Note 20:

Segment and Geographic Information

The Company’s product lines consist of heat-transfer components and systems. The Company serves vehicular and commercial, industrial, and building HVAC&R markets. In November 2016, the Company acquired Luvata HTS and, commencing from the acquisition date, has operated and reported results for the acquired business as its CIS segment. See Note 2 for additional information regarding the Luvata HTS acquisition.

The Company’s Americas, Europe, and Asia segments represent its vehicular businesses and primarily serve the automotive, commercial vehicle, and off-highway markets. In addition, the Americas segment serves the automotive and commercial vehicle aftermarket in Brazil and provides coils to the commercial HVAC&R market in North America. The Company’s CIS segment provides coils, coolers, and coating solutions to customers throughout the world. The Company’s BHVAC segment provides heating, ventilating and air conditioning products to customers throughout the world.

Each operating segment is managed by a vice president 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.

Effective April 1, 2018, the Company combined its Americas, Europe, and Asia segment operations with the objective of operating as a more global, product-based organization. As part of this segment combination and its CIS integration activities, the Company also merged its Americas coils business into the CIS segment and expects to achieve operational improvements and organizational efficiencies as a result. Beginning for fiscal 2019, the Company will report financial results for the new Vehicular Thermal Solutions segment, which will include the current Americas, Europe and Asia segments.

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

	Years ended March 31,
Net sales:	2018			2017			2016
Americas	$	580.7		$	534.0		$	585.5
Europe		568.3			524.3			524.1
Asia		165.8			111.5			79.0
CIS		620.0			177.7			-
BHVAC		191.2			171.6			181.4
Segment total		2,126.0			1,519.1			1,370.0
Corporate and eliminations		(22.9	)		(16.1	)		(17.5	)
Net sales	$	2,103.1		$	1,503.0		$	1,352.5

	Years ended March 31,
	2018					2017						2016
Gross profit:	$'s		% of sales			$'s			% of sales			$'s			% of sales
Americas	$	91.9		15.8	%	$	87.0			16.3	%	$	100.3			17.1	%
Europe		83.8		14.7	%		81.6			15.6	%		69.5			13.3	%
Asia		30.3		18.3	%		18.7			16.8	%		12.2			15.5	%
CIS		92.1		14.9	%		26.0			14.6	%		-			-
BHVAC		58.0		30.3	%		47.8			27.8	%		54.2			29.9	%
Segment total		356.1		16.8	%		261.1			17.2	%		236.2			17.2	%
Corporate and eliminations (a)		0.4		-			(6.7	)		-			(2.6	)		-
Gross profit	$	356.5		17.0	%	$	254.4			16.9	%	$	233.6			17.3	%

	Years ended March 31,
Operating income:	2018			2017			2016
Americas	$	38.2		$	27.9		$	36.9
Europe		33.6			38.2			14.7
Asia		17.6			7.7			0.8
CIS		25.8			7.5			-
BHVAC		20.3			13.2			13.9
Segment total		135.5			94.5			66.3
Corporate and eliminations (a)		(43.3	)		(52.2	)		(29.2	)
Operating income	$	92.2		$	42.3		$	37.1

(a)

During fiscal 2018 and 2017, the Company recorded $4.3 million and $14.8 million, respectively, of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. During fiscal 2017, the Company recorded $4.3 million in cost of sales related to an inventory purchase accounting adjustment at Corporate, as the impact was excluded from the Company’s measure of segment operating performance.

Inter-segment sales are accounted for based upon an established markup over production costs. Net sales for Corporate and eliminations primarily represent the elimination of inter-segment sales. The operating loss for Corporate includes certain research and development costs, legal, finance and other general corporate and central services expenses, and other costs that are either not directly attributable to an operating segment or not considered when management evaluates segment performance.

The following is a summary of total assets by segment:

	March 31,
	2018		2017
Americas	$	290.6	$	282.9
Europe		324.0		269.4
Asia		144.5		111.3
CIS		630.0		576.0
BHVAC		88.1		85.2
Corporate and eliminations (a)		96.2		124.7
Total assets	$	1,573.4	$	1,449.5

(a)

The decrease in total assets at Corporate was primarily due to a decrease in deferred tax assets resulting from the impact of tax reform in the U.S. See Note 7 for additional information regarding the reduction in the corporate tax rate in the U.S.

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

	Years ended March 31,
Capital expenditures:	2018		2017		2016
Americas	$	22.2	$	26.3	$	26.7
Europe		26.8		24.7		24.8
Asia		12.4		8.5		6.2
CIS		9.0		3.4		-
BHVAC		0.6		1.5		5.1
Total capital expenditures	$	71.0	$	64.4	$	62.8

	Years ended March 31,
Depreciation and amortization expense:	2018		2017		2016
Americas	$	22.2	$	22.7	$	22.1
Europe		18.4		16.5		18.0
Asia		7.6		7.0		6.5
CIS		24.3		7.9		-
BHVAC		4.2		4.2		3.6
Total depreciation and amortization expense	$	76.7	$	58.3	$	50.2

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

	Years ended March 31,
	2018		2017		2016
United States	$	911.4	$	657.8	$	627.6
Italy		211.5		94.4		44.1
China		156.0		73.7		29.3
Hungary		153.9		145.6		145.9
Austria		151.7		125.2		113.1
Germany		132.6		130.1		155.3
Other		386.0		276.2		237.2
Net sales	$	2,103.1	$	1,503.0	$	1,352.5

The following is a summary of property, plant and equipment by geographical area:

	March 31,
	2018		2017
United States	$	121.5	$	124.7
Italy		62.0		55.8
Hungary		59.3		37.7
China		49.6		40.0
Mexico		49.4		47.0
Austria		42.8		44.3
Germany		37.2		28.9
Other		82.5		80.6
Total property, plant and equipment	$	504.3	$	459.0

The following is a summary of net sales by end market:

	Years ended March 31,
	2018		2017		2016
Automotive	$	526.0	$	461.0	$	396.8
Commercial vehicle		381.7		382.5		459.8
Off-highway		271.2		202.8		206.2
Other vehicular		61.9		55.8		57.6
Commercial & residential air conditioning		371.3		136.5		48.8
Commercial refrigeration		158.7		52.2		-
Other HVAC&R		332.3		212.2		183.3
Net sales	$	2,103.1	$	1,503.0	$	1,352.5