Revenue Recognition

9 Months Ended

Dec. 31, 2019

Note 2: Revenue Recognition

Disaggregation of Revenue

The table below presents revenue for each of the Company’s business segments, Vehicular Thermal Solutions (“VTS”), Commercial and Industrial Solutions (“CIS”) and Building HVAC Systems (“BHVAC”). Each segment’s revenue is disaggregated by primary end market, by geographic location and based upon the timing of revenue recognition.

	Three months ended December 31, 2019								Three months ended December 31, 2018
	VTS		CIS		BHVAC		Segment Total		VTS		CIS		BHVAC		Segment Total
Primary end market:
Automotive	$	126.3	$	-	$	-	$	126.3	$	130.4	$	-	$	-	$	130.4
Commercial vehicle		68.3		-		-		68.3		92.0		-		-		92.0
Off-highway		55.1		-		-		55.1		74.2		-		-		74.2
Commercial HVAC&R		-		104.3		53.1		157.4		-		114.6		53.2		167.8
Data center cooling		-		30.2		11.2		41.4		-		40.2		11.0		51.2
Industrial cooling		-		10.4		-		10.4		-		11.8		-		11.8
Other		22.2		2.6		0.6		25.4		26.7		0.4		-		27.1
Net sales	$	271.9	$	147.5	$	64.9	$	484.3	$	323.3	$	167.0	$	64.2	$	554.5

Geographic location:
Americas	$	123.3	$	78.1	$	43.2	$	244.6	$	150.7	$	96.0	$	40.9	$	287.6
Europe		102.9		57.6		21.7		182.2		124.9		59.8		23.3		208.0
Asia		45.7		11.8		-		57.5		47.7		11.2		-		58.9
Net sales	$	271.9	$	147.5	$	64.9	$	484.3	$	323.3	$	167.0	$	64.2	$	554.5

Timing of revenue recognition:
Products transferred at a point in time	$	263.8	$	119.3	$	64.9	$	448.0	$	309.4	$	128.7	$	64.2	$	502.3
Products transferred over time		8.1		28.2		-		36.3		13.9		38.3		-		52.2
Net sales	$	271.9	$	147.5	$	64.9	$	484.3	$	323.3	$	167.0	$	64.2	$	554.5

	Nine months ended December 31, 2019								Nine months ended December 31, 2018
	VTS		CIS		BHVAC		Segment Total		VTS		CIS		BHVAC		Segment Total
Primary end market:
Automotive	$	390.6	$	-	$	-	$	390.6	$	411.9	$	-	$	-	$	411.9
Commercial vehicle		248.8		-		-		248.8		287.5		-		-		287.5
Off-highway		188.6		-		-		188.6		234.9		-		-		234.9
Commercial HVAC&R		-		351.1		137.2		488.3		-		377.5		130.6		508.1
Data center cooling		-		81.1		31.3		112.4		-		110.3		29.3		139.6
Industrial cooling		-		33.5		-		33.5		-		36.4		-		36.4
Other		69.7		7.3		1.4		78.4		77.4		4.9		-		82.3
Net sales	$	897.7	$	473.0	$	169.9	$	1,540.6	$	1,011.7	$	529.1	$	159.9	$	1,700.7

Geographic location:
Americas	$	421.5	$	261.2	$	110.4	$	793.1	$	460.8	$	304.0	$	98.0	$	862.8
Europe		340.0		173.7		59.5		573.2		400.6		187.0		61.9		649.5
Asia		136.2		38.1		-		174.3		150.3		38.1		-		188.4
Net sales	$	897.7	$	473.0	$	169.9	$	1,540.6	$	1,011.7	$	529.1	$	159.9	$	1,700.7

Timing of revenue recognition:
Products transferred at a point in time	$	873.6	$	395.6	$	169.9	$	1,439.1	$	974.7	$	426.2	$	159.9	$	1,560.8
Products transferred over time		24.1		77.4		-		101.5		37.0		102.9		-		139.9
Net sales	$	897.7	$	473.0	$	169.9	$	1,540.6	$	1,011.7	$	529.1	$	159.9	$	1,700.7

Contract Balances

Contract assets and contract liabilities from contracts with customers were as follows:

	December 31, 2019		March 31, 2019
Contract assets	$	22.3	$	22.6
Contract liabilities		5.7		4.0

Contract assets, included within other current assets in the consolidated balance sheets, primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the customer has guaranteed reimbursement, and assets recorded for revenue recognized over time, which represent the Company’s rights to consideration for work completed but not yet billed. The $0.3 million decrease in contract assets during the first nine months of fiscal 2020 primarily resulted from a decrease in capitalized costs related to customer-owned tooling contracts, partially offset by an increase in contract assets for revenue recognized over time.

Contract liabilities, included within other current liabilities in the consolidated balance sheets, consist of payments received in advance of satisfying performance obligations under customer contracts, including contracts for customer-owned tooling. The $1.7 million increase in contract liabilities during the first nine months of fiscal 2020 was primarily related to customer contracts for which payment had been received in advance of the Company’s satisfaction of performance obligations.