Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The following table presents a summary of our reportable segment financial information:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Net sales:
Automotive	$	3,626,943	$	3,490,462	$	10,787,769	$	10,233,577
Industrial	2,197,659		2,184,812		6,716,957		6,338,746
Total net sales	$	5,824,602	$	5,675,274	$	17,504,726	$	16,572,323
Segment profit:
Automotive	$	322,004	$	309,349	$	915,771	$	896,475
Industrial	282,807		242,505		828,166		656,330
Total segment profit	604,811		551,854		1,743,937		1,552,805
Interest expense, net	(15,827)		(18,220)		(49,146)		(58,318)
Intangible asset amortization	(33,667)		(39,416)		(113,414)		(118,740)
Corporate expense	(90,257)		(72,820)		(257,822)		(187,883)
Other unallocated (loss) income, net (1)	—		(3,462)		—		47,355
Income before income taxes	$	465,060	$	417,936	$	1,323,555	$	1,235,219

(1)     The following table presents a summary of the other unallocated income, net:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Other unallocated income, net:
Gain on sale of real estate (2)	$	—	$	—	$	—	$	102,803
Gain on insurance proceeds (3)	—		—		—		1,507
Transaction and other costs (4)	—		(3,462)		—		(56,955)
Total other unallocated (loss) income, net	$	—	$	(3,462)	$	—	$	47,355

(2)    Amount reflects a gain on the sale of real estate that had been leased to S.P. Richards.

(3)    Amount reflects insurance recoveries in excess of losses incurred on inventory, property, plant and equipment and other fire-related costs.

(4)    Amount primarily reflects costs associated with the January 3, 2022 acquisition of Kaman Distribution Group.

Beginning in 2023, certain functions, including cybersecurity and the management of our product liability litigation, were transferred to corporate to be streamlined and centrally managed. These costs totaled $15 million and $44 million for the three and nine months ended September 30, 2022, of which $9 million and $27 million were allocated to Automotive and $6 million and $17 million were allocated to Industrial based on several factors, including sales volumes and headcount. Beginning in 2023, these costs, which totaled $30 million and $49 million for the three and nine months ended September 30, 2023, are no longer allocated to our segments when measuring their operating performance. We have not restated the 2022 comparative segment financial information.

Net sales are disaggregated by geographical region for each of our reportable segments, as we deem this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table presents disaggregated geographical net sales from contracts with customers by reportable segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
North America:
Automotive	$	2,315,733	$	2,333,390	$	6,865,819	$	6,766,271
Industrial	2,066,284		2,064,569		6,325,746		5,996,299
Total North America	$	4,382,017	$	4,397,959	$	13,191,565	$	12,762,570
Australasia:
Automotive	$	411,422	$	404,708	$	1,226,037	$	1,182,557
Industrial	131,375		120,243		391,211		342,447
Total Australasia	$	542,797	$	524,951	$	1,617,248	$	1,525,004
Europe – Automotive	$	899,788	$	752,364	$	2,695,913	$	2,284,749
Total net sales	$	5,824,602	$	5,675,274	$	17,504,726	$	16,572,323