Business Segments

12 Months Ended

Mar. 31, 2021

Effective April 1, 2020, the Company's chief operating decision maker, or CODM (the Company's Chief Executive Officer), changed the manner in which he reviews financial information for purposes of assessing business performance and allocating resources, by focusing on the lines of business on a global basis, rather than on geographic basis. As a result of this change, the Company re-evaluated the identification of its operating segments and reportable segments and identified the following as its three new operating segments, based on lines of business:

•Energy Systems - uninterruptible power systems, or “UPS” applications for computer and computer-controlled systems, as well as telecommunications systems, switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage and energy pipelines. Energy Systems also includes highly integrated power solutions and services to broadband, telecom, renewable and industrial customers, as well as thermally managed cabinets and enclosures for electronic equipment and batteries.

•Motive Power - power for electric industrial forklifts used in manufacturing, warehousing and other material handling applications, as well as mining equipment, diesel locomotive starting and other rail equipment; and

•Specialty - premium starting, lighting and ignition applications in transportation, energy solutions for satellites, military aircraft, submarines, ships and other tactical vehicles, as well as medical and security systems.

The new operating segments also represent the Company's reportable segments under ASC 280, Segment Reporting. All prior comparative periods presented have been recast to conform to these changes.

Summarized financial information related to the Company’s reportable segments at March 31, 2021, 2020 and 2019 and for each of the fiscal years then ended is shown below.


	Fiscal year ended March 31,
	2021		2020		2019
Net sales by segment to unaffiliated customers
Energy Systems	$	1,380,278	$	1,357,475	$	1,086,279
Motive Power	1,163,710		1,348,193		1,391,844
Specialty	433,944		382,200		329,894
Total net sales	$	2,977,932	$	3,087,868	$	2,808,017
Operating earnings by segment
Energy Systems	$	67,060	$	67,809	$	45,164
Motive Power	143,541		146,814		172,749
Specialty	46,148		42,454		44,077
Inventory step up to fair value relating to acquisitions - Energy Systems	—		(304)		(7,789)
Inventory step up to fair value relating to acquisitions - Specialty	—		(1,550)		(2,590)
Restructuring and other exit charges - Energy Systems	(3,187)		(7,284)		(10,593)
Restructuring and other exit charges - Motive Power	(36,798)		(2,021)		(5,751)
Restructuring and other exit charges - Specialty	(389)		(6,020)		(18,365)
Impairment of goodwill (3)	—		(39,713)		—
Impairment of indefinite-lived intangibles (3)	—		(4,549)		—
Fixed asset write-off relating to exit activities and other - Energy Systems	—		(50)		—
Fixed asset write-off relating to exit activities and other - Motive Power	—		(5,380)		—
Fixed asset write-off relating to exit activities - Specialty	—		(11)		—
Legal proceedings charge, net - Energy Systems	—		—		(4,363)
Legal proceedings charge, net - Motive Power	—		—		(74)
Total operating earnings(2)	$	216,375	$	190,195	$	212,465

Capital Expenditures
Energy Systems	$	34,826	$	40,768	$	24,333
Motive Power	14,154		22,285		26,112
Specialty	21,040		38,372		19,927
Total	$	70,020	$	101,425	$	70,372
Depreciation and Amortization
Energy Systems	$	57,864	$	53,793	$	32,052
Motive Power	21,706		20,900		20,725
Specialty	14,512		12,651		10,571
Total	$	94,082	$	87,344	$	63,348

(1)Reportable segments do not record inter-segment revenues and accordingly there are none to report.

(2)The Company does not allocate interest expense or other (income) expense, net, to the reportable segments.

(3)The impairment of goodwill and indefinite-lived intangibles in fiscal 2020 related to the Company's legacy reportable segments as discussed in Note 7.

The Company's property, plant and equipment by reportable segments as of March 31, 2021 and 2020 are as follows:


Property, plant and equipment, net	March 31, 2021		March 31, 2020
Energy Systems	$	224,513	$	182,122
Motive Power	152,468		153,438
Specialty	120,075		144,454
Total	$	497,056	$	480,014

The Company markets its products and services in over 100 countries. Sales are attributed to countries based on the location of sales order approval and acceptance. Sales to customers in the United States were 59.8%, 58.1% and 48.5% for fiscal years ended March 31, 2021, 2020 and 2019, respectively. Property, plant and equipment, net, attributable to the United States as of March 31, 2021 and 2020, were $291,578 and $277,358, respectively. No single country, outside the United States, accounted for more than 10% of the consolidated net sales or net property, plant and equipment and, therefore, was deemed not material for separate disclosure.