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Industry Segment and Geographic Data | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Industry Segment and Geographic Data | Industry Segment and Geographic Data Our business is organized into four operating segments, Vehicle Control, Temperature Control, Engineered Solutions and Nissens Automotive, each of which focuses on a specific line of business. Our automotive aftermarket business is comprised of three operating segments, Vehicle Control, Temperature Control and Nissens Automotive, while our Engineered Solutions operating segment offers a broad array of conventional and future-oriented technologies. Nissens Automotive is a new operating segment created in the fourth quarter of 2024 comprising of our acquisition in November 2024. The Vehicle Control operating segment includes sales from ignition emissions and fuel delivery, electrical and safety, and wire sets and other product categories to automotive aftermarket customers. The Temperature Control operating segment includes sales from air conditioning system components and other thermal product categories to automotive aftermarket customers primarily in the United States, and 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. The Engineered Solutions operating segment includes sales of 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 Nissens Automotive operating segment includes sales of engine cooling, air conditioning system components and engine efficiency products to automotive aftermarket customers primarily in Europe. There are no intersegment sales among our operating segments. Other consists of financial information related to the activities of our corporate headquarters function. We identify our operating segments based on how our chief operating decision maker ("CODM"), our President and Chief Executive Officer, allocates resources, assesses performance and makes decisions. The CODM uses operating income (loss) to allocate resources (including employees, property, and financial or capital resources) for each segment during the annual budget and forecasting process. The CODM considers budget-to-actual and year-over-year variances on a monthly basis for the significant measure when making decisions about allocating capital and personnel to the segments. The CODM also uses segment gross profit for evaluating product pricing and operating income (loss) to assess the performance for each segment by comparing the results with one another. In addition to these measures, the CODM tracks expenses at a disaggregated level to understand the drivers of total operating expenses. These include selling, general and administrative expenses, distribution expenses, supply chain financing expenses, restructuring and integration expenses, and any other special expense items. In tracking these expenses separately, the CODM is able to identify opportunities for adjusting how the business uses funds to achieve greater profitability. The accounting policies of each segment are the same as those described in Note 1, "Summary of Significant Accounting Policies". The following tables contain financial information for each reportable operating segment (in thousands):
Year ended December 31, 2024 |  | Vehicle Control |  | Temperature Control |  | Engineered Solutions |  | Nissens Automotive |  | Other |  | Total
Net sales |  | $ | 762,560 |  |  | $ | 380,088 |  |  | $ | 285,456 |  |  | $ | 35,745 |  |  | $ | — |  |  | $ | 1,463,849 |
Cost of sales |  | 518,475 |  |  | 262,296 |  |  | 235,537 |  |  | 24,220 |  |  | — |  |  | 1,040,528 |
Gross profit |  | 244,085 |  |  | 117,792 |  |  | 49,919 |  |  | 11,525 |  |  | — |  |  | 423,321 |
Selling and marketing expenses |  | 45,878 |  |  | 15,938 |  |  | 8,060 |  |  | 1,536 |  |  | — |  |  | 71,412 |
Distribution expenses |  | 57,627 |  |  | 32,858 |  |  | 5,290 |  |  | 7,097 |  |  | 4,579 |  |  | 107,451 |
General and administration expenses |  | 36,935 |  |  | 16,763 |  |  | 20,906 |  |  | 5,560 |  |  | 17,052 |  |  | 97,216 |
Supply chain financing expenses |  | 32,090 |  |  | 16,449 |  |  | — |  |  | — |  |  | — |  |  | 48,539 |
Restructuring and integration expenses |  | 4,249 |  |  | 847 |  |  | 843 |  |  | — |  |  | 1,729 |  |  | 7,668 |
Other expenses |  | — |  |  | — |  |  | — |  |  | 100 |  |  | 10,311 |  |  | 10,411 |
Total operating expenses |  | 176,779 |  |  | 82,855 |  |  | 35,099 |  |  | 14,293 |  |  | 33,671 |  |  | 342,697 |
Operating income (loss) |  | $ | 67,306 |  |  | $ | 34,937 |  |  | $ | 14,820 |  |  | $ | (2,768) |  |  | $ | (33,671) |  |  | $ | 80,624 |
Other non-operating income, net |  |  |  |  |  |  |  |  |  |  |  | 6,877 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | 13,512 |
Earnings from continuing operations before income taxes |  |  |  |  |  |  |  |  |  |  |  | $ | 73,989 |
Year ended December 31, 2023 |  | Vehicle Control |  | Temperature Control |  | Engineered Solutions |  | Nissens Automotive |  | Other |  | Total
Net sales |  | $ | 737,932 |  |  | $ | 337,754 |  |  | $ | 282,586 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,358,272 |
Cost of sales |  | 499,717 |  |  | 241,927 |  |  | 227,802 |  |  | — |  |  | — |  |  | 969,446 |
Gross profit |  | 238,215 |  |  | 95,827 |  |  | 54,784 |  |  | — |  |  | — |  |  | 388,826 |
Selling and marketing expenses |  | 46,223 |  |  | 16,772 |  |  | 8,407 |  |  | — |  |  | — |  |  | 71,402 |
Distribution expenses |  | 54,401 |  |  | 30,467 |  |  | 4,989 |  |  | — |  |  | — |  |  | 89,857 |
General and administration expenses |  | 34,430 |  |  | 14,664 |  |  | 21,186 |  |  | — |  |  | 15,937 |  |  | 86,217 |
Supply chain financing expenses |  | 30,558 |  |  | 15,473 |  |  | — |  |  | — |  |  | — |  |  | 46,031 |
Restructuring and integration expenses |  | 1,276 |  |  | 1,108 |  |  | 258 |  |  | — |  |  | — |  |  | 2,642 |
Other expenses |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses |  | 166,888 |  |  | 78,484 |  |  | 34,840 |  |  | — |  |  | 15,937 |  |  | 296,149 |
Operating income (loss) |  | $ | 71,327 |  |  | $ | 17,343 |  |  | $ | 19,944 |  |  | $ | — |  |  | $ | (15,937) |  |  | $ | 92,677 |
Other non-operating income, net |  |  |  |  |  |  |  |  |  |  |  | 2,326 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | 13,287 |
Earnings from continuing operations before income taxes |  |  |  |  |  |  |  |  |  |  |  | $ | 81,716 |
Year ended December 31, 2022 |  | Vehicle Control |  | Temperature Control |  | Engineered Solutions |  | Nissens Automotive |  | Other |  | Total
Net sales |  | $ | 750,571 |  |  | $ | 351,237 |  |  | $ | 270,007 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,371,815 |
Cost of sales |  | 518,304 |  |  | 252,323 |  |  | 218,649 |  |  | — |  |  | — |  |  | 989,276 |
Gross profit |  | 232,267 |  |  | 98,914 |  |  | 51,358 |  |  | — |  |  | — |  |  | 382,539 |
Selling and marketing expenses |  | 49,245 |  |  | 17,666 |  |  | 7,239 |  |  | — |  |  | — |  |  | 74,150 |
Distribution expenses |  | 54,081 |  |  | 29,868 |  |  | 4,377 |  |  | — |  |  | — |  |  | 88,326 |
General and administration expenses |  | 31,812 |  |  | 13,969 |  |  | 21,029 |  |  | — |  |  | 15,190 |  |  | 82,000 |
Supply chain financing expenses |  | 21,480 |  |  | 10,557 |  |  | — |  |  | — |  |  | — |  |  | 32,037 |
Restructuring and integration expenses |  | 1,496 |  |  | 395 |  |  | — |  |  | — |  |  | — |  |  | 1,891 |
Other expenses |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses |  | 158,114 |  |  | 72,455 |  |  | 32,645 |  |  | — |  |  | 15,190 |  |  | 278,404 |
Operating income (loss) |  | $ | 74,153 |  |  | $ | 26,459 |  |  | $ | 18,713 |  |  | $ | — |  |  | $ | (15,190) |  |  | $ | 104,135 |
Other non-operating income, net |  |  |  |  |  |  |  |  |  |  |  | 4,814 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | 10,617 |
Earnings from continuing operations before income taxes |  |  |  |  |  |  |  |  |  |  |  | $ | 98,332 |
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Depreciation and amortization |  |  |  |  |  |
Vehicle Control |  | $ | 14,841 |  |  | $ | 13,877 |  |  | $ | 14,075 |
Temperature Control |  | 3,307 |  |  | 3,424 |  |  | 2,973 |
Engineered Solutions |  | 9,608 |  |  | 9,966 |  |  | 9,557 |
Nissens Automotive |  | 1,943 |  |  | — |  |  | — |
Other |  | 1,714 |  |  | 1,755 |  |  | 1,693 |
Total depreciation and amortization |  | $ | 31,413 |  |  | $ | 29,022 |  |  | $ | 28,298 |
Investment in unconsolidated affiliates |  |  |  |  |  |
Vehicle Control |  | $ | 2,447 |  |  | $ | 2,496 |  |  | $ | 2,490 |
Temperature Control |  | 20,396 |  |  | 19,711 |  |  | 27,557 |
Engineered Solutions |  | 1,999 |  |  | 1,843 |  |  | 11,698 |
Nissens Automotive |  | — |  |  | — |  |  |
Other |  | — |  |  | — |  |  | — |
Total investment in unconsolidated affiliates |  | $ | 24,842 |  |  | $ | 24,050 |  |  | $ | 41,745 |
Capital expenditures |  |  |  |  |  |
Vehicle Control |  | $ | 29,603 |  |  | $ | 13,955 |  |  | $ | 13,378 |
Temperature Control |  | 2,621 |  |  | 1,899 |  |  | 3,973 |
Engineered Solutions |  | 9,721 |  |  | 12,095 |  |  | 6,489 |
Nissens Automotive |  | 213 |  |  | — |  |  | — |
Other |  | 1,860 |  |  | 684 |  |  | 2,116 |
Total capital expenditures |  | $ | 44,018 |  |  | $ | 28,633 |  |  | $ | 25,956 |
Total assets |  |  |  |  |  |
Vehicle Control |  | $ | 659,607 |  |  | $ | 620,569 |  |  | $ | 618,789 |
Temperature Control |  | 276,216 |  |  | 274,657 |  |  | 254,137 |
Engineered Solutions |  | 285,866 |  |  | 292,080 |  |  | 289,518 |
Nissens Automotive |  | 482,773 |  |  | — |  |  | — |
Other |  | 109,664 |  |  | 105,741 |  |  | 92,485 |
Total assets |  | $ | 1,814,126 |  |  | $ | 1,293,047 |  |  | $ | 1,254,929 |
| December 31,
(in thousands) | 2024 |  | 2023 |  | 2022
Long-lived assets (a) |
United States | $ | 378,557 |  |  | $ | 368,792 |  |  | $ | 326,199 |
Denmark | 347,629 |  |  | — |  |  | — |
Asia | 67,406 |  |  | 75,869 |  |  | 76,766 |
Europe | 59,909 |  |  | $ | 44,517 |  |  | $ | 38,351 |
Mexico | 21,173 |  |  | 13,262 |  |  | 10,355 |
Canada | 4,329 |  |  | 5,851 |  |  | 7,161 |
Total long-lived assets | $ | 879,003 |  |  | $ | 508,291 |  |  | $ | 458,832 |
(a)Long-lived assets are attributed to countries based upon the location of the assets. Our three largest individual customers accounted for approximately 60.7% of our consolidated net sales in 2024. During 2024, O’Reilly Auto Parts, AutoZone and NAPA accounted for 28.4%, 18.8% and 13.5% of our consolidated net sales, respectively. Net sales from each of the customers were reported in our Vehicle Control and Temperature Control operating 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.”

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- Definition The entire disclosure for reporting segments including data and tables. 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