Segment and Geographic Information

12 Months Ended

Mar. 31, 2023

Segment and Geographic Information [Abstract]

Segment and Geographic Information

Note 22:  Segment and Geographic Information

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

The Company’s Climate Solutions segment provides heat transfer products, heating, ventilating, air conditioning and refrigeration products and data center cooling solutions to global customers. The Company’s Performance Technologies segment designs and manufactures air-and liquid-cooled technology for vehicular, stationary power, and industrial applications. In addition, the Performance Technologies segment provides advanced thermal solutions to zero-emission and hybrid commercial vehicle and automotive customers and coatings products and application services.

Each operating segment is managed by a 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 April 1, 2022, the Company began managing its operations under two operating segments, Climate Solutions and Performance Technologies. The Climate Solutions segment includes the previously-reported BHVAC and CIS segments, with the exception of CIS Coatings. The Performance Technologies segment includes the previously-reported HDE and Automotive segments and the CIS Coatings business. See Note 3 for information regarding the primary operating activities of each segment. The Company’s new segment structure aligns businesses serving similar or complimentary end markets, products and technologies under common segment management. The Company believes this simplified segment structure allows it to better focus resources on targeted growth opportunities and allows for an efficient application of 80/20 principles across all product lines to optimize profit margins and cash flow. The segment realignment had no impact on the Company’s consolidated financial position, results of operations, and cash flows. Segment financial information for the prior periods has been recast to conform to the current 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 product groups within each segment.

	Year ended March 31, 2023
	External Sales		Inter-segment Sales			Total
Net sales:
Climate Solutions	$	1,011.5	$	0.4		$	1,011.9
Performance Technologies		1,286.4		29.8			1,316.2
Segment total		2,297.9		30.2			2,328.1
Corporate and eliminations		-		(30.2	)		(30.2	)
Net sales	$	2,297.9	$	-		$	2,297.9

	Year ended March 31, 2022
	External Sales		Inter-segment Sales			Total
Net sales:
Climate Solutions	$	910.1	$	0.4		$	910.5
Performance Technologies		1,140.0		32.4			1,172.4
Segment total		2,050.1		32.8			2,082.9
Corporate and eliminations		-		(32.8	)		(32.8	)
Net sales	$	2,050.1	$	-		$	2,050.1

	Year ended March 31, 2021
	External Sales		Inter-segment Sales			Total
Net sales:
Climate Solutions	$	731.1	$	0.1		$	731.2
Performance Technologies		1,077.3		31.5			1,108.8
Segment total		1,808.4		31.6			1,840.0
Corporate and eliminations		-		(31.6	)		(31.6	)
Net sales	$	1,808.4	$	-		$	1,808.4

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,
	2023						2022					2021
Gross profit:	_$’s			% of sales			_$’s		% of sales			_$’s			% of sales
Climate Solutions	$	223.6			22.1	%	$	166.3		18.3	%	$	136.6			18.7	%
Performance Technologies		166.1			12.6	%		142.2		12.1	%		157.1			14.2	%
Segment total		389.7			16.7	%		308.5		14.8	%		293.7			16.0	%
Corporate and eliminations		(0.3	)		-			0.8		-			(0.3	)		-
Gross profit	$	389.4			16.9	%	$	309.3		15.1	%	$	293.4			16.2	%

	Years ended March 31,
Operating income:	2023			2022			2021
Climate Solutions	$	124.1		$	73.4		$	49.9
Performance Technologies		65.6			77.4			(109.1	)
Segment total		189.7			150.8			(59.2	)
Corporate and eliminations (a)		(39.3	)		(31.6	)		(38.5	)
Operating income (loss)	$	150.4		$	119.2		$	(97.7	)

(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.

The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets:

	March 31,
Assets:	2023		2022
Climate Solutions	$	334.8	$	291.7
Performance Technologies		388.1		357.0
Other (a)		843.0		778.3
Total assets	$	1,565.9	$	1,427.0

(a) Represents cash and cash equivalents, other current assets, property plant and equipment, intangible assets, goodwill, deferred income taxes, and other noncurrent assets for the Climate Solutions and Performance Technologies segments and Corporate.

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

	Years ended March 31,
Capital expenditures:	2023		2022		2021
Climate Solutions	$	24.2	$	9.9	$	7.2
Performance Technologies		25.2		29.2		25.0
Corporate		1.3		1.2		0.5
Total capital expenditures	$	50.7	$	40.3	$	32.7

	Years ended March 31,
Depreciation and amortization expense:	2023		2022		2021
Climate Solutions	$	21.7	$	23.6	$	24.9
Performance Technologies (a)		31.8		29.9		42.1
Corporate		1.0		1.3		1.6
Total depreciation and amortization expense	$	54.5	$	54.8	$	68.6

(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 geographic area, based upon the location of the selling unit:

	Years ended March 31,
	2023		2022		2021
United States	$	1,139.3	$	949.6	$	765.7
Italy		249.5		232.0		188.6
Hungary		210.7		185.2		153.7
China		151.6		166.0		217.6
Brazil		103.6		81.2		48.5
United Kingdom		93.6		118.6		96.4
Other		349.6		317.5		337.9
Net sales	$	2,297.9	$	2,050.1	$	1,808.4

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

	March 31,
	2023		2022
United States	$	96.4	$	83.6
Hungary		40.8		44.0
China		40.2		45.6
Mexico		34.0		38.5
Italy		32.8		33.2
Other		70.3		70.5
Total property, plant and equipment	$	314.5	$	315.4