Note 19: Segment Information
Effective April 1, 2022, the Company began managing its operations under two operating segments, Climate Solutions and Performance Technologies. The Climate Solutions segment includes the previously-reported BHVAC and CIS
segments, with the exception of CIS Coatings. The Performance Technologies segment includes the previously-reported HDE and Automotive segments and the CIS Coatings business. See Note 2 for information regarding the primary operating activities of
each segment. The Company’s new segment structure aligns businesses serving similar or complimentary end markets, products and technologies under common segment management.
The Company
believes this simplified segment structure allows it to better focus resources on targeted growth opportunities and better enables for an efficient application of 80/20 principles across all product lines to optimize profit margins and cash flow.
The segment realignment had no impact on the Company’s consolidated financial position, results of operations, and cash flows. Segment financial information for the prior periods has been recast to conform to the current presentation.
The following is a summary of net sales, gross profit and operating income by segment:
|
|
Three months ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
External
Sales
|
|
|
Inter-segment
Sales
|
|
|
Total
|
|
|
External
Sales
|
|
|
Inter-segment
Sales
|
|
|
Total
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Climate Solutions
|
|
$ |
248.6 |
|
|
$ |
- |
|
|
$ |
248.6 |
|
|
$ |
227.3 |
|
|
$ |
- |
|
|
$ |
227.3 |
|
Performance Technologies
|
|
|
311.4 |
|
|
|
6.4 |
|
|
|
317.8 |
|
|
|
274.9 |
|
|
|
7.1 |
|
|
|
282.0 |
|
Segment total
|
|
|
560.0
|
|
|
|
6.4
|
|
|
|
566.4
|
|
|
|
502.2
|
|
|
|
7.1
|
|
|
|
509.3
|
|
Corporate and eliminations
|
|
|
-
|
|
|
|
(6.4
|
)
|
|
|
(6.4
|
)
|
|
|
-
|
|
|
|
(7.1
|
)
|
|
|
(7.1
|
)
|
Net sales
|
|
|
|
|
|
$
|
-
|
|
|
$
|
560.0
|
|
|
|
|
|
|
$
|
-
|
|
|
$
|
502.2
|
|
|
|
Nine months
ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
External
Sales
|
|
|
Inter-segment
Sales
|
|
|
Total
|
|
|
External
Sales
|
|
|
Inter-segment
Sales
|
|
|
Total
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Climate Solutions
|
|
$
|
748.6 |
|
|
$
|
0.3 |
|
|
$
|
748.9 |
|
|
$
|
650.8 |
|
|
$
|
0.2 |
|
|
$
|
651.0 |
|
Performance Technologies
|
|
|
931.2 |
|
|
|
20.9 |
|
|
|
952.1 |
|
|
|
824.9 |
|
|
|
25.0 |
|
|
|
849.9 |
|
Segment total
|
|
|
1,679.8
|
|
|
|
21.2
|
|
|
|
1,701.0
|
|
|
|
1,475.7
|
|
|
|
25.2
|
|
|
|
1,500.9
|
|
Corporate and eliminations
|
|
|
-
|
|
|
|
(21.2
|
)
|
|
|
(21.2
|
)
|
|
|
-
|
|
|
|
(25.2
|
)
|
|
|
(25.2
|
)
|
Net sales
|
|
$
|
|
|
|
$
|
-
|
|
|
$
|
1,679.8
|
|
|
$
|
|
|
|
$
|
-
|
|
|
$
|
1,475.7
|
|
|
|
Three months ended December 31,
|
|
|
Nine months
ended December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
$’s
|
|
% of sales |
|
|
$’s
|
|
% of sales |
|
|
$’s
|
|
% of sales |
|
|
$’s
|
|
% of sales |
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Climate Solutions |
|
$ |
54.8 |
|
|
|
22.0 |
% |
|
$ |
41.9 |
|
|
|
18.4 |
% |
|
$ |
162.5 |
|
|
|
21.7 |
% |
|
$ |
110.4 |
|
|
|
17.0 |
% |
Performance Technologies |
|
|
43.0 |
|
|
|
13.5 |
% |
|
|
32.9 |
|
|
|
11.7 |
% |
|
|
115.2 |
|
|
|
12.1 |
% |
|
|
102.6 |
|
|
|
12.1 |
% |
Segment total
|
|
|
97.8
|
|
|
|
17.3
|
%
|
|
|
74.8
|
|
|
|
14.7
|
%
|
|
|
277.7
|
|
|
|
16.3
|
%
|
|
|
213.0
|
|
|
|
14.2
|
%
|
Corporate and eliminations
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
|
(0.5
|
)
|
|
|
-
|
|
|
|
1.1
|
|
|
|
-
|
|
Gross profit
|
|
$
|
97.6
|
|
|
|
17.4
|
%
|
|
$
|
74.6
|
|
|
|
14.9
|
%
|
|
$
|
277.2
|
|
|
|
16.5
|
%
|
|
$
|
214.1
|
|
|
|
14.5
|
%
|
|
|
Three months ended
December 31,
|
|
|
Nine months
ended
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Climate Solutions |
|
$
|
30.2 |
|
|
$ |
16.8 |
|
|
$
|
89.9 |
|
|
$
|
41.4 |
|
Performance Technologies |
|
|
17.4 |
|
|
|
66.1 |
|
|
|
41.1 |
|
|
|
83.9 |
|
Segment total
|
|
|
47.6
|
|
|
|
82.9
|
|
|
|
131.0
|
|
|
|
125.3
|
|
Corporate and eliminations
|
|
|
(8.1
|
)
|
|
|
(3.5
|
)
|
|
|
(29.1
|
)
|
|
|
(26.7
|
)
|
Operating income
|
|
$
|
39.5
|
|
|
$
|
79.4
|
|
|
$
|
101.9
|
|
|
$
|
98.6
|
|
The following is a summary of segment assets, comprised entirely of trade
accounts receivable and inventories, and other assets:
|
|
December 31, 2022
|
|
|
March 31, 2022
|
|
Assets:
|
|
|
|
|
|
|
Climate Solutions |
|
$
|
307.9 |
|
|
$
|
291.7 |
|
Performance Technologies |
|
|
353.1 |
|
|
|
357.0 |
|
Other (a)
|
|
|
786.0 |
|
|
|
778.3 |
|
Total assets
|
|
$
|
1,447.0
|
|
|
$
|
1,427.0
|
|
|
(a)
|
Represents cash and cash equivalents,
other current assets, property plant and equipment, intangible assets, goodwill, deferred income taxes, and other noncurrent assets for the Climate Solutions and Performance Technologies segments and Corporate.
|
|