Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate and report our results in three business segments, Light Duty, Heavy Duty, and Specialty Vehicle, consistent with the three sectors of the motor vehicle aftermarket industry in which we participate. The Light Duty segment designs and markets replacement parts and fasteners primarily for passenger cars and light trucks with sales to retailers and wholesale distributors who primarily serve passenger car and light truck customers. The Heavy Duty segment designs and markets replacement parts primarily for medium and heavy trucks with sales to independent distributors, independent component specialists and rebuilders, and auto parts stores that focus on the heavy-duty market. The Specialty Vehicle segment designs, markets, and manufactures aftermarket parts and accessories for the powersports market with sales through direct-to-consumer, dealers, and installers.

The Company's chief operating decision maker ("CODM") is the chief executive officer. The CODM uses income from operations to assess segment performance. The CODM utilizes this measure for each segment in the annual budget and forecasting cycles and considers performance against established targets for purposes of allocating Company resources to each segment and in the determination of compensation for certain Contributors. We measure segment income from operations based on income from operations excluding acquisition-related intangible assets amortization, acquisition-related transaction and other costs, and other special charges. Corporate expenses are allocated to the segments based on segment net sales as a percentage of consolidated net sales. Segment assets consist of inventories, accounts receivable, and property, plant and equipment, net. Intersegment sales are not material.

Segment results are as follows:

	For the Year Ended December 31, 2024
(in thousands)	Light Duty		Heavy Duty		Specialty Vehicle		Total
Net sales	$	1,565,601	$	231,515	$	212,081	$	2,009,197
Cost of goods sold	925,319		171,732		104,994		1,202,045
Factoring expense	51,252		—		—		51,252
Other segment expenses	304,866		53,303		74,752		432,921
Segment income from operations	$	284,164	$	6,480	$	32,335	$	322,979
Segment assets	$	1,203,165	$	157,493	$	85,606	$	1,446,264
Depreciation	$	26,485	$	3,725	$	3,750	$	33,960
Capital expenditures	$	34,164	$	2,421	$	2,836	$	39,421
	For the Year Ended December 31, 2023
(in thousands)	Light Duty		Heavy Duty		Specialty Vehicle		Total
Net sales	$	1,462,474	$	256,913	$	210,401	$	1,929,788
Cost of goods sold	928,983		192,729		110,840		1,232,552
Factoring expense	50,231		—		—		50,231
Other segment expenses	296,101		49,679		67,943		413,723
Segment income from operations	$	187,159	$	14,505	$	31,618	$	233,282
Segment assets	$	1,083,347	$	162,583	$	78,424	$	1,324,354
Depreciation	$	25,239	$	3,239	$	3,420	$	31,898
Capital expenditures	$	33,445	$	3,581	$	6,942	$	43,968
	For the Year Ended December 31, 2022
(in thousands)	Light Duty		Heavy Duty		Specialty Vehicle		Total
Net sales	$	1,425,892	$	258,215	$	49,642	$	1,733,749
Cost of goods sold	949,918		183,233		25,078		1,158,229
Factoring expense	37,188		—		—		37,188
Other segment expenses	269,207		45,244		16,027		330,478
Segment income from operations	$	169,579	$	29,738	$	8,537	$	207,854
Segment assets	$	1,047,987	$	177,557	$	106,219	$	1,331,763
Depreciation	$	25,062	$	2,772	$	798	$	28,632
Capital expenditures	$	31,682	$	4,769	$	1,432	$	37,883

In the preceding segment tables, Other segment expenses consist of selling, general and administrative expenses including salaries and benefits for product development, research, sales, marketing and administrative functions, facility costs, information technology costs, and other general expenses.

A reconciliation of segment income from operations to consolidated income before income taxes is as follows:

	For the Year Ended December 31,
(in thousands)	2024		2023		2022
Segment income from operations	$	322,979	$	233,282	$	207,854
Acquisition-related intangible assets amortization	(22,476)		(21,817)		(14,070)
Acquisition-related transaction and other costs	(2,621)		(15,373)		(22,736)
Fair value adjustment to contingent consideration	—		20,469		—
Executive transition services expenses	—		(1,801)		—
Pretax reduction in workforce costs	(4,973)		—		—
Interest expense, net	(39,727)		(48,061)		(15,582)
Other income, net	3,070		1,804		735
Consolidated income before income taxes	$	256,252	$	168,503	$	156,201

A reconciliation of segment assets to consolidated assets is as follows:

	December 31,
(in thousands)	2024		2023		2022
Segment assets	$	1,446,264	$	1,324,354	$	1,331,763
Other current assets	87,968		69,468		85,834
Other non-current assets	890,289		898,585		924,189
Consolidated assets	$	2,424,521	$	2,292,407	$	2,341,786