Segment and Geographic Information

12 Months Ended

Mar. 31, 2022

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 in North America and Europe, as well as the Middle East.  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.  Financial results, including net sales, gross profit, gross margin and operating income, together with other considerations, are used by the chief operating decision maker in evaluating the performance of each segment and in making decisions on the allocation of resources among the Company’s various businesses.

Effective July 1, 2021, the Company aligned the data center businesses previously managed by and reported within the CIS segment under the BHVAC segment.  The BHVAC segment assumed management of the Company’s business in Guadalajara, Spain and a portion of the business in Grenada, Mississippi.  Through this segment change, the Company aligned its data center businesses under the same leadership team to accelerate commercial excellence, operational improvements, and organizational efficiencies.  As a result, the Company revised its reporting segments and reported the financial results of the transferred businesses within the BHVAC segment, consistent with how the Company’s chief operating decision maker assessed operating performance and allocated capital resources.  The segment realignment had no impact on the HDE and Automotive segments or on the Company’s consolidated financial position, results of operations, and cash flows.  Segment financial information for fiscal 2021 and 2020 has been recast to conform to the fiscal 2022 presentation.

Effective April 1, 2022, the Company began managing the Company under two operating segments, Climate Solutions and Performance Technologies.  The Climate Solutions segment includes the BHVAC and CIS segment businesses with the exception of CIS Coatings.  The Performance Technologies segment includes the HDE and Automotive segment businesses and the CIS Coatings business.  The Company’s new segment structure aligns businesses serving similar or complimentary end markets, products and technologies under common segment management.  The Company expects this simplified segment structure will allow it to better focus resources on targeted growth opportunities and allow for a more efficient application of 80/20 principles across all product lines to optimize profit margins and cash flow.  Beginning for fiscal 2023, the Company will report the financial results of the Climate Solutions and Performance Technologies segments.

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, 2022
	External Sales		Inter-segment Sales			Total
Net sales:
BHVAC	$	334.6	$	2.0		$	336.6
CIS		619.5		8.0			627.5
HDE		787.9		36.6			824.5
Automotive		308.1		5.2			313.3
Segment total		2,050.1		51.8			2,101.9
Corporate and eliminations		-		(51.8	)		(51.8	)
Net sales	$	2,050.1	$	-		$	2,050.1

	Year ended March 31, 2021
	External Sales		Inter-segment Sales			Total
Net sales:
BHVAC	$	262.0	$	1.2		$	263.2
CIS		506.4		6.0			512.4
HDE		648.3		33.8			682.1
Automotive		391.7		6.6			398.3
Segment total		1,808.4		47.6			1,856.0
Corporate and eliminations		-		(47.6	)		(47.6	)
Net sales	$	1,808.4	$	-		$	1,808.4

	Year ended March 31, 2020
	External Sales		Inter-segment Sales			Total
Net sales:
BHVAC	$	304.4	$	2.1		$	306.5
CIS		535.1		6.0			541.1
HDE		693.8		52.1			745.9
Automotive		442.2		2.7			444.9
Segment total		1,975.5		62.9			2,038.4
Corporate and eliminations		-		(62.9	)		(62.9	)
Net sales	$	1,975.5	$	-		$	1,975.5

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,
	2022					2021						2020
Gross profit:	_$’s		% of sales			_$’s			% of sales			_$’s			% of sales
BHVAC	$	93.6		27.8	%	$	85.3			32.4	%	$	100.2			32.7	%
CIS		88.5		14.1	%		64.2			12.5	%		64.3			11.9	%
HDE		87.2		10.6	%		88.4			13.0	%		96.6			13.0	%
Automotive		39.3		12.5	%		56.0			14.1	%		48.4			10.9	%
Segment total		308.6		14.7	%		293.9			15.8	%		309.5			15.2	%
Corporate and eliminations		0.7		-			(0.5	)		-			(2.0	)		-
Gross profit	$	309.3		15.1	%	$	293.4			16.2	%	$	307.5			15.6	%

	Years ended March 31,
Operating income:	2022			2021			2020
BHVAC	$	45.7		$	45.2		$	58.2
CIS		35.3			10.2			11.1
HDE		34.6			36.8			37.8
Automotive		35.4			(150.9	)		(10.0	)
Segment total		151.0			(58.7	)		97.1
Corporate and eliminations (a)		(31.8	)		(39.0	)		(59.2	)
Operating income (loss)	$	119.2		$	(97.7	)	$	37.9

(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 2022, 2021, and 2020, the Company recorded $2.6 million, $6.6 million, and $39.2 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,
Total assets:	2022			2021
BHVAC	$	224.3		$	181.1
CIS		536.4			540.1
HDE		488.9			438.7
Automotive (a)		188.6			124.2
Corporate and eliminations (b)		(11.2	)		(7.4	)
Total assets	$	1,427.0		$	1,276.7

(a) During fiscal 2022, the Company recorded net impairment reversals totaling $56.0 million  related to the liquid-cooled automotive business.  See Note 2 for additional information.

(b) At March 31, 2022 and 2021, Corporate assets totaled $20.8 million and $17.5 million, respectively and were more than offset by eliminations for intercompany balances, including accounts receivable.

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

	Years ended March 31,
Capital expenditures:	2022		2021		2020
BHVAC	$	6.0	$	1.8	$	4.5
CIS		4.9		5.8		13.6
HDE		15.4		13.5		31.5
Automotive		12.8		11.1		19.1
Corporate		1.2		0.5		2.6
Total capital expenditures	$	40.3	$	32.7	$	71.3

	Years ended March 31,
Depreciation and amortization expense:	2022		2021		2020
BHVAC	$	5.9	$	5.5	$	6.2
CIS		20.5		22.6		21.2
HDE		23.4		25.5		25.4
Automotive (a)		3.4		13.2		22.3
Corporate		1.6		1.8		2.0
Total depreciation and amortization expense	$	54.8	$	68.6	$	77.1

(a) During fiscal 2021, 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.  In fiscal 2022, the Company resumed depreciating the long-lived assets within the liquid-cooled automotive business when it no longer met the requirements to be classified as held for sale.  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,
	2022		2021		2020
United States	$	949.6	$	765.7	$	941.9
Italy		232.0		188.6		187.4
Hungary		185.2		153.7		142.4
China		166.0		217.6		168.5
United Kingdom		118.6		96.4		82.0
Germany		81.2		83.4		97.5
Austria		4.8		59.6		93.0
Other		312.7		243.4		262.8
Net sales	$	2,050.1	$	1,808.4	$	1,975.5

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

	March 31,
	2022		2021
United States	$	83.6	$	80.3
China		45.6		31.3
Hungary		44.0		27.6
Mexico		38.5		43.5
Italy		33.2		30.0
Germany		12.5		1.8
Other		58.0		55.4
Total property, plant and equipment (a)	$	315.4	$	269.9

(a) As of March 31, 2021, the Company had written-down the carrying value of held for sale property, plant and equipment within the liquid-cooled automotive business to zero.  During fiscal 2022, the business no longer met the requirements to be classified as held for sale.  As a result, the Company remeasured its long-lived assets to the lower of carrying value or fair value and recorded net impairment reversals totaling $56.0 million during fiscal 2022.  The assets within the liquid-cooled automotive business are located in Hungary, Germany, China, the U.S., Italy, and the Netherlands.  See Note 2 for additional information.