Reportable Business Segments

9 Months Ended

Sep. 30, 2025

Note 13—Reportable Business Segments

The Company organizes its reportable business segments based on the manner in which management evaluates the performance of the Company, combined with the nature of the individual business activities and the product-based solutions offered. The Company aligns its businesses into the following three reportable business segments:

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

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

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

This segment structure reflects (i) the manner in which the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, regularly assesses information for decision-making purposes, including the allocation of resources, and (ii) how the Company operates its businesses, assesses performance, and communicates results and strategy, among other items, to the Board and its stockholders. The Company has three segment managers to lead their respective reportable business segments, each reporting directly to the Chief Executive Officer. The accounting policies of the segments are the same as those for the Company as a whole and are described herein and in Note 1 of the Notes to Consolidated Financial Statements in the 2024 Annual Report. The Company’s CODM assesses each segment’s performance and allocates resources to each of them based on a single measure of profit and loss, which is operating income as adjusted for certain corporate and other related items and before interest, stock-based compensation expense, income taxes, amortization related to certain intangible assets and other non-cash purchase accounting costs, and nonrecurring gains and losses, as outlined in the table below (we refer to this measure as segment operating income). Intersegment net sales and operating expenses have been eliminated in the computation of consolidated net sales and operating income.

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

The following tables (i) summarize, by segment, total sales, intersegment sales and external net sales and (ii) reconcile each segment’s external net sales to their respective segment operating income, including segment operating expenses, for the three and nine months ended September 30, 2025 and 2024:


	Harsh Environment Solutions		Communications Solutions		Interconnect and Sensor Systems		Total
Three Months Ended September 30, 2025
Total sales	$	1,547.5	$	3,343.0	$	1,384.6	$	6,275.1
Less: Intersegment sales		31.7		33.5		15.5		80.7
External net sales		1,515.8		3,309.5		1,369.1		6,194.4

Less: Segment operating expenses (1)		1,104.9		2,228.2		1,094.7		4,427.8
Segment operating income	$	410.9	$	1,081.3	$	274.4	$	1,766.6

Nine Months Ended September 30, 2025
Total sales	$	4,318.2	$	8,706.5	$	3,834.2	$	16,858.9
Less: Intersegment sales		88.9		73.5		40.8		203.2
External net sales		4,229.3		8,633.0		3,793.4		16,655.7

Less: Segment operating expenses (1)		3,143.5		6,000.2		3,062.2		12,205.9
Segment operating income	$	1,085.8	$	2,632.8	$	731.2	$	4,449.8

_____________________________

(1)

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


	Harsh Environment Solutions		Communications Solutions		Interconnect and Sensor Systems		Total
Three Months Ended September 30, 2024
Total sales	$	1,217.2	$	1,698.1	$	1,167.7	$	4,083.0
Less: Intersegment sales		23.7		12.6		7.9		44.2
External net sales		1,193.5		1,685.5		1,159.8		4,038.8

Less: Segment operating expenses (1)		909.8		1,254.5		942.2		3,106.5
Segment operating income	$	283.7	$	431.0	$	217.6	$	932.3

Nine Months Ended September 30, 2024
Total sales	$	3,220.8	$	4,433.0	$	3,372.9	$	11,026.7
Less: Intersegment sales		65.3		37.2		19.3		121.8
External net sales		3,155.5		4,395.8		3,353.6		10,904.9

Less: Segment operating expenses (1)		2,367.7		3,328.1		2,737.3		8,433.1
Segment operating income	$	787.8	$	1,067.7	$	616.3	$	2,471.8

____________________________

(1)

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

Segment operating income and the reconciliation of segment operating income to consolidated income before income taxes for the three and nine months ended September 30, 2025 and 2024 are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Total segment operating income	$	1,766.6	$	932.3	$	4,449.8	$	2,471.8

Corporate / Other:
Stock-based compensation expense		(36.9)		(29.5)		(94.8)		(79.9)
Amortization of acquisition-related inventory step-up costs		—		(18.2)		(77.8)		(18.2)
Acquisition-related expenses		—		(45.4)		(56.0)		(115.4)
Other operating expenses		(27.4)		(19.7)		(75.3)		(55.1)
Operating income		1,702.3		819.5		4,145.9		2,203.2

Interest expense		(80.7)		(55.7)		(238.1)		(150.1)
Other income (expense), net		19.3		11.2		44.1		48.5

Income before income taxes	$	1,640.9	$	775.0	$	3,951.9	$	2,101.6

Depreciation and amortization expense by segment for the three and nine months ended September 30, 2025 and 2024 is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Harsh Environment Solutions	$	41.3	$	36.5	$	120.5	$	88.6
Communications Solutions		140.4		71.9		343.0		158.2
Interconnect and Sensor Systems		38.9		33.8		109.8		101.7
Corporate / Other		7.1		59.0		100.1		80.2
Total	$	227.7	$	201.2	$	673.4	$	428.7

For the nine months ended September 30, 2025, depreciation and amortization expense in Corporate / Other includes (i) $14.0 related to the amortization of acquired backlog resulting from the 2025 Acquisitions, which is primarily included in Acquisition-related expenses in the Condensed Consolidated Statements of Income, and (ii) $77.8 of amortization of acquisition-related inventory step-up costs associated with the acquisition of the Andrew Business, which is included in Cost of sales in the Condensed Consolidated Statements of Income, as discussed in Note 11 herein. For the three and nine months ended September 30, 2024, depreciation and amortization expenses in Corporate / Other includes $38.4 and $55.0, respectively, related to the amortization of acquired backlog resulting from the CIT acquisition, which is included in Acquisition-related expenses in the Condensed Consolidated Statements of Income. In addition, for each of the three and nine months ended September 30, 2024, depreciation and amortization expenses in Corporate / Other includes $18.2 of amortization of acquisition-related inventory step-up costs associated with the CIT acquisition, as discussed in Note 11 herein. These expenses are reported in Corporate / Other, since they are not components in the determination of segment operating income.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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