BENCHMARK ELECTRONICS INC Segments Disclosure
Note 10—Segment, Geographic Information and Major Customer
The Company’s is our Chief Operating Decision Maker (CODM) who evaluates how resources are allocated, assesses performance and makes strategic and operational decisions. The Company currently has manufacturing facilities in the Americas, Asia and Europe to serve its customers. The Company is operated and managed geographically, and management evaluates performance and allocates the Company’s resources on a geographic basis. We provide manufacturing services, design and engineering services, and technology solutions in the Americas, Asia and Europe. Intersegment sales are generally recorded at prices that approximate arm’s length transactions. Operating segments’ measure of profitability is based on income from operations. Corporate and intersegment eliminations include (1) corporate expenses not allocated to the Company’s three reporting segments, which are primarily general and administrative expenses such as corporate employee payroll and benefit costs and corporate facility costs, and (2) income from operations on intersegment sales between reporting segments. Corporate functions include legal, finance, tax, treasury, information technology, risk management, human resources, business development and other administrative functions. The accounting policies for the reportable operating segments are the same as for the Company taken as a whole. The Company has three reportable operating segments: Americas, Asia, and Europe.
Information about the Company's operating segments follows:
|
|
Year Ended December 31, 2025 |
|
|||||||||||||
(in thousands) |
|
Americas |
|
|
Asia |
|
|
Europe |
|
|
Total |
|
||||
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales from external customers |
|
$ |
1,184,751 |
|
|
$ |
1,130,774 |
|
|
$ |
343,583 |
|
|
$ |
2,659,108 |
|
Intersegment sales |
|
|
44,688 |
|
|
|
35,983 |
|
|
|
8,963 |
|
|
|
89,634 |
|
|
|
$ |
1,229,439 |
|
|
$ |
1,166,757 |
|
|
$ |
352,546 |
|
|
$ |
2,748,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Elimination of intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
(89,634 |
) |
|||
Sales |
|
|
|
|
|
|
|
|
|
|
$ |
2,659,108 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of sales |
|
|
1,104,497 |
|
|
|
973,635 |
|
|
|
298,095 |
|
|
|
|
|
Selling, general and administrative expenses |
|
|
29,190 |
|
|
|
15,482 |
|
|
|
9,655 |
|
|
|
|
|
Other(1) |
|
|
26,240 |
|
|
|
864 |
|
|
|
71 |
|
|
|
|
|
Segment income from operations |
|
$ |
24,824 |
|
|
$ |
140,793 |
|
|
$ |
35,762 |
|
|
$ |
201,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other - corporate and eliminations(2) |
|
|
|
|
|
|
|
|
|
|
|
(125,330 |
) |
|||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
(20,158 |
) |
|||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
9,552 |
|
|||
Other expense, net |
|
|
|
|
|
|
|
|
|
|
|
(3,909 |
) |
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
61,534 |
|
|||
(in thousands) |
|
Americas |
|
|
Asia |
|
|
Europe |
|
|
Total |
|
||||
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales from external customers |
|
$ |
1,277,702 |
|
|
$ |
1,050,415 |
|
|
$ |
327,988 |
|
|
$ |
2,656,105 |
|
Intersegment sales |
|
|
52,659 |
|
|
|
40,734 |
|
|
|
11,349 |
|
|
|
104,742 |
|
|
|
$ |
1,330,361 |
|
|
$ |
1,091,149 |
|
|
$ |
339,337 |
|
|
$ |
2,760,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Elimination of intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
(104,742 |
) |
|||
Sales |
|
|
|
|
|
|
|
|
|
|
$ |
2,656,105 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of sales |
|
|
1,201,073 |
|
|
|
895,842 |
|
|
|
292,115 |
|
|
|
|
|
Selling, general and administrative expenses |
|
|
31,064 |
|
|
|
13,878 |
|
|
|
9,601 |
|
|
|
|
|
Other(1) |
|
|
5,350 |
|
|
|
387 |
|
|
|
4 |
|
|
|
|
|
Segment income from operations |
|
$ |
40,215 |
|
|
$ |
140,308 |
|
|
$ |
26,268 |
|
|
$ |
206,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other - corporate and eliminations(2) |
|
|
|
|
|
|
|
|
|
|
|
(97,380 |
) |
|||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
(26,922 |
) |
|||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
10,208 |
|
|||
Other expense, net |
|
|
|
|
|
|
|
|
|
|
|
(8,802 |
) |
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
83,895 |
|
|||
(in thousands) |
|
Americas |
|
|
Asia |
|
|
Europe |
|
|
Total |
|
||||
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales from external customers |
|
$ |
1,533,987 |
|
|
$ |
1,009,456 |
|
|
$ |
295,533 |
|
|
$ |
2,838,976 |
|
Intersegment sales |
|
|
77,796 |
|
|
|
46,482 |
|
|
|
4,302 |
|
|
|
128,580 |
|
|
|
$ |
1,611,783 |
|
|
$ |
1,055,938 |
|
|
$ |
299,835 |
|
|
$ |
2,967,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Elimination of intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
(128,580 |
) |
|||
Sales |
|
|
|
|
|
|
|
|
|
|
$ |
2,838,976 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of sales |
|
|
1,431,551 |
|
|
|
871,882 |
|
|
|
269,878 |
|
|
|
|
|
Selling, general and administrative expenses |
|
|
30,905 |
|
|
|
13,096 |
|
|
|
8,108 |
|
|
|
|
|
Other(1) |
|
|
8,047 |
|
|
|
199 |
|
|
|
167 |
|
|
|
|
|
Segment income from operations |
|
$ |
63,484 |
|
|
$ |
124,279 |
|
|
$ |
17,380 |
|
|
$ |
205,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other - corporate and eliminations(2) |
|
|
|
|
|
|
|
|
|
|
|
(95,479 |
) |
|||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
(31,875 |
) |
|||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
6,256 |
|
|||
Other (expense) income, net |
|
|
|
|
|
|
|
|
|
|
|
(2,825 |
) |
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
81,220 |
|
|||
(1) Includes expenses for amortization of intangible assets and restructuring charges and other costs.
(2) Includes corporate expenses for unallocated expenses, amortization of intangible assets and restructuring charges and other costs and elimination of intersegment cost of sales.
|
|
Year Ended |
|
|||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|||
Americas |
|
$ |
20,720 |
|
|
$ |
21,136 |
|
|
$ |
20,940 |
|
Asia |
|
|
11,680 |
|
|
|
10,277 |
|
|
|
9,746 |
|
Europe |
|
|
4,105 |
|
|
|
3,596 |
|
|
|
3,226 |
|
Corporate |
|
|
11,125 |
|
|
|
11,135 |
|
|
|
11,498 |
|
Total depreciation and amortization |
|
$ |
47,630 |
|
|
$ |
46,144 |
|
|
$ |
45,410 |
|
|
|
|
|
|
|
|
|
|
|
|||
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|||
Americas |
|
$ |
10,311 |
|
|
$ |
13,692 |
|
|
$ |
38,627 |
|
Asia |
|
|
19,252 |
|
|
|
14,049 |
|
|
|
25,286 |
|
Europe |
|
|
5,991 |
|
|
|
3,585 |
|
|
|
7,098 |
|
Corporate |
|
|
2,990 |
|
|
|
1,927 |
|
|
|
6,728 |
|
Total capital expenditures |
|
$ |
38,544 |
|
|
$ |
33,253 |
|
|
$ |
77,739 |
|
|
|
December 31, |
|
|
December 31, |
|
||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Assets: |
|
|
|
|
|
|
||
Americas |
|
$ |
819,820 |
|
|
$ |
866,595 |
|
Asia |
|
|
752,962 |
|
|
|
821,252 |
|
Europe |
|
|
269,728 |
|
|
|
225,872 |
|
Corporate |
|
|
229,205 |
|
|
|
220,725 |
|
Total assets |
|
$ |
2,071,715 |
|
|
$ |
2,134,444 |
|
Geographic sales information about the Company's sales is determined based on the destination of the product shipped. Long-lived assets information is determined based on the physical location of the assets and includes property, plant and equipment, net, operating lease right-of-use assets and other long-term assets, net.
A summary of the Company's geographic sales and long-lived assets follows:
|
|
Year Ended |
|
|||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Geographic sales: |
|
|
|
|
|
|
|
|
|
|||
United States |
|
$ |
1,416,664 |
|
|
$ |
1,488,297 |
|
|
$ |
1,737,144 |
|
Singapore |
|
|
504,301 |
|
|
|
463,553 |
|
|
|
383,914 |
|
Other Asia |
|
|
240,631 |
|
|
|
215,898 |
|
|
|
210,927 |
|
Europe |
|
|
433,896 |
|
|
|
406,514 |
|
|
|
402,514 |
|
Other |
|
|
63,616 |
|
|
|
81,843 |
|
|
|
104,477 |
|
Total sales |
|
$ |
2,659,108 |
|
|
$ |
2,656,105 |
|
|
$ |
2,838,976 |
|
|
|
December 31, |
|
|
December 31, |
|
||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Long-lived assets: |
|
|
|
|
|
|
||
United States |
|
$ |
195,317 |
|
|
$ |
215,536 |
|
Asia |
|
|
101,206 |
|
|
|
89,249 |
|
Europe |
|
|
41,629 |
|
|
|
39,936 |
|
Other |
|
|
58,370 |
|
|
|
64,506 |
|
Total long-lived assets |
|
$ |
396,522 |
|
|
$ |
409,227 |
|
The Company’s customers operate in industries that are, to a varying extent, subject to rapid technological change, vigorous competition and short product life cycles. Developments adverse to the electronics industry, the Company’s customers or their products could impact the Company’s overall credit risk.
The Company extends credit based on evaluation of its customers’ financial condition and generally does not require collateral or other security from its customers and would incur a loss equal to the carrying value of the accounts receivable if its customer failed to perform according to the terms of the credit arrangement.
Sales to the Company's ten largest customers represented 51%, 50% and 52% of our consolidated sales for 2025, 2024 and 2023, respectively.
The Company had sales to the following customer that exceeded 10% of the Company's consolidated sales:
|
|
Year Ended December 31, |
||||
|
|
2025 |
|
2024 |
|
2023 |
Applied Materials, Inc. and subsidiaries |
|
14% |
|
14% |
|
12% |
Sales attributable to this customer were reported in the Americas and Asia operating segments.
As of December 31, 2025 and 2024 the Company had one customer whose gross accounts receivable exceeded 10% of consolidated gross accounts receivable. This customer represented 10% and 12% of consolidated gross accounts receivable as of December 31, 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.