XML 33 R23.htm IDEA: XBRL DOCUMENT v3.23.2
Industry Segments
6 Months Ended
Jun. 30, 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
   
Six Months Ended
 
    June 30,    
June 30,
 
 
 
2023
   
2022
    2023     2022  
Net Sales (a)
                       
Vehicle Control
 
$
183,789
   
$
185,771
   
$
368,366
   
$
363,035
 
Temperature Control
    97,074       105,637       169,480       178,695  
Engineered Solutions
   
72,212
     
68,004
     
143,257
     
140,513
 
Other
   
     
     
     
 
Consolidated
 
$
353,075
   
$
359,412
   
$
681,103
   
$
682,243
 
 
                               
Operating Income
                               
Vehicle Control
 
$
19,273
   
$
16,059
   
$
36,648
   
$
36,403
 
Temperature Control
    5,800       10,523       7,884       14,685  
Engineered Solutions
   
6,163
     
5,109
     
11,810
     
11,397
 
Other
   
(4,058
)
   
(3,798
)
   
(8,418
)
   
(7,677
)
Consolidated
 
$
27,178
   
$
27,893
   
$
47,924
   
$
54,808
 

(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.”