Industry Segments

9 Months Ended

Sep. 30, 2018

Note 15.

Industry Segments

We have two major reportable operating segments, each of which focuses on a specific line of replacement parts. Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts.

The following tables show our net sales, intersegment revenue and operating income by our operating segments (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net Sales (a)
Engine Management	$	197,570		$	196,776		$	600,487		$	631,439
Temperature Control		96,079			81,160			236,680			238,841
All Other		2,970			3,122			7,914			5,885
Consolidated	$	296,619		$	281,058		$	845,081		$	876,165

Intersegment Revenue (a)
Engine Management	$	6,500		$	6,207		$	17,472		$	19,350
Temperature Control		2,444			1,952			6,264			6,076
All Other		(8,944	)		(8,159	)		(23,736	)		(25,426	)
Consolidated	$	—		$	—		$	—		$	—

Operating Income
Engine Management	$	21,635		$	22,729		$	62,149		$	76,503
Temperature Control		8,571			7,714			14,284			19,943
All Other		(3,028	)		(3,687	)		(13,598	)		(14,829	)
Consolidated	$	27,178		$	26,756		$	62,835		$	81,617

(a)

Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.

For the disaggregation of our net sales from contracts with customers by geographic area, major product group and major sales channels for each of our segments, see Note 3, “Net Sales.”