,405.4
China:
Communications Solutions		2,205.2		2,011.6		1,669.4
Harsh Environment Solutions		508.5		402.3		351.2
Interconnect and Sensor Systems		959.4		986.0		863.4
		3,673.1		3,399.9		2,884.0
Other foreign locations:
Communications Solutions		6,635.2		2,729.9		1,847.6
Harsh Environment Solutions		2,162.2		1,630.4		1,389.1
Interconnect and Sensor Systems		2,636.5		2,190.2		2,028.6
		11,433.9		6,550.5		5,265.3
Total Net sales	$	23,094.7	$	15,222.7	$	12,554.7

Net sales by geographic area are based on the customer location to which the product is shipped. No single customer accounted for 10% or more of the Company’s net sales during the years ended December 31, 2025, 2024 and 2023. As the Company is not organized by product or group of products, it is impracticable to disclose net sales by product or group of products. For further discussion related to the Company’s policies surrounding revenue recognition, refer to Note 1 herein.