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Segment and Geographic Information | 12 Months Ended
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Mar. 31, 2018
Segment and Geographic Information [Abstract] |
Segment and Geographic Information |
Note 20: | Segment and Geographic Information
The Company’s product lines consist of heat-transfer components and systems. The Company serves vehicular and commercial, industrial, and building HVAC&R markets. In November 2016, the Company acquired Luvata HTS and, commencing from the acquisition date, has operated and reported results for the acquired business as its CIS segment. See Note 2 for additional information regarding the Luvata HTS acquisition. The Company’s Americas, Europe, and Asia segments represent its vehicular businesses and primarily serve the automotive, commercial vehicle, and off-highway markets. In addition, the Americas segment serves the automotive and commercial vehicle aftermarket in Brazil and provides coils to the commercial HVAC&R market in North America. The Company’s CIS segment provides coils, coolers, and coating solutions to customers throughout the world. The Company’s BHVAC segment provides heating, ventilating and air conditioning products to customers throughout the world. Each operating segment is managed by a vice president and has separate financial results reviewed by the Company’s chief operating decision maker. These results are used by management 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, 2018, the Company combined its Americas, Europe, and Asia segment operations with the objective of operating as a more global, product-based organization. As part of this segment combination and its CIS integration activities, the Company also merged its Americas coils business into the CIS segment and expects to achieve operational improvements and organizational efficiencies as a result. Beginning for fiscal 2019, the Company will report financial results for the new Vehicular Thermal Solutions segment, which will include the current Americas, Europe and Asia segments. The following is a summary of net sales, gross profit, and operating income by segment:
|  | Years ended March 31, |
Net sales: |  | 2018 |  |  | 2017 |  |  | 2016 |
Americas |  | $ | 580.7 |  |  | $ | 534.0 |  |  | $ | 585.5 |
Europe |  |  | 568.3 |  |  |  | 524.3 |  |  |  | 524.1 |
Asia |  |  | 165.8 |  |  |  | 111.5 |  |  |  | 79.0 |
CIS |  |  | 620.0 |  |  |  | 177.7 |  |  |  | - |
BHVAC |  |  | 191.2 |  |  |  | 171.6 |  |  |  | 181.4 |
Segment total |  |  | 2,126.0 |  |  |  | 1,519.1 |  |  |  | 1,370.0 |
Corporate and eliminations |  |  | (22.9 | ) |  |  | (16.1 | ) |  |  | (17.5 | )
Net sales |  | $ | 2,103.1 |  |  | $ | 1,503.0 |  |  | $ | 1,352.5 |
|  | Years ended March 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Gross profit: |  | $'s |  |  | % of sales |  |  | $'s |  |  | % of sales |  |  | $'s |  |  | % of sales |
Americas |  | $ | 91.9 |  |  |  | 15.8 | % |  | $ | 87.0 |  |  |  | 16.3 | % |  | $ | 100.3 |  |  |  | 17.1 | %
Europe |  |  | 83.8 |  |  |  | 14.7 | % |  |  | 81.6 |  |  |  | 15.6 | % |  |  | 69.5 |  |  |  | 13.3 | %
Asia |  |  | 30.3 |  |  |  | 18.3 | % |  |  | 18.7 |  |  |  | 16.8 | % |  |  | 12.2 |  |  |  | 15.5 | %
CIS |  |  | 92.1 |  |  |  | 14.9 | % |  |  | 26.0 |  |  |  | 14.6 | % |  |  | - |  |  |  | - |
BHVAC |  |  | 58.0 |  |  |  | 30.3 | % |  |  | 47.8 |  |  |  | 27.8 | % |  |  | 54.2 |  |  |  | 29.9 | %
Segment total |  |  | 356.1 |  |  |  | 16.8 | % |  |  | 261.1 |  |  |  | 17.2 | % |  |  | 236.2 |  |  |  | 17.2 | %
Corporate and eliminations (a) |  |  | 0.4 |  |  |  | - |  |  |  | (6.7 | ) |  |  | - |  |  |  | (2.6 | ) |  |  | - |
Gross profit |  | $ | 356.5 |  |  |  | 17.0 | % |  | $ | 254.4 |  |  |  | 16.9 | % |  | $ | 233.6 |  |  |  | 17.3 | %
|  | Years ended March 31, |
Operating income: |  | 2018 |  |  | 2017 |  |  | 2016 |
Americas |  | $ | 38.2 |  |  | $ | 27.9 |  |  | $ | 36.9 |
Europe |  |  | 33.6 |  |  |  | 38.2 |  |  |  | 14.7 |
Asia |  |  | 17.6 |  |  |  | 7.7 |  |  |  | 0.8 |
CIS |  |  | 25.8 |  |  |  | 7.5 |  |  |  | - |
BHVAC |  |  | 20.3 |  |  |  | 13.2 |  |  |  | 13.9 |
Segment total |  |  | 135.5 |  |  |  | 94.5 |  |  |  | 66.3 |
Corporate and eliminations (a) |  |  | (43.3 | ) |  |  | (52.2 | ) |  |  | (29.2 | )
Operating income |  | $ | 92.2 |  |  | $ | 42.3 |  |  | $ | 37.1 |
| (a) | During fiscal 2018 and 2017, the Company recorded $4.3 million and $14.8 million, respectively, of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. During fiscal 2017, the Company recorded $4.3 million in cost of sales related to an inventory purchase accounting adjustment at Corporate, as the impact was excluded from the Company’s measure of segment operating performance.
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. 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 total assets by segment:
|  | March 31, |
|  | 2018 |  |  | 2017 |
Americas |  | $ | 290.6 |  |  | $ | 282.9 |
Europe |  |  | 324.0 |  |  |  | 269.4 |
Asia |  |  | 144.5 |  |  |  | 111.3 |
CIS |  |  | 630.0 |  |  |  | 576.0 |
BHVAC |  |  | 88.1 |  |  |  | 85.2 |
Corporate and eliminations (a) |  |  | 96.2 |  |  |  | 124.7 |
Total assets |  | $ | 1,573.4 |  |  | $ | 1,449.5 |
| (a) | The decrease in total assets at Corporate was primarily due to a decrease in deferred tax assets resulting from the impact of tax reform in the U.S. See Note 7 for additional information regarding the reduction in the corporate tax rate in the U.S.
The following is a summary of capital expenditures and depreciation and amortization expense by segment:
|  | Years ended March 31, |
Capital expenditures: |  | 2018 |  |  | 2017 |  |  | 2016 |
Americas |  | $ | 22.2 |  |  | $ | 26.3 |  |  | $ | 26.7 |
Europe |  |  | 26.8 |  |  |  | 24.7 |  |  |  | 24.8 |
Asia |  |  | 12.4 |  |  |  | 8.5 |  |  |  | 6.2 |
CIS |  |  | 9.0 |  |  |  | 3.4 |  |  |  | - |
BHVAC |  |  | 0.6 |  |  |  | 1.5 |  |  |  | 5.1 |
Total capital expenditures |  | $ | 71.0 |  |  | $ | 64.4 |  |  | $ | 62.8 |
|  | Years ended March 31, |
Depreciation and amortization expense: |  | 2018 |  |  | 2017 |  |  | 2016 |
Americas |  | $ | 22.2 |  |  | $ | 22.7 |  |  | $ | 22.1 |
Europe |  |  | 18.4 |  |  |  | 16.5 |  |  |  | 18.0 |
Asia |  |  | 7.6 |  |  |  | 7.0 |  |  |  | 6.5 |
CIS |  |  | 24.3 |  |  |  | 7.9 |  |  |  | - |
BHVAC |  |  | 4.2 |  |  |  | 4.2 |  |  |  | 3.6 |
Total depreciation and amortization expense |  | $ | 76.7 |  |  | $ | 58.3 |  |  | $ | 50.2 |
The following is a summary of net sales by geographical area, based upon the location of the selling unit:
|  | Years ended March 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
United States |  | $ | 911.4 |  |  | $ | 657.8 |  |  | $ | 627.6 |
Italy |  |  | 211.5 |  |  |  | 94.4 |  |  |  | 44.1 |
China |  |  | 156.0 |  |  |  | 73.7 |  |  |  | 29.3 |
Hungary |  |  | 153.9 |  |  |  | 145.6 |  |  |  | 145.9 |
Austria |  |  | 151.7 |  |  |  | 125.2 |  |  |  | 113.1 |
Germany |  |  | 132.6 |  |  |  | 130.1 |  |  |  | 155.3 |
Other |  |  | 386.0 |  |  |  | 276.2 |  |  |  | 237.2 |
Net sales |  | $ | 2,103.1 |  |  | $ | 1,503.0 |  |  | $ | 1,352.5 |
The following is a summary of property, plant and equipment by geographical area:
|  | March 31, |
|  | 2018 |  |  | 2017 |
United States |  | $ | 121.5 |  |  | $ | 124.7 |
Italy |  |  | 62.0 |  |  |  | 55.8 |
Hungary |  |  | 59.3 |  |  |  | 37.7 |
China |  |  | 49.6 |  |  |  | 40.0 |
Mexico |  |  | 49.4 |  |  |  | 47.0 |
Austria |  |  | 42.8 |  |  |  | 44.3 |
Germany |  |  | 37.2 |  |  |  | 28.9 |
Other |  |  | 82.5 |  |  |  | 80.6 |
Total property, plant and equipment |  | $ | 504.3 |  |  | $ | 459.0 |
The following is a summary of net sales by end market:
|  | Years ended March 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Automotive |  | $ | 526.0 |  |  | $ | 461.0 |  |  | $ | 396.8 |
Commercial vehicle |  |  | 381.7 |  |  |  | 382.5 |  |  |  | 459.8 |
Off-highway |  |  | 271.2 |  |  |  | 202.8 |  |  |  | 206.2 |
Other vehicular |  |  | 61.9 |  |  |  | 55.8 |  |  |  | 57.6 |
Commercial & residential air conditioning |  |  | 371.3 |  |  |  | 136.5 |  |  |  | 48.8 |
Commercial refrigeration |  |  | 158.7 |  |  |  | 52.2 |  |  |  | - |
Other HVAC&R |  |  | 332.3 |  |  |  | 212.2 |  |  |  | 183.3 |
Net sales |  | $ | 2,103.1 |  |  | $ | 1,503.0 |  |  | $ | 1,352.5 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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