10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 _________________________________________________

FORM 10-Q

_________________________________________________ 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2023

Commission File No. 001-12561 

_________________________________________________ 

BELDEN INC.

(Exact name of registrant as specified in its charter)

_________________________________________________

 

Delaware	36-3601505
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1 North Brentwood Boulevard

15th Floor

St. Louis, Missouri 63105

(Address of principal executive offices)

(314) 854-8000

Registrant’s telephone number, including area code

_________________________________________________ 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☑  No ☐.

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☑  No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑   Accelerated filer ☐       Non-accelerated filer ☐       Smaller reporting company ☐    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No  ☑

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of each exchange on which registered
Common stock, $0.01 par value	BDC	New York Stock Exchange

As of July 31, 2023, the Registrant had 42,297,217 outstanding shares of common stock.

PART I    FINANCIAL INFORMATION

Item 1. Financial Statements

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	July 2, 2023		December 31, 2022
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	514,767	$	687,676
Receivables, net	509,801		440,102
Inventories, net	345,427		341,563
Other current assets	66,525		66,866
Total current assets	1,436,520		1,536,207
Property, plant and equipment, less accumulated depreciation	392,593		381,864
Operating lease right-of-use assets	73,435		73,376
Goodwill	893,419		862,253
Intangible assets, less accumulated amortization	286,583		246,830
Deferred income taxes	15,412		14,642
Other long-lived assets	47,365		46,503
	$	3,145,327	$	3,161,675
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	290,382	$	350,058
Accrued liabilities	277,405		289,861
Total current liabilities	567,787		639,919
Long-term debt	1,187,152		1,161,176
Postretirement benefits	67,248		67,828
Deferred income taxes	68,172		58,582
Long-term operating lease liabilities	60,480		59,250
Other long-term liabilities	31,497		30,970
Stockholders’ equity:
Common stock	503		503
Additional paid-in capital	809,332		825,669
Retained earnings	879,179		751,522
Accumulated other comprehensive loss	(28,173)		(5,871)
Treasury stock	(497,873)		(428,812)
Total Belden stockholders’ equity	1,162,968		1,143,011
Noncontrolling interests	23		939
Total stockholders’ equity	1,162,991		1,143,950
	$	3,145,327	$	3,161,675

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

-1-

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited) 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands, except per share data)
Revenues	$	692,245	$	666,551	$	1,334,034	$	1,276,922
Cost of sales	(430,917)		(444,246)		(826,601)		(845,757)
Gross profit	261,328		222,305		507,433		431,165
Selling, general and administrative expenses	(126,635)		(105,203)		(248,209)		(208,269)
Research and development expenses	(30,970)		(25,989)		(60,354)		(49,445)
Amortization of intangibles	(11,126)		(9,177)		(20,736)		(17,994)
Operating income	92,597		81,936		178,134		155,457
Interest expense, net	(8,812)		(11,276)		(17,013)		(25,687)
Non-operating pension benefit	646		1,070		1,134		2,270
Loss on debt extinguishment	—		—		—		(6,392)
Income from continuing operations before taxes	84,431		71,730		162,255		125,648
Income tax expense	(15,656)		(13,088)		(30,535)		(22,910)
Income from continuing operations	68,775		58,642		131,720		102,738
Loss from discontinued operations, net of tax	—		—		—		(3,685)
Loss on disposal of discontinued operations, net of tax	—		—		—		(4,567)
Net income	68,775		58,642		131,720		94,486
Less: Net income (loss) attributable to noncontrolling interest	22		81		(225)		84
Net income attributable to Belden stockholders	$	68,753	$	58,561	$	131,945	$	94,402
Weighted average number of common shares and equivalents:
Basic	42,497		44,252		42,663		44,535
Diluted	43,088		44,782		43,380		45,179
Basic income (loss) per share attributable to Belden stockholders:
Continuing operations	$	1.62	$	1.32	$	3.09	$	2.31
Discontinued operations	—		—		—		(0.08)
Disposal of discontinued operations	—		—		—		(0.10)
Net income	$	1.62	$	1.32	$	3.09	$	2.12
Diluted income (loss) per share attributable to Belden stockholders:
Continuing operations	$	1.60	$	1.31	$	3.04	$	2.27
Discontinued operations	—		—		—		(0.08)
Disposal of discontinued operations	—		—		—		(0.10)
Net income	$	1.60	$	1.31	$	3.04	$	2.09
Comprehensive income attributable to Belden	$	63,890	$	110,712	$	109,782	$	150,481
Common stock dividends declared per share	$	0.05	$	0.05	$	0.10	$	0.10

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

-2-

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited) 

	Six Months Ended
	July 2, 2023		July 3, 2022
	(In thousands)
Cash flows from operating activities:
Net income	$	131,720	$	94,486
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	49,044		42,686
Share-based compensation	12,154		10,870
Loss on debt extinguishment	—		6,392
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:
Receivables	(71,212)		(20,699)
Inventories	10,347		(47,305)
Accounts payable	(59,295)		(23,563)
Accrued liabilities	(22,855)		(58,525)
Income taxes	5,204		163
Other assets	(4,197)		(2,634)
Other liabilities	3,805		(10,452)
Net cash provided by (used for) operating activities	54,715		(8,581)
Cash flows from investing activities:
Cash used for business acquisitions, net of cash acquired	(97,585)		(104,123)
Capital expenditures	(32,729)		(31,010)
Proceeds from disposal of tangible assets	9		1,424
Proceeds from disposal of businesses, net of cash sold	9,300		338,686
Net cash provided by (used for) investing activities	(121,005)		204,977
Cash flows from financing activities:
Payments under share repurchase program	(86,224)		(66,559)
Withholding tax payments for share-based payment awards	(16,940)		(5,167)
Cash dividends paid	(4,285)		(4,520)
Payments under financing lease obligations	(115)		(83)
Payments under borrowing arrangements	—		(230,639)
Proceeds from issuance of common stock	1,679		3,717
Net cash used for financing activities	(105,885)		(303,251)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(734)		(9,220)
Decrease in cash and cash equivalents	(172,909)		(116,075)
Cash and cash equivalents, beginning of period	687,676		643,757
Cash and cash equivalents, end of period	$	514,767	$	527,682

The Condensed Consolidated Cash Flow Statement for the six months ended July 3, 2022 includes the results of discontinued operations up to the February 22, 2022 disposal date.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

-3-

BELDEN INC.

CONDENSED CONSOLIDATED STOCKHOLDERS’ EQUITY STATEMENTS

(Unaudited)

	Belden Inc. Stockholders
				Additional							Accumulated Other		Non-controlling
	Common Stock			Paid-In		Retained		Treasury Stock			Comprehensive
	Shares	Amount		Capital		Earnings		Shares	Amount		Income (Loss)		Interests		Total
	(In thousands)
Balance at December 31, 2022	50,335	$	503	$	825,669	$	751,522	(7,502)	$	(428,812)	$	(5,871)	$	939	$	1,143,950
Net income (loss)	—	—		—		63,192		—	—		—		(247)		62,945
Other comprehensive income (loss), net of tax	—	—		—		—		—	—		(17,300)		2		(17,298)
Common stock issuance	—	—		(420)		—		37	2,099		—		—		1,679
Retirement Savings Plan stock contributions	—	—		638		—		28	1,758		—		—		2,396
Exercise of stock options, net of tax withholding forfeitures	—	—		(4,547)		—		47	1,951		—		—		(2,596)
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	—	—		(17,997)		—		196	7,301		—		—		(10,696)
Share repurchase program, net of excise tax	—	—		—		—		(594)	(50,266)		—		—		(50,266)
Share-based compensation	—	—		6,253		—		—	—		—		—		6,253
Common stock dividends ($0.05 per share)	—	—		—		(2,150)		—	—		—		—		(2,150)
Balance at April 2, 2023	50,335	$	503	$	809,596	$	812,564	(7,788)	$	(465,969)	$	(23,171)	$	694	$	1,134,217
Net income	—	—		—		68,753		—	—		—		22		68,775
Other comprehensive income (loss), net of tax	—	—		—		—		—	—		(4,863)		2		(4,861)
Sale and deconsolidation of Hite JV	—	—		—		—		—	—		(139)		(695)		(834)
Retirement Savings Plan stock contributions	—	—		663		—		24	1,379		—		—		2,042
Exercise of stock options, net of tax withholding forfeitures	—	—		(2,698)		—		27	767		—		—		(1,931)
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	—	—		(4,130)		—		55	2,413		—		—		(1,717)
Share repurchase program, net of excise tax	—	—		—		—		(394)	(36,463)		—		—		(36,463)
Share-based compensation	—	—		5,901		—		—	—		—		—		5,901
Common stock dividends ($0.05 per share)	—	—		—		(2,138)		—	—		—		—		(2,138)
Balance at July 2, 2023	50,335	$	503	$	809,332	$	879,179	(8,076)	$	(497,873)	$	(28,173)	$	23	$	1,162,991

-4-

	Belden Inc. Stockholders
				Additional							Accumulated Other		Non-controlling
	Common Stock			Paid-In		Retained		Treasury Stock			Comprehensive
	Shares	Amount		Capital		Earnings		Shares	Amount		Income (Loss)		Interests		Total
	(In thousands)
Balance at December 31, 2021	50,335	$	503	$	833,627	$	505,717	(5,360)	$	(313,994)	$	(70,566)	$	795	$	956,082
Net income	—	—		—		35,841		—	—		—		3		35,844
Other comprehensive income, net of tax	—	—		—		—		—	—		3,928		27		3,955
Retirement Savings Plan stock contributions	—	—		(356)		—		43	2,809		—		—		2,453
Exercise of stock options, net of tax withholding forfeitures	—	—		(526)		—		6	375		—		—		(151)
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	—	—		(11,287)		—		103	7,739		—		—		(3,548)
Share repurchase program	—	—		—		—		(885)	(50,000)		—		—		(50,000)
Share-based compensation	—	—		5,224		—		—	—		—		—		5,224
Common stock dividends ($0.05 per share)	—	—		—		(2,264)		—	—		—		—		(2,264)
Balance at April 3, 2022	50,335	$	503	$	826,682	$	539,294	(6,093)	$	(353,071)	$	(66,638)	$	825	$	947,595
Net income	—	—		—		58,561		—	—		—		81		58,642
Other comprehensive income (loss), net of tax	—	—		—		—		—	—		52,151		(25)		52,126
Common stock issuance	—	—		(2,775)		—		82	6,492		—		—		3,717
Retirement Savings Plan stock contributions	—	—		(730)		—		30	2,355		—		—		1,625
Exercise of stock options, net of tax withholding forfeitures	—	—		(173)		—		2	133		—		—		(40)
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	—	—		(8,048)		—		75	6,621		—		—		(1,427)
Share repurchase program	—	—		—		—		(320)	(16,559)		—		—		(16,559)
Share-based compensation	—	—		5,646		—		—	—		—		—		5,646
Common stock dividends ($0.05 per share)	—	—		—		(2,242)		—	—		—		—		(2,242)
Balance at July 3, 2022	50,335	$	503	$	820,602	$	595,613	(6,224)	$	(354,029)	$	(14,487)	$	881	$	1,049,083

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

-5-

BELDEN INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1:  Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation.

The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2022:

•Are prepared from the books and records without audit, and

•Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but

•Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements.

These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2022 Annual Report on Form 10-K.

Business Description

We are a leading global supplier of network infrastructure solutions built around two global businesses - Enterprise Solutions and Industrial Automation Solutions. Our mission is to build the foundation for a digital world that makes the digital journey simpler, smarter and secure.

Reporting Periods

Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 2, 2023, the 92nd day of our fiscal year 2023. Our fiscal second and third quarters each have 91 days. The six months ended July 2, 2023 and July 3, 2022 included 183 and 184 days, respectively.

Fair Value Measurement

Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows:

•Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

•Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and

•Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. 

As of and during the three and six months ended July 2, 2023 and July 3, 2022, we utilized Level 1 inputs to determine the fair value of cash equivalents. We did not have any transfers between Level 1 and Level 2 fair value measurements during the six months ended July 2, 2023 and July 3, 2022.

Cash and Cash Equivalents

We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. As of July 2, 2023, we had an immaterial amount of cash equivalents. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes.

-6-

Contingent Liabilities

We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. Historically, these lawsuits have primarily involved claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a material adverse effect on our financial position, results of operations, or cash flow.

As of July 2, 2023, we were party to standby letters of credit, surety bonds, and bank guaranties totaling $8.7 million, $4.7 million, and $4.3 million, respectively.

Revenue Recognition

We recognize revenue consistent with the principles as outlined in the following five step model: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) each performance obligation is satisfied. See Note 2.

Subsequent Events

We evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure.

Noncontrolling Interest

On April 28, 2023, we sold our 51% ownership interest in Shanghai Hi-Tech Control System Co, Ltd to (Hite) for $0.9 million and recognized a $0.4 million pretax gain on sale. The sale also includes $0.6 million of potential earnout payments. The joint venture developed and provided certain Industrial Automation Solutions products and integrated solutions to customers in China. The joint venture was determined to not have sufficient equity at risk; therefore, it was considered a variable interest entity. As Belden was the primary beneficiary of the joint venture, due to both our ownership percentage and control over the activities of the joint venture, we consolidated the joint venture in our financial statements and presented the results of the joint venture attributable to Hite’s ownership as net income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations up to April 28, 2023 when we sold and deconsolidated the entity. The joint venture was not material to our consolidated financial statements during the six months ended July 2, 2023 and July 3, 2022.

A Belden subsidiary includes a noncontrolling interest as of and for the periods ended July 2, 2023 and July 3, 2022. The results attributable to the noncontrolling interest holders are not material to our consolidated financial statements, and are presented as net income attributable to noncontrolling interests in the Condensed Consolidated Statements of Operations.

Current Year Adoption of Accounting Pronouncements

None of the accounting pronouncements that became effective during 2023 had a material impact to our condensed consolidated financial statements or disclosures.

-7-

Note 2:  Revenues

Revenues are recognized when control of the promised goods or services is transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Taxes collected from customers and remitted to governmental authorities are not included in our revenues.

The following tables present our revenues disaggregated by major product category.

	Broadband  Solutions		Industrial Automation		Smart Buildings		Total  Revenues
Three Months Ended July 2, 2023	(In thousands)
Enterprise Solutions	$	159,332	$	—	$	153,197	$	312,529
Industrial Automation Solutions	—		379,716		—		379,716
Total	$	159,332	$	379,716	$	153,197	$	692,245
Three Months Ended July 3, 2022
Enterprise Solutions	$	146,771	$	—	$	160,673	$	307,444
Industrial Automation Solutions	—		359,107		—		359,107
Total	$	146,771	$	359,107	$	160,673	$	666,551
Six Months Ended July 2, 2023
Enterprise Solutions	$	290,887	$	—	$	296,985	$	587,872
Industrial Automation Solutions	—		746,162		—		746,162
Total	$	290,887	$	746,162	$	296,985	$	1,334,034
Six Months Ended July 3, 2022
Enterprise Solutions	$	268,576	$	—	$	307,298	$	575,874
Industrial Automation Solutions	—		701,048		—		701,048
Total	$	268,576	$	701,048	$	307,298	$	1,276,922

The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.

	Americas		EMEA		APAC		Total Revenues
Three Months Ended July 2, 2023	(In thousands)
Enterprise Solutions	$	246,471	$	36,671	$	29,387	$	312,529
Industrial Automation Solutions	213,852		109,055		56,809		379,716
Total	$	460,323	$	145,726	$	86,196	$	692,245
Three Months Ended July 3, 2022
Enterprise Solutions	$	233,501	$	36,497	$	37,446	$	307,444
Industrial Automation Solutions	214,045		91,765		53,297		359,107
Total	$	447,546	$	128,262	$	90,743	$	666,551
Six Months Ended July 2, 2023
Enterprise Solutions	$	460,358	$	74,119	$	53,395	$	587,872
Industrial Automation Solutions	429,065		210,976		106,121		746,162
Total	$	889,423	$	285,095	$	159,516	$	1,334,034
Six Months Ended July 3, 2022
Enterprise Solutions	$	437,887	$	75,886	$	62,101	$	575,874
Industrial Automation Solutions	418,355		182,216		100,477		701,048
Total	$	856,242	$	258,102	$	162,578	$	1,276,922

-8-

We generate revenues primarily by selling products that support communication, infrastructure, and delivery solutions that make the digital journey simpler, smarter, and more secure. We also generate revenues from providing support and professional services. We sell our products to distributors, end-users, installers, and directly to original equipment manufacturers. At times, we enter into arrangements that involve the delivery of multiple performance obligations. For these arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price and recognized when or as each performance obligation is satisfied. Generally, we determine relative standalone selling price using the prices charged separately to customers on a standalone basis. Most of our performance obligations related to the sale of products are satisfied at a point in time when control of the product is transferred based on the shipping terms of the arrangement. Typically, payments are due after control transfers, which is less than one year from satisfaction of the performance obligation.

The amount of consideration we receive and revenue we recognize varies due to rebates, returns, and price adjustments. We estimate the expected rebates, returns, and price adjustments based on an analysis of historical experience, anticipated sales demand, and trends in product pricing. We adjust our estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. Adjustments to revenue for performance obligations satisfied in prior periods were not significant during the three and six months ended July 2, 2023 and July 3, 2022.

The following table presents estimated and accrued variable consideration:

	July 2, 2023		December 31, 2022
	(in thousands)
Accrued rebates included in accrued liabilities	$	42,868	$	55,559
Accrued returns included in accrued liabilities	16,575		11,700
Price adjustments recognized against gross accounts receivable	25,457		24,304

Depending on the terms of an arrangement, we may defer the recognition of some or all of the consideration received because we have to satisfy a future obligation. Consideration allocated to support services under a support and maintenance contract is typically paid in advance and recognized ratably over the term of the service. Consideration allocated to professional services is typically recognized when or as the services are performed depending on the terms of the arrangement. As of July 2, 2023, total deferred revenue was $29.7 million, and of this amount, $22.7 million is expected to be recognized within the next twelve months, and the remaining $7.0 million is long-term and is expected to be recognized over a period greater than twelve months. The following table presents deferred revenue activity during the three and six months ended July 2, 2023 and July 3, 2022, respectively:

	2023		2022
	(In thousands)
Beginning balance at January 1	$	33,243	$	19,390
New deferrals	4,359		8,857
Acquisitions	—		6,567
Revenue recognized	(8,307)		(3,365)
Balance at the end of Q1	$	29,295	$	31,449
New deferrals	6,900		4,265
Revenue recognized	(6,528)		(8,880)
Balance at the end of Q2	$	29,667	$	26,834

Service-type warranties represent $9.5 million of the deferred revenue balance at July 2, 2023, and of this amount $4.9 million is expected to be recognized in the next twelve months, and the remaining $4.6 million is long-term and will be recognized over a period greater than twelve months. As of July 2, 2023 and December 31, 2022, we did not have any material contract assets recorded in the Condensed Consolidated Balance Sheets.

-9-

We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions when the original duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. We did not have any capitalized sales commissions on our balance sheet as of July 2, 2023 and December 31, 2022. The following table presents sales commissions that are recorded within selling, general and administrative expenses:

	Three Months Ended				Six Months ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Sales commissions	$	6,316	$	6,131	$	12,089	$	11,354

Note 3:  Acquisitions

On April 17, 2023, we acquired Berthold Sichert GmbH (Sichert) with cash on hand for $97.5 million, net of cash acquired. Sichert, based in Berlin, Germany, designs and manufactures a portfolio of polycarbonate street cabinets utilized in outside plant passive optical networks (“PON”) and 5G networks. Sichert is reported within the Enterprise Solutions segment. The following table summarizes the estimated, preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):

Receivables	$	6,781
Inventory	13,061
Other current assets	1,840
Property, plant and equipment	7,057
Intangible assets	52,597
Goodwill	27,831
Other long-lived assets	1,303
Total assets acquired	$	110,470
Accounts payable	$	2,423
Accrued liabilities	1,884
Deferred income taxes	8,659
Total liabilities assumed	$	12,966
Net assets	$	97,504

The above purchase price allocation is preliminary and subject to revision as additional information about the fair value of individual assets and liabilities becomes available. The preliminary measurement of receivables, intangible assets, deferred income taxes, and other assets and liabilities are subject to change. A change in the estimated fair value of the net assets acquired will change the amount of the purchase price allocable to goodwill.

The preliminary fair value of acquired receivables is $6.8 million, which is equivalent to its gross contractual amount. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments we have used in estimating the preliminary fair values assigned to each class of acquired assets and assumed liabilities could materially affect the results of our operations.

For purposes of the above allocation, we based our preliminary estimate of the fair values for intangible assets on valuation studies performed by a third party valuation firm. We used various valuation methods including discounted cash flows, lost income, excess earnings, and relief from royalty to estimate the preliminary fair value of the identifiable intangible assets (Level 3 valuation). Goodwill and other intangible assets reflected above were determined to meet the criteria for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to the expansion of broadband & 5G product offerings in end-to-end solutions. Our tax basis in the acquired goodwill is zero.

-10-

The intangible assets related to the acquisition consisted of the following:

	Fair Value		Amortization Period
	(In thousands)		(In years)
Intangible assets subject to amortization:
Customer relationships	$	49,131	15.0
Trademarks	2,456		2.0
Sales backlog	1,010		0.2
Total intangible assets subject to amortization	$	52,597
Intangible assets not subject to amortization:
Goodwill	$	27,831	n/a
Total intangible assets not subject to amortization	$	27,831
Total intangible assets	$	80,428
Weighted average amortization period			14.1

The amortizable intangible assets reflected in the table above were determined by us to have finite lives. The useful life for the customer relationship intangible asset was based on our forecasts of estimated sales from recurring customers. The useful life for the trademarks was based on the period of time we expect to continue to go to market using the trademarks.

Note 4:  Discontinued Operations

On February 22, 2022, we sold Tripwire for gross cash consideration of $350 million. The divestiture of Tripwire represented a strategic shift impacting our operations and financial results. As a result, the Tripwire disposal group, which was included in our Industrial Automation Solutions segment, is reported within discontinued operations. We recognized a loss on disposal of discontinued operations, net of tax of $4.6 million during the six months ended July 3, 2022. The following table summarizes the operating results of the Tripwire disposal group from January 1, 2022 to the February 22, 2022 disposal date (in thousands):

Revenues	$	12,067
Cost of sales	(3,256)
Gross profit	8,811
Selling, general and administrative expenses	(8,185)
Research and development expenses	(5,528)
Amortization of intangible assets	(638)
Loss before taxes	$	(5,540)

During the six months ended July 3, 2022, the Tripwire disposal group did not have any capital expenditures and recognized share-based compensation expense of $0.2 million. The disposal group did not have any significant non-cash charges for investing activities during the six months ended July 3, 2022.

Note 5:  Reportable Segments

We are organized around two global businesses: Enterprise Solutions and Industrial Automation Solutions. Each of the global businesses represents a reportable segment. The key measures of segment profit or loss are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation.

Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Inter-company revenues between our segments is not material.

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	Enterprise Solutions		Industrial Automation Solutions		Total Segments
	(In thousands)
As of and for the three months ended July 2, 2023
Segment Revenues	$	312,529	$	379,716	$	692,245
Segment EBITDA	43,956		78,631		122,587
Depreciation expense	6,193		6,489		12,682
Amortization of intangibles	6,208		4,918		11,126
Amortization of software development intangible assets	—		1,820		1,820
Severance, restructuring, and acquisition integration costs	1,669		2,390		4,059
Adjustments related to acquisitions and divestitures	325		(76)		249
Segment assets	648,344		699,092		1,347,436
As of and for the three months ended July 3, 2022
Segment Revenues	$	307,444	$	359,107	$	666,551
Segment EBITDA	41,887		68,060		109,947
Depreciation expense	5,768		5,602		11,370
Amortization of intangibles	4,442		4,735		9,177
Amortization of software development intangible assets	22		959		981
Severance, restructuring, and acquisition integration costs	4,575		1,282		5,857
Adjustments related to acquisitions and divestitures	(558)		1,134		576
Segment assets	607,386		649,595		1,256,981
As of and for the six months ended July 2, 2023
Segment revenues	$	587,872	$	746,162	$	1,334,034
Segment EBITDA	81,161		152,418		233,579
Depreciation expense	12,147		12,889		25,036
Amortization of intangibles	10,703		10,033		20,736
Amortization of software development intangible assets	—		3,272		3,272
Severance, restructuring, and acquisition integration costs	1,694		4,077		5,771
Adjustments related to acquisitions and divestitures	325		222		547
Segment assets	648,344		699,092		1,347,436
As of and for the six months ended July 3, 2022
Segment Revenues	$	575,874	$	701,048	$	1,276,922
Segment EBITDA	72,708		135,588		208,296
Depreciation expense	11,194		11,402		22,596
Amortization of intangibles	8,539		9,455		17,994
Amortization of software development intangible assets	44		1,944		1,988
Severance, restructuring, and acquisition integration costs	4,903		4,677		9,580
Adjustments related to acquisitions and divestitures	(558)		1,134		576
Segment assets	607,386		649,595		1,256,981

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The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Total Segment and Consolidated Revenues	$	692,245	$	666,551	$	1,334,034	$	1,276,922
Total Segment EBITDA	$	122,587	$	109,947	$	233,579	$	208,296
Depreciation expense	(12,682)		(11,370)		(25,036)		(22,596)
Amortization of intangibles	(11,126)		(9,177)		(20,736)		(17,994)
Severance, restructuring, and acquisition integration costs (1)	(4,059)		(5,857)		(5,771)		(9,580)
Amortization of software development intangible assets	(1,820)		(981)		(3,272)		(1,988)
Adjustments related to acquisitions and divestitures (2)	(249)		(576)		(547)		(576)
Eliminations	(54)		(50)		(83)		(105)
Consolidated operating income	92,597		81,936		178,134		155,457
Interest expense, net	(8,812)		(11,276)		(17,013)		(25,687)
Loss on debt extinguishment	—		—		—		(6,392)
Total non-operating pension benefit	646		1,070		1,134		2,270
Consolidated income from continuing operations before taxes	$	84,431	$	71,730	$	162,255	$	125,648

(1) Severance, restructuring, and acquisition integration costs for the three and six months ended July 2, 2023 and July 3, 2022 included costs related to our Acquisition Integration program. See Note 11.

(2) Adjustments related to acquisitions and divestitures included fair value adjustments of acquired inventory and investments as well as gains associated with the sales of businesses.

Note 6: Income (loss) per Share

The following table presents the basis for the income (loss) per share computations:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Numerator:
Income from continuing operations	$	68,775	$	58,642	$	131,720	$	102,738
Less: Net income (loss) attributable to noncontrolling interest	22		81		(225)		84
Income from continuing operations attributable to Belden stockholders	68,753		58,561		131,945		102,654
Add: Loss from discontinued operations, net of tax	—		—		—		(3,685)
Add: Loss on disposal of discontinued operations, net of tax	—		—		—		(4,567)
Net income attributable to Belden stockholders	$	68,753	$	58,561	$	131,945	$	94,402
Denominator:
Weighted average shares outstanding, basic	42,497		44,252		42,663		44,535
Effect of dilutive common stock equivalents	591		530		717		644
Weighted average shares outstanding, diluted	43,088		44,782		43,380		45,179

For both the three and six months ended July 2, 2023, diluted weighted average shares outstanding excluded outstanding equity awards of 0.2 million as they were anti-dilutive. In addition, for both the three and six months ended July 2, 2023, diluted weighted average shares outstanding did not include outstanding equity awards of 0.2 million because the related performance conditions have not been satisfied.

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For both the three and six months ended July 3, 2022, diluted weighted average shares outstanding exclude outstanding equity awards of 1.1 million as they are anti-dilutive. In addition, for the three and six months ended July 3, 2022, diluted weighted average shares outstanding do not include outstanding equity awards of 0.2 million and 0.3 million, respectively, because the related performance conditions have not been satisfied.

For purposes of calculating basic earnings per share, unvested restricted stock units are not included in the calculation of basic weighted average shares outstanding until all necessary conditions have been satisfied and issuance of the shares underlying the restricted stock units is no longer contingent. Necessary conditions are not satisfied until the vesting date, at which time holders of our restricted stock units receive shares of our common stock.

For purposes of calculating diluted earnings per share, unvested restricted stock units are included to the extent that they are dilutive. In determining whether unvested restricted stock units are dilutive, each issuance of restricted stock units is considered separately.

Once a restricted stock unit has vested, it is included in the calculation of both basic and diluted weighted average shares outstanding.

Note 7: Credit Losses

We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Provisions and recoveries are included in selling, general and administrative expenses.

The following table presents the activity in the trade receivables allowance for doubtful accounts for our continuing operations for the three and six months ended July 2, 2023 and July 3, 2022, respectively:

	2023		2022
	(In thousands)
Beginning balance at January 1	$	7,954	$	4,864
Current period provision	4,004		846
Acquisitions	—		319
Recoveries collected	—		(50)
Write-offs	(3)		(667)
Fx impact	(25)		(19)
Q1 ending balance	$	11,930	$	5,293
Current period provision	4,194		656
Acquisitions	19		—
Fx impact	11		(81)
Write-offs	—		(64)
Recoveries collected	(8)		(12)
Q2 ending balance	$	16,146	$	5,792

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Note 8:  Inventories

The following table presents the major classes of inventories as of July 2, 2023 and December 31, 2022, respectively:

	July 2, 2023		December 31, 2022
	(In thousands)
Raw materials	$	182,683	$	162,154
Work-in-process	39,252		35,011
Finished goods	183,289		190,311
Gross inventories	405,224		387,476
Excess and obsolete reserves	(59,797)		(45,913)
Net inventories	$	345,427	$	341,563

Note 9:  Leases

We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms within 1 to 15 years; some of which include extension and termination options. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. We have a few short-term operating leases with terms less than twelve months - these leases are not recorded on our balance sheet and the overall rent expense is not material.

We also have certain lease contracts that contain both lease and non-lease components. We have elected the practical expedient to account for these components together as a single, combined lease component. The rate implicit in most of our leases is not readily determinable. As a result, we utilize the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

Our lease agreements do not contain material residual value guarantees. Our variable lease expense was approximately $0.8 million and $1.6 million for the three and six months ended July 2, 2023, respectively. Our variable lease expense was approximately $0.7 million and $1.5 million for the three and six months ended July 3, 2022, respectively.

The components of lease expense were as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Operating lease cost	$	5,415	$	5,365	$	10,932	$	10,793
Finance lease cost
Amortization of right-of-use asset	$	190	$	446	$	391	$	734
Interest on lease liabilities	77		122		157		128
Total finance lease cost	$	267	$	568	$	548	$	862

Supplemental cash flow information related to leases was as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,625	$	4,561	$	9,290	$	9,337

-15-

Operating cash flows from finance leases were not material during the three and six months ended July 2, 2023 and July 3, 2022.

Supplemental balance sheet information related to leases was as follows:

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	73,435	$	73,376
Accrued liabilities	$	16,502	$	16,442
Long-term operating lease liabilities	60,480		59,250
Total operating lease liabilities	$	76,982	$	75,692
Finance leases:
Other long-lived assets, at cost	$	6,313	$	6,323
Accumulated depreciation	(1,020)		(733)
Other long-lived assets, net	$	5,293	$	5,590
Accrued liabilities	$	549	$	391
Other long-term liabilities	5,814		5,928
Total finance lease liabilities	$	6,363	$	6,319

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Weighted Average Remaining Lease Term
Operating leases	6 years		6 years
Finance leases	10 years		10 years
Weighted Average Discount Rate
Operating leases	5.2	%	5.2	%
Finance leases	4.2	%	4.2	%

The following table summarizes maturities of lease liabilities as of July 2, 2023 and December 31, 2022, respectively:

	July 2, 2023		December 31, 2022
	(In thousands)
2023	$	10,501	$	15,815
2024	15,574		14,809
2025	14,278		13,472
2026	12,792		11,964
2027	6,975		6,464
Thereafter	21,185		20,907
Total	$	81,305	$	83,431

In addition, we covenanted the lease payments for certain Grass Valley property leases which include expiration dates through 2035, and collectively have approximately $23 million of fixed lease payments remaining. These lease guarantees were retained by Belden and not transferred to the buyer of Grass Valley. During 2022, Grass Valley defaulted on two property leases. As of July 2, 2023, we have a liability for expected, future payments of $8.2 million. The liability is based on certain assumptions, such as receiving a level of sublease income, that we will reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed.

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Note 10:  Long-Lived Assets

Depreciation and Amortization Expense

We recognized depreciation expense in income from continuing operations of $12.7 million and $25.0 million in the three and six months ended July 2, 2023, respectively. We recognized depreciation expense in income from continuing operations of $11.4 million and $22.6 million in the three and six months ended July 3, 2022, respectively.

We recognized amortization expense in income from continuing operations of $12.9 million and $24.0 million in the three and six months ended July 2, 2023, respectively. We recognized amortization expense in income from continuing operations of $10.2 million and $20.0 million in the three and six months ended July 3, 2022, respectively.

Asset Held for Sale

During the six months ended July 2, 2023, we entered into an agreement to sell our property in Ontario, Canada as part of a sale and leaseback transaction for $15.6 million. When the asset met the held for sale criteria, we performed a recoverability test and determined that the carrying value of the property to be disposed of is less than the purchase price less cost to sell; thus, the long-lived asset group is recoverable and no impairment exists. The carrying value of the property is not material and is included in property, plant, and equipment in the condensed consolidated balance sheets. The sale is expected to close during 2023.

Note 11:  Severance, Restructuring, and Acquisition Integration Activities

Acquisition Integration Program

We are integrating our recent acquisitions with our existing businesses to achieve desired cost savings, which are primarily focused on consolidating existing and acquired facilities as well as other support functions. The Enterprise Solutions segment incurred $1.3 million of restructuring and integration costs during the three and six months ended July 2, 2023, and the Industrial Automation Solutions segment incurred $0.1 million and $0.8 million of restructuring and integration costs during the three and six months ended July 2, 2023, respectively. The Enterprise Solutions segment incurred $1.0 million of restructuring and integration costs during the three and six months ended July 3, 2022, and the Industrial Automation Solutions segment incurred $0.1 million and $3.1 million of restructuring and integration costs during the three and six months ended July 3, 2022, respectively.

The restructuring and integration costs incurred during 2023 and 2022 primarily consisted of equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days. Furthermore, there were no significant severance accrual balances as of July 2, 2023 or December 31, 2022.

The following table summarizes the severance and other restructuring and integration costs of the Acquisition Integration Program described above by financial statement line item in the Condensed Consolidated Statement of Operations:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Cost of sales	$	—	$	520	$	—	$	892
Selling, general and administrative expenses	1,323		647		1,997		3,258
Research and development expenses	94		—		94		—
Total	$	1,417	$	1,167	$	2,091	$	4,150

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Note 12:  Long-Term Debt and Other Borrowing Arrangements

The carrying values of our long-term debt were as follows:

	July 2, 2023		December 31, 2022
	(In thousands)
Revolving credit agreement due 2026	$	—	$	—
Senior subordinated notes:
3.375% Senior subordinated notes due 2027	490,500		480,330
3.875% Senior subordinated notes due 2028	381,500		373,590
3.375% Senior subordinated notes due 2031	327,000		320,220
Total senior subordinated notes	1,199,000		1,174,140
Less unamortized debt issuance costs	(11,848)		(12,964)
Long-term debt	$	1,187,152	$	1,161,176

Revolving Credit Agreement due 2026

We have a $300.0 million multi-currency asset-based revolving credit facility (the Revolver). The maturity date of the Revolver is June 2, 2026. The borrowing base under the Revolver includes eligible accounts receivable; inventory; and property, plant and equipment of certain of our subsidiaries in the United States, Canada, Germany, the United Kingdom and the Netherlands. Interest on outstanding borrowings is variable, based upon SOFR or other similar indices in foreign jurisdictions, plus a spread that ranges from 1.25%-1.75%, depending upon our leverage position. Outstanding borrowings in the U.S. and Canada may also, at our election, be priced on a base rate plus a spread that ranges from 0.25% — 0.75%, depending on our leverage position. We pay a commitment fee on the total commitments of 0.25%. In the event that we borrow more than 90% of our combined borrowing base or our borrowing base availability is less than $20.0 million, we are subject to a fixed charge coverage ratio covenant. As of July 2, 2023, we had no borrowings outstanding on the Revolver, and our available borrowing capacity was $291.2 million.

Senior Subordinated Notes

We had outstanding €200.0 million aggregate principal amount of 4.125% senior subordinated notes due 2026 (the 2026 Notes). During the six months ended July 3, 2022, we repurchased the full €200.0 million 2026 Notes outstanding for cash consideration of €204.1 million ($227.9 million), including a redemption premium, and recognized a $6.4 million loss on debt extinguishment including the write-off of unamortized debt issuance costs.

We have outstanding €450.0 million aggregate principal amount of 3.375% senior subordinated notes due 2027 (the 2027 Notes). The carrying value of the 2027 Notes as of July 2, 2023 is $490.5 million. The 2027 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2027 Notes rank equal in right of payment with our senior subordinated notes due 2031 and 2028 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year.

We have outstanding €350.0 million aggregate principal amount of 3.875% senior subordinated notes due 2028 (the 2028 Notes). The carrying value of the 2028 Notes as of July 2, 2023 is $381.5 million. The 2028 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2028 Notes rank equal in right of payment with our senior subordinated notes due 2031 and 2027 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on March 15 and September 15 of each year.

We have outstanding €300.0 million aggregate principal amount of 3.375% senior subordinated notes due 2031 (the 2031 Notes). The carrying value of the 2031 Notes as of July 2, 2023 is $327.0 million. The 2031 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2031 Notes rank equal in right of payment with our senior subordinated notes due 2028 and 2027 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year.

-18-

Fair Value of Long-Term Debt

The fair value of our senior subordinated notes as of July 2, 2023 was approximately $1,099.5 million based on quoted prices of the debt instruments in inactive markets (Level 2 valuation). This amount represents the fair value of our senior subordinated notes with a carrying value of $1,199.0 million as of July 2, 2023.

Note 13:  Net Investment Hedge

All of our euro denominated notes were issued by Belden Inc., a USD functional currency entity. As of July 2, 2023, €567.8 million of our outstanding foreign denominated debt is designated as a net investment hedge on the foreign currency risk of our net investment in our euro foreign operations. The objective of the hedge is to protect the net investment in the foreign operation against adverse changes in the euro exchange rate. The transaction gain or loss is reported in the translation adjustment section of other comprehensive income. For the six months ended July 2, 2023 and July 3, 2022, the transaction gain (loss) associated with the net investment hedge reported in other comprehensive income was $(13.0) million and $53.5 million, respectively. In 2022, we de-designated €200.0 million of our outstanding debt that was previously designated as a net investment hedge. After the de-designation, transaction gains or losses associated with this €200.0 million of debt are reported in income from continuing operations.

Note 14:  Income Taxes

For the three and six months ended July 2, 2023, we recognized income tax expense of $15.7 million and $30.5 million, respectively, representing an effective tax rate of 18.5% and 18.8%, respectively. The effective tax rates were primarily impacted by the effect of our foreign operations, including statutory tax rates differences and foreign tax credits. On August 16, 2022, the Inflation Reduction Act of 2022 (the Act) was signed into law. None of the tax provisions of the Act are expected to have a material impact to our consolidated financial statements and related disclosures.

For the three and six months ended July 3, 2022, we recognized income tax expense of $13.1 million and $22.9 million, respectively, representing an effective tax rate of 18.2% for each period. The effective tax rates were primarily impacted by the effect of our foreign operations, including statutory tax rates differences and foreign tax credits.

Note 15:  Pension and Other Postretirement Obligations

The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: 

	Pension Obligations				Other Postretirement Obligations
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Three Months Ended
Service cost	$	844	$	819	$	3	$	6
Interest cost	3,810		2,287		252		193
Expected return on plan assets	(4,329)		(3,798)		—		—
Amortization of prior service cost	44		44		—		—
Actuarial losses (gains)	(232)		224		(191)		(20)
Net periodic benefit cost (income)	$	137	$	(424)	$	64	$	179
Six Months Ended
Service cost	$	1,534	$	1,730	$	6	$	12
Interest cost	7,554		4,592		503		388
Expected return on plan assets	(8,438)		(7,761)		—		—
Amortization of prior service cost	87		91		—		—
Actuarial losses (gains)	(458)		460		(382)		(40)
Net periodic benefit cost (income)	$	279	$	(888)	$	127	$	360

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Note 16:  Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

The following table summarizes total comprehensive income: 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Net income	$	68,775	$	58,642	$	131,720	$	94,486
Foreign currency translation adjustments, net of tax	(4,577)		51,945		(21,595)		55,707
Adjustments to pension and postretirement liability, net of tax	(284)		181		(564)		374
Total comprehensive income	63,914		110,768		109,561		150,567
Less: Comprehensive income (loss) attributable to noncontrolling interests	24		56		(221)		86
Comprehensive income attributable to Belden	$	63,890	$	110,712	$	109,782	$	150,481

The tax impacts of the foreign currency translation adjustments and pension liability adjustments in the table above are not material.

The accumulated balances related to each component of other comprehensive loss, net of tax, are as follows: 

	Foreign Currency Translation Component		Pension and Other  Postretirement Benefit Plans		Accumulated Other  Comprehensive Loss
	(In thousands)
Balance at December 31, 2022	$	(1,944)	$	(3,927)	$	(5,871)
Other comprehensive loss attributable to Belden before reclassifications	(21,599)		—		(21,599)
Amounts reclassified from accumulated other comprehensive loss	(139)		(564)		(703)
Net current period other comprehensive loss attributable to Belden	(21,738)		(564)		(22,302)
Balance at July 2, 2023	$	(23,682)	$	(4,491)	$	(28,173)

The following table summarizes the effects of reclassifications from accumulated other comprehensive loss for the six months ended July 2, 2023:

	Amounts  Reclassified from Accumulated Other Comprehensive Income (2)		Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss
	(In thousands)
Amortization of pension and other postretirement benefit plan items:
Actuarial gains	$	(840)	(1)
Prior service cost	87		(1)
Total before tax	(753)
Tax expense	189
Total net of tax	$	(564)

(1) The amortization of these accumulated other comprehensive loss components are included in the computation of net periodic benefit costs (see Note 15).

(2) In addition, we reclassified $0.1 million of accumulated foreign currency translation gains associated with the sale of the Hite JV.

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Note 17: Share Repurchase

In 2018, our Board of Directors authorized a share repurchase program, which allows us to purchase up to $300.0 million of our common stock through open market repurchases, negotiated transactions, or other means, in accordance with applicable securities laws and other restrictions. On April 24, 2023, our Board of Directors authorized an additional $300.0 million under the share repurchase program. This program is funded with cash on hand and cash flows from operating activities.

During the three months ended July 2, 2023, we repurchased 0.4 million shares of our common stock for an aggregate cost of $36.2 million at an average price per share of $92.01. During the six months ended July 2, 2023, we repurchased 1.0 million shares of our common stock for an aggregate cost of $86.2 million at an average price per share of $87.30. As of July 2, 2023, we had $278.8 million of authorizations remaining under the program. This share repurchase authorization does not have an expiration date.

During the three months ended July 3, 2022, we repurchased 0.3 million shares of our common stock for an aggregate cost of $16.6 million at an average price per share of $51.71. During the six months ended July 3, 2022, we repurchased 1.2 million shares of our common stock for an aggregate cost of $66.6 million at an average price per share of $55.23.

-21-

Item 2:        Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Belden Inc. (the Company, us, we, or our) is a leading global supplier of network infrastructure solutions built around 2 global businesses - Enterprise Solutions and Industrial Automation Solutions. Our mission is to build the foundation for a digital world that makes the digital journey simpler, smarter and secure.

Belden is moving beyond connectivity, from what we make to what we make possible through a performance-driven portfolio, forward-thinking expertise and purpose-built solutions. We are aligned with attractive secular growth markets, positioned to provide comprehensive solutions that drive customer outcomes, focused on new product innovation and technology leadership, and committed to sustainable ESG practices. Our current business goals are to:

•Drive organic revenue growth in excess of GDP;

•Deliver incremental Adjusted EBITDA margins of approximately 30%;

•Generate free cash flow of approximately $1 billion cumulatively from 2022 through 2025;

•Execute a disciplined capital allocation strategy while maintaining net leverage of approximately 1.5x; and

•Drive Adjusted EPS to at least $8.00 by 2025.

Trends and Events

The following trends and events during 2023 have had varying effects on our financial condition, results of operations, and cash flows.

Foreign Currency

Our exposure to currency rate fluctuations primarily relates to exchange rate movements between the U.S. dollar and the euro, Canadian dollar, Hong Kong dollar, Chinese yuan, Mexican peso, Australian dollar, British pound, Indian rupee and Swiss franc. Generally, as the U.S. dollar strengthens against these foreign currencies, our revenues and earnings are negatively impacted as our foreign denominated revenues and earnings are translated into U.S. dollars at a lower rate. Conversely, as the U.S. dollar weakens against foreign currencies, our revenues and earnings are positively impacted. Approximately 43% of our consolidated revenues during the quarter ended July 2, 2023 were to customers outside of the U.S.

In addition to the translation impact described above, currency rate fluctuations have an economic impact on our financial results. As the U.S. dollar strengthens or weakens against foreign currencies, it results in a relative price increase or decrease for certain of our products that are priced in U.S. dollars in a foreign location.

Inflation

During periods of inflation, if we are unable to raise prices timely and sufficiently to recover our material costs, our earnings could decline. Furthermore, inflation may impact labor, energy, and other costs. We monitor inflation pressures and proactively implement selling price increases or cost control measures as appropriate.

Commodity Prices

Our operating results can be affected by changes in prices of commodities, primarily copper and compounds, which are components in some of the products we sell. Generally, as the costs of inventory purchases increase due to higher commodity prices, we raise selling prices to customers to cover the increase in costs, resulting in higher sales revenue but a lower gross profit percentage. Conversely, a decrease in commodity prices would result in lower sales revenue but a higher gross profit percentage. Selling prices of our products are affected by many factors, including end market demand, capacity utilization, overall economic conditions, and commodity prices. There is no exact measure of the effect of changing commodity prices, as there are thousands of transactions in any given quarter, each of which has various factors involved in the individual pricing decisions. Therefore, all references to the effect of copper prices or other commodity prices are estimates.

Channel Inventory

Our operating results also can be affected by the levels of Belden products purchased and held as inventory by our channel partners and customers. Our channel partners and customers purchase and hold the products they bought from us in their inventory in order to meet the service and on-time delivery requirements of their customers. Generally, as our channel partners and customers change the level of products they buy from us and hold in their inventory, it impacts our revenues. Comparisons of our results between periods can be impacted by changes in the levels of channel inventory. We use information provided to us by our channel partners and make certain assumptions based on our sales to them to determine the amount of products they bought from us and hold in their inventory. As such, all references to the effect of channel inventory changes are estimates.

-22-

Market Growth and Market Share

The markets in which we operate can generally be characterized as highly competitive and highly fragmented, with many players. We monitor available data regarding market growth, including independent market research reports, publicly available indices, and the financial results of our direct and indirect peer companies, in order to estimate the extent to which our served markets grew or contracted during a particular period. We expect that our unit sales volume will increase or decrease consistently with the market growth rate. Our strategic goal is to utilize our Market Delivery System to target faster growing geographies, applications, and trends within our end markets, in order to achieve growth that is higher than the general market growth rate. To the extent that we exceed the market growth rates, we consider it to be the result of capturing market share.

Sichert Acquisition

On April 17, 2023, we acquired Sichert with cash on hand for $97.5 million, net of cash acquired. Sichert, based in Berlin Germany, designs and manufactures a portfolio of polycarbonate street cabinets utilized in outside plant passive optical networks (“PON”) and 5G networks. Sichert is reported within the Enterprise Solutions segment. See Note 3.

Share Repurchase Program

During the three months ended July 2, 2023, our Board of Directors authorized an additional $300.0 million under the share repurchase program, and we repurchased 0.4 million shares of our common stock for an aggregate cost of $36.2 million at an average price per share of $92.01. See Note 17.

Sale and Deconsolidation of Hite

During the three months ended July 2, 2023, we sold our 51% ownership interest in Shanghai Hi-Tech Control System Co, Ltd to (Hite) for $0.9 million and recognized a $0.4 million pretax gain on sale. The sale also includes $0.6 million of potential earnout payments. The joint venture developed and provided certain Industrial Automation Solutions products and integrated solutions to customers in China. As Belden was the primary beneficiary of the joint venture, due to both our ownership percentage and control over the activities of the joint venture, we consolidated the joint venture in our financial statements and presented the results of the joint venture attributable to Hite’s ownership as net income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations up to April 28, 2023 when we sold and deconsolidated the entity. See Note 1.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, results of operations, or cash flows that are or would be considered material to investors.

Critical Accounting Policies

During the six months ended July 2, 2023:

•We did not change any of our existing critical accounting policies from those listed in our 2022 Annual Report on Form 10-K;

•No existing accounting policies became critical accounting policies because of an increase in the materiality of associated transactions or changes in the circumstances to which associated judgments and estimates relate; and

•There were no significant changes in the manner in which critical accounting policies were applied or in which related judgments and estimates were developed.

-23-

Results of Operations

Consolidated Income before Taxes

 

	Three Months Ended				% Change		Six Months Ended				% Change
	July 2, 2023		July 3, 2022				July 2, 2023		July 3, 2022
	(In thousands, except percentages)
Revenues	$	692,245	$	666,551	3.9	%	$	1,334,034	$	1,276,922	4.5	%
Gross profit	261,328		222,305		17.6	%	507,433		431,165		17.7	%
Selling, general and administrative expenses	(126,635)		(105,203)		20.4	%	(248,209)		(208,269)		19.2	%
Research and development expenses	(30,970)		(25,989)		19.2	%	(60,354)		(49,445)		22.1	%
Amortization of intangibles	(11,126)		(9,177)		21.2	%	(20,736)		(17,994)		15.2	%
Operating income	92,597		81,936		13.0	%	178,134		155,457		14.6	%
Interest expense, net	(8,812)		(11,276)		(21.9)	%	(17,013)		(25,687)		(33.8)	%
Non-operating pension benefit	646		1,070		(39.6)	%	1,134		2,270		(50.0)	%
Loss on debt extinguishment	—		—		n/a		—		(6,392)		(100.0)	%
Income from continuing operations before taxes	84,431		71,730		17.7	%	162,255		125,648		29.1	%

Revenues increased $25.7 million and $57.1 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 due to the following factors:

•Higher sales volume and favorable pricing resulted in a $31.3 million and $72.2 million increase in revenues, respectively.

•Acquisitions, net of divestitures contributed an estimated $7.0 million and $14.9 million in revenues, respectively.

•Copper pass-through pricing had an $11.5 million and $20.1 million unfavorable impact on revenues, respectively.

•Currency translation had a $1.1 million and $9.9 million unfavorable impact on revenues, respectively.

Gross profit increased $39.0 million and $76.3 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 due to the increases in revenues discussed above and favorable product mix. Gross profit margins were robust, expanding 440 and 420 basis points to 37.8% and 38.0% in the three and six months ended July 2, 2023 from 33.4% and 33.8% in the comparable periods of 2022, respectively.

Selling, general and administrative expenses increased $21.4 million and $39.9 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022. The increase in selling, general and administrative expenses is primarily attributable to strategic investments to enhance our solution selling capabilities as well as increases from acquisitions.

Research and development expenses increased $5.0 million and $10.9 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 primarily due to increased investments as we further strengthen our product offering and continue our commitment to growth initiatives.

Amortization of intangibles increased $1.9 million and $2.7 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 primarily due to acquisitions.

Operating income increased $10.7 million and $22.7 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 due to the increase in gross profit, partially offset by increases in operating expenses as discussed above.

Net interest expense decreased $2.5 million and $8.7 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 due to the retirement of the 2026 Notes during 2022 and an increase in interest income. See further discussion below.

The $6.4 million loss on debt extinguishment in the six months ended July 3, 2022 represents the premium paid to the bond holders to retire the 2026 Notes and the write-off of the unamortized debt issuance costs associated with the 2026 Notes. See Note 12.

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Income from continuing operations before taxes increased $12.7 million and $36.6 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 primarily due to the increase in operating income and decrease in debt costs as discussed above.

Income Taxes

	Three Months Ended						% Change		Six Months Ended						% Change
	July 2, 2023			July 3, 2022					July 2, 2023			July 3, 2022
	(In thousands, except percentages)
Income from continuing operations before taxes	$	84,431		$	71,730		17.7	%	$	162,255		$	125,648		29.1	%
Income tax expense	15,656			13,088			19.6	%	30,535			22,910			33.3	%
Effective tax rate	18.5		%	18.2		%			18.8		%	18.2		%

For the three and six months ended July 2, 2023, we recognized income tax expense of $15.7 million and $30.5 million, representing an effective tax rate of 18.5% and 18.8%, respectively. The effective tax rate was primarily impacted by the effect of our foreign operations, including statutory tax rates differences and foreign tax credits. See Note 14.

Consolidated Adjusted EBITDA 

	Three Months Ended						% Change		Six Months Ended						% Change
	July 2, 2023			July 3, 2022					July 2, 2023			July 3, 2022
	(In thousands, except percentages)
Revenues	$	692,245		$	666,551		3.9	%	$	1,334,034		$	1,276,922		4.5	%
Adjusted EBITDA	123,179			110,967			11.0	%	234,630			210,461			11.5	%
as a percent of revenues	17.8		%	16.6		%			17.6		%	16.5		%

Adjusted EBITDA increased $12.2 million and $24.2 million in the three and six months ended July 2, 2023, respectively, from the comparable periods of 2022 primarily due to leverage on higher sales volume and favorable product mix, as discussed above. Accordingly, Adjusted EBITDA margins in the three and six months ended July 2, 2023 expanded to 17.8% and 17.6% from 16.6% and 16.5% in the comparable periods of 2022, respectively.

Use of Non-GAAP Financial Information

Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow are non-GAAP financial measures. In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expense due to plant consolidation activities; acquisition-related expenses, such as the adjustment of acquired inventory to fair value, and transaction costs; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and assets; amortization of intangible assets; gains (losses) on debt extinguishment; certain gains (losses) from patent settlements; discontinued operations; and other costs. We adjust for the items listed above in all periods presented, unless the impact is clearly immaterial to our financial statements. When we calculate the tax effect of the adjustments, we include all current and deferred income tax expense commensurate with the adjusted measure of pre-tax profitability.

We utilize the adjusted results to review our ongoing operations without the effect of these adjustments and for comparison to budgeted operating results. We believe the adjusted results are useful to investors because they help them compare our results to previous periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis. As an example, we adjust for acquisition-related expenses, such as amortization of intangibles and impacts of fair value adjustments because they generally are not related to the acquired business' core operating performance. As an additional example, we exclude the costs of restructuring programs, which can occur from time to time for our current businesses and/or recently acquired businesses. We exclude the costs in calculating adjusted results to allow us and investors to evaluate the performance of the business based upon its expected ongoing operating structure. We believe the adjusted measures, accompanied by the disclosure of the costs of these programs, provides valuable insight.

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Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States. The following tables reconcile our GAAP results to our non-GAAP financial measures:

	Three Months Ended						Six Months Ended
	July 2, 2023			July 3, 2022			July 2, 2023			July 3, 2022
	(In thousands, except percentages)
Revenues	$	692,245		$	666,551		$	1,334,034		$	1,276,922
GAAP income from continuing operations	$	68,775		$	58,642		$	131,720		$	102,738
Income tax expense	15,656			13,088			30,535			22,910
Depreciation expense	12,682			11,370			25,036			22,596
Amortization of intangible assets	11,126			9,177			20,736			17,994
Interest expense, net	8,812			11,276			17,013			25,687
Severance, restructuring, and acquisition integration costs (1)	4,059			5,857			5,771			9,580
Amortization of software development intangible assets	1,820			981			3,272			1,988
Adjustments related to acquisitions and divestitures (2)	249			576			547			576
Loss on debt extinguishment	—			—			—			6,392
Adjusted EBITDA	$	123,179		$	110,967		$	234,630		$	210,461
GAAP income from continuing operations margin	9.9		%	8.8		%	9.9		%	8.0		%
Adjusted EBITDA margin	17.8		%	16.6		%	17.6		%	16.5		%

(1) Severance, restructuring, and acquisition integration costs for the three and six months ended July 2, 2023 and July 3, 2022 included costs related to our Acquisition Integration program. See Note 11.

(2) Adjustments related to acquisitions and divestitures included fair value adjustments of acquired inventory and investments as well as gains associated with the sales of businesses.

Segment Results of Operations

For additional information regarding our segment measures, see Note 5 to the Condensed Consolidated Financial Statements.

Enterprise Solutions

	Three Months Ended						% Change		Six Months Ended						% Change
	July 2, 2023			July 3, 2022					July 2, 2023			July 3, 2022
	(In thousands, except percentages)
Segment Revenues	$	312,529		$	307,444		1.7	%	$	587,872		$	575,874		2.1	%
Segment EBITDA	43,956			41,887			4.9	%	81,161			72,708			11.6	%
as a percent of segment revenues	14.1		%	13.6		%			13.8		%	12.6		%

Enterprise Solutions revenues increased $5.1 million and $12.0 million in the three and six months ended July 2, 2023 from the comparable periods of 2022, respectively. The increase in revenues in the three months ended July 2, 2023 was primarily due to increases in volume and favorable pricing of $3.5 million and acquisitions of $7.2 million, partially offset by unfavorable currency translation of $1.6 million and lower copper pass-through pricing of $4.0 million. The increase in revenues in the six months ended July 2, 2023 was primarily due to increases in volume and favorable pricing of $12.3 million and acquisitions of $11.2 million, partially offset by unfavorable currency translation of $4.6 million and lower copper pass-through pricing of $6.9 million.

Enterprise Solutions EBITDA increased $2.1 million and $8.5 million in the three and six months ended July 2, 2023 from the comparable periods of 2022, respectively, primarily as a result of the increase in revenues discussed above. Accordingly, for the three and six months ended July 2, 2023, Segment EBITDA margins expanded 50 and 120 basis points to 14.1% and 13.8% from 13.6% and 12.6% over the year ago periods, respectively.

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Industrial Automation Solutions 

	Three Months Ended						% Change		Six Months Ended						% Change
	July 2, 2023			July 3, 2022					July 2, 2023			July 3, 2022
	(In thousands, except percentages)
Segment Revenues	$	379,716		$	359,107		5.7	%	$	746,162		$	701,048		6.4	%
Segment EBITDA	78,631			68,060			15.5	%	152,418			135,588			12.4	%
as a percent of segment revenues	20.7		%	19.0		%			20.4		%	19.3		%

Industrial Automation Solutions revenues increased $20.6 million and $45.1 million in the three and six months ended July 2, 2023 from the comparable periods of 2022, respectively. The increase in revenues in the three months ended July 2, 2023 was primarily due to increases in volume and favorable pricing of $27.8 million and favorable currency translation of $0.5 million, partially offset by lower copper pass-through pricing of $7.5 million and divestitures of $0.2 million. The increase in revenues in the six months ended July 2, 2023 was primarily due to increases in volume and favorable pricing of $59.9 million and acquisitions, net of divestitures of $3.7 million, partially offset by unfavorable currency translation of $5.3 million and lower copper pass-through pricing of $13.2 million.

Industrial Automation Solutions EBITDA increased $10.6 million and $16.8 million in the three and six months ended July 2, 2023 from the comparable periods of 2022, respectively, primarily as a result of the increase in revenues discussed above, including solid operating leverage on volume growth and favorable mix. Accordingly, for the three and six months ended July 2, 2023, Segment EBITDA margins expanded to 20.7% and 20.4% from 19.0% and 19.3% over the year ago periods, respectively.

Liquidity and Capital Resources

Significant factors affecting our cash liquidity include (1) cash from operating activities, (2) disposals of businesses and tangible assets, (3) cash used for acquisitions, restructuring actions, capital expenditures, share repurchases, dividends, and senior subordinated note repurchases, and (4) our available credit facilities and other borrowing arrangements. We expect our operating activities to generate cash in 2023 and believe our sources of liquidity are sufficient to fund current working capital requirements, capital expenditures, contributions to our retirement plans, share repurchases, senior subordinated note repurchases, quarterly dividend payments, and our short-term operating strategies. However, we may require external financing in the event we complete a significant acquisition. Our ability to continue to fund our future needs from business operations could be affected by many factors, including, but not limited to: economic conditions worldwide, customer demand, competitive market forces, customer acceptance of our product mix, and commodities pricing.

The following table is derived from our Condensed Consolidated Cash Flow Statements, and for the six months ended July 3, 2022, includes the results of discontinued operations up to the February 22, 2022 disposal date:

	Six Months Ended
	July 2, 2023		July 3, 2022
	(In thousands)
Net cash provided by (used for):
Operating activities	$	54,715	$	(8,581)
Investing activities	(121,005)		204,977
Financing activities	(105,885)		(303,251)
Effects of currency exchange rate changes on cash and cash equivalents	(734)		(9,220)
Decrease in cash and cash equivalents	(172,909)		(116,075)
Cash and cash equivalents, beginning of period	687,676		643,757
Cash and cash equivalents, end of period	$	514,767	$	527,682

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Net cash provided by operating activities totaled $54.7 million in the six months ended July 2, 2023, compared to a use of cash of $8.6 million in the prior year. Operating cash flows improved $63.3 million compared to the prior year primarily due to a $37.2 million increase in net income and $24.8 million improvement in operating assets and liabilities. Inventories experienced the biggest improvement as we continue to reduce the outstanding backlog.

Net cash from investing activities was a use of cash of $121.0 million in the six months ended July 2, 2023, compared to a source of cash of $205.0 million in the prior year. Investing activities for the six months ended July 2, 2023 included $97.6 million primarily for the acquisition of Sichert and $32.7 million for capital expenditures, partially offset by $9.3 million received from the disposals of businesses. Investing activities for the six months ended July 3, 2022 included cash receipts of $338.7 million for the Tripwire disposal, partially offset by payments of $104.1 million for acquisitions and $31.0 million for capital expenditures.

Net cash used for financing activities totaled $105.9 million for the six months ended July 2, 2023, compared to $303.3 million in the prior year. Financing activities for the six months ended July 2, 2023 included payments under our share repurchase program of $86.2 million, payments related to share based compensation activities of $16.9 million, cash dividend payments of $4.3 million, and proceeds from the issuance of common stock of $1.6 million. Financing activities for the six months ended July 3, 2022 included payments under borrowing arrangements of $230.6 million, payments under our share repurchase program of $66.6 million, payments related to share based compensation activities of $5.2 million, cash dividend payments of $4.5 million, and proceeds from the issuance of common stock of $3.7 million.

Our cash and cash equivalents balance was $514.8 million as of July 2, 2023. Of this amount, $219.0 million was held outside of the U.S. in our foreign operations. Substantially all of the foreign cash and cash equivalents are readily convertible into U.S. dollars or other foreign currencies. We consider the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and accordingly, no provision for any withholding taxes has been recorded. Upon distribution of those earnings in the form of dividends or otherwise, we may be subject to withholding taxes payable to the respective foreign countries.

Our outstanding debt obligations as of July 2, 2023 consisted of $1,199.0 million of senior subordinated notes. Additional discussion regarding our various borrowing arrangements is included in Note 12 to the Condensed Consolidated Financial Statements. 

Forward-Looking Statements

Statements in this report other than historical facts are “forward-looking statements.” Forward-looking statements include statements regarding future financial performance (including revenues, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. These forward-looking statements reflect management’s current beliefs and expectations and are not guarantees of future performance. Actual results may differ materially from those suggested by any forward-looking statements based on a number of factors. These factors include, among others, those set forth in Part II, Item 1A and in other documents that we file with the SEC. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Item 3:        Quantitative and Qualitative Disclosures about Market Risks

The following table provides information about our financial instruments that are sensitive to changes in interest rates. The table presents principal amounts by expected maturity dates and fair values as of July 2, 2023. 

	Principal Amount by Expected Maturity							Fair
	2023		Thereafter			Total		Value
	(In thousands, except interest rates)
€450.0 million fixed-rate senior subordinated notes due 2027	$	—	$	490,500		$	490,500	$	457,391
Average interest rate			3.375		%
€350.0 million fixed-rate senior subordinated notes due 2028	$	—	$	381,500		$	381,500	$	357,179
Average interest rate			3.875		%
€300.0 million fixed-rate senior subordinated notes due 2031	$	—	327,000			$	327,000	$	284,899
Average interest rate			3.375		%
Total						$	1,199,000	$	1,099,469

-28-

Item 7A of our 2022 Annual Report on Form 10-K provides information as to the practices and instruments that we use to manage market risks. There were no material changes in our exposure to market risks since December 31, 2022.

Item 4:        Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of the principal executive officer and principal financial officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on this evaluation, the principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

There was no change in our internal control over financial reporting during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

-29-

PART II OTHER INFORMATION

Item 1:        Legal Proceedings

We are a party to various legal proceedings and administrative actions that are incidental to our operations. In our opinion, the proceedings and actions in which we are involved should not, individually or in the aggregate, have a material adverse effect on our financial condition, operating results, or cash flows. However, since the trends and outcome of this litigation are inherently uncertain, we cannot give absolute assurance regarding the future resolution of such litigation, or that such litigation may not become material in the future.

Item 1A:      Risk Factors

There have been no material changes with respect to risk factors as previously disclosed in our Form 10-K filed on February 24, 2023. There may be additional risks that impact our business that we currently do not recognize as, or that are not currently, material to our business.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

Set forth below is information regarding our stock repurchases for the three months ended July 2, 2023 (in thousands, except per share amounts).

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of shares Repurchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
Balance at April 2, 2023					$	15,000
April 3, 2023 through May 7, 2023	—	$	—	—	315,000
May 8, 2023 through June 4, 2023	42	88.03		42	311,323
June 5, 2023 through July 2, 2023	352	92.48		352	278,776
Total	394	$	92.01	394	$	278,776

(1) In November 2018, our Board of Directors authorized a share repurchase program, which allows us to purchase up to $300.0 million of our common stock through open market repurchases, negotiated transactions, or other means, in accordance with applicable security laws and other regulations. In April 2023, our Board of Directors authorized an additional $300.0 million under the share repurchase program. This program is funded with cash on hand and cash flows from operating activities. The program does not have an expiration date and may be suspended at any time at the discretion of the Company. During the three months ended July 2, 2023, we repurchased 0.4 million shares of our common stock for an aggregate cost of $36.2 million at an average price per share of $92.01. From inception of our program to the date of this filing, we have repurchased 5.5 million shares of our common stock for an aggregate cost of $324.6 million and an average price of $59.25. See Note 17. As of the date of this filing, we had $275.4 million of authorizations remaining under the program.

Item 5:      Other Information

None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended July 2, 2023.

-30-

Item 6:        Exhibits

Exhibits

 

Exhibit 31.1	Certificate of the Chief Executive Officer pursuant to § 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2	Certificate of the Chief Financial Officer pursuant to § 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1	Certificate of the Chief Executive Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2	Certificate of the Chief Financial Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101.SCH	Schema Document
Exhibit 101.CAL	Calculation Linkbase Document
Exhibit 101.DEF	Definition Linkbase Document
Exhibit 101.LAB	Labels Linkbase Document
Exhibit 101.PRE	Presentation Linkbase Document

-31-

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		BELDEN INC.
Date:	August 3, 2023	By:	/s/ Ashish Chand
			Ashish Chand
			President and Chief Executive Officer
Date:	August 3, 2023	By:	/s/ Jeremy Parks
			Jeremy Parks
			Senior Vice President, Finance, and Chief Financial Officer
Date:	August 3, 2023	By:	/s/ Douglas R. Zink
			Douglas R. Zink
			Vice President and Chief Accounting Officer

-32-

EX-31.1

Exhibit 31.1

CERTIFICATE PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Ashish Chand, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Belden Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which the statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 3, 2023

/s/ Ashish Chand

Ashish Chand

President and Chief Executive Officer                         

EX-31.2

Exhibit 31.2

CERTIFICATE PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Jeremy Parks, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Belden Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which the statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 3, 2023

/s/ Jeremy Parks

Jeremy Parks

Senior Vice President, Finance, and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATE PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Belden Inc. (the “Company”) on Form 10-Q for the period ended July 2, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ashish Chand, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Ashish Chand

Ashish Chand

President and Chief Executive Officer

August 3, 2023

EX-32.2

Exhibit 32.2

CERTIFICATE PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Belden Inc. (the “Company”) on Form 10-Q for the period ended July 2, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeremy Parks, Senior Vice President, Finance, and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jeremy Parks

Jeremy Parks

Senior Vice President, Finance, and Chief Financial Officer

August 3, 2023

XML

Cover - shares	6 Months Ended
	Jul. 02, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Jul. 02, 2023
Entity File Number	001-12561
Entity Registrant Name	BELDEN INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3601505
Entity Address, Address Line One	1 North Brentwood Boulevard
Entity Address, Address Line Two	15th Floor
Entity Address, City or Town	St. Louis
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63105
City Area Code	314
Local Phone Number	854-8000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging growth company	false
Entity Shell Company	false
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	BDC
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		42,297,217
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000913142
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 02, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 514,767	$ 687,676
Receivables, net	509,801	440,102
Inventories, net	345,427	341,563
Other current assets	66,525	66,866
Total current assets	1,436,520	1,536,207
Property, plant and equipment, less accumulated depreciation	392,593	381,864
Operating lease right-of-use assets	73,435	73,376
Goodwill	893,419	862,253
Intangible assets, less accumulated amortization	286,583	246,830
Deferred income taxes	15,412	14,642
Other long-lived assets	47,365	46,503
Total assets	3,145,327	3,161,675
Current liabilities:
Accounts payable	290,382	350,058
Accrued liabilities	277,405	289,861
Total current liabilities	567,787	639,919
Long-term debt	1,187,152	1,161,176
Postretirement benefits	67,248	67,828
Deferred income taxes	68,172	58,582
Long-term operating lease liabilities	60,480	59,250
Other long-term liabilities	31,497	30,970
Stockholders’ equity:
Common stock	503	503
Additional paid-in capital	809,332	825,669
Retained earnings	879,179	751,522
Accumulated other comprehensive loss	(28,173)	(5,871)
Treasury stock	(497,873)	(428,812)
Total Belden stockholders’ equity	1,162,968	1,143,011
Noncontrolling interests	23	939
Total stockholders’ equity	1,162,991	1,143,950
Total liabilities and stockholders' equity	$ 3,145,327	$ 3,161,675

XML

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Income Statement [Abstract]
Revenues	$ 692,245	$ 666,551	$ 1,334,034	$ 1,276,922
Cost of sales	(430,917)	(444,246)	(826,601)	(845,757)
Gross profit	261,328	222,305	507,433	431,165
Selling, general and administrative expenses	(126,635)	(105,203)	(248,209)	(208,269)
Research and development expenses	(30,970)	(25,989)	(60,354)	(49,445)
Amortization of intangibles	(11,126)	(9,177)	(20,736)	(17,994)
Operating income	92,597	81,936	178,134	155,457
Interest expense, net	(8,812)	(11,276)	(17,013)	(25,687)
Non-operating pension benefit	646	1,070	1,134	2,270
Loss on debt extinguishment	0	0	0	(6,392)
Income from continuing operations before taxes	84,431	71,730	162,255	125,648
Income tax expense	(15,656)	(13,088)	(30,535)	(22,910)
Income from continuing operations	68,775	58,642	131,720	102,738
Loss from discontinued operations, net of tax	0	0	0	(3,685)
Loss on disposal of discontinued operations, net of tax	0	0	0	(4,567)
Net income	68,775	58,642	131,720	94,486
Less: Net income (loss) attributable to noncontrolling interest	22	81	(225)	84
Net income attributable to Belden stockholders	$ 68,753	$ 58,561	$ 131,945	$ 94,402
Weighted average number of common shares and equivalents:
Basic (in shares)	42,497	44,252	42,663	44,535
Diluted (in shares)	43,088	44,782	43,380	45,179
Basic income (loss) per share attributable to Belden stockholders:
Continuing operations (in dollars per share)	$ 1.62	$ 1.32	$ 3.09	$ 2.31
Discontinued operations (in dollars per share)	0	0	0	(0.08)
Disposal of discontinued operations (in dollars per share)	0	0	0	(0.10)
Net income (in dollars per share)	1.62	1.32	3.09	2.12
Diluted income (loss) per share attributable to Belden stockholders:
Continuing operation (in dollars per share)	1.60	1.31	3.04	2.27
Discontinued operations (in dollars per share)	0	0	0	(0.08)
Disposal of discontinued operations (in dollars per share)	0	0	0	(0.10)
Net income (in dollars per share)	$ 1.60	$ 1.31	$ 3.04	$ 2.09
Comprehensive income attributable to Belden	$ 63,890	$ 110,712	$ 109,782	$ 150,481
Common stock dividends declared per share (in usd per share)	$ 0.05	$ 0.05	$ 0.10	$ 0.10

XML

Condensed Consolidated Cash Flow Statements - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Cash flows from operating activities:
Net income	$ 131,720	$ 94,486
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	49,044	42,686
Share-based compensation	12,154	10,870
Loss on debt extinguishment	0	6,392
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:
Receivables	(71,212)	(20,699)
Inventories	10,347	(47,305)
Accounts payable	(59,295)	(23,563)
Accrued liabilities	(22,855)	(58,525)
Income taxes	5,204	163
Other assets	(4,197)	(2,634)
Other liabilities	3,805	(10,452)
Net cash provided by (used for) operating activities	54,715	(8,581)
Cash flows from investing activities:
Cash used for business acquisitions, net of cash acquired	(97,585)	(104,123)
Capital expenditures	(32,729)	(31,010)
Proceeds from disposal of tangible assets	9	1,424
Proceeds from disposal of businesses, net of cash sold	9,300	338,686
Net cash provided by (used for) investing activities	(121,005)	204,977
Cash flows from financing activities:
Payments under share repurchase program	(86,224)	(66,559)
Withholding tax payments for share-based payment awards	(16,940)	(5,167)
Cash dividends paid	(4,285)	(4,520)
Payments under financing lease obligations	(115)	(83)
Payments under borrowing arrangements	0	(230,639)
Proceeds from issuance of common stock	1,679	3,717
Net cash used for financing activities	(105,885)	(303,251)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(734)	(9,220)
Decrease in cash and cash equivalents	(172,909)	(116,075)
Cash and cash equivalents, beginning of period	687,676	643,757
Cash and cash equivalents, end of period	$ 514,767	$ 527,682

XML

Condensed Consolidated Stockholders' Equity Statements - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other  Comprehensive Loss	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2021		50,335
Beginning balance at Dec. 31, 2021	$ 956,082	$ 503	$ 833,627	$ 505,717	$ (313,994)	$ (70,566)	$ 795
Beginning balance (in shares) at Dec. 31, 2021					(5,360)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	35,844			35,841			3
Other comprehensive income (loss), net of tax	3,955					3,928	27
Retirement Savings Plan stock contributions	2,453		(356)		$ 2,809
Retirement Savings Plan stock contributions (in shares)					43
Exercise of stock options, net of tax withholding forfeitures	(151)		(526)		$ 375
Exercise of stock options, net of tax withholding forfeitures (in shares)					6
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	(3,548)		(11,287)		$ 7,739
Conversion of restricted stock units into common stock, net of tax withholding forfeitures (in shares)					103
Share repurchase program (in shares)					(885)
Share repurchase program	(50,000)				$ (50,000)
Share-based compensation	5,224		5,224
Common stock dividends	(2,264)			(2,264)
Ending balance (in shares) at Apr. 03, 2022		50,335
Ending balance at Apr. 03, 2022	947,595	$ 503	826,682	539,294	$ (353,071)	(66,638)	825
Ending balance (in shares) at Apr. 03, 2022					(6,093)
Beginning balance (in shares) at Dec. 31, 2021		50,335
Beginning balance at Dec. 31, 2021	956,082	$ 503	833,627	505,717	$ (313,994)	(70,566)	795
Beginning balance (in shares) at Dec. 31, 2021					(5,360)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 94,486
Share repurchase program (in shares)	(1,200)
Share repurchase program	$ (66,600)
Ending balance (in shares) at Jul. 03, 2022		50,335
Ending balance at Jul. 03, 2022	1,049,083	$ 503	820,602	595,613	$ (354,029)	(14,487)	881
Ending balance (in shares) at Jul. 03, 2022					(6,224)
Beginning balance (in shares) at Apr. 03, 2022		50,335
Beginning balance at Apr. 03, 2022	947,595	$ 503	826,682	539,294	$ (353,071)	(66,638)	825
Beginning balance (in shares) at Apr. 03, 2022					(6,093)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	58,642			58,561			81
Other comprehensive income (loss), net of tax	52,126					52,151	(25)
Common stock issuance	3,717		(2,775)		$ 6,492
Common stock issuance (in shares)					82
Retirement Savings Plan stock contributions	1,625		(730)		$ 2,355
Retirement Savings Plan stock contributions (in shares)					30
Exercise of stock options, net of tax withholding forfeitures	(40)		(173)		$ 133
Exercise of stock options, net of tax withholding forfeitures (in shares)					2
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	$ (1,427)		(8,048)		$ 6,621
Conversion of restricted stock units into common stock, net of tax withholding forfeitures (in shares)					75
Share repurchase program (in shares)	(300)				(320)
Share repurchase program	$ (16,559)				$ (16,559)
Share-based compensation	5,646		5,646
Common stock dividends	(2,242)			(2,242)
Ending balance (in shares) at Jul. 03, 2022		50,335
Ending balance at Jul. 03, 2022	1,049,083	$ 503	820,602	595,613	$ (354,029)	(14,487)	881
Ending balance (in shares) at Jul. 03, 2022					(6,224)
Beginning balance (in shares) at Dec. 31, 2022		50,335
Beginning balance at Dec. 31, 2022	1,143,950	$ 503	825,669	751,522	$ (428,812)	(5,871)	939
Beginning balance (in shares) at Dec. 31, 2022					(7,502)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	62,945			63,192			(247)
Other comprehensive income (loss), net of tax	(17,298)					(17,300)	2
Common stock issuance	1,679		(420)		$ 2,099
Common stock issuance (in shares)					37
Retirement Savings Plan stock contributions	2,396		638		$ 1,758
Retirement Savings Plan stock contributions (in shares)					28
Exercise of stock options, net of tax withholding forfeitures	(2,596)		(4,547)		$ 1,951
Exercise of stock options, net of tax withholding forfeitures (in shares)					47
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	(10,696)		(17,997)		$ 7,301
Conversion of restricted stock units into common stock, net of tax withholding forfeitures (in shares)					196
Share repurchase program, net of excise tax (in shares)					(594)
Share repurchase program, net of excise tax	(50,266)				$ (50,266)
Share-based compensation	6,253		6,253
Common stock dividends	(2,150)			(2,150)
Ending balance (in shares) at Apr. 02, 2023		50,335
Ending balance at Apr. 02, 2023	1,134,217	$ 503	809,596	812,564	$ (465,969)	(23,171)	694
Ending balance (in shares) at Apr. 02, 2023					(7,788)
Beginning balance (in shares) at Dec. 31, 2022		50,335
Beginning balance at Dec. 31, 2022	1,143,950	$ 503	825,669	751,522	$ (428,812)	(5,871)	939
Beginning balance (in shares) at Dec. 31, 2022					(7,502)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 131,720
Share repurchase program (in shares)	(1,000)
Share repurchase program	$ (86,200)
Ending balance (in shares) at Jul. 02, 2023		50,335
Ending balance at Jul. 02, 2023	1,162,991	$ 503	809,332	879,179	$ (497,873)	(28,173)	23
Ending balance (in shares) at Jul. 02, 2023					(8,076)
Beginning balance (in shares) at Apr. 02, 2023		50,335
Beginning balance at Apr. 02, 2023	1,134,217	$ 503	809,596	812,564	$ (465,969)	(23,171)	694
Beginning balance (in shares) at Apr. 02, 2023					(7,788)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	68,775			68,753			22
Other comprehensive income (loss), net of tax	(4,861)					(4,863)	2
Sale and deconsolidation of Hite JV	(834)					(139)	(695)
Retirement Savings Plan stock contributions	2,042		663		$ 1,379
Retirement Savings Plan stock contributions (in shares)					24
Exercise of stock options, net of tax withholding forfeitures	(1,931)		(2,698)		$ 767
Exercise of stock options, net of tax withholding forfeitures (in shares)					27
Conversion of restricted stock units into common stock, net of tax withholding forfeitures	(1,717)		(4,130)		$ 2,413
Conversion of restricted stock units into common stock, net of tax withholding forfeitures (in shares)					55
Share repurchase program, net of excise tax (in shares)					(394)
Share repurchase program, net of excise tax	$ (36,463)				$ (36,463)
Share repurchase program (in shares)	(400)
Share repurchase program	$ (36,200)
Share-based compensation	5,901		5,901
Common stock dividends	(2,138)			(2,138)
Ending balance (in shares) at Jul. 02, 2023		50,335
Ending balance at Jul. 02, 2023	$ 1,162,991	$ 503	$ 809,332	$ 879,179	$ (497,873)	$ (28,173)	$ 23
Ending balance (in shares) at Jul. 02, 2023					(8,076)

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Condensed Consolidated Stockholders' Equity Statements (Parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Apr. 03, 2022	Oct. 03, 2021	Jul. 02, 2023	Jul. 03, 2022
Statement of Stockholders' Equity [Abstract]
Common stock dividends declared per share (in usd per share)	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.10	$ 0.10

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Summary of Significant Accounting Policies

6 Months Ended

Jul. 02, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation.

The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2022:

•Are prepared from the books and records without audit, and

•Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but

•Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements.

These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2022 Annual Report on Form 10-K.

Business Description

We are a leading global supplier of network infrastructure solutions built around two global businesses - Enterprise Solutions and Industrial Automation Solutions. Our mission is to build the foundation for a digital world that makes the digital journey simpler, smarter and secure.

Reporting Periods

Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 2, 2023, the 92nd day of our fiscal year 2023. Our fiscal second and third quarters each have 91 days. The six months ended July 2, 2023 and July 3, 2022 included 183 and 184 days, respectively.

Fair Value Measurement

Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows:

•Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

•Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and

•Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. 

As of and during the three and six months ended July 2, 2023 and July 3, 2022, we utilized Level 1 inputs to determine the fair value of cash equivalents. We did not have any transfers between Level 1 and Level 2 fair value measurements during the six months ended July 2, 2023 and July 3, 2022.

Cash and Cash Equivalents

We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. As of July 2, 2023, we had an immaterial amount of cash equivalents. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes.

Contingent Liabilities

We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. Historically, these lawsuits have primarily involved claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a material adverse effect on our financial position, results of operations, or cash flow.

As of July 2, 2023, we were party to standby letters of credit, surety bonds, and bank guaranties totaling $8.7 million, $4.7 million, and $4.3 million, respectively.

Revenue Recognition

We recognize revenue consistent with the principles as outlined in the following five step model: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) each performance obligation is satisfied. See Note 2.

Subsequent Events

We evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure.

Noncontrolling Interest

On April 28, 2023, we sold our 51% ownership interest in Shanghai Hi-Tech Control System Co, Ltd to (Hite) for $0.9 million and recognized a $0.4 million pretax gain on sale. The sale also includes $0.6 million of potential earnout payments. The joint venture developed and provided certain Industrial Automation Solutions products and integrated solutions to customers in China. The joint venture was determined to not have sufficient equity at risk; therefore, it was considered a variable interest entity. As Belden was the primary beneficiary of the joint venture, due to both our ownership percentage and control over the activities of the joint venture, we consolidated the joint venture in our financial statements and presented the results of the joint venture attributable to Hite’s ownership as net income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations up to April 28, 2023 when we sold and deconsolidated the entity. The joint venture was not material to our consolidated financial statements during the six months ended July 2, 2023 and July 3, 2022.

A Belden subsidiary includes a noncontrolling interest as of and for the periods ended July 2, 2023 and July 3, 2022. The results attributable to the noncontrolling interest holders are not material to our consolidated financial statements, and are presented as net income attributable to noncontrolling interests in the Condensed Consolidated Statements of Operations.

Current Year Adoption of Accounting Pronouncements

None of the accounting pronouncements that became effective during 2023 had a material impact to our condensed consolidated financial statements or disclosures.

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Revenues

6 Months Ended

Jul. 02, 2023

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

Revenues are recognized when control of the promised goods or services is transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Taxes collected from customers and remitted to governmental authorities are not included in our revenues.

The following tables present our revenues disaggregated by major product category.

	Broadband  Solutions		Industrial Automation		Smart Buildings		Total  Revenues
Three Months Ended July 2, 2023	(In thousands)
Enterprise Solutions	$	159,332	$	—	$	153,197	$	312,529
Industrial Automation Solutions	—		379,716		—		379,716
Total	$	159,332	$	379,716	$	153,197	$	692,245
Three Months Ended July 3, 2022
Enterprise Solutions	$	146,771	$	—	$	160,673	$	307,444
Industrial Automation Solutions	—		359,107		—		359,107
Total	$	146,771	$	359,107	$	160,673	$	666,551
Six Months Ended July 2, 2023
Enterprise Solutions	$	290,887	$	—	$	296,985	$	587,872
Industrial Automation Solutions	—		746,162		—		746,162
Total	$	290,887	$	746,162	$	296,985	$	1,334,034
Six Months Ended July 3, 2022
Enterprise Solutions	$	268,576	$	—	$	307,298	$	575,874
Industrial Automation Solutions	—		701,048		—		701,048
Total	$	268,576	$	701,048	$	307,298	$	1,276,922

The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.

	Americas		EMEA		APAC		Total Revenues
Three Months Ended July 2, 2023	(In thousands)
Enterprise Solutions	$	246,471	$	36,671	$	29,387	$	312,529
Industrial Automation Solutions	213,852		109,055		56,809		379,716
Total	$	460,323	$	145,726	$	86,196	$	692,245
Three Months Ended July 3, 2022
Enterprise Solutions	$	233,501	$	36,497	$	37,446	$	307,444
Industrial Automation Solutions	214,045		91,765		53,297		359,107
Total	$	447,546	$	128,262	$	90,743	$	666,551
Six Months Ended July 2, 2023
Enterprise Solutions	$	460,358	$	74,119	$	53,395	$	587,872
Industrial Automation Solutions	429,065		210,976		106,121		746,162
Total	$	889,423	$	285,095	$	159,516	$	1,334,034
Six Months Ended July 3, 2022
Enterprise Solutions	$	437,887	$	75,886	$	62,101	$	575,874
Industrial Automation Solutions	418,355		182,216		100,477		701,048
Total	$	856,242	$	258,102	$	162,578	$	1,276,922

We generate revenues primarily by selling products that support communication, infrastructure, and delivery solutions that make the digital journey simpler, smarter, and more secure. We also generate revenues from providing support and professional services. We sell our products to distributors, end-users, installers, and directly to original equipment manufacturers. At times, we enter into arrangements that involve the delivery of multiple performance obligations. For these arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price and recognized when or as each performance obligation is satisfied. Generally, we determine relative standalone selling price using the prices charged separately to customers on a standalone basis. Most of our performance obligations related to the sale of products are satisfied at a point in time when control of the product is transferred based on the shipping terms of the arrangement. Typically, payments are due after control transfers, which is less than one year from satisfaction of the performance obligation.

The amount of consideration we receive and revenue we recognize varies due to rebates, returns, and price adjustments. We estimate the expected rebates, returns, and price adjustments based on an analysis of historical experience, anticipated sales demand, and trends in product pricing. We adjust our estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. Adjustments to revenue for performance obligations satisfied in prior periods were not significant during the three and six months ended July 2, 2023 and July 3, 2022.

The following table presents estimated and accrued variable consideration:

	July 2, 2023		December 31, 2022
	(in thousands)
Accrued rebates included in accrued liabilities	$	42,868	$	55,559
Accrued returns included in accrued liabilities	16,575		11,700
Price adjustments recognized against gross accounts receivable	25,457		24,304

Depending on the terms of an arrangement, we may defer the recognition of some or all of the consideration received because we have to satisfy a future obligation. Consideration allocated to support services under a support and maintenance contract is typically paid in advance and recognized ratably over the term of the service. Consideration allocated to professional services is typically recognized when or as the services are performed depending on the terms of the arrangement. As of July 2, 2023, total deferred revenue was $29.7 million, and of this amount, $22.7 million is expected to be recognized within the next twelve months, and the remaining $7.0 million is long-term and is expected to be recognized over a period greater than twelve months. The following table presents deferred revenue activity during the three and six months ended July 2, 2023 and July 3, 2022, respectively:

	2023		2022
	(In thousands)
Beginning balance at January 1	$	33,243	$	19,390
New deferrals	4,359		8,857
Acquisitions	—		6,567
Revenue recognized	(8,307)		(3,365)
Balance at the end of Q1	$	29,295	$	31,449
New deferrals	6,900		4,265
Revenue recognized	(6,528)		(8,880)
Balance at the end of Q2	$	29,667	$	26,834

Service-type warranties represent $9.5 million of the deferred revenue balance at July 2, 2023, and of this amount $4.9 million is expected to be recognized in the next twelve months, and the remaining $4.6 million is long-term and will be recognized over a period greater than twelve months. As of July 2, 2023 and December 31, 2022, we did not have any material contract assets recorded in the Condensed Consolidated Balance Sheets.

We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions when the original duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. We did not have any capitalized sales commissions on our balance sheet as of July 2, 2023 and December 31, 2022. The following table presents sales commissions that are recorded within selling, general and administrative expenses:

	Three Months Ended				Six Months ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Sales commissions	$	6,316	$	6,131	$	12,089	$	11,354

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Acquisitions

6 Months Ended

Jul. 02, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

On April 17, 2023, we acquired Berthold Sichert GmbH (Sichert) with cash on hand for $97.5 million, net of cash acquired. Sichert, based in Berlin, Germany, designs and manufactures a portfolio of polycarbonate street cabinets utilized in outside plant passive optical networks (“PON”) and 5G networks. Sichert is reported within the Enterprise Solutions segment. The following table summarizes the estimated, preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):

Receivables	$	6,781
Inventory	13,061
Other current assets	1,840
Property, plant and equipment	7,057
Intangible assets	52,597
Goodwill	27,831
Other long-lived assets	1,303
Total assets acquired	$	110,470
Accounts payable	$	2,423
Accrued liabilities	1,884
Deferred income taxes	8,659
Total liabilities assumed	$	12,966
Net assets	$	97,504

The above purchase price allocation is preliminary and subject to revision as additional information about the fair value of individual assets and liabilities becomes available. The preliminary measurement of receivables, intangible assets, deferred income taxes, and other assets and liabilities are subject to change. A change in the estimated fair value of the net assets acquired will change the amount of the purchase price allocable to goodwill.

The preliminary fair value of acquired receivables is $6.8 million, which is equivalent to its gross contractual amount. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments we have used in estimating the preliminary fair values assigned to each class of acquired assets and assumed liabilities could materially affect the results of our operations.

For purposes of the above allocation, we based our preliminary estimate of the fair values for intangible assets on valuation studies performed by a third party valuation firm. We used various valuation methods including discounted cash flows, lost income, excess earnings, and relief from royalty to estimate the preliminary fair value of the identifiable intangible assets (Level 3 valuation). Goodwill and other intangible assets reflected above were determined to meet the criteria for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to the expansion of broadband & 5G product offerings in end-to-end solutions. Our tax basis in the acquired goodwill is zero.

The intangible assets related to the acquisition consisted of the following:

	Fair Value		Amortization Period
	(In thousands)		(In years)
Intangible assets subject to amortization:
Customer relationships	$	49,131	15.0
Trademarks	2,456		2.0
Sales backlog	1,010		0.2
Total intangible assets subject to amortization	$	52,597
Intangible assets not subject to amortization:
Goodwill	$	27,831	n/a
Total intangible assets not subject to amortization	$	27,831
Total intangible assets	$	80,428
Weighted average amortization period			14.1

The amortizable intangible assets reflected in the table above were determined by us to have finite lives. The useful life for the customer relationship intangible asset was based on our forecasts of estimated sales from recurring customers. The useful life for the trademarks was based on the period of time we expect to continue to go to market using the trademarks.

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Discontinued Operations

6 Months Ended

Jul. 02, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On February 22, 2022, we sold Tripwire for gross cash consideration of $350 million. The divestiture of Tripwire represented a strategic shift impacting our operations and financial results. As a result, the Tripwire disposal group, which was included in our Industrial Automation Solutions segment, is reported within discontinued operations. We recognized a loss on disposal of discontinued operations, net of tax of $4.6 million during the six months ended July 3, 2022. The following table summarizes the operating results of the Tripwire disposal group from January 1, 2022 to the February 22, 2022 disposal date (in thousands):

Revenues	$	12,067
Cost of sales	(3,256)
Gross profit	8,811
Selling, general and administrative expenses	(8,185)
Research and development expenses	(5,528)
Amortization of intangible assets	(638)
Loss before taxes	$	(5,540)

During the six months ended July 3, 2022, the Tripwire disposal group did not have any capital expenditures and recognized share-based compensation expense of $0.2 million. The disposal group did not have any significant non-cash charges for investing activities during the six months ended July 3, 2022.

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Reportable Segments

6 Months Ended

Jul. 02, 2023

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

We are organized around two global businesses: Enterprise Solutions and Industrial Automation Solutions. Each of the global businesses represents a reportable segment. The key measures of segment profit or loss are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation.

Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Inter-company revenues between our segments is not material.

	Enterprise Solutions		Industrial Automation Solutions		Total Segments
	(In thousands)
As of and for the three months ended July 2, 2023
Segment Revenues	$	312,529	$	379,716	$	692,245
Segment EBITDA	43,956		78,631		122,587
Depreciation expense	6,193		6,489		12,682
Amortization of intangibles	6,208		4,918		11,126
Amortization of software development intangible assets	—		1,820		1,820
Severance, restructuring, and acquisition integration costs	1,669		2,390		4,059
Adjustments related to acquisitions and divestitures	325		(76)		249
Segment assets	648,344		699,092		1,347,436
As of and for the three months ended July 3, 2022
Segment Revenues	$	307,444	$	359,107	$	666,551
Segment EBITDA	41,887		68,060		109,947
Depreciation expense	5,768		5,602		11,370
Amortization of intangibles	4,442		4,735		9,177
Amortization of software development intangible assets	22		959		981
Severance, restructuring, and acquisition integration costs	4,575		1,282		5,857
Adjustments related to acquisitions and divestitures	(558)		1,134		576
Segment assets	607,386		649,595		1,256,981
As of and for the six months ended July 2, 2023
Segment revenues	$	587,872	$	746,162	$	1,334,034
Segment EBITDA	81,161		152,418		233,579
Depreciation expense	12,147		12,889		25,036
Amortization of intangibles	10,703		10,033		20,736
Amortization of software development intangible assets	—		3,272		3,272
Severance, restructuring, and acquisition integration costs	1,694		4,077		5,771
Adjustments related to acquisitions and divestitures	325		222		547
Segment assets	648,344		699,092		1,347,436
As of and for the six months ended July 3, 2022
Segment Revenues	$	575,874	$	701,048	$	1,276,922
Segment EBITDA	72,708		135,588		208,296
Depreciation expense	11,194		11,402		22,596
Amortization of intangibles	8,539		9,455		17,994
Amortization of software development intangible assets	44		1,944		1,988
Severance, restructuring, and acquisition integration costs	4,903		4,677		9,580
Adjustments related to acquisitions and divestitures	(558)		1,134		576
Segment assets	607,386		649,595		1,256,981

The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Total Segment and Consolidated Revenues	$	692,245	$	666,551	$	1,334,034	$	1,276,922
Total Segment EBITDA	$	122,587	$	109,947	$	233,579	$	208,296
Depreciation expense	(12,682)		(11,370)		(25,036)		(22,596)
Amortization of intangibles	(11,126)		(9,177)		(20,736)		(17,994)
Severance, restructuring, and acquisition integration costs (1)	(4,059)		(5,857)		(5,771)		(9,580)
Amortization of software development intangible assets	(1,820)		(981)		(3,272)		(1,988)
Adjustments related to acquisitions and divestitures (2)	(249)		(576)		(547)		(576)
Eliminations	(54)		(50)		(83)		(105)
Consolidated operating income	92,597		81,936		178,134		155,457
Interest expense, net	(8,812)		(11,276)		(17,013)		(25,687)
Loss on debt extinguishment	—		—		—		(6,392)
Total non-operating pension benefit	646		1,070		1,134		2,270
Consolidated income from continuing operations before taxes	$	84,431	$	71,730	$	162,255	$	125,648

(1) Severance, restructuring, and acquisition integration costs for the three and six months ended July 2, 2023 and July 3, 2022 included costs related to our Acquisition Integration program. See Note 11.

(2) Adjustments related to acquisitions and divestitures included fair value adjustments of acquired inventory and investments as well as gains associated with the sales of businesses.

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Income (loss) per Share

6 Months Ended

Jul. 02, 2023

Earnings Per Share [Abstract]

Income (loss) per Share

Income (loss) per Share

The following table presents the basis for the income (loss) per share computations:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Numerator:
Income from continuing operations	$	68,775	$	58,642	$	131,720	$	102,738
Less: Net income (loss) attributable to noncontrolling interest	22		81		(225)		84
Income from continuing operations attributable to Belden stockholders	68,753		58,561		131,945		102,654
Add: Loss from discontinued operations, net of tax	—		—		—		(3,685)
Add: Loss on disposal of discontinued operations, net of tax	—		—		—		(4,567)
Net income attributable to Belden stockholders	$	68,753	$	58,561	$	131,945	$	94,402
Denominator:
Weighted average shares outstanding, basic	42,497		44,252		42,663		44,535
Effect of dilutive common stock equivalents	591		530		717		644
Weighted average shares outstanding, diluted	43,088		44,782		43,380		45,179

For both the three and six months ended July 2, 2023, diluted weighted average shares outstanding excluded outstanding equity awards of 0.2 million as they were anti-dilutive. In addition, for both the three and six months ended July 2, 2023, diluted weighted average shares outstanding did not include outstanding equity awards of 0.2 million because the related performance conditions have not been satisfied.

For both the three and six months ended July 3, 2022, diluted weighted average shares outstanding exclude outstanding equity awards of 1.1 million as they are anti-dilutive. In addition, for the three and six months ended July 3, 2022, diluted weighted average shares outstanding do not include outstanding equity awards of 0.2 million and 0.3 million, respectively, because the related performance conditions have not been satisfied.

For purposes of calculating basic earnings per share, unvested restricted stock units are not included in the calculation of basic weighted average shares outstanding until all necessary conditions have been satisfied and issuance of the shares underlying the restricted stock units is no longer contingent. Necessary conditions are not satisfied until the vesting date, at which time holders of our restricted stock units receive shares of our common stock.

For purposes of calculating diluted earnings per share, unvested restricted stock units are included to the extent that they are dilutive. In determining whether unvested restricted stock units are dilutive, each issuance of restricted stock units is considered separately.

Once a restricted stock unit has vested, it is included in the calculation of both basic and diluted weighted average shares outstanding.

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Credit Losses

6 Months Ended

Jul. 02, 2023

Credit Loss [Abstract]

Credit Losses

Credit Losses

We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Provisions and recoveries are included in selling, general and administrative expenses.

The following table presents the activity in the trade receivables allowance for doubtful accounts for our continuing operations for the three and six months ended July 2, 2023 and July 3, 2022, respectively:

	2023		2022
	(In thousands)
Beginning balance at January 1	$	7,954	$	4,864
Current period provision	4,004		846
Acquisitions	—		319
Recoveries collected	—		(50)
Write-offs	(3)		(667)
Fx impact	(25)		(19)
Q1 ending balance	$	11,930	$	5,293
Current period provision	4,194		656
Acquisitions	19		—
Fx impact	11		(81)
Write-offs	—		(64)
Recoveries collected	(8)		(12)
Q2 ending balance	$	16,146	$	5,792

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Inventories

6 Months Ended

Jul. 02, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

The following table presents the major classes of inventories as of July 2, 2023 and December 31, 2022, respectively:

	July 2, 2023		December 31, 2022
	(In thousands)
Raw materials	$	182,683	$	162,154
Work-in-process	39,252		35,011
Finished goods	183,289		190,311
Gross inventories	405,224		387,476
Excess and obsolete reserves	(59,797)		(45,913)
Net inventories	$	345,427	$	341,563

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Leases

6 Months Ended

Jul. 02, 2023

Leases [Abstract]

Leases

Leases

We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms within 1 to 15 years; some of which include extension and termination options. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. We have a few short-term operating leases with terms less than twelve months - these leases are not recorded on our balance sheet and the overall rent expense is not material.

We also have certain lease contracts that contain both lease and non-lease components. We have elected the practical expedient to account for these components together as a single, combined lease component. The rate implicit in most of our leases is not readily determinable. As a result, we utilize the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

Our lease agreements do not contain material residual value guarantees. Our variable lease expense was approximately $0.8 million and $1.6 million for the three and six months ended July 2, 2023, respectively. Our variable lease expense was approximately $0.7 million and $1.5 million for the three and six months ended July 3, 2022, respectively.

The components of lease expense were as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Operating lease cost	$	5,415	$	5,365	$	10,932	$	10,793
Finance lease cost
Amortization of right-of-use asset	$	190	$	446	$	391	$	734
Interest on lease liabilities	77		122		157		128
Total finance lease cost	$	267	$	568	$	548	$	862

Supplemental cash flow information related to leases was as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,625	$	4,561	$	9,290	$	9,337

Operating cash flows from finance leases were not material during the three and six months ended July 2, 2023 and July 3, 2022.

Supplemental balance sheet information related to leases was as follows:

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	73,435	$	73,376
Accrued liabilities	$	16,502	$	16,442
Long-term operating lease liabilities	60,480		59,250
Total operating lease liabilities	$	76,982	$	75,692
Finance leases:
Other long-lived assets, at cost	$	6,313	$	6,323
Accumulated depreciation	(1,020)		(733)
Other long-lived assets, net	$	5,293	$	5,590
Accrued liabilities	$	549	$	391
Other long-term liabilities	5,814		5,928
Total finance lease liabilities	$	6,363	$	6,319

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Weighted Average Remaining Lease Term
Operating leases	6 years		6 years
Finance leases	10 years		10 years
Weighted Average Discount Rate
Operating leases	5.2	%	5.2	%
Finance leases	4.2	%	4.2	%

The following table summarizes maturities of lease liabilities as of July 2, 2023 and December 31, 2022, respectively:

	July 2, 2023		December 31, 2022
	(In thousands)
2023	$	10,501	$	15,815
2024	15,574		14,809
2025	14,278		13,472
2026	12,792		11,964
2027	6,975		6,464
Thereafter	21,185		20,907
Total	$	81,305	$	83,431

In addition, we covenanted the lease payments for certain Grass Valley property leases which include expiration dates through 2035, and collectively have approximately $23 million of fixed lease payments remaining. These lease guarantees were retained by Belden and not transferred to the buyer of Grass Valley. During 2022, Grass Valley defaulted on two property leases. As of July 2, 2023, we have a liability for expected, future payments of $8.2 million. The liability is based on certain assumptions, such as receiving a level of sublease income, that we will reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed.

Leases

Leases

We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms within 1 to 15 years; some of which include extension and termination options. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. We have a few short-term operating leases with terms less than twelve months - these leases are not recorded on our balance sheet and the overall rent expense is not material.

We also have certain lease contracts that contain both lease and non-lease components. We have elected the practical expedient to account for these components together as a single, combined lease component. The rate implicit in most of our leases is not readily determinable. As a result, we utilize the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

Our lease agreements do not contain material residual value guarantees. Our variable lease expense was approximately $0.8 million and $1.6 million for the three and six months ended July 2, 2023, respectively. Our variable lease expense was approximately $0.7 million and $1.5 million for the three and six months ended July 3, 2022, respectively.

The components of lease expense were as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Operating lease cost	$	5,415	$	5,365	$	10,932	$	10,793
Finance lease cost
Amortization of right-of-use asset	$	190	$	446	$	391	$	734
Interest on lease liabilities	77		122		157		128
Total finance lease cost	$	267	$	568	$	548	$	862

Supplemental cash flow information related to leases was as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,625	$	4,561	$	9,290	$	9,337

Operating cash flows from finance leases were not material during the three and six months ended July 2, 2023 and July 3, 2022.

Supplemental balance sheet information related to leases was as follows:

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	73,435	$	73,376
Accrued liabilities	$	16,502	$	16,442
Long-term operating lease liabilities	60,480		59,250
Total operating lease liabilities	$	76,982	$	75,692
Finance leases:
Other long-lived assets, at cost	$	6,313	$	6,323
Accumulated depreciation	(1,020)		(733)
Other long-lived assets, net	$	5,293	$	5,590
Accrued liabilities	$	549	$	391
Other long-term liabilities	5,814		5,928
Total finance lease liabilities	$	6,363	$	6,319

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Weighted Average Remaining Lease Term
Operating leases	6 years		6 years
Finance leases	10 years		10 years
Weighted Average Discount Rate
Operating leases	5.2	%	5.2	%
Finance leases	4.2	%	4.2	%

The following table summarizes maturities of lease liabilities as of July 2, 2023 and December 31, 2022, respectively:

	July 2, 2023		December 31, 2022
	(In thousands)
2023	$	10,501	$	15,815
2024	15,574		14,809
2025	14,278		13,472
2026	12,792		11,964
2027	6,975		6,464
Thereafter	21,185		20,907
Total	$	81,305	$	83,431

In addition, we covenanted the lease payments for certain Grass Valley property leases which include expiration dates through 2035, and collectively have approximately $23 million of fixed lease payments remaining. These lease guarantees were retained by Belden and not transferred to the buyer of Grass Valley. During 2022, Grass Valley defaulted on two property leases. As of July 2, 2023, we have a liability for expected, future payments of $8.2 million. The liability is based on certain assumptions, such as receiving a level of sublease income, that we will reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed.

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Long-Lived Assets

6 Months Ended

Jul. 02, 2023

Property, Plant and Equipment [Abstract]

Long-Lived Assets

Long-Lived Assets

Depreciation and Amortization Expense

We recognized depreciation expense in income from continuing operations of $12.7 million and $25.0 million in the three and six months ended July 2, 2023, respectively. We recognized depreciation expense in income from continuing operations of $11.4 million and $22.6 million in the three and six months ended July 3, 2022, respectively.

We recognized amortization expense in income from continuing operations of $12.9 million and $24.0 million in the three and six months ended July 2, 2023, respectively. We recognized amortization expense in income from continuing operations of $10.2 million and $20.0 million in the three and six months ended July 3, 2022, respectively.

Asset Held for Sale

During the six months ended July 2, 2023, we entered into an agreement to sell our property in Ontario, Canada as part of a sale and leaseback transaction for $15.6 million. When the asset met the held for sale criteria, we performed a recoverability test and determined that the carrying value of the property to be disposed of is less than the purchase price less cost to sell; thus, the long-lived asset group is recoverable and no impairment exists. The carrying value of the property is not material and is included in property, plant, and equipment in the condensed consolidated balance sheets. The sale is expected to close during 2023.

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Severance, Restructuring, and Acquisition Integration Activities

6 Months Ended

Jul. 02, 2023

Restructuring and Related Activities [Abstract]

Severance, Restructuring, and Acquisition Integration Activities

Severance, Restructuring, and Acquisition Integration Activities

Acquisition Integration Program

We are integrating our recent acquisitions with our existing businesses to achieve desired cost savings, which are primarily focused on consolidating existing and acquired facilities as well as other support functions. The Enterprise Solutions segment incurred $1.3 million of restructuring and integration costs during the three and six months ended July 2, 2023, and the Industrial Automation Solutions segment incurred $0.1 million and $0.8 million of restructuring and integration costs during the three and six months ended July 2, 2023, respectively. The Enterprise Solutions segment incurred $1.0 million of restructuring and integration costs during the three and six months ended July 3, 2022, and the Industrial Automation Solutions segment incurred $0.1 million and $3.1 million of restructuring and integration costs during the three and six months ended July 3, 2022, respectively.

The restructuring and integration costs incurred during 2023 and 2022 primarily consisted of equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days. Furthermore, there were no significant severance accrual balances as of July 2, 2023 or December 31, 2022.

The following table summarizes the severance and other restructuring and integration costs of the Acquisition Integration Program described above by financial statement line item in the Condensed Consolidated Statement of Operations:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Cost of sales	$	—	$	520	$	—	$	892
Selling, general and administrative expenses	1,323		647		1,997		3,258
Research and development expenses	94		—		94		—
Total	$	1,417	$	1,167	$	2,091	$	4,150

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Long-Term Debt and Other Borrowing Arrangements

6 Months Ended

Jul. 02, 2023

Debt Disclosure [Abstract]

Long-Term Debt and Other Borrowing Arrangements

Long-Term Debt and Other Borrowing Arrangements

The carrying values of our long-term debt were as follows:

	July 2, 2023		December 31, 2022
	(In thousands)
Revolving credit agreement due 2026	$	—	$	—
Senior subordinated notes:
3.375% Senior subordinated notes due 2027	490,500		480,330
3.875% Senior subordinated notes due 2028	381,500		373,590
3.375% Senior subordinated notes due 2031	327,000		320,220
Total senior subordinated notes	1,199,000		1,174,140
Less unamortized debt issuance costs	(11,848)		(12,964)
Long-term debt	$	1,187,152	$	1,161,176

Revolving Credit Agreement due 2026

We have a $300.0 million multi-currency asset-based revolving credit facility (the Revolver). The maturity date of the Revolver is June 2, 2026. The borrowing base under the Revolver includes eligible accounts receivable; inventory; and property, plant and equipment of certain of our subsidiaries in the United States, Canada, Germany, the United Kingdom and the Netherlands. Interest on outstanding borrowings is variable, based upon SOFR or other similar indices in foreign jurisdictions, plus a spread that ranges from 1.25%-1.75%, depending upon our leverage position. Outstanding borrowings in the U.S. and Canada may also, at our election, be priced on a base rate plus a spread that ranges from 0.25% — 0.75%, depending on our leverage position. We pay a commitment fee on the total commitments of 0.25%. In the event that we borrow more than 90% of our combined borrowing base or our borrowing base availability is less than $20.0 million, we are subject to a fixed charge coverage ratio covenant. As of July 2, 2023, we had no borrowings outstanding on the Revolver, and our available borrowing capacity was $291.2 million.

Senior Subordinated Notes

We had outstanding €200.0 million aggregate principal amount of 4.125% senior subordinated notes due 2026 (the 2026 Notes). During the six months ended July 3, 2022, we repurchased the full €200.0 million 2026 Notes outstanding for cash consideration of €204.1 million ($227.9 million), including a redemption premium, and recognized a $6.4 million loss on debt extinguishment including the write-off of unamortized debt issuance costs.

We have outstanding €450.0 million aggregate principal amount of 3.375% senior subordinated notes due 2027 (the 2027 Notes). The carrying value of the 2027 Notes as of July 2, 2023 is $490.5 million. The 2027 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2027 Notes rank equal in right of payment with our senior subordinated notes due 2031 and 2028 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year.

We have outstanding €350.0 million aggregate principal amount of 3.875% senior subordinated notes due 2028 (the 2028 Notes). The carrying value of the 2028 Notes as of July 2, 2023 is $381.5 million. The 2028 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2028 Notes rank equal in right of payment with our senior subordinated notes due 2031 and 2027 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on March 15 and September 15 of each year.

We have outstanding €300.0 million aggregate principal amount of 3.375% senior subordinated notes due 2031 (the 2031 Notes). The carrying value of the 2031 Notes as of July 2, 2023 is $327.0 million. The 2031 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2031 Notes rank equal in right of payment with our senior subordinated notes due 2028 and 2027 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year.

Fair Value of Long-Term DebtThe fair value of our senior subordinated notes as of July 2, 2023 was approximately $1,099.5 million based on quoted prices of the debt instruments in inactive markets (Level 2 valuation). This amount represents the fair value of our senior subordinated notes with a carrying value of $1,199.0 million as of July 2, 2023.

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Net Investment Hedge	6 Months Ended
	Jul. 02, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net Investment Hedge	Net Investment HedgeAll of our euro denominated notes were issued by Belden Inc., a USD functional currency entity. As of July 2, 2023, €567.8 million of our outstanding foreign denominated debt is designated as a net investment hedge on the foreign currency risk of our net investment in our euro foreign operations. The objective of the hedge is to protect the net investment in the foreign operation against adverse changes in the euro exchange rate. The transaction gain or loss is reported in the translation adjustment section of other comprehensive income. For the six months ended July 2, 2023 and July 3, 2022, the transaction gain (loss) associated with the net investment hedge reported in other comprehensive income was $(13.0) million and $53.5 million, respectively. In 2022, we de-designated €200.0 million of our outstanding debt that was previously designated as a net investment hedge. After the de-designation, transaction gains or losses associated with this €200.0 million of debt are reported in income from continuing operations.

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Income Taxes	6 Months Ended
	Jul. 02, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesFor the three and six months ended July 2, 2023, we recognized income tax expense of $15.7 million and $30.5 million, respectively, representing an effective tax rate of 18.5% and 18.8%, respectively. The effective tax rates were primarily impacted by the effect of our foreign operations, including statutory tax rates differences and foreign tax credits. On August 16, 2022, the Inflation Reduction Act of 2022 (the Act) was signed into law. None of the tax provisions of the Act are expected to have a material impact to our consolidated financial statements and related disclosures.

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Pension and Other Postretirement Obligations

6 Months Ended

Jul. 02, 2023

Retirement Benefits [Abstract]

Pension and Other Postretirement Obligations

Pension and Other Postretirement Obligations

The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: 

	Pension Obligations				Other Postretirement Obligations
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Three Months Ended
Service cost	$	844	$	819	$	3	$	6
Interest cost	3,810		2,287		252		193
Expected return on plan assets	(4,329)		(3,798)		—		—
Amortization of prior service cost	44		44		—		—
Actuarial losses (gains)	(232)		224		(191)		(20)
Net periodic benefit cost (income)	$	137	$	(424)	$	64	$	179
Six Months Ended
Service cost	$	1,534	$	1,730	$	6	$	12
Interest cost	7,554		4,592		503		388
Expected return on plan assets	(8,438)		(7,761)		—		—
Amortization of prior service cost	87		91		—		—
Actuarial losses (gains)	(458)		460		(382)		(40)
Net periodic benefit cost (income)	$	279	$	(888)	$	127	$	360

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Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jul. 02, 2023

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

The following table summarizes total comprehensive income: 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Net income	$	68,775	$	58,642	$	131,720	$	94,486
Foreign currency translation adjustments, net of tax	(4,577)		51,945		(21,595)		55,707
Adjustments to pension and postretirement liability, net of tax	(284)		181		(564)		374
Total comprehensive income	63,914		110,768		109,561		150,567
Less: Comprehensive income (loss) attributable to noncontrolling interests	24		56		(221)		86
Comprehensive income attributable to Belden	$	63,890	$	110,712	$	109,782	$	150,481

The tax impacts of the foreign currency translation adjustments and pension liability adjustments in the table above are not material.

The accumulated balances related to each component of other comprehensive loss, net of tax, are as follows: 

	Foreign Currency Translation Component		Pension and Other  Postretirement Benefit Plans		Accumulated Other  Comprehensive Loss
	(In thousands)
Balance at December 31, 2022	$	(1,944)	$	(3,927)	$	(5,871)
Other comprehensive loss attributable to Belden before reclassifications	(21,599)		—		(21,599)
Amounts reclassified from accumulated other comprehensive loss	(139)		(564)		(703)
Net current period other comprehensive loss attributable to Belden	(21,738)		(564)		(22,302)
Balance at July 2, 2023	$	(23,682)	$	(4,491)	$	(28,173)

The following table summarizes the effects of reclassifications from accumulated other comprehensive loss for the six months ended July 2, 2023:

	Amounts  Reclassified from Accumulated Other Comprehensive Income (2)		Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss
	(In thousands)
Amortization of pension and other postretirement benefit plan items:
Actuarial gains	$	(840)	(1)
Prior service cost	87		(1)
Total before tax	(753)
Tax expense	189
Total net of tax	$	(564)

(1) The amortization of these accumulated other comprehensive loss components are included in the computation of net periodic benefit costs (see Note 15).

(2) In addition, we reclassified $0.1 million of accumulated foreign currency translation gains associated with the sale of the Hite JV.

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Share Repurchase

6 Months Ended

Jul. 02, 2023

Equity [Abstract]

Share Repurchase

Share Repurchase

In 2018, our Board of Directors authorized a share repurchase program, which allows us to purchase up to $300.0 million of our common stock through open market repurchases, negotiated transactions, or other means, in accordance with applicable securities laws and other restrictions. On April 24, 2023, our Board of Directors authorized an additional $300.0 million under the share repurchase program. This program is funded with cash on hand and cash flows from operating activities.

During the three months ended July 2, 2023, we repurchased 0.4 million shares of our common stock for an aggregate cost of $36.2 million at an average price per share of $92.01. During the six months ended July 2, 2023, we repurchased 1.0 million shares of our common stock for an aggregate cost of $86.2 million at an average price per share of $87.30. As of July 2, 2023, we had $278.8 million of authorizations remaining under the program. This share repurchase authorization does not have an expiration date.

During the three months ended July 3, 2022, we repurchased 0.3 million shares of our common stock for an aggregate cost of $16.6 million at an average price per share of $51.71. During the six months ended July 3, 2022, we repurchased 1.2 million shares of our common stock for an aggregate cost of $66.6 million at an average price per share of $55.23.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 68,753	$ 58,561	$ 131,945	$ 94,402

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Insider Trading Arrangements	3 Months Ended
	Jul. 02, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jul. 02, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation.

The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2022:

•Are prepared from the books and records without audit, and

•Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but

•Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements.

These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2022 Annual Report on Form 10-K.

Business Description

Business DescriptionWe are a leading global supplier of network infrastructure solutions built around two global businesses - Enterprise Solutions and Industrial Automation Solutions. Our mission is to build the foundation for a digital world that makes the digital journey simpler, smarter and secure.

Reporting Periods

Reporting PeriodsOur fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 2, 2023, the 92nd day of our fiscal year 2023. Our fiscal second and third quarters each have 91 days. The six months ended July 2, 2023 and July 3, 2022 included 183 and 184 days, respectively.

Fair Value Measurement

Fair Value Measurement

Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows:

•Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

•Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and

•Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Cash and Cash Equivalents

Cash and Cash EquivalentsWe classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. As of July 2, 2023, we had an immaterial amount of cash equivalents. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes.

Contingent Liabilities

Contingent Liabilities

We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. Historically, these lawsuits have primarily involved claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a material adverse effect on our financial position, results of operations, or cash flow.

Revenue Recognition

Revenue Recognition

We recognize revenue consistent with the principles as outlined in the following five step model: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) each performance obligation is satisfied. See Note 2.

Subsequent Events

Subsequent EventsWe evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure.

Noncontrolling Interest

Noncontrolling Interest

On April 28, 2023, we sold our 51% ownership interest in Shanghai Hi-Tech Control System Co, Ltd to (Hite) for $0.9 million and recognized a $0.4 million pretax gain on sale. The sale also includes $0.6 million of potential earnout payments. The joint venture developed and provided certain Industrial Automation Solutions products and integrated solutions to customers in China. The joint venture was determined to not have sufficient equity at risk; therefore, it was considered a variable interest entity. As Belden was the primary beneficiary of the joint venture, due to both our ownership percentage and control over the activities of the joint venture, we consolidated the joint venture in our financial statements and presented the results of the joint venture attributable to Hite’s ownership as net income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations up to April 28, 2023 when we sold and deconsolidated the entity. The joint venture was not material to our consolidated financial statements during the six months ended July 2, 2023 and July 3, 2022.

A Belden subsidiary includes a noncontrolling interest as of and for the periods ended July 2, 2023 and July 3, 2022. The results attributable to the noncontrolling interest holders are not material to our consolidated financial statements, and are presented as net income attributable to noncontrolling interests in the Condensed Consolidated Statements of Operations.

Current Year Adoption of Accounting Pronouncements

Current Year Adoption of Accounting PronouncementsNone of the accounting pronouncements that became effective during 2023 had a material impact to our condensed consolidated financial statements or disclosures.

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Revenues (Tables)

6 Months Ended

Jul. 02, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following tables present our revenues disaggregated by major product category.

	Broadband  Solutions		Industrial Automation		Smart Buildings		Total  Revenues
Three Months Ended July 2, 2023	(In thousands)
Enterprise Solutions	$	159,332	$	—	$	153,197	$	312,529
Industrial Automation Solutions	—		379,716		—		379,716
Total	$	159,332	$	379,716	$	153,197	$	692,245
Three Months Ended July 3, 2022
Enterprise Solutions	$	146,771	$	—	$	160,673	$	307,444
Industrial Automation Solutions	—		359,107		—		359,107
Total	$	146,771	$	359,107	$	160,673	$	666,551
Six Months Ended July 2, 2023
Enterprise Solutions	$	290,887	$	—	$	296,985	$	587,872
Industrial Automation Solutions	—		746,162		—		746,162
Total	$	290,887	$	746,162	$	296,985	$	1,334,034
Six Months Ended July 3, 2022
Enterprise Solutions	$	268,576	$	—	$	307,298	$	575,874
Industrial Automation Solutions	—		701,048		—		701,048
Total	$	268,576	$	701,048	$	307,298	$	1,276,922

The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.

	Americas		EMEA		APAC		Total Revenues
Three Months Ended July 2, 2023	(In thousands)
Enterprise Solutions	$	246,471	$	36,671	$	29,387	$	312,529
Industrial Automation Solutions	213,852		109,055		56,809		379,716
Total	$	460,323	$	145,726	$	86,196	$	692,245
Three Months Ended July 3, 2022
Enterprise Solutions	$	233,501	$	36,497	$	37,446	$	307,444
Industrial Automation Solutions	214,045		91,765		53,297		359,107
Total	$	447,546	$	128,262	$	90,743	$	666,551
Six Months Ended July 2, 2023
Enterprise Solutions	$	460,358	$	74,119	$	53,395	$	587,872
Industrial Automation Solutions	429,065		210,976		106,121		746,162
Total	$	889,423	$	285,095	$	159,516	$	1,334,034
Six Months Ended July 3, 2022
Enterprise Solutions	$	437,887	$	75,886	$	62,101	$	575,874
Industrial Automation Solutions	418,355		182,216		100,477		701,048
Total	$	856,242	$	258,102	$	162,578	$	1,276,922

Schedule of Contract with Customer, Asset and Liability

The following table presents estimated and accrued variable consideration:

	July 2, 2023		December 31, 2022
	(in thousands)
Accrued rebates included in accrued liabilities	$	42,868	$	55,559
Accrued returns included in accrued liabilities	16,575		11,700
Price adjustments recognized against gross accounts receivable	25,457		24,304

The following table presents deferred revenue activity during the three and six months ended July 2, 2023 and July 3, 2022, respectively:

	2023		2022
	(In thousands)
Beginning balance at January 1	$	33,243	$	19,390
New deferrals	4,359		8,857
Acquisitions	—		6,567
Revenue recognized	(8,307)		(3,365)
Balance at the end of Q1	$	29,295	$	31,449
New deferrals	6,900		4,265
Revenue recognized	(6,528)		(8,880)
Balance at the end of Q2	$	29,667	$	26,834

Schedule of Sales Commissions

The following table presents sales commissions that are recorded within selling, general and administrative expenses:

	Three Months Ended				Six Months ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Sales commissions	$	6,316	$	6,131	$	12,089	$	11,354

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Acquisitions (Tables)

6 Months Ended

Jul. 02, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the estimated, preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):

Receivables	$	6,781
Inventory	13,061
Other current assets	1,840
Property, plant and equipment	7,057
Intangible assets	52,597
Goodwill	27,831
Other long-lived assets	1,303
Total assets acquired	$	110,470
Accounts payable	$	2,423
Accrued liabilities	1,884
Deferred income taxes	8,659
Total liabilities assumed	$	12,966
Net assets	$	97,504

Schedule of Acquired Intangible Assets

The intangible assets related to the acquisition consisted of the following:

	Fair Value		Amortization Period
	(In thousands)		(In years)
Intangible assets subject to amortization:
Customer relationships	$	49,131	15.0
Trademarks	2,456		2.0
Sales backlog	1,010		0.2
Total intangible assets subject to amortization	$	52,597
Intangible assets not subject to amortization:
Goodwill	$	27,831	n/a
Total intangible assets not subject to amortization	$	27,831
Total intangible assets	$	80,428
Weighted average amortization period			14.1

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Discontinued Operations (Tables)

6 Months Ended

Jul. 02, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations

The following table summarizes the operating results of the Tripwire disposal group from January 1, 2022 to the February 22, 2022 disposal date (in thousands):

Revenues	$	12,067
Cost of sales	(3,256)
Gross profit	8,811
Selling, general and administrative expenses	(8,185)
Research and development expenses	(5,528)
Amortization of intangible assets	(638)
Loss before taxes	$	(5,540)

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Reportable Segments (Tables)

6 Months Ended

Jul. 02, 2023

Segment Reporting [Abstract]

Schedule of Operating Segment Information

Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Inter-company revenues between our segments is not material.

	Enterprise Solutions		Industrial Automation Solutions		Total Segments
	(In thousands)
As of and for the three months ended July 2, 2023
Segment Revenues	$	312,529	$	379,716	$	692,245
Segment EBITDA	43,956		78,631		122,587
Depreciation expense	6,193		6,489		12,682
Amortization of intangibles	6,208		4,918		11,126
Amortization of software development intangible assets	—		1,820		1,820
Severance, restructuring, and acquisition integration costs	1,669		2,390		4,059
Adjustments related to acquisitions and divestitures	325		(76)		249
Segment assets	648,344		699,092		1,347,436
As of and for the three months ended July 3, 2022
Segment Revenues	$	307,444	$	359,107	$	666,551
Segment EBITDA	41,887		68,060		109,947
Depreciation expense	5,768		5,602		11,370
Amortization of intangibles	4,442		4,735		9,177
Amortization of software development intangible assets	22		959		981
Severance, restructuring, and acquisition integration costs	4,575		1,282		5,857
Adjustments related to acquisitions and divestitures	(558)		1,134		576
Segment assets	607,386		649,595		1,256,981
As of and for the six months ended July 2, 2023
Segment revenues	$	587,872	$	746,162	$	1,334,034
Segment EBITDA	81,161		152,418		233,579
Depreciation expense	12,147		12,889		25,036
Amortization of intangibles	10,703		10,033		20,736
Amortization of software development intangible assets	—		3,272		3,272
Severance, restructuring, and acquisition integration costs	1,694		4,077		5,771
Adjustments related to acquisitions and divestitures	325		222		547
Segment assets	648,344		699,092		1,347,436
As of and for the six months ended July 3, 2022
Segment Revenues	$	575,874	$	701,048	$	1,276,922
Segment EBITDA	72,708		135,588		208,296
Depreciation expense	11,194		11,402		22,596
Amortization of intangibles	8,539		9,455		17,994
Amortization of software development intangible assets	44		1,944		1,988
Severance, restructuring, and acquisition integration costs	4,903		4,677		9,580
Adjustments related to acquisitions and divestitures	(558)		1,134		576
Segment assets	607,386		649,595		1,256,981

Schedule of Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income Before Taxes

The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Total Segment and Consolidated Revenues	$	692,245	$	666,551	$	1,334,034	$	1,276,922
Total Segment EBITDA	$	122,587	$	109,947	$	233,579	$	208,296
Depreciation expense	(12,682)		(11,370)		(25,036)		(22,596)
Amortization of intangibles	(11,126)		(9,177)		(20,736)		(17,994)
Severance, restructuring, and acquisition integration costs (1)	(4,059)		(5,857)		(5,771)		(9,580)
Amortization of software development intangible assets	(1,820)		(981)		(3,272)		(1,988)
Adjustments related to acquisitions and divestitures (2)	(249)		(576)		(547)		(576)
Eliminations	(54)		(50)		(83)		(105)
Consolidated operating income	92,597		81,936		178,134		155,457
Interest expense, net	(8,812)		(11,276)		(17,013)		(25,687)
Loss on debt extinguishment	—		—		—		(6,392)
Total non-operating pension benefit	646		1,070		1,134		2,270
Consolidated income from continuing operations before taxes	$	84,431	$	71,730	$	162,255	$	125,648

(1) Severance, restructuring, and acquisition integration costs for the three and six months ended July 2, 2023 and July 3, 2022 included costs related to our Acquisition Integration program. See Note 11.

(2) Adjustments related to acquisitions and divestitures included fair value adjustments of acquired inventory and investments as well as gains associated with the sales of businesses.

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Income (loss) per Share (Tables)

6 Months Ended

Jul. 02, 2023

Earnings Per Share [Abstract]

Schedule of Basis for Income Per Share Computations

The following table presents the basis for the income (loss) per share computations:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Numerator:
Income from continuing operations	$	68,775	$	58,642	$	131,720	$	102,738
Less: Net income (loss) attributable to noncontrolling interest	22		81		(225)		84
Income from continuing operations attributable to Belden stockholders	68,753		58,561		131,945		102,654
Add: Loss from discontinued operations, net of tax	—		—		—		(3,685)
Add: Loss on disposal of discontinued operations, net of tax	—		—		—		(4,567)
Net income attributable to Belden stockholders	$	68,753	$	58,561	$	131,945	$	94,402
Denominator:
Weighted average shares outstanding, basic	42,497		44,252		42,663		44,535
Effect of dilutive common stock equivalents	591		530		717		644
Weighted average shares outstanding, diluted	43,088		44,782		43,380		45,179

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Credit Losses (Tables)

6 Months Ended

Jul. 02, 2023

Credit Loss [Abstract]

Schedule of Accounts Receivable, Allowance for Credit Loss

The following table presents the activity in the trade receivables allowance for doubtful accounts for our continuing operations for the three and six months ended July 2, 2023 and July 3, 2022, respectively:

	2023		2022
	(In thousands)
Beginning balance at January 1	$	7,954	$	4,864
Current period provision	4,004		846
Acquisitions	—		319
Recoveries collected	—		(50)
Write-offs	(3)		(667)
Fx impact	(25)		(19)
Q1 ending balance	$	11,930	$	5,293
Current period provision	4,194		656
Acquisitions	19		—
Fx impact	11		(81)
Write-offs	—		(64)
Recoveries collected	(8)		(12)
Q2 ending balance	$	16,146	$	5,792

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Inventories (Tables)

6 Months Ended

Jul. 02, 2023

Inventory Disclosure [Abstract]

Schedule of Major Classes of Inventories

The following table presents the major classes of inventories as of July 2, 2023 and December 31, 2022, respectively:

	July 2, 2023		December 31, 2022
	(In thousands)
Raw materials	$	182,683	$	162,154
Work-in-process	39,252		35,011
Finished goods	183,289		190,311
Gross inventories	405,224		387,476
Excess and obsolete reserves	(59,797)		(45,913)
Net inventories	$	345,427	$	341,563

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Leases (Tables)

6 Months Ended

Jul. 02, 2023

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Operating lease cost	$	5,415	$	5,365	$	10,932	$	10,793
Finance lease cost
Amortization of right-of-use asset	$	190	$	446	$	391	$	734
Interest on lease liabilities	77		122		157		128
Total finance lease cost	$	267	$	568	$	548	$	862

Supplemental Cash Flow Information Related To Leases

Supplemental cash flow information related to leases was as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,625	$	4,561	$	9,290	$	9,337

Supplemental Balance Sheet Information Related To Leases

Supplemental balance sheet information related to leases was as follows:

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	73,435	$	73,376
Accrued liabilities	$	16,502	$	16,442
Long-term operating lease liabilities	60,480		59,250
Total operating lease liabilities	$	76,982	$	75,692
Finance leases:
Other long-lived assets, at cost	$	6,313	$	6,323
Accumulated depreciation	(1,020)		(733)
Other long-lived assets, net	$	5,293	$	5,590
Accrued liabilities	$	549	$	391
Other long-term liabilities	5,814		5,928
Total finance lease liabilities	$	6,363	$	6,319

Supplemental Other Information Related To Leases

	July 2, 2023		December 31, 2022
	(In thousands, except lease term and discount rate)
Weighted Average Remaining Lease Term
Operating leases	6 years		6 years
Finance leases	10 years		10 years
Weighted Average Discount Rate
Operating leases	5.2	%	5.2	%
Finance leases	4.2	%	4.2	%

Schedule of Operating Lease, Liability, Maturity

The following table summarizes maturities of lease liabilities as of July 2, 2023 and December 31, 2022, respectively:

	July 2, 2023		December 31, 2022
	(In thousands)
2023	$	10,501	$	15,815
2024	15,574		14,809
2025	14,278		13,472
2026	12,792		11,964
2027	6,975		6,464
Thereafter	21,185		20,907
Total	$	81,305	$	83,431

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Severance, Restructuring, and Acquisition Integration Activities (Tables)

6 Months Ended

Jul. 02, 2023

Restructuring and Related Activities [Abstract]

Schedule of Severance, Restructuring and Integration Costs by Segment

The following table summarizes the severance and other restructuring and integration costs of the Acquisition Integration Program described above by financial statement line item in the Condensed Consolidated Statement of Operations:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Cost of sales	$	—	$	520	$	—	$	892
Selling, general and administrative expenses	1,323		647		1,997		3,258
Research and development expenses	94		—		94		—
Total	$	1,417	$	1,167	$	2,091	$	4,150

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Long-Term Debt and Other Borrowing Arrangements (Tables)

6 Months Ended

Jul. 02, 2023

Debt Disclosure [Abstract]

Schedule of Carrying Values of Long-Term Debt and Other Borrowing Arrangements

The carrying values of our long-term debt were as follows:

	July 2, 2023		December 31, 2022
	(In thousands)
Revolving credit agreement due 2026	$	—	$	—
Senior subordinated notes:
3.375% Senior subordinated notes due 2027	490,500		480,330
3.875% Senior subordinated notes due 2028	381,500		373,590
3.375% Senior subordinated notes due 2031	327,000		320,220
Total senior subordinated notes	1,199,000		1,174,140
Less unamortized debt issuance costs	(11,848)		(12,964)
Long-term debt	$	1,187,152	$	1,161,176

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Pension and Other Postretirement Obligations (Tables)

6 Months Ended

Jul. 02, 2023

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Costs

The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: 

	Pension Obligations				Other Postretirement Obligations
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Three Months Ended
Service cost	$	844	$	819	$	3	$	6
Interest cost	3,810		2,287		252		193
Expected return on plan assets	(4,329)		(3,798)		—		—
Amortization of prior service cost	44		44		—		—
Actuarial losses (gains)	(232)		224		(191)		(20)
Net periodic benefit cost (income)	$	137	$	(424)	$	64	$	179
Six Months Ended
Service cost	$	1,534	$	1,730	$	6	$	12
Interest cost	7,554		4,592		503		388
Expected return on plan assets	(8,438)		(7,761)		—		—
Amortization of prior service cost	87		91		—		—
Actuarial losses (gains)	(458)		460		(382)		(40)
Net periodic benefit cost (income)	$	279	$	(888)	$	127	$	360

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Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jul. 02, 2023

Equity [Abstract]

Schedule of Total Comprehensive Income (Loss)

The following table summarizes total comprehensive income: 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
	(In thousands)
Net income	$	68,775	$	58,642	$	131,720	$	94,486
Foreign currency translation adjustments, net of tax	(4,577)		51,945		(21,595)		55,707
Adjustments to pension and postretirement liability, net of tax	(284)		181		(564)		374
Total comprehensive income	63,914		110,768		109,561		150,567
Less: Comprehensive income (loss) attributable to noncontrolling interests	24		56		(221)		86
Comprehensive income attributable to Belden	$	63,890	$	110,712	$	109,782	$	150,481

Schedule of Components of Other Comprehensive Income (Loss), Net of Tax

The accumulated balances related to each component of other comprehensive loss, net of tax, are as follows: 

	Foreign Currency Translation Component		Pension and Other  Postretirement Benefit Plans		Accumulated Other  Comprehensive Loss
	(In thousands)
Balance at December 31, 2022	$	(1,944)	$	(3,927)	$	(5,871)
Other comprehensive loss attributable to Belden before reclassifications	(21,599)		—		(21,599)
Amounts reclassified from accumulated other comprehensive loss	(139)		(564)		(703)
Net current period other comprehensive loss attributable to Belden	(21,738)		(564)		(22,302)
Balance at July 2, 2023	$	(23,682)	$	(4,491)	$	(28,173)

Schedule of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss)

The following table summarizes the effects of reclassifications from accumulated other comprehensive loss for the six months ended July 2, 2023:

	Amounts  Reclassified from Accumulated Other Comprehensive Income (2)		Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss
	(In thousands)
Amortization of pension and other postretirement benefit plan items:
Actuarial gains	$	(840)	(1)
Prior service cost	87		(1)
Total before tax	(753)
Tax expense	189
Total net of tax	$	(564)

(1) The amortization of these accumulated other comprehensive loss components are included in the computation of net periodic benefit costs (see Note 15).

(2) In addition, we reclassified $0.1 million of accumulated foreign currency translation gains associated with the sale of the Hite JV.

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Summary of Significant Accounting Policies (Details) $ in Thousands		6 Months Ended
	Apr. 28, 2023 USD ($)	Jul. 02, 2023 USD ($) segment
Significant Accounting Policies [Line Items]
Number of reportable segments | segment		2
Hite
Significant Accounting Policies [Line Items]
Ownership interest percentage	51.00%
Proceeds from sale of ownership	$ 900
Pre tax gain on sale	400
Potential earnouts payment	$ 600
Standby Letters of Credit
Significant Accounting Policies [Line Items]
Loss contingency, range of possible loss, portion not accrued		$ 8,700
Surety Bonds
Significant Accounting Policies [Line Items]
Loss contingency, range of possible loss, portion not accrued		4,700
Bank Guaranties
Significant Accounting Policies [Line Items]
Loss contingency, range of possible loss, portion not accrued		$ 4,300

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Revenues - Major Product Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 692,245	$ 666,551	$ 1,334,034	$ 1,276,922
Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	312,529	307,444	587,872	575,874
Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	379,716	359,107	746,162	701,048
Broadband Solutions
Disaggregation of Revenue [Line Items]
Revenues	159,332	146,771	290,887	268,576
Broadband Solutions | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	159,332	146,771	290,887	268,576
Broadband Solutions | Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Industrial Automation
Disaggregation of Revenue [Line Items]
Revenues	379,716	359,107	746,162	701,048
Industrial Automation | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Industrial Automation | Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	379,716	359,107	746,162	701,048
Smart Buildings
Disaggregation of Revenue [Line Items]
Revenues	153,197	160,673	296,985	307,298
Smart Buildings | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	153,197	160,673	296,985	307,298
Smart Buildings | Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0

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Revenues - Location of Customer (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 692,245	$ 666,551	$ 1,334,034	$ 1,276,922
Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	312,529	307,444	587,872	575,874
Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	379,716	359,107	746,162	701,048
Americas
Disaggregation of Revenue [Line Items]
Revenues	460,323	447,546	889,423	856,242
Americas | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	246,471	233,501	460,358	437,887
Americas | Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	213,852	214,045	429,065	418,355
EMEA
Disaggregation of Revenue [Line Items]
Revenues	145,726	128,262	285,095	258,102
EMEA | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	36,671	36,497	74,119	75,886
EMEA | Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	109,055	91,765	210,976	182,216
APAC
Disaggregation of Revenue [Line Items]
Revenues	86,196	90,743	159,516	162,578
APAC | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenues	29,387	37,446	53,395	62,101
APAC | Industrial Automation Solutions
Disaggregation of Revenue [Line Items]
Revenues	$ 56,809	$ 53,297	$ 106,121	$ 100,477

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Revenues - Estimated and Accrued Variable Consideration (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 02, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accrued rebates included in accrued liabilities	$ 42,868	$ 55,559
Accrued returns included in accrued liabilities	16,575	11,700
Price adjustments recognized against gross accounts receivable	$ 25,457	$ 24,304

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Revenues - Additional Information (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Apr. 02, 2023	Dec. 31, 2022	Jul. 03, 2022	Apr. 03, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Contract with customer, deferred revenues	$ 29,667	$ 29,295	$ 33,243	$ 26,834	$ 31,449	$ 19,390
Contract with customer, deferred revenues, current	22,700
Contract with customer, deferred revenues, noncurrent	7,000
Service-Type Warranties
Disaggregation of Revenue [Line Items]
Contract with customer, deferred revenues	9,500
Contract with customer, deferred revenues, current	4,900
Contract with customer, deferred revenues, noncurrent	$ 4,600

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Revenues - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jul. 03, 2022	Apr. 03, 2022
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 29,295	$ 33,243	$ 31,449	$ 19,390
New deferrals	6,900	4,359	4,265	8,857
Acquisitions		0		6,567
Revenue recognized	(6,528)	(8,307)	(8,880)	(3,365)
Ending balance	$ 29,667	$ 29,295	$ 26,834	$ 31,449

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Revenues - Sales Commissions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Revenue from Contract with Customer [Abstract]
Sales commissions	$ 6,316	$ 6,131	$ 12,089	$ 11,354

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Acquisitions - Additional Information (Details) - USD ($)	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Apr. 17, 2023
Business Acquisition [Line Items]
Purchase price, net of cash acquired	$ 97,585,000	$ 104,123,000
Receivables			$ 6,800,000
Berthold Sichert GmbH
Business Acquisition [Line Items]
Receivables			6,781,000
Tax basis in acquired goodwill			$ 0

XML

Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Apr. 17, 2023	Dec. 31, 2022
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Receivables		$ 6,800
Intangible assets	$ 893,419		$ 862,253
Berthold Sichert GmbH
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Receivables		6,781
Inventory		13,061
Other current assets		1,840
Property, plant and equipment		7,057
Intangible assets		52,597
Intangible assets		27,831
Other long-lived assets		1,303
Total assets acquired		110,470
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Accounts payable		2,423
Accrued liabilities		1,884
Deferred income taxes		8,659
Total liabilities assumed		12,966
Net assets		$ 97,504

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Acquisitions - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 17, 2023	Jul. 02, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 893,419	$ 862,253
Berthold Sichert GmbH
Business Acquisition [Line Items]
Total intangible assets subject to amortization	$ 52,597
Goodwill	27,831
Total intangible assets	$ 80,428
Amortization period (in years)	14 years 1 month 6 days
Customer relationships | Berthold Sichert GmbH
Business Acquisition [Line Items]
Total intangible assets subject to amortization	$ 49,131
Amortization period (in years)	15 years
Trademarks | Berthold Sichert GmbH
Business Acquisition [Line Items]
Total intangible assets subject to amortization	$ 2,456
Amortization period (in years)	2 years
Sales backlog | Berthold Sichert GmbH
Business Acquisition [Line Items]
Total intangible assets subject to amortization	$ 1,010
Amortization period (in years)	2 months 12 days

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Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 22, 2022	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on disposal of discontinued operations		$ 0	$ 0	$ 0	$ 4,567
Tripwire | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses	$ 350,000
Capital expenditure					$ 200

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Discontinued Operations - Operating Results of the Disposal Group (Details) - Tripwire - Discontinued Operations, Held-for-sale $ in Thousands	6 Months Ended
	Jul. 02, 2023 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 12,067
Cost of sales	(3,256)
Gross profit	8,811
Selling, general and administrative expenses	(8,185)
Research and development expenses	(5,528)
Amortization of intangible assets	(638)
Loss before taxes	$ (5,540)

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Reportable Segments - Additional Information (Details)	6 Months Ended
	Jul. 02, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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Reportable Segments - Operating Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Segment Revenues	$ 692,245	$ 666,551	$ 1,334,034	$ 1,276,922
Depreciation expense	12,700	11,400	25,000	22,600
Amortization of intangibles	11,126	9,177	20,736	17,994
Severance, restructuring, and acquisition integration costs	1,417	1,167	2,091	4,150
Segment assets	3,145,327		3,145,327		$ 3,161,675
Enterprise Solutions
Segment Reporting Information [Line Items]
Segment Revenues	312,529	307,444	587,872	575,874
Industrial Automation Solutions
Segment Reporting Information [Line Items]
Segment Revenues	379,716	359,107	746,162	701,048
Reportable Segment
Segment Reporting Information [Line Items]
Segment EBITDA	122,587	109,947	233,579	208,296
Depreciation expense	12,682	11,370	25,036	22,596
Amortization of intangibles	11,126	9,177	20,736	17,994
Amortization of software development intangible assets	1,820	981	3,272	1,988
Severance, restructuring, and acquisition integration costs	4,059	5,857	5,771	9,580
Adjustments related to acquisitions and divestitures	249	576	547	576
Segment assets	1,347,436	1,256,981	1,347,436	1,256,981
Reportable Segment | Software Development
Segment Reporting Information [Line Items]
Amortization of software development intangible assets	1,820	981	3,272	1,988
Reportable Segment | Segment Revenues
Segment Reporting Information [Line Items]
Segment Revenues	692,245	666,551	1,334,034	1,276,922
Reportable Segment | Enterprise Solutions
Segment Reporting Information [Line Items]
Segment EBITDA	43,956	41,887	81,161	72,708
Depreciation expense	6,193	5,768	12,147	11,194
Amortization of intangibles	6,208	4,442	10,703	8,539
Severance, restructuring, and acquisition integration costs	1,669	4,575	1,694	4,903
Adjustments related to acquisitions and divestitures	325	(558)	325	(558)
Segment assets	648,344	607,386	648,344	607,386
Reportable Segment | Enterprise Solutions | Software Development
Segment Reporting Information [Line Items]
Amortization of software development intangible assets	0	22	0	44
Reportable Segment | Enterprise Solutions | Segment Revenues
Segment Reporting Information [Line Items]
Segment Revenues	312,529	307,444	587,872	575,874
Reportable Segment | Industrial Automation Solutions
Segment Reporting Information [Line Items]
Segment EBITDA	78,631	68,060	152,418	135,588
Depreciation expense	6,489	5,602	12,889	11,402
Amortization of intangibles	4,918	4,735	10,033	9,455
Severance, restructuring, and acquisition integration costs	2,390	1,282	4,077	4,677
Adjustments related to acquisitions and divestitures	(76)	1,134	222	1,134
Segment assets	699,092	649,595	699,092	649,595
Reportable Segment | Industrial Automation Solutions | Software Development
Segment Reporting Information [Line Items]
Amortization of software development intangible assets	1,820	959	3,272	1,944
Reportable Segment | Industrial Automation Solutions | Segment Revenues
Segment Reporting Information [Line Items]
Segment Revenues	$ 379,716	$ 359,107	$ 746,162	$ 701,048

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Reportable Segments - Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	$ 692,245	$ 666,551	$ 1,334,034	$ 1,276,922
Depreciation expense	(12,700)	(11,400)	(25,000)	(22,600)
Amortization of intangibles	(11,126)	(9,177)	(20,736)	(17,994)
Severance, restructuring, and acquisition integration costs	(1,417)	(1,167)	(2,091)	(4,150)
Operating income	92,597	81,936	178,134	155,457
Interest expense, net	(8,812)	(11,276)	(17,013)	(25,687)
Loss on debt extinguishment	0	0	0	(6,392)
Total non-operating pension benefit	646	1,070	1,134	2,270
Consolidated income from continuing operations before taxes	84,431	71,730	162,255	125,648
Reportable Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment EBITDA	122,587	109,947	233,579	208,296
Depreciation expense	(12,682)	(11,370)	(25,036)	(22,596)
Amortization of intangibles	(11,126)	(9,177)	(20,736)	(17,994)
Severance, restructuring, and acquisition integration costs	(4,059)	(5,857)	(5,771)	(9,580)
Amortization of software development intangible assets	(1,820)	(981)	(3,272)	(1,988)
Adjustments related to acquisitions and divestitures	(249)	(576)	(547)	(576)
Operating income	92,597	81,936	178,134	155,457
Interest expense, net	(8,812)	(11,276)	(17,013)	(25,687)
Loss on debt extinguishment	0	0	0	(6,392)
Reportable Segment | Segment Revenues
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	692,245	666,551	1,334,034	1,276,922
Intersegment Eliminations
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	$ (54)	$ (50)	$ (83)	$ (105)

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Income (loss) per Share - Basis for Income Per Share Computations (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Numerator:
Income from continuing operations	$ 68,775	$ 58,642	$ 131,720	$ 102,738
Less: Net income (loss) attributable to noncontrolling interest	22	81	(225)	84
Income from continuing operations attributable to Belden stockholders	68,753	58,561	131,945	102,654
Add: Loss from discontinued operations, net of tax	0	0	0	(3,685)
Add: Loss on disposal of discontinued operations, net of tax	0	0	0	(4,567)
Net income attributable to Belden stockholders	$ 68,753	$ 58,561	$ 131,945	$ 94,402
Denominator:
Weighted average shares outstanding, basic (in shares)	42,497	44,252	42,663	44,535
Effect of dilutive common stock equivalents (in shares)	591	530	717	644
Weighted average shares outstanding, diluted (in shares)	43,088	44,782	43,380	45,179

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Income (loss) per Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Earnings Per Share [Abstract]
Anti-dilutive shares excluded from diluted weighted average shares outstanding (in shares)	0.2	1.1	0.2	1.1
Anti-dilutive shares excluded from diluted weighted average shares outstanding due to performance conditions not being met (in shares)	0.2	0.2	0.2	0.3

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Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jul. 03, 2022	Apr. 03, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 11,930	$ 7,954	$ 5,293	$ 4,864
Current period provision	4,194	4,004	656	846
Acquisitions	19	0	0	319
Recoveries collected	(8)	0	(12)	(50)
Write-offs	0	(3)	(64)	(667)
Fx impact	11	(25)	(81)	(19)
Ending balance	$ 16,146	$ 11,930	$ 5,792	$ 5,293

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Inventories (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 182,683	$ 162,154
Work-in-process	39,252	35,011
Finished goods	183,289	190,311
Gross inventories	405,224	387,476
Excess and obsolete reserves	(59,797)	(45,913)
Net inventories	$ 345,427	$ 341,563

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Leases - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Dec. 31, 2022 lease
Lessee, Lease, Description [Line Items]
Variable lease, payment	$ 0.8	$ 0.7	$ 1.6	$ 1.5
Fixed payments remaining	23.0		23.0
Number of leases defaulted on | lease					2
Lease guarantee, remaining lease payments	$ 8.2		$ 8.2
Minimum
Lessee, Lease, Description [Line Items]
Operating and finance lease, term of contract (in years)			1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating and finance lease, term of contract (in years)			15 years

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Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Leases [Abstract]
Operating lease cost	$ 5,415	$ 5,365	$ 10,932	$ 10,793
Amortization of right-of-use asset	190	446	391	734
Interest on lease liabilities	77	122	157	128
Total finance lease cost	$ 267	$ 568	$ 548	$ 862

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Leases - Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Leases [Abstract]
Operating cash flows from operating leases	$ 4,625	$ 4,561	$ 9,290	$ 9,337

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Leases - Supplemental Balance Sheet Information Related To Leases (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Dec. 31, 2022
Leases [Abstract]
Total operating lease right-of-use assets	$ 73,435	$ 73,376
Accrued liabilities	16,502	16,442
Long-term operating lease liabilities	60,480	59,250
Total operating lease liabilities	76,982	75,692
Other long-lived assets, at cost	6,313	6,323
Accumulated depreciation	(1,020)	(733)
Other long-lived assets, net	5,293	5,590
Accrued liabilities	549	391
Other long-term liabilities	5,814	5,928
Total finance lease liabilities	$ 6,363	$ 6,319
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities	Accrued liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other long-lived assets	Other long-lived assets
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued liabilities	Accrued liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities

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Leases - Supplemental Other Information Related To Leases (Details)	Jul. 02, 2023	Dec. 31, 2022
Weighted Average Remaining Lease Term
Operating leases	6 years	6 years
Finance leases	10 years	10 years
Weighted Average Discount Rate
Operating leases	5.20%	5.20%
Finance leases	4.20%	4.20%

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Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 10,501
2023	15,574	$ 15,815
2024	14,278	14,809
2025	12,792	13,472
2026	6,975	11,964
2027		6,464
Thereafter	21,185	20,907
Total	$ 81,305	$ 83,431

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Long-Lived Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 12.7	$ 11.4	$ 25.0	$ 22.6
Amortization of intangible assets including amortization of software development	$ 12.9	$ 10.2	24.0	$ 20.0
Payments to acquire real estate			$ 15.6

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Severance, Restructuring, and Acquisition Integration Activities - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Severance, restructuring, and acquisition integration costs	$ 1,417	$ 1,167	$ 2,091	$ 4,150
Restructuring and integration cost payable period (in days)			60 days		60 days
Acquisition Integration Program | Enterprise Solutions
Restructuring Cost and Reserve [Line Items]
Severance, restructuring, and acquisition integration costs	1,300	1,000	$ 1,300	1,000
Acquisition Integration Program | Industrial Automation Solutions
Restructuring Cost and Reserve [Line Items]
Severance, restructuring, and acquisition integration costs	$ 100	$ 100	$ 800	$ 3,100

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Severance, Restructuring, and Acquisition Integration Activities - Costs of Various Programs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Restructuring Cost and Reserve [Line Items]
Severance, restructuring, and acquisition integration costs	$ 1,417	$ 1,167	$ 2,091	$ 4,150
Cost of sales
Restructuring Cost and Reserve [Line Items]
Severance, restructuring, and acquisition integration costs	0	520	0	892
Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Severance, restructuring, and acquisition integration costs	1,323	647	1,997	3,258
Research and development expenses
Restructuring Cost and Reserve [Line Items]
Severance, restructuring, and acquisition integration costs	$ 94	$ 0	$ 94	$ 0

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Long-Term Debt and Other Borrowing Arrangements - Carrying Values of Long-Term Debt and Other Borrowing Arrangements (Details) - USD ($)	Jul. 02, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total senior subordinated notes	$ 1,199,000,000	$ 1,174,140,000
Less unamortized debt issuance costs	(11,848,000)	(12,964,000)
Long-term debt	1,187,152,000	1,161,176,000
Revolving credit agreement due 2026
Debt Instrument [Line Items]
Revolving credit agreement due 2026	0	0
3.375% Senior subordinated notes due 2027
Debt Instrument [Line Items]
Total senior subordinated notes	490,500,000
3.875% Senior subordinated notes due 2028
Debt Instrument [Line Items]
Total senior subordinated notes	381,500,000
Senior Subordinated Notes
Debt Instrument [Line Items]
Total senior subordinated notes	$ 1,199,000,000
Senior Subordinated Notes | 3.375% Senior subordinated notes due 2027
Debt Instrument [Line Items]
Senior subordinated notes interest rate (as percent)	3.375%
Total senior subordinated notes	$ 490,500,000	480,330,000
Senior Subordinated Notes | 3.875% Senior subordinated notes due 2028
Debt Instrument [Line Items]
Senior subordinated notes interest rate (as percent)	3.875%
Total senior subordinated notes	$ 381,500,000	373,590,000
Senior Subordinated Notes | 3.375% Senior subordinated notes due 2031
Debt Instrument [Line Items]
Senior subordinated notes interest rate (as percent)	3.375%
Total senior subordinated notes	$ 327,000,000	$ 320,220,000

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Long-Term Debt and Other Borrowing Arrangements - Additional Information (Details) € in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Jul. 03, 2022 EUR (€)	Jul. 02, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Loss on debt extinguishment	$ 0	$ 0	$ 0	$ 6,392,000
Senior subordinated notes	1,199,000,000		1,199,000,000				$ 1,174,140,000
Senior Subordinated Notes
Debt Instrument [Line Items]
Senior subordinated notes	1,199,000,000		1,199,000,000
Fair value of senior subordinated notes	1,099,500,000		1,099,500,000
Revolving credit agreement due 2026
Debt Instrument [Line Items]
Revolving credit agreement, maximum borrowing capacity	300,000,000		$ 300,000,000
Commitment fee percentage			0.25%
Fixed charge coverage, minimum threshold (as a percent)			90.00%
Revolving credit agreement, remaining borrowing capacity	20,000,000		$ 20,000,000
Revolving credit agreement due 2022, borrowings outstanding	0		0				0
Revolving credit agreement, available borrowing capacity	$ 291,200,000		$ 291,200,000
Revolving credit agreement due 2026 | Minimum | Secured Overnight Financing Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (as a percent)			1.25%
Revolving credit agreement due 2026 | Minimum | Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (as a percent)			0.25%
Revolving credit agreement due 2026 | Maximum | Secured Overnight Financing Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (as a percent)			1.75%
Revolving credit agreement due 2026 | Maximum | Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (as a percent)			0.75%
4.125% Senior subordinated notes due 2026 | Senior Subordinated Notes
Debt Instrument [Line Items]
Debt instrument, amount outstanding | €						€ 200.0
Senior subordinated notes interest rate (as percent)	4.125%		4.125%			4.125%
Repurchase amount | €					€ 200.0
Repayments of debt				227,900,000	€ 204.1
Loss on debt extinguishment				$ 6,400,000
3.375% Senior subordinated notes due 2027
Debt Instrument [Line Items]
Senior subordinated notes	$ 490,500,000		$ 490,500,000
3.375% Senior subordinated notes due 2027 | Senior Subordinated Notes
Debt Instrument [Line Items]
Debt instrument, amount outstanding | €						€ 450.0
Senior subordinated notes interest rate (as percent)	3.375%		3.375%			3.375%
Senior subordinated notes	$ 490,500,000		$ 490,500,000				480,330,000
3.875% Senior subordinated notes due 2028
Debt Instrument [Line Items]
Senior subordinated notes	$ 381,500,000		$ 381,500,000
3.875% Senior subordinated notes due 2028 | Senior Subordinated Notes
Debt Instrument [Line Items]
Debt instrument, amount outstanding | €						€ 350.0
Senior subordinated notes interest rate (as percent)	3.875%		3.875%			3.875%
Senior subordinated notes	$ 381,500,000		$ 381,500,000				373,590,000
3.375% Senior subordinated notes due 2031 | Senior Subordinated Notes
Debt Instrument [Line Items]
Debt instrument, amount outstanding | €						€ 300.0
Senior subordinated notes interest rate (as percent)	3.375%		3.375%			3.375%
Senior subordinated notes	$ 327,000,000		$ 327,000,000				$ 320,220,000

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Net Investment Hedge (Details) $ in Thousands, € in Millions	3 Months Ended		6 Months Ended			12 Months Ended
	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Jul. 02, 2023 EUR (€)	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Dec. 31, 2022 EUR (€)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cumulative translation adjustment | $	$ (4,577)	$ 51,945		$ (21,595)	$ 55,707
Senior subordinated debt, de-designated | €			€ 200.0			€ 200.0
Senior Subordinated Notes
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Senior subordinated debt, hedged | €			€ 567.8
Cumulative translation adjustment | $				$ (13,000)	$ 53,500

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 15,656	$ 13,088	$ 30,535	$ 22,910
Effective tax rate (as percent)	18.50%	18.20%	18.80%	18.20%

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Pension and Other Postretirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Pension Obligations
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 844	$ 819	$ 1,534	$ 1,730
Interest cost	3,810	2,287	7,554	4,592
Expected return on plan assets	(4,329)	(3,798)	(8,438)	(7,761)
Amortization of prior service cost	44	44	87	91
Actuarial losses (gains)	(232)	224	(458)	460
Net periodic benefit cost (income)	137	(424)	279	(888)
Other Postretirement Obligations
Defined Benefit Plan Disclosure [Line Items]
Service cost	3	6	6	12
Interest cost	252	193	503	388
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	0	0	0	0
Actuarial losses (gains)	(191)	(20)	(382)	(40)
Net periodic benefit cost (income)	$ 64	$ 179	$ 127	$ 360

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Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Total Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jul. 03, 2022	Apr. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Equity [Abstract]
Net income	$ 68,775	$ 62,945	$ 58,642	$ 35,844	$ 131,720	$ 94,486
Foreign currency translation adjustments, net of tax	(4,577)		51,945		(21,595)	55,707
Adjustments to pension and postretirement liability, net of tax	(284)		181		(564)	374
Total comprehensive income	63,914		110,768		109,561	150,567
Less: Comprehensive income (loss) attributable to noncontrolling interests	24		56		(221)	86
Comprehensive income attributable to Belden	$ 63,890		$ 110,712		$ 109,782	$ 150,481

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Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss), Net of Tax (Details) $ in Thousands	6 Months Ended
	Jul. 02, 2023 USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 1,143,950
Ending balance	1,162,991
Accumulated Other  Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(5,871)
Other comprehensive loss attributable to Belden before reclassifications	(21,599)
Amounts reclassified from accumulated other comprehensive loss	(703)
Net current period other comprehensive loss attributable to Belden	(22,302)
Ending balance	(28,173)
Foreign Currency Translation Component
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(1,944)
Other comprehensive loss attributable to Belden before reclassifications	(21,599)
Amounts reclassified from accumulated other comprehensive loss	(139)
Net current period other comprehensive loss attributable to Belden	(21,738)
Ending balance	(23,682)
Pension and Other  Postretirement Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(3,927)
Other comprehensive loss attributable to Belden before reclassifications	0
Amounts reclassified from accumulated other comprehensive loss	(564)
Net current period other comprehensive loss attributable to Belden	(564)
Ending balance	$ (4,491)

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Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Summary of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	$ (84,431)	$ (71,730)	$ (162,255)	$ (125,648)
Income tax expense	15,656	13,088	30,535	22,910
Total net of tax	$ (68,753)	$ (58,561)	(131,945)	$ (94,402)
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Accumulated foreign currency translation gains			100
Reclassification out of Accumulated Other Comprehensive Income | Actuarial gains
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other nonoperating expense (income)			(840)
Reclassification out of Accumulated Other Comprehensive Income | Prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other nonoperating expense (income)			87
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other  Postretirement Benefit Plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax			(753)
Income tax expense			189
Total net of tax			$ (564)

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Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended			6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Apr. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Apr. 24, 2023	Dec. 31, 2018
Equity, Class of Treasury Stock [Line Items]
Shares repurchase program (in shares)	0.4	0.3		1.0	1.2
Value of shares repurchased	$ 36,200	$ 16,559	$ 50,000	$ 86,200	$ 66,600
Treasury stock acquired, average cost per share (in usd per share)	$ 92.01	$ 51.71		$ 87.30	$ 55.23
Stock repurchase program, remaining authorized repurchase amount	$ 278,800			$ 278,800
11/29/2018 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount							$ 300,000
Stock repurchase program, additional authorized amount						$ 300,000