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Industry Segment and Geographic Data
 12 Months Ended
Dec. 31, 2021
Industry Segment and Geographic Data [Abstract]  
Industry Segment and Geographic Data
19. Industry Segment and Geographic Data

We have two major reportable operating segments, each of which focuses on a specific line of automotive parts in the automotive aftermarket with a complementary focus on the heavy duty, industrial equipment and original equipment service markets. 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 accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1). The following tables contain financial information for each reportable segment (in thousands):

 
  
Year Ended December 31,
  
 
  
2021
    
2020
    
2019
  
Net sales (a):
                  
Engine Management
  
$
937,936
    
$
835,685
    
$
849,161
  
Temperature Control
    
348,423
      
281,954
      
278,355
  
Other
    
12,457
      
10,949
      
10,397
  
Total net sales
  
$
1,298,816
    
$
1,128,588
    
$
1,137,913
  
Intersegment sales (a):
                        
Engine Management
  
$
23,599
    
$
15,952
    
$
19,569
  
Temperature Control
    
9,024
      
6,162
      
6,545
  
Other
    
(32,623
)
    
(22,114
)
    
(26,114
)
Total intersegment sales
  
$
—
    
$
—
    
$
—
  
Depreciation and Amortization:
                        
Engine Management
  
$
21,881
    
$
20,417
    
$
19,463
  
Temperature Control
    
3,626
      
4,035
      
4,568
  
Other
    
1,736
      
1,871
      
1,778
  
Total depreciation and amortization
  
$
27,243
    
$
26,323
    
$
25,809
  
Operating income (loss):
                        
Engine Management
  
$
117,367
    
$
111,217
    
$
103,808
  
Temperature Control
    
36,997
      
21,296
      
13,667
  
Other
    
(25,365
)
    
(23,618
)
    
(22,980
)
Total operating income
  
$
128,999
    
$
108,895
    
$
94,495
  
Investment in unconsolidated affiliates:
                        
Engine Management
  
$
2,729
    
$
2,428
    
$
2,243
  
Temperature Control
    
41,358
      
38,079
      
36,615
  
Other
    
—
      
—
      
—
  
Total investment in unconsolidated affiliates
  
$
44,087
    
$
40,507
    
$
38,858
  
Capital expenditures:
                        
Engine Management
  
$
21,922
    
$
13,496
    
$
12,593
  
Temperature Control
    
2,586
      
1,988
      
2,273
  
Other
    
1,367
      
2,336
      
1,319
  
Total capital expenditures
  
$
25,875
    
$
17,820
    
$
16,185
  
Total assets:
                        
Engine Management
  
$
845,767
    
$
618,210
    
$
594,953
  
Temperature Control
    
257,114
      
230,111
      
216,591
  
Other
    
95,080
      
108,219
      
92,310
  
Total assets
  
$
1,197,961
    
$
956,540
    
$
903,854
  


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

Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments, as well as items pertaining to our Canadian business unit that does not meet the criteria of a reportable operating segment and our corporate headquarters function.

Reconciliation of segment operating income to net earnings:

 
  
Year Ended December 31,
  
 
  
2021
    
2020
    
2019
  
 
  
(In thousands)
  
Operating income
  
$
128,999
    
$
108,895
    
$
94,495
  
Other non-operating income, net
    
3,494
      
812
      
2,587
Interest expense
    
2,028
      
2,328
      
5,286
  
Earnings from continuing operations before income taxes
    
130,465
      
107,379
      
91,796
  
Provision for income taxes
    
31,044
      
26,962
      
22,745
  
Earnings from continuing operations
    
99,421
      
80,417
      
69,051
  
Discontinued operations, net of tax
    
(8,467
)
    
(23,024
)
    
(11,134
)
Net earnings
  
$
90,954
    
$
57,393
    
$
57,917
  

   
December 31,
  
 
  
2021
    
2020
    
2019
  
Long-lived assets (a):
  
(In thousands)
  
United States
  
$
315,983
    
$
241,053
    
$
253,384
  
Asia
    
80,175
      
40,621
      
38,942
  
Europe
    
37,892
      
16,504
      
17,004
  
Mexico
    
12,119
      
10,586
      
12,036
  
Canada
    
4,461
      
4,470
      
4,659
  
Total long-lived assets
  
$
450,630
    
$
313,234
    
$
326,025
  

(a)
Long-lived assets are attributed to countries based upon the location of the assets.

Our three largest individual customers accounted for approximately 57% of our consolidated net sales in 2021. During 2021, O’Reilly, NAPA and AutoZone accounted for 26%, 17% and 14% of our consolidated net sales, respectively.  Net sales from each of the customers were reported in both our Engine Management and Temperature Control Segments. The loss of one or more of these customers or, a significant reduction in purchases of our products from any one of them, such as the decision, announced in December 2020, of a large retail customer to pursue a private brand strategy for its engine management product line, could have a materially adverse impact on our business, financial condition and results of operations. In addition, any consolidation among our key customers may further increase our customer concentration risk.

For the disaggregation of our net sales from customers by geographic area, major product group and major sales channels for each of our segments, see Note 20, “Net Sales.”