BEL FUSE INC /NJ Segments Disclosure

14.

SEGMENTS

 

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

 

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

 

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

 

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

 

There are no intercompany sales between the segments.

 

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

 

The following is a summary of key financial data for each of the three years ended December 31, 2025, 2024 and 2023. In addition to total segment revenues and segment gross profit, the CODM’s quarterly reporting package also includes cost of sales in arriving at the disclosed measure of profitability. The Company has determined that cost of sales is a significant segment expense and is therefore included in the financial data disclosure tables below.

 

		Year Ended December 31, 2025
		Power Solutions				Connectivity				Magnetic				Corporate/
		and Protection				Solutions				Solutions				Other				Total
Net sales		$	356,805			$	232,286			$	86,364			$	-			$	675,455
Cost of sales			204,414				142,422				62,561				1,640				411,037
Gross profit			152,391				89,864				23,803				(1,640	)			264,418
Gross profit %			42.7	%			38.7	%			27.6	%			nm				39.1	%
Other Segment Disclosures:
Total Assets		$	633,801			$	183,249			$	54,144			$	64,006			$	935,200
Capital Expenditures			5,109				6,442				326				125				12,002
Depreciation and Amortization Expense			18,012				7,034				970				576				26,592
Interest Expense			263				3				-				14,485				14,751

 

		Year Ended December 31, 2024
		Power Solutions				Connectivity				Magnetic				Corporate/
		and Protection				Solutions				Solutions				Other				Total
Net sales		$	245,551			$	220,370			$	68,871			$	-			$	534,792
Cost of sales			141,425				138,606				51,418				985				332,434
Gross profit			104,126				81,764				17,453				(985	)			202,358
Gross profit %			42.4	%			37.1	%			25.3	%			nm				37.8	%
Other Segment Disclosures:
Total assets		$	654,131			$	177,443			$	51,415			$	66,800			$	949,789
Capital expenditures			5,446				7,908				281				473				14,108
Depreciation and amortization expense			8,284				6,853				819				501				16,457
Interest expense			1,327				68				-				2,683				4,078

 

		Year Ended December 31, 2023
		Power Solutions				Connectivity				Magnetic				Corporate/
		and Protection				Solutions				Solutions				Other				Total
Net sales		$314,105				$210,572				$115,136				$-				$639,813
Cost of sales			194,364				138,541				89,822				1,237				423,964
Gross profit			119,741				72,031				25,314				(1,237	)			215,849
Gross profit %			38.1	%			34.2	%			22.0	%			nm				33.7	%
Other Segment Disclosures:
Total assets		$	222,068			$	197,045			$	47,900			$	104,618			$	571,631
Capital expenditures			4,563				7,384				160				19				12,126
Depreciation and amortization expense			5,280				6,152				1,094				786				13,312
Interest expense			-				-				-				2,850				2,850

 

Entity-Wide Information

 

The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line. Such information attributes net sales based on markets where revenues are reported.

 

		Years Ended December 31,
		2025				2024				2023
Net Sales by Geographic Location:
United States		$	447,367			$	362,118			$	447,793
People's Republic of China (PRC)			52,323				23,394				43,109
Macao			-				25,130				35,026
United Kingdom			37,071				35,915				25,648
Slovakia			32,172				33,228				35,555
Germany			14,717				15,268				17,327
India			8,846				10,635				15,365
Switzerland			15,747				15,594				11,237
Israel			62,348				8,227				-
All other foreign countries			4,864				5,283				8,753
Consolidated net sales			675,455				534,792				639,813
Net Sales by Major Product Line:
Power solutions and protection		$	356,805			$	245,551			$	314,105
Connectivity solutions			232,286				220,370				210,572
Magnetic solutions			86,364				68,871				115,136
Consolidated net sales		$	675,455			$	534,792			$	639,813

 

The following is a summary of long-lived assets by geographic area as of December 31, 2025 and 2024:

 

		December 31,
		2025				2024
Long-lived Assets by Geographic Location:
United States		$	50,836			$	40,840
People's Republic of China (PRC)			13,701				23,942
Slovakia			6,666				6,553
Israel			3,687				4,125
United Kingdom			3,314				3,001
All other foreign countries			3,737				4,057
Consolidated long-lived assets		$	81,941			$	82,518

 

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

 

The territory of Hong Kong became a Special Administrative Region ("SAR") of the PRC in the middle of 1997. The territory of Macao became a SAR of the PRC at the end of 1999. Management cannot presently predict what future impact the current status of these territories, along with evolving political landscape in the region, will have on the Company, if any, or how the political climate in the PRC will affect the Company's contractual arrangements in the PRC (including risks arising out of any changes in governmental and economic policy, such as increased or new tariffs, and current or additional trade restrictions, and the potential for adverse developments arising out of any political or economic instability related to Hong Kong or Taiwan). A significant portion of the Company's manufacturing operations and approximately 32.0% of its identifiable assets are located in Asia.

 

Net Sales to Major Customers

 

The Company had no direct customers whose net sales represented in excess of ten percent of the Company's consolidated net sales in 2025, 2024 or 2023.