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Industry Segment and Geographic Data
 12 Months Ended
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, 2024Vehicle ControlTemperature ControlEngineered SolutionsNissens AutomotiveOtherTotal
Net sales$762,560 $380,088 $285,456 $35,745 $— $1,463,849 
Cost of sales518,475 262,296 235,537 24,220 — 1,040,528 
Gross profit244,085 117,792 49,919 11,525 — 423,321 
Selling and marketing expenses45,878 15,938 8,060 1,536 — 71,412 
Distribution expenses57,627 32,858 5,290 7,097 4,579 107,451 
General and administration expenses36,935 16,763 20,906 5,560 17,052 97,216 
Supply chain financing expenses32,090 16,449 — — — 48,539 
Restructuring and integration expenses4,249 847 843 — 1,729 7,668 
Other expenses— — — 100 10,311 10,411 
Total operating expenses176,779 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, net6,877 
Interest expense13,512 
Earnings from continuing operations before income taxes$73,989 
Year ended December 31, 2023Vehicle ControlTemperature ControlEngineered SolutionsNissens AutomotiveOtherTotal
Net sales$737,932 $337,754 $282,586 $— $— $1,358,272 
Cost of sales499,717 241,927 227,802 — — 969,446 
Gross profit238,215 95,827 54,784 — — 388,826 
Selling and marketing expenses46,223 16,772 8,407 — — 71,402 
Distribution expenses54,401 30,467 4,989 — — 89,857 
General and administration expenses34,430 14,664 21,186 — 15,937 86,217 
Supply chain financing expenses30,558 15,473 — — — 46,031 
Restructuring and integration expenses1,276 1,108 258 — — 2,642 
Other expenses— — — — — — 
Total operating expenses166,888 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, net2,326 
Interest expense13,287 
Earnings from continuing operations before income taxes$81,716 
Year ended December 31, 2022Vehicle ControlTemperature ControlEngineered SolutionsNissens AutomotiveOtherTotal
Net sales$750,571 $351,237 $270,007 $— $— $1,371,815 
Cost of sales518,304 252,323 218,649 — — 989,276 
Gross profit232,267 98,914 51,358 — — 382,539 
Selling and marketing expenses49,245 17,666 7,239 — — 74,150 
Distribution expenses54,081 29,868 4,377 — — 88,326 
General and administration expenses31,812 13,969 21,029 — 15,190 82,000 
Supply chain financing expenses21,480 10,557 — — — 32,037 
Restructuring and integration expenses1,496 395 — — — 1,891 
Other expenses— — — — — — 
Total operating expenses158,114 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, net4,814 
Interest expense10,617 
Earnings from continuing operations before income taxes$98,332 
Year Ended December 31,
202420232022
Depreciation and amortization
Vehicle Control$14,841 $13,877 $14,075 
Temperature Control3,307 3,424 2,973 
Engineered Solutions9,608 9,966 9,557 
Nissens Automotive1,943 — — 
Other1,714 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 Control20,396 19,711 27,557 
Engineered Solutions1,999 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 Control2,621 1,899 3,973 
Engineered Solutions9,721 12,095 6,489 
Nissens Automotive213 — — 
Other1,860 684 2,116 
Total capital expenditures$44,018 $28,633 $25,956 
Total assets
Vehicle Control$659,607 $620,569 $618,789 
Temperature Control276,216 274,657 254,137 
Engineered Solutions285,866 292,080 289,518 
Nissens Automotive482,773 — — 
Other109,664 105,741 92,485 
Total assets$1,814,126 $1,293,047 $1,254,929 
December 31,
(in thousands)202420232022
Long-lived assets (a)
United States$378,557 $368,792 $326,199 
Denmark347,629 — — 
Asia67,406 75,869 76,766 
Europe59,909 $44,517 $38,351 
Mexico21,173 13,262 10,355 
Canada4,329 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.”