Segment and geographic information

12 Months Ended

Mar. 31, 2012

Segment and geographic information [Abstract]

Segment and geographic information

Note 24:  Segment and geographic information

Modine's product lines consist of heat-transfer components and systems. Modine serves the vehicular; industrial and building heating, ventilating and air conditioning original-equipment markets. The Company has five reportable segments, as follows:

Original Equipment - Asia

Comprised of vehicular and industrial original equipment products in Asia.

Original Equipment - Europe

Comprised of vehicular and industrial original equipment products in Europe.

Original Equipment - North America

Comprised of vehicular and industrial original equipment products in North America.

South America

Comprised of vehicular and industrial original equipment products and aftermarket products in South America.

Commercial Products

Comprised of building heating, ventilating and air conditioning products throughout the world.

Each Modine segment is managed at the vice-president or managing director level and has separate financial results reviewed by the Company's chief operating decision makers. These results are used by management in evaluating the performance of each business segment, and in making decisions on the allocation of resources among the Company's various businesses. The segment results include certain allocations of Corporate selling, general and administrative expenses, and the significant accounting policies of the segments are the same as those of Modine as a whole. In addition, the segment data is presented on a continuing operations basis, except where noted.

During fiscal 2012, the Company implemented certain management reporting changes resulting in the realignment of the Nuevo Laredo, Mexico facility into the Original Equipment - North America segment from the Commercial Products segment. The previously reported segment results for the Original Equipment - North America and Commercial Products segments have been retrospectively adjusted for comparative purposes.

The following is a summary of net sales, gross profit and earnings (loss) from continuing operations by segment:

Years ended March 31	2012			2011			2010
Sales :
Original Equipment - Asia	$	84,127		$	63,890		$	32,231
Original Equipment - Europe		602,848			546,709			469,399
Original Equipment - North America		601,966			573,233			453,608
South America		175,582			158,850			117,640
Commercial Products		142,158			126,282			123,447
Segment sales		1,606,681			1,468,964			1,196,325
Corporate and administrative		1,078			1,482			2,791
Eliminations		(30,607	)		(22,211	)		(36,540	)
Sales from continuing operations	$	1,577,152		$	1,448,235		$	1,162,576

Years ended March 31	2012						2011					2010
Gross profit:				% of sales					% of sales						% of sales
Original Equipment - Asia	$	7,944			9.4	%	$	5,224		8.2	%	$	32			0.1	%
Original Equipment - Europe		85,058			14.1	%		75,658		13.8	%		59,675			12.7	%
Original Equipment - North America		89,694			14.9	%		79,305		13.8	%		56,511			12.5	%
South America		30,884			17.6	%		31,220		19.7	%		23,008			19.6	%
Commercial Products		42,486			29.9	%		39,293		31.1	%		36,263			29.4	%
Segment gross profit		256,066			15.9	%		230,700		15.7	%		175,489			14.7	%
Corporate and administrative		1,108			-			1,507		-			(3,437	)		-
Eliminations		(604	)		-			49		-			116			-
Gross profit	$	256,570			16.3	%	$	232,256		16.0	%	$	172,168			14.8	%

Years ended March 31	2012			2011			2010
Operating earnings (loss):
Original Equipment - Asia	$	(2,457	)	$	(3,082	)	$	(4,792	)
Original Equipment - Europe		37,320			28,262			20,692
Original Equipment - North America		47,892			31,821			10,677
South America		10,353			12,975			7,600
Commercial Products		14,282			12,764			12,265
Segment earnings		107,390			82,740			46,442
Corporate and administrative		(39,146	)		(39,859	)		(42,416	)
Eliminations		(720	)		40			104
Other items not allocated to segments		(19,613	)		(30,098	)		(17,302	)
Earnings (loss) from continuing operations before income taxes	$	47,911		$	12,823		$	(13,172	)

Inter-segment sales are accounted for based on an established markup over production costs. Sales eliminations represent the elimination of inter-segment sales. Operating loss for corporate and administrative includes certain research and development costs, legal, finance and other general corporate expenses. It also includes a percentage of the central services costs not directly attributable to a reportable segment. Other items not allocated to segments primarily include interest expense, interest income, foreign currency transaction gains/losses and equity in the earnings (losses) of non-consolidated affiliates.

Following is a summary of assets by segment:

March 31	2012			2011
Assets:
Original Equipment - Asia	$	102,567		$	91,748
Original Equipment - Europe		370,824			393,768
Original Equipment - North America		230,405			237,423
South America		96,588			103,733
Commercial Products		68,900			66,301
Corporate and administrative		40,557			45,103
Assets held for sale		2,450			2,450
Eliminations		(18,830	)		(22,784	)
Total assets	$	893,461		$	917,742

Corporate assets include cash and cash equivalents, accounts and notes receivable, investments in affiliates and intangibles. Eliminations consist primarily of trade and other receivables and property, plant and equipment. In fiscal 2012, the weakening of the euro against the U.S. dollar decreased the value of assets reported in the Original Equipment - Europe segment, from the year before, by approximately six percent.

Following is a summary of capital expenditures and depreciation and amortization expense by segment:

March 31	2012			2011			2010
Capital expenditures:
Original Equipment - Asia	$	12,453		$	10,796		$	8,036
Original Equipment - Europe		29,785			24,957			36,640
Original Equipment - North America		15,416			12,909			14,306
South America		5,184			4,127			2,532
Commercial Products		1,719			2,277			484
Corporate and administrative		(205	)		(5	)		(1,922	)
Capital expenditures - continuing operations		64,352			55,061			60,076
Capital expenditures - discontinued operations		-			-			221
Total capital expenditures	$	64,352		$	55,061		$	60,297

March 31	2012			2011			2010
Depreciation and amortization expense:
Original Equipment - Asia	$	5,024		$	3,091		$	2,435
Original Equipment - Europe		26,519			25,525			28,600
Original Equipment - North America		20,015			21,669			26,921
South America		4,041			4,038			3,689
Commercial Products		2,135			2,213			3,008
Corporate and administrative		-			2			11
Eliminations		(44	)		(46	)		(58	)
Total depreciation and amortization expense	$	57,690		$	56,492		$	64,606

Following is a summary of net sales by geographical area:

Years ended March 31	2012		2011		2010
Net sales by country:
Brazil	$	169,058	$	156,620	$	115,862
Germany		285,911		280,271		293,077
United States		666,166		632,278		515,513
Other		456,017		379,066		238,124
Total net sales	$	1,577,152	$	1,448,235	$	1,162,576

Net sales are attributed to countries based on the location of the selling unit.

Following is a summary of long-lived assets by geographical area:

March 31	2012		2011
Long-lived assets:
Germany	$	127,432	$	149,523
United States		112,266		118,781
Other		188,044		180,455
Long-lived assets		427,742		448,759
Assets held for sale		2,450		2,450
Total long-lived assets	$	430,192	$	451,209

Long-lived assets are primarily property, plant and equipment, but also include investments and other noncurrent assets. Assets held for sale for fiscal 2012 and 2011 includes two facilities which the Company has closed and is currently marketing for sale.

Following is a summary of net sales by product type:

Years ended March 31	2012		2011		2010
Modules/packages	$	410,434	$	406,908	$	378,443
Oil coolers		249,387		232,355		157,756
Radiators		191,370		187,906		153,515
Charge-air coolers		173,859		140,154		95,381
Building HVAC		153,284		143,137		140,688
EGR coolers		152,715		130,877		77,958
Vehicular air conditioning		101,522		62,979		45,176
Other		144,581		143,919		113,659
Total net sales	$	1,577,152	$	1,448,235	$	1,162,576