Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segments

Segments

ASC 280, Segment Reporting, establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in ASC 280, the Company has determined that it has three reportable segments for financial reporting purposes. Management evaluates the performance of its business segments primarily on gross profit.

Beginning in the fourth quarter of 2021, due to the acquisition of BasX and internal leadership reporting changes, the Company reevaluated its reportable segments for disclosure purposes. The Company has conformed its segment reporting accordingly and has reclassified comparative prior period information to reflect this change. The Company's chief decision maker ("CODM"), our CEO, allocates resources and assesses the performance of each operating segment using information about the operating segment's net sales and income from operations. The CODM does not evaluate operating segments using asset or liability information.

AAON Oklahoma: AAON Oklahoma designs, manufactures, sells and services standard, semi-custom and custom HVAC systems, designs and produces controls solutions for all of our HVAC units and sells retail parts to customers through our two retail part stores. Through the NAIC research and development laboratory facility, AAON Oklahoma is able test units units under various environmental conditions. AAON Oklahoma includes the operations of both our Tulsa, Oklahoma and Parkville, Missouri facilities, our NAIC research and development laboratory facility and two retail parts locations.

AAON Coil Products: AAON Coil Products designs and manufactures a selection of our standard, semi-custom and custom HVAC systems. In addition, AAON Coil Products designs and manufactures various heating and cooling coils to be used in HVAC systems, mostly for the benefit of AAON Oklahoma and AAON Coil Products. AAON Coil Products consists of operations at our Longview, Texas facilities.

BasX: BasX provides product development design and manufacturing of custom engineered air handling systems including high efficiency data center cooling solutions, cleanroom solutions, HVAC systems and modular solutions. BasX consists of operations at our Redmond, Oregon facility.

The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. The “Other and eliminations” category in the Total Assets table below includes assets at our non-operating entity AAON, Inc., Nevada corporation, that are not allocated to the reportable segments, as well as intercompany eliminations.

	Years Ended December 31,
	2021		2020		2019
	(in thousands)
Net Sales
AAON Oklahoma
External sales	$	463,845	$	458,957	$	418,669
Inter-segment sales	2,504		2,683		2,261
AAON Coil Products
External sales	66,589		55,594		50,664
Inter-segment sales	24,250		21,552		25,792
BasX1	4,083		—		—
Eliminations	(26,754)		(24,235)		(28,053)
Net sales	$	534,517	$	514,551	$	469,333
Gross Profit
AAON Oklahoma	$	126,868	$	140,099	$	107,228
AAON Coil Products	10,075		15,750		12,197
BasX1	887		—		—
Gross profit	$	137,830	$	155,849	$	119,425

	December 31,
	2021		2020
	(in thousands)
Long-lived assets
AAON Oklahoma	$	183,840	$	170,603
AAON Coil Products	62,534		54,308
BasX1	28,662		—
Total long-lived assets	$	275,036	$	224,911
Intangible assets and goodwill
AAON Oklahoma	$	3,229	$	3,267
AAON Coil Products	—		—
BasX1	152,619		—
Total intangible assets and goodwill	$	155,848	$	3,267
1 BasX was acquired on December 10, 2021. We have included the results of BasX's operations in our consolidated financial statements beginning December 11, 2021.