Electronics & Electrical Equipment: Segment reporting (ASU 2023-07)

In the fourth quarter of 2025, the Company adopted ASU No. 2023-07 (Topic 280), Improvements to Reportable Segment Disclosures , which requires disclosure of significant segment expenses on an annual and interim basis. The new standard also requires disclosure of the Company's chief operating decision maker and interim disclosure of each reportable segment's total assets. This standard has no impact on the accounting for reportable segments. See Note 20.

In 2024, the Company adopted ASU No. 2022-04 (Subtopic 405-50), Liabilities - Supplier Finance Programs, which requires disclosures about the use of supplier finance programs. This standard has no impact on the accounting for supplier finance programs and did not materially impact the Company's disclosures.

In 2023, the Company adopted ASU No. 2021-10 (Topic 832), Government Assistance, which requires annual disclosures about certain types of government assistance received. This standard has no impact on the accounting for government assistance and did not materially impact the Company's disclosures.

In December 2023, the FASB issued ASU No. 2023-09 (Topic 740), Improvements to Income Tax Disclosures , which expands the disclosures required with respect to the income tax rate reconciliation and income taxes paid both in U.S. and foreign jurisdictions. The updates, which are effective in fiscal 2026, change disclosures only and will not impact the Company’s results of operations.

In November 2024, the FASB issued ASU No. 2024-03 (Subtopic 220-40), Disaggregation of Income Statement Expenses , which requires expanded disclosures of specific expense categories in the notes to financial statements. The updates, which are effective for annual periods in fiscal 2028 and interim periods in fiscal 2029, change disclosures only and will not impact the Company’s results of operations.

FISCAL 2026 OUTLOOK

For fiscal year 2026, consolidated net sales from continuing operations are expected to be up approximately 5.5 percent, with underlying sales up approximately 4 percent, excluding a 1.5 percent favorable impact from foreign currency translation. Earnings per share are expected to be $4.73 to $4.93, while adjusted earnings per share are expected to be $6.35 to $6.55 (see the following reconciliation).

Year Ended December 31, 2025
Americas	Asia Pacific	Europe, Middle East & Africa	Total
Sales	6,423.9	2,274.7	2,382.2	11,080.8
Intersegment sales	37.6	255.5	557.8	850.9
Net Sales	6,386.3	2,019.2	1,824.4	10,229.9
Significant segment expenses
Cost of sales (1)	3,838.7	1,465.1	1,165.2	6,469.0
Marketing, sales and service costs	356.9	128.9	99.6	585.4
Engineering, research and development costs	229.3	112.2	100.2	441.7
Information technology costs	88.7	60.3	37.3	186.3
Restructuring costs	2.2	0.9	1.3	4.4
Other segment items (2)	156.2	29.7	43.4	229.3
Operating profit (loss)	1,714.3	222.1	377.4	2,313.8
Foreign currency gain (loss)	( 12.0 )
Corporate and other	( 271.7 )
Total corporate, other and eliminations	( 283.7 )
Amortization of intangibles	( 200.4 )
Operating profit (loss)	1,829.7

(1) Cost of sales exclusive of engineering, research and development costs.

(2) Other segment expenses mostly consists of general and administrative expenses such as Finance, HR, Treasury and Legal costs.