Segment and Geographic Information

12 Months Ended

Mar. 31, 2021

Segment and Geographic Information [Abstract]

Segment and Geographic Information

Note 22:  Segment and Geographic Information

The Company’s product lines consist of heat-transfer components and systems.  The Company serves commercial, industrial, and building HVAC&R markets and vehicular markets.

The Company’s BHVAC segment provides heating, ventilating and air conditioning products to customers throughout the world.  The Company’s CIS segment provides coils, coolers, and coating solutions to global customers.  The Company’s HDE and Automotive segments represent its vehicular businesses and primarily serve the commercial vehicle, off-highway and automotive and light vehicle markets.  In addition, the HDE segment serves the commercial vehicle and automotive aftermarkets in Brazil.

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, 2020, the Company began managing its global automotive business separate from the other businesses within the previously reported Vehicular Thermal Solutions (“VTS”) segment.  The Company is managing the automotive business as the Automotive segment as it progresses towards the sale or eventual exit of its underlying automotive business operations.  The other businesses of the VTS segment, including the commercial vehicle and off-highway businesses, are being managed as the HDE segment.  The segment realignment had no impact on the CIS and BHVAC segments or on the Company’s consolidated financial position, results of operations, and cash flows.  Segment financial information for fiscal 2020 and 2019 has been recast to conform to the fiscal 2021 presentation.

The following is a summary of net sales, gross profit, and operating income by segment.  See Note 3 for additional information regarding net sales by primary end market.

	Year ended March 31, 2021
	External Sales		Inter-segment Sales			Total
Net sales:
BHVAC	$	240.3	$	0.3		$	240.6
CIS		528.1		3.9			532.0
HDE		648.3		33.8			682.1
Automotive		391.7		6.6			398.3
Segment total		1,808.4		44.6			1,853.0
Corporate and eliminations		-		(44.6	)		(44.6	)
Net sales	$	1,808.4	$	-		$	1,808.4

	Year ended March 31, 2020
	External Sales		Inter-segment Sales			Total
Net sales:
BHVAC	$	219.4	$	1.7		$	221.1
CIS		620.1		3.8			623.9
HDE		693.8		52.1			745.9
Automotive		442.2		2.7			444.9
Segment total		1,975.5		60.3			2,035.8
Corporate and eliminations		-		(60.3	)		(60.3	)
Net sales	$	1,975.5	$	-		$	1,975.5

	Year ended March 31, 2019
	External Sales		Inter-segment Sales			Total
Net sales:
BHVAC	$	209.1	$	3.3		$	212.4
CIS		704.7		2.9			707.6
HDE		811.8		60.5			872.3
Automotive		487.1		1.8			488.9
Segment total		2,212.7		68.5			2,281.2
Corporate and eliminations		-		(68.5	)		(68.5	)
Net sales	$	2,212.7	$	-		$	2,212.7

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.

	Years ended March 31,
	2021						2020						2019
Gross profit:	_$’s			% of sales			_$’s			% of sales			_$’s		% of sales
BHVAC	$	83.0			34.5	%	$	71.5			32.3	%	$	63.4		29.9	%
CIS		66.5			12.5	%		92.9			14.9	%		114.9		16.2	%
HDE		88.4			13.0	%		96.6			13.0	%		127.8		14.7	%
Automotive		56.0			14.1	%		48.4			10.9	%		59.0		12.1	%
Segment total		293.9			15.9	%		309.4			15.2	%		365.1		16.0	%
Corporate and eliminations		(0.5	)		-			(1.9	)		-			0.4		-
Gross profit	$	293.4			16.2	%	$	307.5			15.6	%	$	365.5		16.5	%

	Years ended March 31,
Operating income:	2021			2020			2019
BHVAC	$	47.2		$	36.4		$	26.9
CIS		8.2			32.9			53.4
HDE		36.8			37.8			65.0
Automotive		(150.9	)		(10.0	)		(0.4	)
Segment total		(58.7	)		97.1			144.9
Corporate and eliminations (a)		(39.0	)		(59.2	)		(35.2	)
Operating (loss) income	$	(97.7	)	$	37.9		$	109.7

(a) 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. During fiscal 2021, 2020 and 2019, the Company recorded $6.6 million, $39.2 million, and $7.1 million respectively, of costs directly associated with its review of strategic alternatives for the liquid-and air-cooled automotive businesses, including costs to separate and prepare the underlying businesses for potential sale.

The following is a summary of total assets by segment:

	March 31,
	2021			2020
BHVAC	$	110.8		$	102.3
CIS		609.2			617.7
HDE		438.7			417.4
Automotive (a)		124.2			272.5
Corporate and eliminations (b)		(6.2	)		126.2
Total assets	$	1,276.7		$	1,536.1

(a) During fiscal 2021, the Company recorded impairment charges totaling $166.8 million within the Automotive segment, primarily related to the property, plant and equipment of the liquid- and air-cooled automotive businesses, which are classified as held for sale as of March 31, 2021.  See Note 2 for additional information.

(b) At March 31, 2021, Corporate assets totaled $17.5 million and were more than offset by eliminations for intercompany balances, including accounts receivable.  During fiscal 2021, the Company recorded income tax charges totaling $103.3 million, which established a full valuation allowance on deferred tax assets in the U.S that are recorded at Corporate.  See Note 8 for additional information. 

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

	Years ended March 31,
Capital expenditures:	2021		2020		2019
BHVAC	$	1.5	$	3.1	$	1.3
CIS		6.1		15.0		16.4
HDE		13.5		31.5		29.4
Automotive		11.1		19.1		24.9
Corporate		0.5		2.6		1.9
Total capital expenditures	$	32.7	$	71.3	$	73.9

	Years ended March 31,
Depreciation and amortization expense:	2021		2020		2019
BHVAC	$	3.1	$	3.4	$	3.5
CIS		25.0		24.0		23.9
HDE		25.5		25.4		26.3
Automotive (a)		13.2		22.3		21.2
Corporate		1.8		2.0		2.0
Total depreciation and amortization	$	68.6	$	77.1	$	76.9

(a) Upon classifying the liquid- and air-cooled automotive businesses as held for sale, the Company ceased depreciating  the long-lived assets within the disposal groups.  See Note 2 for additional information.

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

	Years ended March 31,
	2021		2020		2019
United States	$	765.7	$	941.9	$	1,032.3
China		217.6		168.5		172.1
Italy		188.6		187.4		217.3
Hungary		153.7		142.4		165.6
United Kingdom		96.4		82.0		86.6
Germany		83.4		97.5		123.1
Austria		59.6		93.0		116.2
Other		243.4		262.8		299.5
Net sales	$	1,808.4	$	1,975.5	$	2,212.7

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

	March 31,
	2021		2020
United States	$	80.3	$	114.6
Mexico		43.5		50.0
China		31.3		56.8
Italy		30.0		49.8
Hungary		27.6		55.4
Germany		1.8		27.0
Austria		-		26.0
Other		55.4		68.4
Total property, plant and equipment (a)	$	269.9	$	448.0

(a) In connection with the pending sales of the liquid- and air-cooled automotive businesses within the Automotive segment, the Company wrote-down the carrying value of the disposal groups’ property, plant and equipment to zero as of March 31, 2021.  The assets impaired were located in Hungary, Germany, Austria, China, the U.S., Italy, and the Netherlands.  See Note 2 for additional information on the held for sale businesses and impairment charges recorded during fiscal 2021.