v3.22.4
Revenue Recognition
 9 Months Ended
Dec. 31, 2022
Revenue Recognition [Abstract]  
Revenue Recognition
Note 2: Revenue Recognition
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 Building HVAC Systems (“BHVAC”) and the Commercial and Industrial Solutions (“CIS”) segments, with the exception of CIS Coatings.  The Performance Technologies segment includes the previously-reported Heavy Duty Equipment (“HDE”) and Automotive segments and the CIS Coatings business.  See Note 19 for additional segment financial information.



The Company’s operating segments and their principal revenue-generating activities are as follows:

Climate Solutions

The Climate Solutions segment provides energy-efficient, climate-controlled components and solutions for a wide array of applications.  The Climate Solutions segment principally generates revenue from selling heat transfer products, heating, ventilating, air conditioning, and refrigeration (“HVAC & refrigeration”) products, and data center cooling solutions.  Heat transfer products include heat transfer coils used in commercial and residential HVAC and refrigeration applications.  HVAC and refrigeration products include commercial and residential unit heaters, vertical and horizontal unit ventilators, air conditioning chillers, low global warming potential unit coolers, air-cooled condensers, and dry coolers.  Data center cooling solutions, which are integrated with system controls, include air- and liquid-cooled chillers, computer room air conditioner and air handler units, and fan walls.

Performance Technologies

The Performance Technologies segment provides products and solutions that enhance the performance of customer applications.  The Performance Technologies segment designs and manufactures air- and liquid-cooled technology for vehicular, stationary power, and industrial applications.  Air-cooled products include radiators, charge air coolers, condensers, and engine cooling modules.  Liquid-cooled products include engine oil coolers, charge air coolers, condensers, and exhaust gas recirculation coolers.  In addition, the Performance Technologies segment provides advanced solutions, which are designed to improve battery range and vehicle life, to zero-emission and hybrid commercial vehicle and automotive customers.  These solutions include battery thermal management systems, electronics cooling packages, and battery chillers.  The advanced solutions provided by the segment also include coating products and application services that extend the life of equipment and components by protecting against corrosion.
Disaggregation of Revenue

The tables below present revenue for each of the Company’s operating segments.  Each segment’s revenue is disaggregated by product group, by geographic location and based upon the timing of revenue recognition.  The disaggregated revenue information presented in the tables below for fiscal 2022 has been recast to be comparable with the fiscal 2023 presentation.

   
Three months ended December 31, 2022
    
Three months ended December 31, 2021
  

 
Climate
Solutions
    
Performance
Technologies
    
Segment
Total
    
Climate
Solutions
    
Performance
Technologies
    
Segment
Total
  
Product groups:
                                    
Heat transfer
  
$
119.3
    
$
-
    
$
119.3
    
$
116.5
    
$
-
    
$
116.5
  
HVAC & refrigeration
     89.0       -       89.0       86.8       -       86.8  
Data center cooling
    
40.3
      
-
      
40.3
      
24.0
      
-
      
24.0
  
Air-cooled
    
-
      
158.9
      
158.9
      
-
      
138.1
      
138.1
  
Liquid-cooled
    
-
      
117.3
      
117.3
      
-
      
106.8
      
106.8
  
Advanced solutions
    
-
      
35.2
      
35.2
      
-
      
30.0
      
30.0
  
Inter-segment sales
    
-
      
6.4
      
6.4
      
-
      
7.1
      
7.1
  
Net sales
  
$
248.6
    
$
317.8
    
$
566.4
    
$
227.3
    
$
282.0
    
$
509.3
  
                                                 
Geographic location:
                                                
Americas
  
$
148.5
    
$
167.2
    
$
315.7
    
$
126.1
    
$
141.2
    
$
267.3
  
Europe
    
94.4
      
97.6
      
192.0
      
95.2
      
85.8
      
181.0
  
Asia
    
5.7
      
53.0
      
58.7
      
6.0
      
55.0
      
61.0
  
Net sales
  
$
248.6
    
$
317.8
    
$
566.4
    
$
227.3
    
$
282.0
    
$
509.3
  
                                                 
Timing of revenue recognition:
                                                
Products transferred at a point in time
  
$
233.3
    
$
301.0
    
$
534.3
    
$
223.2
    
$
263.5
    
$
486.7
  
Products transferred over time
    
15.3
      
16.8
      
32.1
      
4.1
      
18.5
      
22.6
  
Net sales
  
$
248.6
    
$
317.8
    
$
566.4
    
$
227.3
    
$
282.0
    
$
509.3
  

   
Nine months ended December 31, 2022
    
Nine months ended December 31, 2021
  

 
Climate
Solutions
    
Performance
Technologies
    
Segment
Total
    
Climate
Solutions
    
Performance
Technologies
    
Segment
Total
  
Product groups:
                                    
Heat transfer
  
$
394.7
    
$
-
    
$
394.7
    
$
353.4
    
$
-
    
$
353.4
  
HVAC & refrigeration
    
256.8
      
-
      
256.8
      
237.9
      
-
      
237.9
  
Data center cooling
    
97.1
      
-
      
97.1
      
59.5
      
-
      
59.5
  
Air-cooled
    
-
      
481.2
      
481.2
      
-
      
415.8
      
415.8
  
Liquid-cooled
    
-
      
347.2
      
347.2
      
-
      
322.6
      
322.6
  
Advanced solutions
    
-
      
102.8
      
102.8
      
-
      
86.5
      
86.5
  
Inter-segment sales
    
0.3
      
20.9
      
21.2
      
0.2
      
25.0
      
25.2
  
Net sales
  
$
748.9
    
$
952.1
    
$
1,701.0
    
$
651.0
    
$
849.9
    
$
1,500.9
  
                                                 
Geographic location:
                                                
Americas
  
$
444.2
    
$
514.3
    
$
958.5
    
$
348.0
    
$
424.0
    
$
772.0
  
Europe
    
284.3
      
285.0
      
569.3
      
281.0
      
270.5
      
551.5
  
Asia
    
20.4
      
152.8
      
173.2
      
22.0
      
155.4
      
177.4
  
Net sales
  
$
748.9
    
$
952.1
    
$
1,701.0
    
$
651.0
    
$
849.9
    
$
1,500.9
  
                                                 
Timing of revenue recognition:
                                                
Products transferred at a point in time
  
$
707.1
    
$
892.6
    
$
1,599.7
    
$
640.5
    
$
791.6
    
$
1,432.1
  
Products transferred over time
    
41.8
      
59.5
      
101.3
      
10.5
      
58.3
      
68.8
  
Net sales
  
$
748.9
    
$
952.1
    
$
1,701.0
    
$
651.0
    
$
849.9
    
$
1,500.9
  

Contract Balances

Contract assets and contract liabilities from contracts with customers were as follows:

 
December 31, 2022
    
March 31, 2022
  
Contract assets
  
$
23.8
    
$
26.8
  
Contract liabilities
    
11.9
      
11.8
  

Contract assets, included within other current assets in the consolidated balance sheets, primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the customer has guaranteed reimbursement, and assets recorded for revenue recognized over time, which represent the Company’s rights to consideration for work completed but not yet billed.  The $3.0 million decrease in contract assets during the first nine months of fiscal 2023 primarily resulted from a decrease in contract assets for revenue recognized over time.

Contract liabilities, included within other current liabilities in the consolidated balance sheets, consist of payments received in advance of satisfying performance obligations under customer contracts, including contracts for customer-owned tooling.  The $0.1 million increase in contract liabilities during the first nine months of fiscal 2023 primarily resulted from payments received in advance of the Company’s satisfaction of performance obligations.