Revenue Recognition

9 Months Ended

Dec. 31, 2021

Revenue Recognition [Abstract]

Revenue Recognition

Note 3: Revenue Recognition

Disaggregation of Revenue

The table below presents revenue for each of the Company’s business segments, Building HVAC Systems (“BHVAC”), CIS, Heavy Duty Equipment (“HDE”) and Automotive.  Each segment’s revenue is disaggregated by primary end market, by geographic location and based upon the timing of revenue recognition and includes inter-segment sales.

Effective July 1, 2021, the Company aligned the data center businesses previously managed by and reported within the CIS segment under the BHVAC segment; see Note 20 for additional information regarding the Company’s operating segments.  In connection with this segment realignment, the Company also reassessed end market classifications within the impacted businesses.  The primary end market revenue information presented in the tables below for fiscal 2021 has been recast to conform to the Company’s new classifications for its end markets.

	Three months ended December 31, 2021										Three months ended December 31, 2020
	BHVAC		CIS		HDE		Automotive		Segment Total		BHVAC		CIS		HDE		Automotive		Segment Total
Primary end market:
Commercial HVAC&R	$	66.1	$	129.6	$	-	$	-	$	195.7	$	60.9	$	105.1	$	-	$	-	$	166.0
Data center cooling		24.2		-		-		-		24.2		12.6		-		-		-		12.6
Industrial cooling		-		16.9		-		-		16.9		-		17.5		-		-		17.5
Commercial vehicle		-		-		77.7		3.1		80.8		-		-		67.0		5.5		72.5
Off-highway		-		-		80.6		1.1		81.7		-		-		68.3		0.8		69.1
Automotive and light vehicle		-		-		21.1		66.7		87.8		-		-		28.8		105.4		134.2
Other		0.3		2.1		21.4		1.5		25.3		0.2		2.3		21.5		2.2		26.2
Net sales	$	90.6	$	148.6	$	200.8	$	72.4	$	512.4	$	73.7	$	124.9	$	185.6	$	113.9	$	498.1
Geographic location:
Americas	$	55.0	$	79.4	$	124.7	$	8.0	$	267.1	$	45.0	$	66.8	$	107.9	$	14.8	$	234.5
Europe		35.6		63.1		36.2		49.2		184.1		28.7		47.9		35.0		80.9		192.5
Asia		-		6.1		39.9		15.2		61.2		-		10.2		42.7		18.2		71.1
Net sales	$	90.6	$	148.6	$	200.8	$	72.4	$	512.4	$	73.7	$	124.9	$	185.6	$	113.9	$	498.1
Timing of revenue recognition:
Products transferred at a point in time	$	86.6	$	138.6	$	192.2	$	72.4	$	489.8	$	73.3	$	115.8	$	177.6	$	113.9	$	480.6
Products transferred over time		4.0		10.0		8.6		-		22.6		0.4		9.1		8.0		-		17.5
Net sales	$	90.6	$	148.6	$	200.8	$	72.4	$	512.4	$	73.7	$	124.9	$	185.6	$	113.9	$	498.1

	Nine months ended December 31, 2021										Nine months ended December 31, 2020
	BHVAC		CIS		HDE		Automotive		Segment Total		BHVAC		CIS		HDE		Automotive		Segment Total
Primary end market:
Commercial HVAC&R	$	173.4	$	396.5	$	-	$	-	$	569.9	$	148.9	$	309.0	$	-	$	-	$	457.9
Data center cooling		59.7		-		-		-		59.7		46.7		-		-		-		46.7
Industrial cooling		-		50.9		-		-		50.9		-		53.2		-		-		53.2
Commercial vehicle		-		-		233.8		10.8		244.6		-		-		174.8		11.4		186.2
Off-highway		-		-		237.5		3.5		241.0		-		-		179.8		2.3		182.1
Automotive and light vehicle		-		-		61.9		205.6		267.5		-		-		69.8		257.4		327.2
Other		1.6		8.8		65.2		4.1		79.7		0.7		7.4		50.3		14.8		73.2
Net sales	$	234.7	$	456.2	$	598.4	$	224.0	$	1,513.3	$	196.3	$	369.6	$	474.7	$	285.9	$	1,326.5
Geographic location:
Americas	$	131.6	$	244.7	$	371.0	$	25.0	$	772.3	$	109.5	$	194.8	$	274.4	$	39.2	$	617.9
Europe		103.1		189.4		112.8		158.1		563.4		86.8		139.4		91.2		195.9		513.3
Asia		-		22.1		114.6		40.9		177.6		-		35.4		109.1		50.8		195.3
Net sales	$	234.7	$	456.2	$	598.4	$	224.0	$	1,513.3	$	196.3	$	369.6	$	474.7	$	285.9	$	1,326.5
Timing of revenue recognition:
Products transferred at a point in time	$	226.0	$	421.8	$	572.7	$	224.0	$	1,444.5	$	190.6	$	341.4	$	456.3	$	285.9	$	1,274.2
Products transferred over time		8.7		34.4		25.7		-		68.8		5.7		28.2		18.4		-		52.3
Net sales	$	234.7	$	456.2	$	598.4	$	224.0	$	1,513.3	$	196.3	$	369.6	$	474.7	$	285.9	$	1,326.5

Contract Balances

Contract assets and contract liabilities from contracts with customers were as follows:

	December 31, 2021		March 31, 2021
Contract assets	$	18.0	$	5.7
Contract liabilities		9.9		5.6

At March 31, 2021, $7.1 million and $2.9 million of contract assets and contract liabilities, respectively, were classified as held for sale and excluded from the amounts above.  See Note 2 for additional information.

Contract assets, included within other current assets in the consolidated balance sheets, primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the customer has guaranteed reimbursement, and assets recorded for revenue recognized over time, which represent the Company’s rights to consideration for work completed but not yet billed.  The $12.3 million increase in contract assets during the first nine months of fiscal 2022 primarily resulted from the reclassification of contract assets previously held for sale and an increase in contract assets for revenue recognized over time.

Contract liabilities, included within other current liabilities in the consolidated balance sheets, consist of payments received in advance of satisfying performance obligations under customer contracts, including contracts for customer-owned tooling.  The $4.3 million increase in contract liabilities during the first nine months of fiscal 2022 primarily resulted from the reclassification of contract liabilities previously held for sale and payments received in advance of the Company’s satisfaction of performance obligations.