v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We present financial information for two reportable segments, Performance Sensing and Sensing Solutions. In the three months ended March 31, 2025, we realigned the definition of segment operating income to include megatrend costs, which were
previously excluded from segment operating income and included in corporate and other costs. Refer to Note 1: Basis of Presentation for additional information.
Our operating segments are businesses that we manage as components of an enterprise, for which separate financial information is evaluated regularly by our chief operating decision maker ("CODM"), who is our chief executive officer, in deciding how to allocate resources and assess performance.
An operating segment’s performance is primarily evaluated based on segment operating income, which excludes amortization of intangible assets, impairment of goodwill and other intangible assets, restructuring charges, and certain corporate costs or credits not associated with the operations of the segment, such as share-based compensation expense. Corporate and other costs excluded from an operating (and reportable) segment’s performance are separately stated below and also include costs that are related to functional areas such as finance, information technology, legal, and human resources. The CODM uses operating income primarily in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for operating income when making decisions about the allocation of operating and capital resources to each segment. Significant expenses are reviewed by the CODM on a consolidated basis and not at the operating segment level. We believe that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of our segments. However, this measure should be considered in addition to, and not as a substitute for, or superior to, operating income or other measures of financial performance prepared in accordance with U.S. GAAP. The accounting policies of each of our operating and reportable segments are materially consistent with those described in Note 2: Significant Accounting Policies of the audited consolidated financial statements and notes thereto included in our 2024 Annual Report.
The Performance Sensing segment serves the automotive and HVOR industries through the development and manufacture of sensors, high-voltage solutions (i.e., electrical protection components), and other solutions that are used in mission-critical systems and applications. Examples include those used in subsystems of automobiles, on-road trucks, and off-road equipment, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain (engine/transmission), and exhaust management. These products are used in subsystems that, among other things, improve operating performance and efficiency and contribute to environmentally sustainable and safe solutions.

The Sensing Solutions segment primarily serves the industrial and aerospace industries through the development and manufacture of a broad portfolio of application-specific sensor and electrical protection products used in a diverse range of industrial markets, including the appliance, HVAC, water management, operator controls, charging infrastructure, renewable energy generation, green hydrogen production, and microgrid applications and markets, as well as the aerospace market, including commercial aircraft, defense, and aftermarket markets.

Some of the products and solutions sold by the Sensing Solutions segment include pressure, temperature, and position sensors, motor and compressor protectors, high-voltage contactors, solid state relays, bimetal electromechanical controls, power inverters, charge controllers, battery management systems, operator controls, and power conversion systems. Sensing Solutions products perform many functions, including prevention of damage from excess heat or electrical current, optimization of system performance, low-power circuit control, renewable energy generation, and power conversion from direct current power to alternating current power.
The following table presents net revenue, segment and non-segment operating expenses, and segment and non-segment operating income for the reportable segments and other operating results not allocated to our reportable segments for the three months ended March 31, 2025 and 2024:
 For the three months ended
 March 31, 2025March 31, 2024
Net revenue:
Performance Sensing
$650,416 $713,318 
Sensing Solutions
260,839 257,839 
Other
— 35,552 
Total net revenue$911,255 $1,006,709 
Segment and non-segment operating expenses(1):
Performance Sensing$507,540 $544,350 
Sensing Solutions184,773 185,545 
Other— 28,771 
Total segment and non-segment operating expenses$692,313 $758,666 
Segment and non-segment operating income (as defined above):
Performance Sensing (1)
$142,876 $168,968 
Sensing Solutions (1)
76,066 72,294 
Other (1)
— 6,781 
Total segment and non-segment operating income
218,942 248,043 
Corporate and other(69,189)(63,954)
Amortization of intangible assets(20,577)(38,515)
Restructuring and other charges, net(6,980)(782)
Operating income122,196 144,792 
Interest expense(37,973)(38,395)
Interest income4,290 3,738 
Other, net2,128 (11,544)
Income before taxes$90,641 $98,591 
___________________________________
(1)    Other segment and non-segment expenses include associated cost of revenue, research and development, and selling, general and administrative expenses.
The following table presents depreciation and amortization expense for our reportable segments and corporate and other for the three months ended March 31, 2025 and 2024:
 For the three months ended
 March 31, 2025March 31, 2024
Depreciation and amortization:
Performance Sensing$24,982 $23,960 
Sensing Solutions3,890 4,124 
Corporate and other (1)
32,667 43,954 
Total depreciation and amortization$61,539 $72,038 
__________________________
(1)Included within corporate and other is amortization of intangible assets, accelerated depreciation recognized in connection with restructuring actions, and depreciation of certain assets. We do not allocate these amounts to our segments. This treatment is consistent with the financial information reviewed by our chief operating decision maker.
The following table presents additions to PP&E and capitalized software for our reportable segments and corporate and other for the three months ended March 31, 2025 and 2024:
 For the three months ended
 March 31, 2025March 31, 2024
Additions to property, plant and equipment and capitalized software:
Performance Sensing$23,050 $31,013 
Sensing Solutions3,063 3,263 
Corporate and other6,462 7,854 
Total additions to property, plant and equipment and capitalized software$32,575 $42,130 

Geographic Area Information
The following tables present net revenue by geographic area and by significant country for the three months ended March 31, 2025 and 2024. In these tables, net revenue is aggregated according to the location of our subsidiaries.
 For the three months ended
 March 31, 2025March 31, 2024
Net revenue:
Americas$372,450 $429,108 
Europe252,463 284,737 
Asia and rest of world286,342 292,864 
Net revenue$911,255 $1,006,709 
 For the three months ended
 March 31, 2025March 31, 2024
Net revenue:
United States$344,990 $395,400 
China174,594 179,408 
The Netherlands217,774 246,611 
United Kingdom26,921 28,899 
All other146,976 156,391 
Net revenue$911,255 $1,006,709 
The following tables present PP&E, net, by geographic area and by significant country as of March 31, 2025 and 2024. In these tables, PP&E, net is aggregated based on the location of our subsidiaries.
 March 31,
2025		December 31,
2024
Property, plant and equipment, net:
Americas$295,796 $301,900 
Europe141,133 141,396 
Asia and rest of world375,355 378,357 
Property, plant and equipment, net$812,284 $821,653 
 March 31,
2025		December 31,
2024
Property, plant and equipment, net:
United States$116,260 $121,783 
China259,293 266,104 
Mexico179,402 179,980 
Bulgaria104,725 108,093 
United Kingdom24,471 21,147 
Malaysia111,565 108,118 
All other16,568 16,428 
Property, plant and equipment, net$812,284 $821,653