XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.22.1

Revenue Recognition | 12 Months Ended
--- | ---
Mar. 31, 2022
Revenue Recognition [Abstract] |
Revenue Recognition | Note 3: Revenue Recognition The Company generates revenue from selling innovative thermal management products and solutions to diversified global markets and customers. The Company recognizes revenue based upon consideration specified in a contract and as it satisfies performance obligations by transferring control over its products to its customers, which may be at a point in time or over time. The majority of the Company’s revenue is recognized at a point in time, based upon shipment terms. The Company records an allowance for credit losses and accrues for estimated warranty costs at the time of sale. These estimates are based upon historical experience, current business trends, and current economic conditions. The Company accounts for shipping and handling activities as fulfilment costs rather than separate performance obligations and records shipping and handling costs in cost of sales and related amounts billed to customers in net sales. The Company establishes payment terms with its customers based upon industry and regional practices, which typically do not exceed 90 days. As the Company expects to receive payment from its customers within one year from the time of sale, it disregards the effects of the time value of money in its determination of the transaction price. The Company has not disclosed the value of unsatisfied performance obligations because the revenue associated with customer contracts for which the original expected performance period is greater than one year is immaterial. The following is a description of the Company’s principal revenue-generating activities: Building HVAC Systems (“BHVAC”) The BHVAC segment principally generates revenue from providing a variety of heating, ventilating, and air conditioning products, primarily for commercial buildings and data centers in North America and Europe, as well as the Middle East. Heating products are manufactured in the U.S. and are largely sold to independent distributors, who in turn market the heating products to end customers. Because these products are sold to many different customers without contractual or practical limitations, the BHVAC segment recognizes revenue at the time control is transferred to the customer, generally the independent distributor, based upon shipping terms, which is generally upon shipment. Ventilation and air conditioning products are highly-specified to a customer’s needs; the majority of the underlying sales contracts do not provide the Company with an enforceable right to payment for performance completed to date. As a result, the BHVAC segment recognizes revenue for the majority of its products at the time control is transferred to the customer based upon shipping terms, which is generally upon shipment. For sales to customers whose contract cancellation terms provide an enforceable right to payment, the BHVAC segment recognizes revenue over time based upon its estimated progress towards satisfaction of the performance obligations. The segment measures progress by evaluating the production status towards completion of ordered products not yet shipped to its customers. Commercial and Industrial Solutions (“CIS”) The CIS segment principally generates revenue from providing thermal management products, including customized coils and coolers, to the heating, ventilating, air conditioning, and refrigeration markets in North America, Europe, and Asia. In addition, the segment applies corrosion protection solutions, which are referred to as coatings, to heat-transfer equipment. For the sale of coils and coolers, individual customer purchase orders generally represent the Company’s contract with its customers. With the exception of a small number of customers, the applicable customer contracts do not provide the Company with an enforceable right to payment for performance completed to date. As a result, the CIS segment recognizes revenue for its sale of coils and coolers primarily at the time control is transferred to the customer based upon shipping terms, which is generally upon shipment. For both sales to customers whose contract cancellation terms provide an enforceable right to payment and sales from the coatings businesses, in which the customers control the heat-transfer equipment being enhanced by the coating application, the CIS segment recognizes revenue over time based upon its estimated progress towards satisfaction of the performance obligations. The segment measures progress by evaluating the production status towards completion of ordered products or services not yet shipped to its customers. Heavy Duty Equipment (“HDE”) and Automotive The HDE and Automotive segments principally generate revenue from providing engineered heat transfer systems and components for use in on- and off-highway original equipment. These segments provide powertrain and engine cooling products, including, but not limited to, radiators, charge air coolers, condensers, oil coolers, EGR coolers, and fuel coolers, to OEMs in the commercial vehicle, off-highway and automotive and light vehicle markets in the Americas, Europe, and Asia regions. In addition, the segments design customer-owned tooling for OEMs. The HDE segment also serves Brazil’s commercial vehicle and automotive aftermarkets. While the segments provide customized production and service parts to customers under multi-year programs, these programs typically do not contain contractually-guaranteed volumes to be purchased by the customer. As a result, individual purchase orders typically represent the quantities ordered by the customer. With the exception of a small number of HDE customers, the terms within the customer agreement, purchase order, or customer-owned tooling contract do not provide the Company with an enforceable right to payment for performance completed to date. As a result, both the HDE and Automotive segments recognize revenue primarily at the time control is transferred to the customer based upon shipping terms, which is generally upon shipment. In regard to the HDE customers with contractual cancellation terms that provide an enforceable right to payment for performance completed to date, the Company recognizes revenue over time based upon its estimated progress towards satisfaction of the performance obligations. The HDE segment measures progress by evaluating the production status of ordered products not yet shipped to the customer. For certain customer programs, the Company agrees to provide annual price reductions based upon contract terms. For these scheduled price reductions, the Company evaluates whether the provisions represent a material right to the customer, and if so, defers associated revenue as a result. At times, the Company makes up-front incentive payments to certain customers related to future sales under multi-year programs. The Company capitalizes these incentive payments, which it expects to recover through future sales, and amortizes the assets as a reduction to revenue when the related products are sold to customers. Disaggregation of Revenue The tables below present revenue for each of the Company’s business segments, BHVAC, CIS, HDE, and Automotive. Each segment’s revenue is disaggregated by primary end market, by geographic location and based upon the timing of revenue recognition and includes inter-segment sales. Effective July 1, 2021, the Company aligned the data center businesses previously managed by and reported within the CIS segment under the BHVAC segment; see Note 22 for additional information regarding the Company’s operating segments. In connection with this segment realignment, the Company also reassessed end market classifications within the impacted businesses. The primary end market revenue information presented in the tables below for fiscal 2021 and 2020 has been recast to conform to the Company’s new classifications for its end markets.
|  | Year ended March 31, 2022 |
|  | BHVAC |  |  | CIS |  |  | HDE |  |  | Automotive |  |  | Segment Total |
Primary end market: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial HVAC&R |  | $ | 238.0 |  |  | $ | 546.6 |  |  | $ | - |  |  | $ | - |  |  | $ | 784.6 |
Data center cooling |  |  | 96.6 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 96.6 |
Industrial cooling |  |  | - |  |  |  | 69.8 |  |  |  | - |  |  |  | - |  |  |  | 69.8 |
Commercial vehicle |  |  | - |  |  |  | - |  |  |  | 319.7 |  |  |  | 14.5 |  |  |  | 334.2 |
Off-highway |  |  | - |  |  |  | - |  |  |  | 331.9 |  |  |  | 4.7 |  |  |  | 336.6 |
Automotive and light vehicle |  |  | - |  |  |  | - |  |  |  | 84.0 |  |  |  | 286.0 |  |  |  | 370.0 |
Other |  |  | 2.0 |  |  |  | 11.1 |  |  |  | 88.9 |  |  |  | 8.1 |  |  |  | 110.1 |
Net sales |  | $ | 336.6 |  |  | $ | 627.5 |  |  | $ | 824.5 |  |  | $ | 313.3 |  |  | $ | 2,101.9 |
Geographic location: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 187.6 |  |  | $ | 336.9 |  |  | $ | 511.6 |  |  | $ | 38.2 |  |  | $ | 1,074.3 |
Europe |  |  | 149.0 |  |  |  | 262.7 |  |  |  | 156.3 |  |  |  | 220.5 |  |  |  | 788.5 |
Asia |  |  | - |  |  |  | 27.9 |  |  |  | 156.6 |  |  |  | 54.6 |  |  |  | 239.1 |
Net sales |  | $ | 336.6 |  |  | $ | 627.5 |  |  | $ | 824.5 |  |  | $ | 313.3 |  |  | $ | 2,101.9 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products transferred at a point in time |  | $ | 318.0 |  |  | $ | 580.9 |  |  | $ | 789.8 |  |  | $ | 313.3 |  |  | $ | 2,002.0 |
Products transferred over time |  |  | 18.6 |  |  |  | 46.6 |  |  |  | 34.7 |  |  |  | - |  |  |  | 99.9 |
Net sales |  | $ | 336.6 |  |  | $ | 627.5 |  |  | $ | 824.5 |  |  | $ | 313.3 |  |  | $ | 2,101.9 |
|  | Year ended March 31, 2021 |
|  | BHVAC |  |  | CIS |  |  | HDE |  |  | Automotive |  |  | Segment Total |
Primary end market: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial HVAC&R |  | $ | 197.5 |  |  | $ | 429.8 |  |  | $ | - |  |  | $ | - |  |  | $ | 627.3 |
Data center cooling |  |  | 64.5 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 64.5 |
Industrial cooling |  |  | - |  |  |  | 72.1 |  |  |  | - |  |  |  | - |  |  |  | 72.1 |
Commercial vehicle |  |  | - |  |  |  | - |  |  |  | 250.4 |  |  |  | 14.4 |  |  |  | 264.8 |
Off-highway |  |  | - |  |  |  | - |  |  |  | 260.7 |  |  |  | 3.4 |  |  |  | 264.1 |
Automotive and light vehicle |  |  | - |  |  |  | - |  |  |  | 97.9 |  |  |  | 357.8 |  |  |  | 455.7 |
Other |  |  | 1.2 |  |  |  | 10.5 |  |  |  | 73.1 |  |  |  | 22.7 |  |  |  | 107.5 |
Net sales |  | $ | 263.2 |  |  | $ | 512.4 |  |  | $ | 682.1 |  |  | $ | 398.3 |  |  | $ | 1,856.0 |
Geographic location: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 144.2 |  |  | $ | 268.7 |  |  | $ | 388.2 |  |  | $ | 51.0 |  |  | $ | 852.1 |
Europe |  |  | 119.0 |  |  |  | 199.2 |  |  |  | 133.2 |  |  |  | 282.0 |  |  |  | 733.4 |
Asia |  |  | - |  |  |  | 44.5 |  |  |  | 160.7 |  |  |  | 65.3 |  |  |  | 270.5 |
Net sales |  | $ | 263.2 |  |  | $ | 512.4 |  |  | $ | 682.1 |  |  | $ | 398.3 |  |  | $ | 1,856.0 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products transferred at a point in time |  | $ | 257.4 |  |  | $ | 472.5 |  |  | $ | 655.2 |  |  | $ | 398.3 |  |  | $ | 1,783.4 |
Products transferred over time |  |  | 5.8 |  |  |  | 39.9 |  |  |  | 26.9 |  |  |  | - |  |  |  | 72.6 |
Net sales |  | $ | 263.2 |  |  | $ | 512.4 |  |  | $ | 682.1 |  |  | $ | 398.3 |  |  | $ | 1,856.0 |
|  | Year ended March 31, 2020 |
|  | BHVAC |  |  | CIS |  |  | HDE |  |  | Automotive |  |  | Segment Total |
Primary end market: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial HVAC&R |  | $ | 197.5 |  |  | $ | 462.9 |  |  | $ | - |  |  | $ | - |  |  | $ | 660.4 |
Data center cooling |  |  | 106.9 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 106.9 |
Industrial cooling |  |  | - |  |  |  | 66.7 |  |  |  | - |  |  |  | - |  |  |  | 66.7 |
Commercial vehicle |  |  | - |  |  |  | - |  |  |  | 302.1 |  |  |  | 21.6 |  |  |  | 323.7 |
Off-highway |  |  | - |  |  |  | - |  |  |  | 240.8 |  |  |  | 13.1 |  |  |  | 253.9 |
Automotive and light vehicle |  |  | - |  |  |  | - |  |  |  | 108.4 |  |  |  | 400.4 |  |  |  | 508.8 |
Other |  |  | 2.1 |  |  |  | 11.5 |  |  |  | 94.6 |  |  |  | 9.8 |  |  |  | 118.0 |
Net sales |  | $ | 306.5 |  |  | $ | 541.1 |  |  | $ | 745.9 |  |  | $ | 444.9 |  |  | $ | 2,038.4 |
Geographic location: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 175.8 |  |  | $ | 309.2 |  |  | $ | 484.5 |  |  | $ | 70.3 |  |  | $ | 1,039.8 |
Europe |  |  | 130.7 |  |  |  | 186.5 |  |  |  | 141.2 |  |  |  | 321.0 |  |  |  | 779.4 |
Asia |  |  | - |  |  |  | 45.4 |  |  |  | 120.2 |  |  |  | 53.6 |  |  |  | 219.2 |
Net sales |  | $ | 306.5 |  |  | $ | 541.1 |  |  | $ | 745.9 |  |  | $ | 444.9 |  |  | $ | 2,038.4 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products transferred at a point in time |  | $ | 240.4 |  |  | $ | 501.5 |  |  | $ | 715.1 |  |  | $ | 444.9 |  |  | $ | 1,901.9 |
Products transferred over time |  |  | 66.1 |  |  |  | 39.6 |  |  |  | 30.8 |  |  |  | - |  |  |  | 136.5 |
Net sales |  | $ | 306.5 |  |  | $ | 541.1 |  |  | $ | 745.9 |  |  | $ | 444.9 |  |  | $ | 2,038.4 |
Contract Balances Contract assets and contract liabilities from contracts with customers were as follows:
|  | March 31, 2022 |  |  | March 31, 2021 |
Contract assets |  | $ | 26.8 |  |  | $ | 5.7 |
Contract liabilities |  |  | 11.8 |  |  |  | 5.6 |
At March 31, 2021, $7.1 million and $2.9 million of contract assets and contract liabilities, respectively, were classified as held for sale and excluded from the amounts above. See Note 2 for additional information. 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 $21.1 million increase in contract assets during fiscal 2022 primarily resulted from an increase in contract assets for revenue recognized over time and the reclassification of contract assets previously held for sale. 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 $6.2 million increase in contract liabilities during fiscal 2022 primarily resulted from payments received in advance of the Company’s satisfaction of performance obligations and the reclassification of contract liabilities previously held for sale.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration