Exhibit 99.5

Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders
Belden Inc.

We have audited the accompanying consolidated balance sheets of Belden Inc. (the Company) as of December 31, 2008 and 2007, and the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2008. Our audits also included the financial statement schedule listed in the Index at Item 15(a). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Belden Inc. at December 31, 2008 and 2007, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2008, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

As discussed in Note 14 to the consolidated financial statements, on December 31, 2006, the Company changed its method of accounting for defined pension benefit and other postretirement benefit plans.

As discussed in Notes 2 and 4 to the consolidated financial statements, Belden Inc. has retrospectively applied certain adjustments upon adoption of Financial Accounting Standards Board Staff Position APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), and upon implementation of organizational changes resulting in changes to reported operating segments.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Belden Inc.’s internal control over financial reporting as of December 31, 2008, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 27, 2009 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

St. Louis, Missouri
February 27, 2009, except for the retrospective adjustments described in Notes 2 and 4, as to which the date is June 22, 2009

Belden Inc.
Consolidated Balance Sheets

		December 31,
		2008				2007
		(In thousands, except par value
		and number of shares)
ASSETS
Current assets:
Cash and cash equivalents		$	227,413			$	159,964
Receivables, less allowance for doubtful accounts of $4,898 and $3,893 at 2008 and 2007, respectively			292,236				373,108
Inventories, net			216,022				257,540
Deferred income taxes			22,606				28,129
Other current assets			34,826				17,384
Total current assets			793,103				836,125
Property, plant and equipment, less accumulated depreciation			324,569				369,803
Goodwill			321,478				648,882
Intangible assets, less accumulated amortization			156,025				154,786
Other long-lived assets			53,388				58,796
		$	1,648,563			$	2,068,392
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	160,744			$	190,018
Accrued liabilities			180,801				160,029
Current maturities of long-term debt			—				108,744
Total current liabilities			341,545				458,791
Long-term debt			590,000				350,000
Postretirement benefits			120,256				98,084
Deferred income taxes			4,270				78,140
Other long-term liabilities			21,624				9,915
Temporary equity			—				1,256
Stockholders’ equity:
Preferred stock, par value $.01 per share— 2,000,000 shares authorized; no shares outstanding			—				—
Common stock, par value $.01 per share— 200,000,000 shares authorized; 50,334,932 shares issued; 46,491,245 and 44,593,214 shares outstanding at 2008 and 2007, respectively			503				503
Additional paid-in capital			585,704				639,161
Retained earnings			106,949				477,848
Accumulated other comprehensive income			10,227				93,198
Treasury stock, at cost— 3,843,687 and 5,741,718 shares at 2008 and 2007, respectively			(132,515	)			(138,504	)
Total stockholders’ equity			570,868				1,072,206
		$	1,648,563			$	2,068,392

The accompanying notes are an integral part of these Consolidated Financial Statements

Belden Inc.
Consolidated Statements of Operations

		Years Ended December 31,
		2008				2007				2006
		(In thousands, except per share amounts)
Revenues		$	2,005,890			$	2,032,841			$	1,495,811
Cost of sales			(1,442,208	)			(1,471,471	)			(1,162,498	)
Gross profit			563,682				561,370				333,313
Selling, general and administrative expenses			(362,122	)			(317,481	)			(202,297	)
Research and development			(50,089	)			(17,843	)			—
Amortization of intangibles			(13,440	)			(10,604	)			(2,842	)
Gain (loss) on sale of assets			(3,727	)			8,556				1,383
Goodwill and other asset impairment			(476,492	)			(3,262	)			(11,079	)
Operating income (loss)			(342,188	)			220,736				118,478
Interest expense			(37,908	)			(28,966	)			(13,096	)
Interest income			5,300				6,544				7,081
Other income (expense)			6,326				1,799				(187	)
Income (loss) from continuing operations before taxes			(368,470	)			200,113				112,276
Income tax benefit (expense)			6,644				(63,918	)			(40,713	)
Income (loss) from continuing operations			(361,826	)			136,195				71,563
Loss from discontinued operations, net of tax			—				—				(1,330	)
Loss on disposal of discontinued operations, net of tax			—				—				(4,298	)
Net income (loss)		$	(361,826	)		$	136,195			$	65,935
Weighted average number of common shares and equivalents:
Basic			44,692				44,877				43,319
Diluted			44,692				50,615				50,276
Basic income (loss) per share:
Continuing operations		$	(8.10	)		$	3.03			$	1.65
Discontinued operations			—				—				(0.03	)
Disposal of discontinued operations			—				—				(0.10	)
Net income (loss)		$	(8.10	)		$	3.03			$	1.52
Diluted income (loss) per share:
Continuing operations		$	(8.10	)		$	2.71			$	1.48
Discontinued operations			—				—				(0.03	)
Disposal of discontinued operations			—				—				(0.08	)
Net income (loss)		$	(8.10	)		$	2.71			$	1.37

The accompanying notes are an integral part of these Consolidated Financial Statements

Belden Inc.
Consolidated Cash Flow Statements

		Years Ended December 31,
		2008				2007				2006
						(In thousands)
Cash flows from operating activities:
Net income (loss)		$	(361,826	)		$	136,195			$	65,935
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			56,836				51,746				38,616
Deferred income tax expense (benefit)			(37,803	)			24,423				18,896
Provision for inventory obsolescence			12,994				4,802				14,395
Goodwill and other asset impairment			476,492				3,262				11,079
Share-based compensation expense			13,568				10,562				5,765
Loss (gain) on disposal of tangible assets			3,727				(8,556	)			3,690
Amortization of discount on convertible subordinated notes			1,256				1,459				—
Pension funding in excess of pension expense			(6,917	)			(5,883	)			(21,273	)
Excess tax benefits related to share-based compensation			(1,279	)			(8,533	)			(7,369	)
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
Receivables			73,526				5,148				(12,730	)
Inventories			28,188				21,428				34,462
Deferred cost of sales			(7,270	)			—				—
Accounts payable			(35,666	)			18,935				22,591
Accrued liabilities			(14,042	)			9,161				(25,098	)
Deferred revenue			18,266				—				—
Accrued taxes			(31,562	)			(30,620	)			(5,254	)
Other assets			(1,533	)			(12,835	)			7,341
Other liabilities			(13,081	)			(15,138	)			(9,890	)
Net cash provided by operating activities			173,874				205,556				141,156
Cash flows from investing activities:
Cash used to invest in or acquire businesses			(147,384	)			(589,816	)			(11,715	)
Capital expenditures			(53,561	)			(63,501	)			(21,663	)
Proceeds from disposal of tangible assets			40,898				60,182				34,059
Cash provided by (used for) other investing activities			—				2,911				(2,146	)
Net cash used for investing activities			(160,047	)			(590,224	)			(1,465	)
Cash flows from financing activities:
Borrowings under credit arrangements			240,000				566,000				—
Payments under borrowing arrangements			(110,000	)			(278,000	)			(59,051	)
Payments under share repurchase program			(68,336	)			(31,664	)			—
Cash dividends paid			(8,926	)			(9,026	)			(8,736	)
Debt issuance costs paid			—				(11,070	)			(1,063	)
Proceeds from exercises of stock options			6,103				32,335				38,808
Excess tax benefits related to share-based payments			1,279				8,533				7,369
Net cash provided by (used for) financing activities			60,120				277,108				(22,673	)
Effect of currency exchange rate changes on cash and cash equivalents			(6,498	)			13,373				2,495
Increase (decrease) in cash and cash equivalents			67,449				(94,187	)			119,513
Cash and cash equivalents, beginning of year			159,964				254,151				134,638
Cash and cash equivalents, end of year		$	227,413			$	159,964			$	254,151

The accompanying notes are an integral part of these Consolidated Financial Statements

Belden Inc.
Consolidated Stockholders’ Equity Statements

																														Accumulated Other
																														Comprehensive Income (Loss)
										Additional																Unearned				Translation				Pension and
		Common Stock								Paid-In				Retained				Treasury Stock								Deferred				Component				Postretirement
(in thousands)		Shares				Amount				Capital				Earnings				Shares				Amount				Compensation				of Equity				Liability				Total
Balance at December 31, 2005			50,346			$	503			$	540,430			$	290,870				(8,010	)		$	(111,078	)		$	(336	)		$	11,648			$	(18,529	)		$	713,508
Net income			—				—				—				65,935				—				—				—				—				—				65,935
Foreign currency translation			—				—				—				—				—				—				—				33,193				—				33,193
Minimum pension liability, net of $1.7 million tax expense			—				—				—				—				—				—				—				—				4,152				4,152
Comprehensive income																																							103,280
Exercise of stock options			—				—				38,510				—				1,822				298				—				—				—				38,808
Share-based compensation, net of tax withholding forfeitures			(11	)			—				12,812				—				4				(320	)			—				—				—				12,492
Dividends ($.20 per share)			—				—				—				(8,736	)			—				—				—				—				—				(8,736	)
Adoption of SFAS No. 123(R)			—				—				(336	)			—				—				—				336				—				—				—
Adoption of SFAS No. 158, net of $8.2 million deferred tax benefit			—				—				—				—				—				—				—				—				(15,451	)			(15,451	)
Balance at December 31, 2006			50,335				503				591,416				348,069				(6,184	)			(111,100	)			—				44,841				(29,828	)			843,901
Net income			—				—				—				136,195				—				—				—				—				—				136,195
Foreign currency translation			—				—				—				—				—				—				—				63,879				—				63,879
Adjustments to pension and postretirement liability, net of $6.4 million tax benefit			—				—				—				—				—				—				—				—				14,306				14,306
Comprehensive income																																							214,380
Share repurchase program			—				—				—				—				(677	)			(31,664	)			—				—				—				(31,664	)
Exercise of stock options, net of tax withholding forfeitures			—				—				27,651				—				1,125				4,573				—				—				—				32,224
Share-based compensation, net of tax withholding forfeitures			—				—				19,623				—				(6	)			(313	)			—				—				—				19,310
Dividends ($.20 per share)			—				—				—				(9,100	)			—				—				—				—				—				(9,100	)
Exchange of convertible notes			—				—				(988	)			—				—				—				—				—				—				(988	)
Accretion of convertible notes			—				—				1,459				—				—				—				—				—				—				1,459
Adoption of FIN No. 48			—				—				—				2,684				—				—				—				—				—				2,684
Balance at December 31, 2007			50,335				503				639,161				477,848				(5,742	)			(138,504	)			—				108,720				(15,522	)			1,072,206
Net loss			—				—				—				(361,826	)			—				—				—				—				—				(361,826	)
Foreign currency translation			—				—				—				—				—				—				—				(63,045	)			—				(63,045	)
Adjustments to pension and postretirement liability, net of $14.3 million tax benefit			—				—				—				—				—				—				—				—				(19,926	)			(19,926	)
Comprehensive loss																																							(444,797	)
Share repurchase program			—				—				—				—				(1,754	)			(68,336	)			—				—				—				(68,336	)
Exercise of stock options, net of tax withholding forfeitures			—				—				1,141				—				239				4,900				—				—				—				6,041
Release of restricted stock, net of tax withholding forfeitures			—				—				(2,225	)			—				69				918																(1,307	)
Share-based compensation			—				—				14,847				—				—				—				—				—				—				14,847
Accretion of convertible notes			—				—				1,256				—				—				—				—				—				—				1,256
Conversion of convertible subordinated debentures			—				—				(68,507	)			—				3,344				68,507				—				—				—				—
Dividends ($.20 per share)			—				—				31				(9,073	)			—				—				—				—				—				(9,042	)
Balance at December 31, 2008			50,335			$	503			$	585,704			$	106,949				(3,844	)		$	(132,515	)		$	—			$	45,675			$	(35,448	)		$	570,868

The accompanying notes are integral part of these Consolidated Financial Statements

Notes to Consolidated Financial Statements

Note 1: Basis of Presentation

Business Description

Belden Inc. (the Company, Belden, we, us, or our) designs, manufactures, and markets signal transmission solutions, including cable, connectivity and active components for mission-critical applications in markets ranging from industrial automation to data centers, broadcast studios, and aerospace.

Consolidation

The accompanying Consolidated Financial Statements include Belden Inc. and all of its subsidiaries. We eliminate all significant affiliate accounts and transactions in consolidation.

Foreign Currency Translation

For international operations with functional currencies other than the United States dollar, we translate assets and liabilities at current exchange rates; we translate income and expenses using average exchange rates. We report the resulting translation adjustments, as well as gains and losses from certain affiliate transactions, in accumulated other comprehensive income (loss), a separate component of stockholders’ equity. We include exchange gains and losses on transactions in operating income.

Reporting Periods

Our fiscal year and fiscal fourth quarter both end on December 31. Typically, our fiscal first, second and third quarter each end on the last Sunday falling on or before their respective calendar quarter-end.

Use of Estimates in the Preparation of the Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, and operating results and the disclosure of contingencies. Actual results could differ from those estimates. We make significant estimates in regard to receivables collectibility, inventory valuation, realization of deferred tax assets, valuation of goodwill and other long-lived assets, valuation of contingent liabilities, calculation of share-based compensation, calculation of pension and other postretirement benefits expense, and valuation of acquired businesses.

Reclassifications

We have made certain reclassifications to the 2007 and 2006 Consolidated Financial Statements with no impact to reported net income in order to conform to the 2008 presentation.

Note 2: Summary of Significant Accounting Policies

Cash and Cash Equivalents

We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. The primary objective of our short-term investment activities is to preserve our capital for the purpose of funding operations. We do not enter into short-term investments for trading or speculative purposes. The fair value of these short-term investments is based on quoted market prices in active markets.

Accounts Receivable

We classify amounts owed to us and due within twelve months, arising from the sale of goods or services in the normal course of business, as current receivables. We classify receivables due after twelve months as other long-lived assets.

We adjust our receivable balances when we grant trade, promotion, and other special price reductions such as price protection, contract pricing, discounts to meet competitor pricing, and on-time payment discounts. We also adjust receivable balances for, among other things, correction of billing errors, incorrect shipments, and settlement of customer disputes. Customers are allowed to return inventory if and when certain conditions regarding the physical state of the inventory and our approval of the return are met. Certain distribution customers are allowed to return inventory at original cost, in an amount not to exceed three percent of the prior year’s purchases, in exchange for an order of equal or greater value. Until we can process these reductions, corrections, and returns (together, the Adjustments) through individual customer records, we estimate the amount of outstanding Adjustments and recognize them against our gross accounts receivable and gross revenues. We base these estimates on historical and anticipated sales demand, trends in product pricing, and historical and anticipated Adjustments patterns. We charge revisions to these estimates to accounts receivable and revenues in the period in which the facts that give rise to each revision become known. Future market conditions might require us to take actions to further reduce prices and increase customer return authorizations, possibly resulting in an incremental reduction of accounts receivable and revenues at the time the reduction or return is authorized. Unprocessed receivable credits at December 31, 2008 and 2007 totaled $11.3 million and $9.4 million, respectively.

We evaluate the collectibility of accounts receivable based on the specific identification method. A considerable amount of judgment is required in assessing the realizability of accounts receivable, including the current creditworthiness of each customer and related aging of the past due balances. We perform ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit ratings or bankruptcy. We record a specific reserve for bad debts against amounts due to reduce the receivable to its estimated collectible balance. We recognized bad debt expense of $3.2 million, $1.6 million and $0.5 million in 2008, 2007, and 2006, respectively.

Inventories and Related Reserves

Inventories are stated at the lower of cost or market. We determine the cost of all raw materials, work-in-process and finished goods inventories by the first in, first out method. Cost components of inventories include direct labor, applicable production overhead and amounts paid to suppliers of materials and products as well as freight costs and, when applicable, duty costs to import the materials and products.

We evaluate the realizability of our inventory on a product-by-product basis in light of historical and anticipated sales demand, technological changes, product life cycle, component cost trends, product pricing and inventory condition. In circumstances where inventory levels are in excess of anticipated market demand, where inventory is deemed technologically obsolete or not saleable due to condition or where inventory cost exceeds net realizable value, we record a charge to cost of goods sold and reduce the inventory to its net realizable value. The allowances for excess and obsolete inventories at December 31, 2008 and 2007 totaled $25.2 million and $19.5 million, respectively.

Property, Plant and Equipment

We record property, plant and equipment at cost. We calculate depreciation on a straight-line basis over the estimated useful lives of the related assets ranging from 10 to 40 years for buildings, 5 to 12 years for machinery and equipment and 5 years for computer equipment and software. Construction in process reflects amounts incurred for the configuration and build-out of property, plant and equipment and for property, plant and equipment not yet placed into service. We charge maintenance and repairs—both planned major activities and less-costly, ongoing activities—to expense as incurred. We capitalize interest costs associated with the construction of capital assets and amortize the costs over the assets’ useful lives.

We review property, plant and equipment to determine whether an event or change in circumstances indicates the carrying values of the assets may not be recoverable. We base our evaluation on such impairment indicators as the nature of the assets, the future economic benefit of the assets and any historical or future profitability measurements, as well as other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable, we determine whether impairment has occurred through the use of an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist. If impairment has occurred, we recognize a loss for the difference between the carrying amount and the fair value of the asset.

Intangible Assets

Our intangible assets consist of (a) definite-lived assets subject to amortization such as developed technology, favorable customer contracts, customer relationships and backlog, and (b) indefinite-lived assets not subject to amortization such as goodwill and trademarks. We calculate amortization of the definite-lived intangible assets on a straight-line basis over the estimated useful lives of the related assets ranging from less than one year for backlog to in excess of twenty-five years for certain of our customer relationships.

We evaluate goodwill for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of goodwill may no longer be recoverable. We compare the fair value of each reporting unit to its carrying value. We determine the fair value using the income approach as reconciled to our aggregate market capitalization. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. If the fair value of the reporting unit exceeds the carrying value of the net assets including goodwill assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit’s net assets including goodwill exceeds the fair value of the reporting unit, then we determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then an impairment of goodwill has occurred and we recognize an impairment loss for the difference between the carrying amount and the implied fair value of goodwill as a component of operating income. In 2008, we recognized goodwill impairment charges totaling $433.7 million. We did not recognize any goodwill impairment charges in 2007 and 2006. See Note 9 for further discussion.

We also evaluate intangible assets not subject to amortization for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying values of those assets may no longer be recoverable. We compare the fair value of the asset with its carrying amount. If the carrying amount of the asset exceeds its fair value, we recognize an impairment loss in an amount equal to that excess. In 2008, we recognized trademark impairment charges totaling $22.4 million. We did not recognize any trademark impairment charges in 2007 and 2006. See Note 9 for further discussion.

We review intangible assets subject to amortization whenever an event or change in circumstances indicates the carrying values of the assets may not be recoverable. We test intangible assets subject to amortization for impairment and estimate their fair values using the same assumptions and techniques we employ on property, plant and equipment. We did not recognize any impairment charges for amortizable intangible assets in 2008, 2007, and 2006.

Pension and Other Postretirement Benefits

Our pension and other postretirement benefit costs and obligations are dependent on the various actuarial assumptions used in calculating such amounts. These assumptions relate to discount rates, salary growth, long-term return on plan assets, health care cost trend rates and other factors. We base the discount rate assumptions on current investment yields on high-quality corporate long-term bonds. The salary growth assumptions reflect our long-term actual experience and future or near-term outlook. We determine the long-term return on plan assets based on historical portfolio results and management’s expectation of the future economic environment. Our health care cost trend assumptions are developed based on historical cost data, the near-term outlook and an assessment of likely long-term trends. Actual results that differ from our assumptions are accumulated and, if in excess of the lesser of 10% of the projected benefit obligation or the fair market value of plan assets, amortized over the estimated future working life of the plan participants.

Accrued Sales Rebates

We grant incentive rebates to selected customers as part of our sales programs. The rebates are determined based on certain targeted sales volumes. Rebates are paid quarterly or annually in either cash or receivables credits. Until we can process these rebates through individual customer records, we estimate the amount of outstanding rebates and recognize them as accrued liabilities and reductions in our gross revenues. We base our estimates on both historical and anticipated sales demand and rebate program participation. We charge revisions to these estimates back to accrued liabilities and revenues in the period in which the facts that give rise to each revision become known. Future market conditions and product transitions might require us to take actions to increase sales rebates offered, possibly resulting in an incremental increase in accrued liabilities and an incremental reduction in revenues at the time the rebate is offered. Accrued sales rebates at December 31, 2008 and 2007 totaled $20.5 million and $29.3 million, respectively.

Contingent Liabilities

We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable. A significant amount of judgment and use of estimates is required to quantify our ultimate exposure in these matters. We review the valuation of these liabilities on a quarterly basis, and we adjust the balances to account for changes in circumstances for ongoing and emerging issues.

We accrue environmental remediation costs, on an undiscounted basis, based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We expense environmental compliance costs, which include maintenance and operating costs with respect to ongoing monitoring programs, as incurred. We generally depreciate capitalized environmental costs over a 15-year life. We evaluate the range of potential costs to remediate environmental sites. The ultimate cost

of site cleanup is difficult to predict given the uncertainties of our involvement in certain sites, uncertainties regarding the extent of the required cleanup, the availability of alternative cleanup methods, variations in the interpretation of applicable laws and regulations, the possibility of insurance recoveries with respect to certain sites, and other factors.

We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Assessments regarding the ultimate cost of lawsuits require judgments concerning matters such as the anticipated outcome of negotiations, the number and cost of pending and future claims, and the impact of evidentiary requirements. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations or cash flow.

Business Combination Accounting

We allocate the cost of an acquired entity to the assets and liabilities acquired based upon their estimated fair values at the business combination date. We also identify and estimate the fair values of intangible assets that should be recognized as assets apart from goodwill. We have historically relied upon the use of third-party valuation specialists to assist in the estimation of fair values for tangible long-lived assets and intangible assets other than goodwill. The carrying values of acquired receivables and accounts payable have historically approximated their fair values at the business combination date. With respect to accrued liabilities acquired, we use all available information to make our best estimates of their fair values at the business combination date. When necessary, we rely upon the use of third-party actuaries to assist in the estimation of fair value for certain liabilities.

Revenue Recognition

We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectibility is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. We record revenue net of estimated rebates, price allowances, invoicing adjustments, and product returns. We charge revisions to these estimates back to revenue in the period in which the facts that give rise to each revision become known. Future market conditions and product transitions might require us to take actions to increase customer rebates and price allowance offerings, possibly resulting in an incremental reduction of revenue at the time the rebate or allowance is offered. We recognized rebates, allowances, adjustments, and product returns totaling $146.7 million, $109.0 million, and $101.4 million as deductions to gross revenues in 2008, 2007, and 2006, respectively.

Our Wireless segment accounts for revenue in accordance with Statement of Position No. 97-2, Software Revenue Recognition, and all related amendments and interpretations. Sales from our Wireless segment often involve multiple elements, principally hardware, software, hardware and software maintenance and other support services. When a sale involves multiple elements, we allocate the proceeds from the arrangement to each respective element based on its VSOE of fair value and recognize revenue when each element’s revenue recognition criteria are met. VSOE of fair value for each element is established based on the price charged when the same element is sold separately. If VSOE of fair value cannot be established for the undelivered element of an agreement and the only undelivered element is support, the proceeds from the arrangement are deferred and recognized ratably over the period that the support is delivered. Through December 31, 2008, our Wireless segment did not establish VSOE of fair value of post-contract customer support. As a result, the proceeds and related cost of sales from revenue transactions involving multiple-element arrangements were deferred and recognized ratably over the post-contract customer support period, ranging from one to three years. As of December 31, 2008, total deferred revenue and deferred cost of sales were $20.2 million and $7.3

million, respectively. Of the total deferred revenue, $17.5 million is included in accrued liabilities, and $2.7 million is included in other long-term liabilities. Of the total deferred cost of sales, $6.4 million is included in other current assets and $0.9 million is included in other long-lived assets.

Shipping and Handling Costs

We recognize fees earned on the shipment of product to customers as revenues and recognize costs incurred on the shipment of product to customers as a cost of sales. We recognized certain handling costs, primarily incurred at our distribution centers, totaling $13.0 million and $9.4 million as selling, general and administrative (SG&A) expenses in 2007 and 2006, respectively. All handling costs were recognized as cost of sales in 2008.

Research and Development Costs

Research and development costs are expensed as incurred.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs were $19.0 million, $16.9 million, and $10.3 million for 2008, 2007, and 2006, respectively.

Share-Based Compensation

We compensate certain employees with various forms of share-based payment awards and recognize compensation costs for these awards based on their fair values. We estimate the fair values of certain awards on the grant date using the Black-Scholes-Merton option-pricing formula, which incorporates certain assumptions regarding the expected term of an award and expected stock price volatility. We develop the expected term assumption based on the vesting period and contractual term of an award, our historical exercise and post-vesting cancellation experience, our stock price history, plan provisions that require exercise or cancellation of awards after employees terminate, and the extent to which currently available information indicates that the future is reasonably expected to differ from past experience. We develop the expected volatility assumption based on historical price data for our common stock and other economic data trended into future years. After calculating the aggregate fair value of an award, we use an estimated forfeiture rate to discount the amount of share-based compensation cost to be recognized in our operating results over the service period of the award. We develop the forfeiture assumption based on our historical pre-vesting cancellation experience.

Income Taxes

Income taxes are provided based on earnings reported for financial statement purposes. The provision for income taxes differs from the amounts currently payable to taxing authorities because of the recognition of revenues and expenses in different periods for income tax purposes than for financial statement purposes. Income taxes are provided as if operations in all countries, including the United States, were stand-alone businesses filing separate tax returns. We have determined that undistributed earnings from our international subsidiaries will not be remitted to the United States in the foreseeable future and, therefore, no additional provision for United States taxes has been made on foreign earnings.

We recognize deferred tax assets resulting from tax credit carryforwards, net operating loss carryforwards, and deductible temporary differences between taxable income on our income tax returns and pretax income under GAAP. Deferred tax assets generally represent future tax benefits to be received when these carryforwards can be applied against future taxable income or when expenses previously reported in our Consolidated Financial Statements become deductible for income tax purposes.

Our effective tax rate is based on expected income, statutory tax rates and tax planning opportunities available to us in the various jurisdictions in which we operate. Significant judgment is required in determining our effective tax rate and in evaluating our tax positions. We establish accruals for uncertain tax positions when, despite the belief that our tax return positions are fully supported, we believe that certain positions are likely to be challenged and that our position may not be fully sustained. To the extent we were to prevail in matters for which accruals have been established or be required to pay amounts in excess of reserves, there could be a material effect on our income tax provisions in the period in which such determination is made.

Recent Accounting Pronouncements

On January 1, 2008, we adopted Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value Measurements, for financial assets and liabilities. This Statement establishes a framework for measuring fair value within generally accepted accounting principles, clarifies the definition of fair value within that framework, and expands disclosures about the use of fair value measurements. This Statement does not require any new fair value measurements following generally accepted accounting principles. However, the definition of fair value in SFAS No. 157 may affect assumptions used by companies in determining fair value. Adoption of SFAS No. 157 for financial assets and liabilities did not have a material impact on our operating results, cash flows or financial condition. In accordance with Financial Accounting Standards Board (FASB) Staff Position FAS 157-2, we will adopt SFAS No. 157 on January 1, 2009 for non-financial assets and liabilities. This adoption is not expected to significantly impact our estimates of value related to long-lived and intangible assets such as our annual estimate of fair value of our reporting units for goodwill impairment testing purposes.

On January 1, 2008, we adopted SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. This Statement permits entities to choose to measure many financial instruments and certain other items at fair value in an effort to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently. Adoption of SFAS No. 159 did not have a material impact on our operating results, cash flows or financial condition as we elected not to use the fair value measurement option on our financial instruments and other applicable items.

In December 2007, the FASB issued SFAS No. 141(R), Business Combinations, which replaces SFAS No. 141 and retains the fundamental requirements in SFAS No. 141, including that the purchase method be used for all business combinations and for an acquirer to be identified for each business combination. This standard defines the acquirer as the entity that obtains control of one or more businesses in the business combination and establishes the acquisition date as the date that the acquirer achieves control instead of the date that the consideration is transferred. SFAS No. 141(R) requires an acquirer in a business combination to recognize the assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date, with limited exceptions. It also requires the recognition of assets acquired and liabilities assumed arising from certain contractual contingencies as of the acquisition date, measured at their acquisition-date fair values. SFAS No. 141(R) becomes effective for us on January 1, 2009, and will change our accounting treatment for any business combination on or after that date.

On January 1, 2009, we adopted FASB Staff Position (FSP) APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement). This FSP changes the accounting for our $110.0 million aggregate principal convertible subordinated debentures that were converted into cash and shares of common stock in 2008 (see Note 12). The FSP requires that we allocate the proceeds from the debt issuance between debt and equity components in a manner that reflects our nonconvertible debt borrowing rate. The equity component reflects the value of the conversion feature of the debentures. The FSP requires retrospective application to all periods presented, however, it was not applicable to our $110.0 million aggregate principal convertible subordinated debentures until 2007 when we inserted a

net share settlement feature (see Note 12). As such, certain amounts in 2007 and 2008 have been adjusted in these consolidated financial statements. The tables below summarize the impact of the adjustments to our consolidated statements of operations for the years ended December 31, 2008 and 2007, and our consolidated balance sheets as of December 31, 2008 and 2007. There was no change to our consolidated statement of operations for the year ended December 31, 2006.

		Years Ended December 31,
		2008				2007
		(In thousands, except per share amounts)
Interest expense
As previously reported		$	36,660			$	27,516
As adjusted		$	37,908			$	28,966
Income (loss) before taxes
As previously reported		$	(367,222	)		$	201,563
As adjusted		$	(368,470	)		$	200,113
Income tax benefit (expense)
As previously reported		$	6,195			$	(64,440	)
As adjusted		$	6,644			$	(63,918	)
Net income (loss)
As previously reported		$	(361,027	)		$	137,123
As adjusted		$	(361,826	)		$	136,195
Basic income (loss) per share
As previously reported		$	(8.08	)		$	3.06
As adjusted		$	(8.10	)		$	3.03
Diluted income (loss) per share
As previously reported		$	(8.08	)		$	2.73
As adjusted		$	(8.10	)		$	2.71

		December 31,
		2008				2007
		(In thousands)
Deferred income tax assets
As previously reported		$	22,606			$	28,578
As adjusted		$	22,606			$	28,129
Other current assets
As previously reported		$	34,826			$	17,392
As adjusted		$	34,826			$	17,384
Current maturities of long-term debt
As previously reported		$	—			$	110,000
As adjusted		$	—			$	108,744
Temporary equity
As previously reported		$	—			$	—
As adjusted		$	—			$	1,256
Additional paid-in capital
As previously reported		$	583,977			$	638,690
As adjusted		$	585,704			$	639,161
Retained earnings
As previously reported		$	108,676			$	478,776
As adjusted		$	106,949			$	477,848

Note 3: Acquisitions

On July 16, 2008, we acquired Trapeze Networks, Inc. (Trapeze) for cash of $136.0 million, including transaction costs and net of cash acquired. We financed the total purchase price with borrowings under our revolving credit facility. California-based Trapeze is a provider of wireless local area networking equipment. The acquisition of Trapeze improves our ability to provide a full complement of signal transmission solutions including wireless systems. The results of operations of Trapeze have been included in our results of operations from July 16, 2008. Trapeze is reported as a separate operating segment disclosed as the Wireless segment. The following table summarizes the fair values of the assets acquired and liabilities assumed as of July 16, 2008 (in thousands).

Receivables		$	9,367
Inventories			6,058
Other current assets			2,328
Deferred taxes			9,868
Property, plant and equipment			1,700
Goodwill			81,409
Other intangible assets			39,240
Other long-lived assets			216
Total assets		$	150,186
Accounts payable		$	7,630
Accrued liabilities			6,483
Other long-term liabilities			41
Total liabilities			14,154
Net assets		$	136,032

The allocation above differs from our initial allocation primarily due to the completion of the identifiable intangible asset valuations in the fourth quarter of 2008. As a result of this change and others, the amount allocated to goodwill decreased by $0.4 million.

The above purchase price allocation is preliminary. We plan to incur costs in connection with realigning portions of Trapeze. Management began formulating these restructuring plans as of the acquisition date and expects to complete these plans by the end of the second quarter of 2009. Any costs incurred associated with the restructuring plans will change the amount of the purchase price allocable to goodwill.

Goodwill and other intangible assets reflected above were determined to meet the criterion for recognition apart from tangible assets acquired and liabilities assumed. None of the goodwill related to the Trapeze acquisition is deductible for tax purposes. Intangible assets related to the acquisition consisted of the following:

		Estimated				Amortization
		Fair Value				Period
		(In thousands)				(In years)
Intangible assets subject to amortization:
Developed technologies		$	20,100				4.0
Customer relations			11,400				10.0
Backlog			740				0.1
Total intangible assets subject to amortization			32,240
Intangible assets not subject to amortization:
Goodwill			81,409
Trademark			7,000
Total intangible assets not subject to amortization			88,409
Total intangible assets		$	120,649
Weighted average amortization period							6.0

During 2007, we completed three acquisitions. We acquired Hirschmann Automation and Control GmbH (Hirschmann) on March 26, 2007, for $258.0 million. Hirschmann has its headquarters in Germany and is a leading supplier of Industrial Ethernet solutions and industrial connectivity. The acquisition of Hirschmann enables us to deliver connectivity and networking solutions for demanding industrial environments and large-scale infrastructure projects worldwide. On March 27, 2007, we acquired LTK Wiring Co. Ltd. (LTK), a Hong Kong company, for $214.4 million. LTK is one of the largest manufacturers of electronic cable for the China market. LTK gives us a strong presence in China among OEM customers, including consumer electronics manufacturers. On April 30, 2007, we purchased the assets of Lumberg Automation Components (Lumberg Automation) for $117.6 million. Lumberg Automation has its headquarters in Germany and is a leading supplier of industrial connectors, high performance cord-sets and fieldbus communication components for factory automation machinery. Lumberg Automation complements the industrial connectivity portfolio of Hirschmann as well as our expertise in signal transmission. The results of operations of each acquisition have been included in our results of operations from their respective acquisition dates. Hirschmann and Lumberg Automation are primarily included in the Europe, Middle East and Africa (EMEA) segment, however, certain portions are included in the Americas and Asia Pacific segments. LTK is included in the Asia Pacific segment.

All three 2007 acquisitions were cash transactions and were valued in total at $590.0 million, net of cash acquired and including transaction costs. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the respective acquisition dates in 2007 (in thousands).

Receivables		$	143,514
Inventories			80,047
Other current assets			11,531
Property, plant and equipment			94,239
Goodwill			378,355
Other intangible assets			88,629
Other long-lived assets			29,014
Total assets		$	825,329
Accounts payable		$	92,824
Accrued liabilities			56,340
Postretirement benefits			57,274
Deferred income taxes			21,988
Other long-term liabilities			6,926
Total liabilities			235,352
Net assets		$	589,977

The allocation above differs from our preliminary allocation as of December 31, 2007 primarily due to the following adjustments that we recorded in 2008:

	•		a $15.9 million decrease in the estimated fair value of property, plant and equipment;
	•		a $23.9 million accrual for restructuring costs related to finalizing certain plans to realign portions of the acquired businesses;
	•		a $4.3 million accrual for unfavorable lease agreements and service provider contracts; and
	•		a $4.5 million increase to current deferred tax assets, and a $10.2 million decrease to long-term deferred tax liabilities related to the adjustments described above.

Goodwill and other intangible assets reflected above were determined to meet the criterion for recognition apart from tangible assets acquired and liabilities assumed. Intangible assets related to the 2007 acquisitions consisted of the following:

		Estimated				Amortization
		Fair Value				Period
		(In thousands)				(In years)
Intangible assets subject to amortization:
Customer relations		$	25,103				17.0
Developed technologies			24,739				4.7
Backlog			2,430				0.1
Total intangible assets subject to amortization			52,272
Intangible assets not subject to amortization:
Goodwill			378,355
Trademarks			36,357
Total intangible assets not subject to amortization			414,712
Total intangible assets		$	466,984
Weighted average amortization period							10.4

Goodwill of $277.0 million and $101.4 million was assigned to the EMEA segment and Asia Pacific segment, respectively. Approximately $67 million of the total goodwill related to the 2007 acquisitions is deductible for tax purposes.

Trademarks for the 2007 and 2008 acquisitions have been determined by us to have indefinite lives and are not being amortized, based on our expectation that the trademarked products will generate cash flows for us for an indefinite period. We expect to maintain use of trademarks on existing products and introduce new products in the future that will also display the trademarks, thus extending their lives indefinitely. Portions of the goodwill and trademarks associated with the 2007 and 2008 acquisitions were impaired during 2008. See Note 9.

The amortizable intangible assets reflected in the tables above were determined by us to have finite lives. The useful lives for the developed technologies intangible assets were based on the estimated time that the technology provides us with a competitive advantage and thus approximates the period of consumption of the intangible assets. The useful lives for the customer relations intangible assets were based on our forecasts of customer turnover. The useful lives of the backlog intangible assets were based on our estimate of when the ordered items would ship.

The following table reflects the 2008 unaudited pro forma operating results of the Company as if the Trapeze acquisition had been completed as of January 1, 2008. The following table reflects the 2007 unaudited pro forma operating results of the Company as if the Trapeze, Hirschmann, LTK, and Lumberg acquisitions had been completed as of January 1, 2007.

		Years Ended December 31,
		2008				2007
		Unaudited (in thousands, except per share data)
Revenues		$	2,029,667			$	2,233,971
Net income (loss)			(380,689	)			106,468
Net income (loss) per diluted share			(8.52	)			2.12

For purposes of the pro forma disclosures, 2008 includes expenses of $2.7 million ($1.7 million after tax) from the effects of purchase accounting. For 2007, the pro forma disclosures include $18.5 million ($12.1 million after tax) of expenses from the effects of purchase accounting, including inventory cost step-up of $13.8 million that was recognized in cost of sales, amortization of sales backlog intangible assets of $3.2 million, and other charges of $1.5 million. The pro forma information above also reflects interest expense assuming borrowings at the beginning of each respective period of $350.0 million of 7.0% senior subordinated notes and $376.0 million at 5.6% interest under our senior secured credit agreement to finance the acquisitions.

The above unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what our results of operations would have been had we completed these acquisitions on the dates assumed, nor is it necessarily indicative of the results that may be expected in future periods. Pro forma adjustments exclude cost savings from any synergies resulting from the acquisitions.

Note 4: Operating Segments and Geographic Information

During the first quarter of 2009, we made organizational changes to consolidate our North American operations, primarily consisting of consolidating our former Specialty Products and Belden Americas segments. This reorganization resulted in a change in our reported operating segments. We have organized the enterprise around geographic areas except for our wireless business. We now conduct our operations through four reported operating segments—Americas; Wireless; EMEA; and Asia Pacific. We have reclassified all segment disclosures to conform to the new segment presentation.

The Americas segment and the EMEA segment design, manufacture, and market metallic cable, fiber optic cable, connectivity products, and certain other non-cable products with industrial, communications/networking, video/sound/security, and transportation/defense applications. Prior to the acquisition of LTK, our Asia Pacific segment only marketed products manufactured by other segments. Through the acquisition of LTK in 2007, the Asia Pacific segment now has cable design and manufacturing capabilities. The Wireless segment develops and provides technologies, systems, and services to deploy, scale and effectively manage wireless LAN applications. We sell the products manufactured by our segments principally through distributors or directly to systems integrators and original equipment manufacturers.

We evaluate segment performance and allocate resources based on operating income and working capital. Operating income of the segments includes all the ongoing costs of operations, but excludes interest and income taxes. Allocations to or from these segments are not significant. Transactions between the segments are conducted on an arms-length basis. With the exception of unallocated goodwill, certain unallocated tax assets, and tangible assets located at our corporate headquarters, substantially all of our assets are utilized by the segments.

Operating Segment Information

																		Total
Year Ended December 31, 2008		Americas				Wireless				EMEA				Asia Pacific				Segments
		(In thousands)
External customer revenues		$	1,041,247			$	13,722			$	577,672			$	373,249			$	2,005,890
Affiliate revenues			61,568				298				85,639				111				147,616
Total revenues			1,102,815				14,020				663,311				373,360				2,153,506
Depreciation and amortization			(21,794	)			(5,512	)			(19,748	)			(9,080	)			(56,134	)
Asset impairment			(50,823	)			(32,808	)			(253,361	)			(112,047	)			(449,039	)
Operating income (loss)			106,893				(54,317	)			(218,379	)			(66,093	)			(231,896	)
Total assets			455,764				143,423				527,508				273,930				1,400,625
Acquisition of property, plant and equipment			11,243				66				10,693				20,702				42,704

										Asia				Total
Year Ended December 31, 2007		Americas				EMEA				Pacific				Segments
		(In thousands)
External customer revenues		$	1,155,348			$	556,765			$	320,728			$	2,032,841
Affiliate revenues			73,030				62,497				464				135,991
Total revenues			1,228,378				619,262				321,192				2,168,832
Depreciation and amortization			(23,243	)			(21,221	)			(7,005	)			(51,469	)
Asset impairment			(1,870	)			(1,392	)			—				(3,262	)
Operating income (loss)			210,597				42,360				37,991				290,948
Total assets			618,104				865,349				369,348				1,852,801
Acquisition of property, plant and equipment			32,810				13,254				16,166				62,230

										Asia				Total
Year Ended December 31, 2006		Americas				EMEA				Pacific				Segments
		(In thousands)
External customer revenues (1)		$	1,066,435			$	365,079			$	64,297			$	1,495,811
Affiliate revenues (1)			63,423				8,659				—				72,082
Total revenues (1)			1,129,858				373,738				64,297				1,567,893
Depreciation and amortization (1)			(25,211	)			(10,297	)			(153	)			(35,661	)
Asset impairment (1)			(8,557	)			(2,522	)			—				(11,079	)
Operating income (loss) (1)			148,477				4,072				6,803				159,352
Total assets			596,670				348,480				24,660				969,810
Acquisition of property, plant and equipment			16,744				4,166				385				21,295

Total segment operating income (loss) differs from net income (loss) reported in the Consolidated Financial Statements as follows:

		Year Ended December 31,
		2008				2007				2006
		(In thousands)
Total segment operating income (loss)		$	(231,896	)		$	290,948			$	159,352
Corporate expenses			(74,889	)			(43,313	)			(29,220	)
Eliminations			(35,403	)			(26,899	)			(11,654	)
Total operating income (loss)			(342,188	)			220,736				118,478
Interest expense			(37,908	)			(28,966	)			(13,096	)
Interest income			5,300				6,544				7,081
Other income (expense)			6,326				1,799				(187	)
Income tax benefit (expense)			6,644				(63,918	)			(40,713	)
Income (loss) from continuing operations			(361,826	)			136,195				71,563
Loss from discontinued operations, net of tax			—				—				(1,330	)
Loss on disposal of discontinued operations, net of tax			—				—				(4,298	)
Net income (loss)		$	(361,826	)		$	136,195			$	65,935

Below are reconciliations of other segment measures to the consolidated totals.

		Year Ended December 31,
		2008				2007				2006
						(In thousands)
Total segment depreciation and amortization		$	(56,134	)		$	(51,469	)		$	(35,661	)
Corporate depreciation and amortization			(702	)			(277	)			(232	)
Total depreciation and amortization		$	(56,836	)		$	(51,746	)		$	(35,893	)
Total segment asset impairment		$	(449,039	)		$	(3,262	)		$	(11,079	)
Corporate asset impairment			(27,453	)			—				—
Total asset impairment		$	(476,492	)		$	(3,262	)		$	(11,079	)
Total segment assets		$	1,400,625			$	1,852,801			$	969,810
Corporate assets			247,938				215,591				386,158
Total assets		$	1,648,563			$	2,068,392			$	1,355,968
Total segment acquisition of property, plant and equipment		$	42,704			$	62,230			$	21,295
Corporate acquisition of property, plant and equipment			10,857				1,271				368
Total acquisition of property, plant and equipment		$	53,561			$	63,501			$	21,663

Product Group Information

Sales by major product group for the year ended December 31, 2008 consisted of $1.5 billion of cable products, $247.2 million of connectors, $236.1 million of active connectivity products, and $13.7 million of wireless products.

Geographic Information

The following table identifies revenues by country based on the location of the customer and long-lived assets by country based on physical location.

		United				Canada &				Europe, Africa				Asia
		States				Latin America				& Middle East				Pacific				Total
										(In thousands)
Year ended December 31, 2008
Revenues		$	842,766			$	192,524			$	570,115			$	400,485			$	2,005,890
Percent of total revenues			42	%			10	%			28	%			20	%			100	%
Long-lived assets		$	463,507			$	16,223			$	283,476			$	92,254			$	855,460
Year ended December 31, 2007
Revenues		$	925,697			$	222,207			$	548,456			$	336,481			$	2,032,841
Percent of total revenues			45	%			11	%			27	%			17	%			100	%
Long-lived assets		$	464,643			$	47,158			$	537,712			$	182,754			$	1,232,267
Year ended December 31, 2006
Revenues		$	855,390			$	198,468			$	365,186			$	76,767			$	1,495,811
Percent of total revenues			57	%			13	%			25	%			5	%			100	%
Long-lived assets		$	349,749			$	45,889			$	145,069			$	532			$	541,239

Major Customer

Revenues generated from sales to Anixter International Inc., primarily in the Americas segment, were $329.3 million (16% of revenue), $336.8 million (17% of revenues), and $309.8 million (21% of revenues) for 2008, 2007, and 2006, respectively.

Note 5: Discontinued Operations

During 2006, we sold certain assets and liabilities of our discontinued operation in Manchester, United Kingdom for approximately $28.0 million cash and recognized a $4.3 million after-tax loss.

We did not have any discontinued operations in 2008 and 2007. Operating results from discontinued operations in 2006 include the following (in thousands):

Results of Operations:
Revenues		$	27,644
Loss before taxes		$	(1,900	)
Income tax benefit			570
Net loss		$	(1,330	)
Disposal:
Loss before taxes		$	(6,140	)
Income tax benefit			1,842
Net loss		$	(4,298	)

Note 6: Income (Loss) Per Share

The following table presents the basis of the income (loss) per share computation:

		For the Year Ended December 31,
		2008				2007				2006
						(In thousands)
Numerator for basic income (loss) per share:
Income (loss) from continuing operations		$	(361,826	)		$	136,195			$	71,563
Loss from discontinued operations			—				—				(1,330	)
Loss on disposal of discontinued operations			—				—				(4,298	)
Net income (loss)		$	(361,826	)		$	136,195			$	65,935
Numerator for diluted income (loss) per share:
Income (loss) from continuing operations		$	(361,826	)		$	136,195			$	71,563
Tax-effected interest expense on convertible subordinated debentures			—				875				2,710
Adjusted income (loss) from continuing operations			(361,826	)			137,070				74,273
Loss from discontinued operations			—				—				(1,330	)
Loss on disposal of discontinued operations			—				—				(4,298	)
Adjusted net income (loss)		$	(361,826	)		$	137,070			$	68,645
Denominator:
Denominator for basic income (loss) per share—weighted average shares			44,692				44,877				43,319
Effect of dilutive common stock equivalents			—				5,738				6,957
Denominator for diluted income (loss) per share—adjusted weighted average shares			44,692				50,615				50,276

For the years ended December 31, 2008, 2007, and 2006, we did not include 2.8 million, 0.5 million, and 0.5 million outstanding equity awards, respectively, in our development of the denominators used in the diluted income per share computations because they were anti-dilutive.

Note 7: Inventories

The major classes of inventories were as follows:

		December 31,
		2008				2007
		(In thousands)
Raw materials		$	62,701			$	78,847
Work-in-process			45,900				57,562
Finished goods			128,672				136,305
Perishable tooling and supplies			3,946				4,355
Gross inventories			241,219				277,069
Obsolescence and other reserves			(25,197	)			(19,529	)
Net inventories		$	216,022			$	257,540

In 2006, we changed the parameters we apply to calculate our allowance for excess and obsolete inventories to conform to our goal to better manage our working capital and reduce our reliance on finished goods inventory as well as to include a more consistent definition of what constitutes excess and obsolete inventory. We recognized a pretax charge of approximately $11.1 million in cost of sales during 2006 to reflect a change in accounting estimate related to measurement of our allowances for excess and obsolete inventories. The effect of this change on 2006 income from continuing operations was approximately $7.3 million or $0.14 per diluted share.

Note 8: Property, Plant and Equipment

The carrying values of property, plant and equipment were as follows:

		December 31,
		2008				2007
		(in thousands)
Land and land improvements		$	34,462			$	45,443
Buildings and leasehold improvements			139,268				143,244
Machinery and equipment			386,002				451,733
Computer equipment and software			47,464				42,276
Construction in process			35,376				30,430
Gross property, plant and equipment			642,572				713,126
Accumulated depreciation			(318,003	)			(343,323	)
Net property, plant and equipment		$	324,569			$	369,803