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Segment and Geographic Information | 12 Months Ended
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Mar. 31, 2021
Segment and Geographic Information [Abstract] |
Segment and Geographic Information | Note 22: Segment and Geographic Information The Company’s product lines consist of heat-transfer components and systems. The Company serves commercial, industrial, and building HVAC&R markets and vehicular markets. The Company’s BHVAC segment provides heating, ventilating and air conditioning products to customers throughout the world. The Company’s CIS segment provides coils, coolers, and coating solutions to global customers. The Company’s HDE and Automotive segments represent its vehicular businesses and primarily serve the commercial vehicle, off-highway and automotive and light vehicle markets. In addition, the HDE segment serves the commercial vehicle and automotive aftermarkets in Brazil. 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, 2020, the Company began managing its global automotive business separate from the other businesses within the previously reported Vehicular Thermal Solutions (“VTS”) segment. The Company is managing the automotive business as the Automotive segment as it progresses towards the sale or eventual exit of its underlying automotive business operations. The other businesses of the VTS segment, including the commercial vehicle and off-highway businesses, are being managed as the HDE segment. The segment realignment had no impact on the CIS and BHVAC segments or on the Company’s consolidated financial position, results of operations, and cash flows. Segment financial information for fiscal 2020 and 2019 has been recast to conform to the fiscal 2021 presentation. The following is a summary of net sales, gross profit, and operating income by segment. See Note 3 for additional information regarding net sales by primary end market.
|  | Year ended March 31, 2021 |
|  | External Sales |  |  | Inter-segment Sales |  |  | Total |
Net sales: |  |  |  |  |  |  |  |  |
BHVAC |  | $ | 240.3 |  |  | $ | 0.3 |  |  | $ | 240.6 |
CIS |  |  | 528.1 |  |  |  | 3.9 |  |  |  | 532.0 |
HDE |  |  | 648.3 |  |  |  | 33.8 |  |  |  | 682.1 |
Automotive |  |  | 391.7 |  |  |  | 6.6 |  |  |  | 398.3 |
Segment total |  |  | 1,808.4 |  |  |  | 44.6 |  |  |  | 1,853.0 |
Corporate and eliminations |  |  | - |  |  |  | (44.6 | ) |  |  | (44.6 | )
Net sales |  | $ | 1,808.4 |  |  | $ | - |  |  | $ | 1,808.4 |
|  | Year ended March 31, 2020 |
|  | External Sales |  |  | Inter-segment Sales |  |  | Total |
Net sales: |  |  |  |  |  |  |  |  |
BHVAC |  | $ | 219.4 |  |  | $ | 1.7 |  |  | $ | 221.1 |
CIS |  |  | 620.1 |  |  |  | 3.8 |  |  |  | 623.9 |
HDE |  |  | 693.8 |  |  |  | 52.1 |  |  |  | 745.9 |
Automotive |  |  | 442.2 |  |  |  | 2.7 |  |  |  | 444.9 |
Segment total |  |  | 1,975.5 |  |  |  | 60.3 |  |  |  | 2,035.8 |
Corporate and eliminations |  |  | - |  |  |  | (60.3 | ) |  |  | (60.3 | )
Net sales |  | $ | 1,975.5 |  |  | $ | - |  |  | $ | 1,975.5 |
|  | Year ended March 31, 2019 |
|  | External Sales |  |  | Inter-segment Sales |  |  | Total |
Net sales: |  |  |  |  |  |  |  |  |
BHVAC |  | $ | 209.1 |  |  | $ | 3.3 |  |  | $ | 212.4 |
CIS |  |  | 704.7 |  |  |  | 2.9 |  |  |  | 707.6 |
HDE |  |  | 811.8 |  |  |  | 60.5 |  |  |  | 872.3 |
Automotive |  |  | 487.1 |  |  |  | 1.8 |  |  |  | 488.9 |
Segment total |  |  | 2,212.7 |  |  |  | 68.5 |  |  |  | 2,281.2 |
Corporate and eliminations |  |  | - |  |  |  | (68.5 | ) |  |  | (68.5 | )
Net sales |  | $ | 2,212.7 |  |  | $ | - |  |  | $ | 2,212.7 |
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.
|  | Years ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Gross profit: |  | _$’s |  |  | % of sales |  |  | _$’s |  |  | % of sales |  |  | _$’s |  |  | % of sales |
BHVAC |  | $ | 83.0 |  |  |  | 34.5 | % |  | $ | 71.5 |  |  |  | 32.3 | % |  | $ | 63.4 |  |  |  | 29.9 | %
CIS |  |  | 66.5 |  |  |  | 12.5 | % |  |  | 92.9 |  |  |  | 14.9 | % |  |  | 114.9 |  |  |  | 16.2 | %
HDE |  |  | 88.4 |  |  |  | 13.0 | % |  |  | 96.6 |  |  |  | 13.0 | % |  |  | 127.8 |  |  |  | 14.7 | %
Automotive |  |  | 56.0 |  |  |  | 14.1 | % |  |  | 48.4 |  |  |  | 10.9 | % |  |  | 59.0 |  |  |  | 12.1 | %
Segment total |  |  | 293.9 |  |  |  | 15.9 | % |  |  | 309.4 |  |  |  | 15.2 | % |  |  | 365.1 |  |  |  | 16.0 | %
Corporate and eliminations |  |  | (0.5 | ) |  |  | - |  |  |  | (1.9 | ) |  |  | - |  |  |  | 0.4 |  |  |  | - |
Gross profit |  | $ | 293.4 |  |  |  | 16.2 | % |  | $ | 307.5 |  |  |  | 15.6 | % |  | $ | 365.5 |  |  |  | 16.5 | %
|  | Years ended March 31, |
Operating income: |  | 2021 |  |  | 2020 |  |  | 2019 |
BHVAC |  | $ | 47.2 |  |  | $ | 36.4 |  |  | $ | 26.9 |
CIS |  |  | 8.2 |  |  |  | 32.9 |  |  |  | 53.4 |
HDE |  |  | 36.8 |  |  |  | 37.8 |  |  |  | 65.0 |
Automotive |  |  | (150.9 | ) |  |  | (10.0 | ) |  |  | (0.4 | )
Segment total |  |  | (58.7 | ) |  |  | 97.1 |  |  |  | 144.9 |
Corporate and eliminations (a) |  |  | (39.0 | ) |  |  | (59.2 | ) |  |  | (35.2 | )
Operating (loss) income |  | $ | (97.7 | ) |  | $ | 37.9 |  |  | $ | 109.7 |
(a) | 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. During fiscal 2021, 2020 and 2019, the Company recorded $6.6 million, $39.2 million, and $7.1 million respectively, of costs directly associated with its review of strategic alternatives for the liquid-and air-cooled automotive businesses, including costs to separate and prepare the underlying businesses for potential sale.
The following is a summary of total assets by segment:
|  | March 31, |
|  | 2021 |  |  | 2020 |
BHVAC |  | $ | 110.8 |  |  | $ | 102.3 |
CIS |  |  | 609.2 |  |  |  | 617.7 |
HDE |  |  | 438.7 |  |  |  | 417.4 |
Automotive (a) |  |  | 124.2 |  |  |  | 272.5 |
Corporate and eliminations (b) |  |  | (6.2 | ) |  |  | 126.2 |
Total assets |  | $ | 1,276.7 |  |  | $ | 1,536.1 |
(a) | During fiscal 2021, the Company recorded impairment charges totaling $166.8 million within the Automotive segment, primarily related to the property, plant and equipment of the liquid- and air-cooled automotive businesses, which are classified as held for sale as of March 31, 2021. See Note 2 for additional information.
(b) | At March 31, 2021, Corporate assets totaled $17.5 million and were more than offset by eliminations for intercompany balances, including accounts receivable. During fiscal 2021, the Company recorded income tax charges totaling $103.3 million, which established a full valuation allowance on deferred tax assets in the U.S that are recorded at Corporate. See Note 8 for additional information.
The following is a summary of capital expenditures and depreciation and amortization expense by segment:
|  | Years ended March 31, |
Capital expenditures: |  | 2021 |  |  | 2020 |  |  | 2019 |
BHVAC |  | $ | 1.5 |  |  | $ | 3.1 |  |  | $ | 1.3 |
CIS |  |  | 6.1 |  |  |  | 15.0 |  |  |  | 16.4 |
HDE |  |  | 13.5 |  |  |  | 31.5 |  |  |  | 29.4 |
Automotive |  |  | 11.1 |  |  |  | 19.1 |  |  |  | 24.9 |
Corporate |  |  | 0.5 |  |  |  | 2.6 |  |  |  | 1.9 |
Total capital expenditures |  | $ | 32.7 |  |  | $ | 71.3 |  |  | $ | 73.9 |
|  | Years ended March 31, |
Depreciation and amortization expense: |  | 2021 |  |  | 2020 |  |  | 2019 |
BHVAC |  | $ | 3.1 |  |  | $ | 3.4 |  |  | $ | 3.5 |
CIS |  |  | 25.0 |  |  |  | 24.0 |  |  |  | 23.9 |
HDE |  |  | 25.5 |  |  |  | 25.4 |  |  |  | 26.3 |
Automotive (a) |  |  | 13.2 |  |  |  | 22.3 |  |  |  | 21.2 |
Corporate |  |  | 1.8 |  |  |  | 2.0 |  |  |  | 2.0 |
Total depreciation and amortization |  | $ | 68.6 |  |  | $ | 77.1 |  |  | $ | 76.9 |
(a) | Upon classifying the liquid- and air-cooled automotive businesses as held for sale, the Company ceased depreciating the long-lived assets within the disposal groups. See Note 2 for additional information.
The following is a summary of net sales by geographical area, based upon the location of the selling unit:
|  | Years ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
United States |  | $ | 765.7 |  |  | $ | 941.9 |  |  | $ | 1,032.3 |
China |  |  | 217.6 |  |  |  | 168.5 |  |  |  | 172.1 |
Italy |  |  | 188.6 |  |  |  | 187.4 |  |  |  | 217.3 |
Hungary |  |  | 153.7 |  |  |  | 142.4 |  |  |  | 165.6 |
United Kingdom |  |  | 96.4 |  |  |  | 82.0 |  |  |  | 86.6 |
Germany |  |  | 83.4 |  |  |  | 97.5 |  |  |  | 123.1 |
Austria |  |  | 59.6 |  |  |  | 93.0 |  |  |  | 116.2 |
Other |  |  | 243.4 |  |  |  | 262.8 |  |  |  | 299.5 |
Net sales |  | $ | 1,808.4 |  |  | $ | 1,975.5 |  |  | $ | 2,212.7 |
The following is a summary of property, plant and equipment by geographical area:
|  | March 31, |
|  | 2021 |  |  | 2020 |
United States |  | $ | 80.3 |  |  | $ | 114.6 |
Mexico |  |  | 43.5 |  |  |  | 50.0 |
China |  |  | 31.3 |  |  |  | 56.8 |
Italy |  |  | 30.0 |  |  |  | 49.8 |
Hungary |  |  | 27.6 |  |  |  | 55.4 |
Germany |  |  | 1.8 |  |  |  | 27.0 |
Austria |  |  | - |  |  |  | 26.0 |
Other |  |  | 55.4 |  |  |  | 68.4 |
Total property, plant and equipment (a) |  | $ | 269.9 |  |  | $ | 448.0 |
(a) | In connection with the pending sales of the liquid- and air-cooled automotive businesses within the Automotive segment, the Company wrote-down the carrying value of the disposal groups’ property, plant and equipment to zero as of March 31, 2021. The assets impaired were located in Hungary, Germany, Austria, China, the U.S., Italy, and the Netherlands. See Note 2 for additional information on the held for sale businesses and impairment charges recorded during fiscal 2021.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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