Segment Reporting

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker (“CODM”), which is our President and Chief Executive Officer. Each of these segments consists of a number of manufacturing facilities. Certain of our facilities manufacture and sell products through multiple segments. Our segments are more specifically described below.

CVG's reportable segments were impacted in the current period due to the divestiture of the cab structure business with operations in Kings Mountain, North Carolina and the expected divestiture of the Industrial Automation segment. As a result of classifying the Industrial Automation reporting segment as a discontinued operation, CVG is now comprised of three reportable segments: Vehicle Solutions, Electrical Systems and Aftermarket & Accessories. The financial information reported for Vehicle Solutions and Aftermarket & Accessories excludes the activity from the Kings Mountain, North Carolina facility due to the divestiture.

The Vehicle Solutions segment designs, manufactures and sells the following products:

•Commercial vehicle seats for the global commercial vehicle markets including heavy duty trucks, medium duty trucks, last mile delivery trucks and vans, construction and agriculture equipment in North America, Europe and Asia-Pacific. This segment includes a portion of the company’s activities in the electric vehicle market.

•Plastic & Trim components primarily for the North America commercial vehicle market and power sports markets; and Cab structures for the North American medium-duty/heavy-duty ("MD/HD") truck market.

The Electrical Systems segment designs, manufactures and sells the following products:

•Cable and harness assemblies for both high and low voltage applications, control boxes, dashboard assemblies and design and engineering for these applications.

•The end markets for these products are construction, agricultural, industrial, automotive (both internal combustion and electric vehicles), truck, mining, rail, marine, power generation and the military/defense industries in North America, Europe and Asia-Pacific.

The Aftermarket & Accessories segment designs, manufactures and sells the following products:

•Seats and components sold into the commercial vehicle channels that provide repair and refurbishing. These channels include Original Equipment Service ("OES") centers and retail distributors, and are spread across North America, Europe and Asia-Pacific.

•Commercial vehicle accessories including wipers, mirrors, and sensors. These products are sold both as Original Equipment and as repair products.

•Office seats primarily sold into the commercial and home office furniture distribution channels in Europe and Asia-Pacific.

Corporate expenses consist of certain overhead and shared costs that are not directly attributable to the operations of a segment. For purposes of business segment performance measurement, some of these costs that are for the benefit of the operations are allocated based on a combination of methodologies. The costs that are not allocated to a segment are considered stewardship costs and remain at corporate in our segment reporting.

The following tables present financial information for the Company's reportable segments for the periods indicated:

	Three Months Ended September 30, 2024
	Vehicle Solutions		Electrical Systems		Aftermarket and Accessories		Corporate/Other		Total
Revenues	$	97,296	$	43,380	$	31,096	$	—	$	171,772
Gross profit	8,774		2,213		5,474		(40)		16,421
Selling, general & administrative expenses	3,629		2,598		2,328		8,926		17,481
Operating income (loss)	$	5,145	$	(385)	$	3,146	$	(8,966)	$	(1,060)

	Three Months Ended September 30, 2023
	Vehicle Solutions		Electrical Systems		Aftermarket and Accessories		Corporate/Other		Total
Revenues	$	115,235	$	53,862	$	33,800	$	—	$	202,897
Gross profit	15,050		7,881		6,416		(38)		29,309
Selling, general & administrative expenses	6,761		2,018		2,104		9,506		20,389
Operating income (loss)	$	8,289	$	5,863	$	4,312	$	(9,544)	$	8,920

	Nine Months Ended September 30, 2024
	Vehicle Solutions		Electrical Systems		Aftermarket and Accessories		Corporate/Other		Total
Revenues	$	312,785	$	149,327	$	97,951	$	—	$	560,063
Gross profit	32,177		9,934		18,091		(158)		60,044
Selling, general & administrative expenses	15,985		7,799		6,228		25,519		55,531
Operating income (loss)	$	16,192	$	2,135	$	11,863	$	(25,677)	$	4,513

	Nine Months Ended September 30, 2023
	Vehicle Solutions		Electrical Systems		Aftermarket and Accessories		Corporate/Other		Total
Revenues	$	362,820	$	172,236	$	106,691	$	—	$	641,747
Gross profit	49,263		26,524		21,071		(144)		96,714
Selling, general & administrative expenses	19,609		6,932		6,017		28,352		60,910
Operating income (loss)	$	29,654	$	19,592	$	15,054	$	(28,496)	$	35,804