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Industry Segment and Geographic Data
 12 Months Ended
Dec. 31, 2023
Industry Segment and Geographic Data [Abstract]  
Industry Segment and Geographic Data
21. Industry Segment and Geographic Data

Beginning on January 1, 2023, we reorganized our business into three operating segments – Vehicle Control, Temperature Control and Engineered Solutions. The new operating segment structure better aligns our operations with our strategic focus on diversifying our business, provides greater transparency into our positioning to capture opportunities for growth in the future, and provides clarity regarding the unique dynamics and margin profiles of the markets served by each segment.

Vehicle Control is the new name for our Engine Management operating segment.  It includes our core automotive aftermarket business after carving out all non-aftermarket business to our Engineered Solutions operating segment.  The Vehicle Control operating segment includes sales from ignition, emissions and fuel delivery, electrical and safety, and wire sets and other product categories.

Temperature Control is our ongoing automotive aftermarket operating segment, after the carve out of all non-aftermarket business to our Engineered Solutions operating segment. Temperature Control derives its sales from air conditioning system components and other thermal product categories.  Our Temperature Control operating segment is poised to benefit from the broader adoption of more complex air conditioning systems that will provide passenger comfort regardless of the vehicle’s powertrain.

Engineered Solutions is a new operating segment created by carving out all non-aftermarket business from our prior Engine Management and Temperature Control operating segments.  Our Engineered Solutions segment supplies custom-engineered solutions to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine.

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 operating segment (in thousands):

 
  
Year Ended December 31,
  
 
  
2023
    
2022
    
2021
  
Net sales (a):
                  
Vehicle Control
  $
737,932     $
750,571     $
737,431  
Temperature Control
  

337,754
    

351,237
    

324,080
  
Engineered Solutions
    
282,586
      
270,007
      
237,305
  
Other
    
—
      
—
      
—
  
Total net sales
  
$
1,358,272
    
$
1,371,815
    
$
1,298,816
  
Depreciation and Amortization:
                        
Vehicle Control
   $
13,877     $
14,075     $
14,840  
Temperature Control
  

3,424
    

2,973
  

3,345
  
Engineered Solutions
    
9,966
      
9,557
      
7,390
  
Other
    
1,755
      
1,693
      
1,668
  
Total depreciation and amortization
  
$
29,022
    
$
28,298
    
$
27,243
  
Operating income (loss):
                        
Vehicle Control
  $
71,327
    
 $
74,153
     $
97,029
  
Temperature Control
  

17,343
    

26,459
    

30,077
  
Engineered Solutions
    
19,944
      
18,713
      
19,982
  
Other
    
(15,937
)
    
(15,190
)
    
(18,089
)
Total operating income
  
$
92,677
    
$
104,135
    
$
128,999
  
Investment in unconsolidated affiliates:
                        
Vehicle Control
  $
2,496
     $
2,490
     $
2,729
  
Temperature Control
  

19,711
    

27,557
    

28,518
  
Engineered Solutions
    
1,843
      
11,698
      
12,840
  
Other
    
—
      
—
      
—
  
Total investment in unconsolidated affiliates
  
$
24,050
    
$
41,745
    
$
44,087
  
Capital expenditures:
                        
Vehicle Control
  $
13,955
     $
13,378
     $
17,048
  
Temperature Control
  

1,899
    

3,973
    

2,130
  
Engineered Solutions
    
12,095
      
6,489
      
5,354
  
Other
    
684
      
2,116
      
1,343
  
Total capital expenditures
  
$
28,633
    
$
25,956
    
$
25,875
  
Total assets:
                        
Vehicle Control
  $
620,569
     $
618,789
     $
604,016
  
Temperature Control
  

274,657
    

254,137
    

234,771
  
Engineered Solutions
    
292,080
      
289,518
      
272,791
  
Other
    
105,741
      
92,485
      
86,383
  
Total assets
  
$
1,293,047
    
$
1,254,929
    
$
1,197,961
  

(a)
There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments.

Other consists of financial information related to the activities of our corporate headquarters function.

Reconciliation of segment operating income to net earnings:

 
  
Year Ended December 31,
  
 
  
2023
    
2022
    
2021
  
 
  
(In thousands)
  
Operating income
  
$
92,677
    
$
104,135
    
$
128,999
  
Other non-operating income, net
    
2,326
      
4,814
      
3,494
  
Interest expense
    
13,287
      
10,617
      
2,028
  
Earnings from continuing operations before income taxes
    
81,716
      
98,332
      
130,465
  
Provision for income taxes
    
18,368
      
25,206
      
31,044
  
Earnings from continuing operations
    
63,348
      
73,126
      
99,421
  
Discontinued operations, net of tax
    
(28,996
)
    
(17,691
)
    
(8,467
)
Net earnings
  
$
34,352
    
$
55,435
    
$
90,954
  

   
December 31,
  
 
  
2023
    
2022
    
2021
  
Long-lived assets (a):
  
(In thousands)
  
United States
  
$
368,792
    
$
326,199
    
$
315,983
  
Asia
    
75,869
      
76,766
      
80,175
  
Europe
    
44,517
      
38,351
      
37,892
  
Mexico
    
13,262
      
10,355
      
12,119
  
Canada
    
5,851
      
7,161
      
4,461
  
Total long-lived assets
  
$
508,291
    
$
458,832
    
$
450,630
  

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

Our three largest individual customers accounted for approximately 59% of our consolidated net sales in 2023. During 2023, O’Reilly Auto Parts, AutoZone and NAPA accounted for 29%, 16% and 14% of our consolidated net sales, respectively. Net sales from each of the customers were reported in our Vehicle Control 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 could have a material 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 major product group and geographic area within each of our operating segments, see Note 22, “Net Sales.”