Industry Segments

3 Months Ended

Mar. 31, 2023

Industry Segments [Abstract]

Industry Segments

Note 16. Industry Segments

Beginning on January 1, 2023, we reorganized our business into three operating segments – Engineered Solutions, Vehicle Control and Temperature Control. The new operating segment structure provides clarity regarding the unique dynamics and margin profiles of the markets served by each segment, better aligns our operating segments with our strategic focus on diversification, and provides greater transparency into our positioning to capture growth opportunities in the future.

Engineered Solutions is a new operating segment created by carving out all non-aftermarket business from our prior Engine Management and Temperature Control operating segments.  Our Engineered Solutions segment supplies custom-engineered solutions to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine.

Vehicle Control is the new name for our Engine Management operating segment.  It includes our core aftermarket business after carving out all non-aftermarket business to our Engineered Solutions operating segment.  The Vehicle Control operating segment includes sales from ignition, emissions, and fuel delivery, electrical and safety, and wire sets and other product categories.

Temperature Control is our ongoing operating segment, after the carve out of all non-aftermarket business to our Engineered Solutions operating segment, that derives its sales from air conditioning system components and other thermal product categories.  Our Temperature Control operating segment is poised to benefit from the broader adoption of air conditioning and other thermal systems.

The following tables show our net sales and operating income for each reportable operating segment (in thousands):

	Three Months Ended March 31,
	2023			2022
Net Sales (a)
Vehicle Control	$	184,577		$	177,264
Temperature Control		72,406			73,058
Engineered Solutions		71,045			72,509
Other		—			—
Consolidated	$	328,028		$	322,831
Operating Income (Loss)
Vehicle Control	$	17,375		$	20,344
Temperature Control		2,084			4,162
Engineered Solutions		5,647			6,288
Other		(4,360	)		(3,879	)
Consolidated	$	20,746		$	26,915

(a) There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments.

For the disaggregation of our net sales from contracts with customers by major product group and geographic area within each of our operating segments, see Note 17, “Net Sales.”