Segment and Geographic Information

12 Months Ended

Mar. 31, 2014

Segment and Geographic Information [Abstract]

Segment and Geographic Information

Note 21:  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 markets.  The Company has five operating segments as follows:

North America:

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

Europe:

Comprised of vehicular and industrial original equipment products in Europe.

South America:

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

Asia:

Comprised of vehicular and industrial original equipment products in Asia.

Commercial Products:

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

Each operating segment is managed by a vice president or managing director and has separate financial results reviewed by the Company’s chief operating decision maker.  These results are used by management in evaluating the performance of each segment and in making decisions on the allocation of resources among the Company’s various businesses.

The following is a summary of net sales, gross profit, and operating income by segment:

	Years ended March 31,
Net sales:	2014			2013			2012
North America	$	568.7		$	564.5		$	602.0
Europe		584.4			498.0			602.8
South America		122.7			133.8			175.6
Asia		71.5			59.5			84.1
Commercial Products		146.5			139.3			142.2
Segment total		1,493.8			1,395.1			1,606.7
Corporate and eliminations		(16.2	)		(19.1	)		(29.5	)
Net sales	$	1,477.6		$	1,376.0		$	1,577.2

	Years ended March 31,
	2014					2013					2012
Gross profit:	$'s		% of sales			$'s		% of sales			$'s		% of sales
North America	$	93.5		16.4	%	$	81.4		14.4	%	$	89.7		14.9	%
Europe		70.8		12.1	%		61.0		12.3	%		85.1		14.1	%
South America		20.8		16.9	%		22.5		16.8	%		30.9		17.6	%
Asia		8.9		12.5	%		1.7		2.8	%		7.9		9.4	%
Commercial Products		43.4		29.6	%		40.8		29.3	%		42.5		29.9	%
Segment total		237.4		15.9	%		207.4		14.9	%		256.1		15.9	%
Corporate and eliminations		0.8		-			1.2		-			0.5		-
Gross profit	$	238.2		16.1	%	$	208.6		15.2	%	$	256.6		16.3	%

	Years ended March 31,
Operating income:	2014			2013			2012
North America	$	42.1		$	39.2		$	47.9
Europe (a)		9.6			(25.4	)		26.3
South America		7.5			11.2			10.4
Asia		(3.3	)		(8.8	)		(2.5	)
Commercial Products		9.4			10.0			14.3
Segment total		65.3			26.2			96.4
Corporate and eliminations (a)		(28.1	)		(26.8	)		(28.9	)
Operating income (loss)	$	37.2		$	(0.6	)	$	67.5

(a) Segment operating income for fiscal 2013 and 2012 has been recast to conform to the fiscal 2014 presentation. The Company has modified its internal financial reporting of intercompany charges for research and development and intercompany royalties between Corporate and the Europe segment, which totaled $9.3 million and $11.0 million for fiscal years 2013 and 2012, respectively.  There was no impact on the total Company consolidated financial results.

Inter-segment sales are accounted for based on an established markup over production costs.  Net sales for corporate and eliminations primarily represent the elimination of inter-segment sales.  Operating loss for corporate includes certain research and development costs, legal, finance and other general corporate expenses, and also includes a portion of central services costs that are not directly attributable to an operating segment.

Following is a summary of assets by segment:

	March 31,
Total assets:	2014		2013
North America	$	218.1	$	218.3
Europe		367.9		332.2
South America		80.1		91.8
Asia		92.8		91.3
Commercial Products (a)		132.7		73.7
Corporate and eliminations (b)		140.7		11.5
Total assets	$	1,032.3	$	818.8

(a) Total assets within the Commercial Products segment included receivables and cash advances from the Company’s insurance provider and reconstruction costs paid to date related to the Airedale fire, which totaled $45.0 million as of March 31, 2014.  See Note 2 for additional information.

(b) The increase in total assets within corporate and eliminations was primarily due to a $119.2 million reversal of deferred tax asset valuation allowances in the U.S. as of March 31, 2014.  See Note 8 for additional information.

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

	Years ended March 31,
Capital expenditures:	2014		2013		2012
North America	$	18.9	$	19.0	$	15.2
Europe		22.9		16.5		29.8
South America		5.7		3.4		5.2
Asia		4.6		7.8		12.5
Commercial Products		1.0		3.1		1.7
Total capital expenditures	$	53.1	$	49.8	$	64.4

	Years ended March 31,
Depreciation and amortization expense:	2014		2013		2012
North America	$	19.3	$	20.1	$	20.0
Europe		26.6		23.4		26.5
South America		3.3		3.7		4.1
Asia		6.7		6.4		5.0
Commercial Products		2.2		2.2		2.1
Total depreciation and amortization expense	$	58.1	$	55.8	$	57.7

Following is a summary of net sales by geographical area, based upon the location of the selling unit:

	Years ended March 31,
Net sales by country:	2014		2013		2012
United States	$	645.7	$	637.4	$	666.2
Germany		229.5		214.8		285.9
Brazil		122.0		128.8		169.1
Hungary		150.3		117.6		149.1
Other		330.1		277.4		306.9
Net sales	$	1,477.6	$	1,376.0	$	1,577.2

Following is a summary of long-lived assets, excluding goodwill, intangible assets, and deferred tax assets, by geographical area:

	March 31,
Long-lived assets:	2014		2013
United States	$	112.9	$	115.1
Germany		94.6		94.3
Other		186.3		173.4
Long-lived assets	$	393.8	$	382.8

Following is a summary of net sales by product type:

	Years ended March 31,
Net sales by product type:	2014		2013		2012
Modules/assemblies	$	379.9	$	358.5	$	410.4
Oil coolers		215.4		194.1		249.4
EGR coolers		172.5		136.1		152.7
Building HVAC		159.5		151.8		153.3
Charge air coolers		157.0		161.8		173.9
Condensers		129.2		128.8		101.5
Radiators		129.0		134.4		191.4
Other		135.1		110.5		144.6
Net sales	$	1,477.6	$	1,376.0	$	1,577.2