| Segment and Geographic Information |
Note 22: Segment and Geographic Information
The Company’s Climate
Solutions segment provides heat transfer products, heating, ventilating, air conditioning and refrigeration products and data center cooling solutions to global customers. The Company’s Performance Technologies segment designs and manufactures
air-and liquid-cooled technology for vehicular, stationary power, and industrial applications. In addition, the Performance Technologies segment provides advanced thermal solutions to zero-emission and hybrid commercial vehicle and automotive
customers and coatings products and application services.
Each operating segment is managed by a president and has separate financial results reviewed by the Company’s chief operating decision maker. Financial results, including net sales, gross profit, gross
margin and operating income, together with other considerations, are used by the chief operating decision maker in evaluating the performance of each segment and in making decisions on the allocation of resources between the Company’s operating
segments.
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 and Commercial and Industrial Solutions (“CIS”) segments, with the exception of CIS Coatings. The Performance Technologies segment includes the previously-reported Heavy Duty Equipment and
Automotive segments and the CIS Coatings business. The segment realignment had no impact on the Company’s consolidated financial position, results of operations, and cash flows. Segment financial information for fiscal 2022 has been recast to
conform to the current presentation.
Effective April 1, 2024, the Company moved its Coatings business, which was previously managed by and reported within the Performance Technologies segment,
under the leadership of the Climate Solutions segment. Under this refined organizational structure, the Coatings business is better aligned with the Climate Solution’s Heat Transfer Products business, which serves similar HVAC&R markets and
customers. The Company expects that unifying these complementary businesses will allow for it to better focus resources on targeted growth and allow for a more
efficient application of 80/20 principles to optimize profit margins and cash flow. Beginning for fiscal 2025, the Company will report the financial results of the Coatings business within the Climate Solutions segment.
The following is a summary
of net sales, gross profit, and operating income by segment. See Note 3 for additional information regarding net sales by product groups within each segment.
|
|
Year ended March 31, 2024
|
|
| |
|
External Sales
|
|
|
Inter-segment
Sales
|
|
|
Total
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,054.6
|
|
|
$
|
-
|
|
|
$
|
1,054.6
|
|
|
|
|
|
1,353.2
|
|
|
|
24.8
|
|
|
|
1,378.0
|
|
|
Segment total
|
|
|
2,407.8
|
|
|
|
24.8
|
|
|
|
2,432.6
|
|
|
Corporate and eliminations
|
|
|
-
|
|
|
|
(24.8
|
)
|
|
|
(24.8
|
)
|
|
Net sales
|
|
$
|
2,407.8
|
|
|
$
|
-
|
|
|
$
|
2,407.8
|
|
|
|
Year ended March 31, 2023
|
|
| |
|
External Sales
|
|
|
Inter-segment
Sales
|
|
|
Total
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,011.5 |
|
|
$ |
0.4 |
|
|
$ |
1,011.9 |
|
|
|
|
|
1,286.4 |
|
|
|
29.8 |
|
|
|
1,316.2 |
|
|
Segment total
|
|
|
2,297.9
|
|
|
|
30.2
|
|
|
|
2,328.1
|
|
|
Corporate and eliminations
|
|
|
-
|
|
|
|
(30.2
|
)
|
|
|
(30.2
|
)
|
|
Net sales
|
|
$
|
2,297.9
|
|
|
$
|
-
|
|
|
$
|
2,297.9
|
|
|
|
Year ended March 31, 2022
|
|
| |
|
External Sales
|
|
|
Inter-segment
Sales
|
|
|
Total
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
910.1
|
|
|
$
|
0.4
|
|
|
$
|
910.5
|
|
|
|
|
|
1,140.0 |
|
|
|
32.4 |
|
|
|
1,172.4 |
|
|
Segment total
|
|
|
2,050.1
|
|
|
|
32.8
|
|
|
|
2,082.9
|
|
|
Corporate and eliminations
|
|
|
-
|
|
|
|
(32.8
|
)
|
|
|
(32.8
|
)
|
|
Net sales
|
|
$
|
2,050.1
|
|
|
$
|
-
|
|
|
$
|
2,050.1
|
|
Inter-segment sales are accounted for based upon an established markup over production costs. Net sales for Corporate and eliminations primarily
represent the elimination of inter-segment sales.
|
Years ended March 31,
|
|
| |
2024
|
|
2023
|
|
2022
|
|
|
Gross profit:
|
_$’s
|
|
% of sales
|
|
_$’s
|
|
% of sales
|
|
$’s
|
|
% of sales
|
|
|
Climate Solutions
|
|
$
|
275.4
|
|
|
|
26.1
|
%
|
|
$
|
223.6
|
|
|
|
22.1
|
%
|
|
$
|
166.3
|
|
|
|
18.3
|
%
|
|
Performance Technologies
|
|
|
251.1
|
|
|
|
18.2
|
%
|
|
|
166.1
|
|
|
|
12.6
|
%
|
|
|
142.2
|
|
|
|
12.1
|
%
|
|
Segment total
|
|
|
526.5
|
|
|
|
21.6
|
%
|
|
|
389.7
|
|
|
|
16.7 |
% |
|
|
308.5
|
|
|
|
14.8
|
%
|
|
Corporate and eliminations
|
|
|
(0.9
|
)
|
|
|
-
|
|
|
|
(0.3
|
)
|
|
|
-
|
|
|
|
0.8
|
|
|
|
-
|
|
|
Gross profit
|
|
$
|
525.6
|
|
|
|
21.8
|
%
|
|
$
|
389.4
|
|
|
|
16.9
|
%
|
|
$
|
309.3
|
|
|
|
15.1
|
%
|
|
|
Years ended March 31,
|
|
|
Operating income:
|
|
2024
|
|
|
2023
|
|
|
2022
|
|
|
|
|
$
|
166.9 |
|
|
$
|
124.1 |
|
|
$
|
73.4 |
|
|
Performance Technologies
|
|
|
123.4 |
|
|
|
65.6 |
|
|
|
77.4 |
|
|
Segment total
|
|
|
290.3 |
|
|
|
189.7 |
|
|
|
150.8 |
|
|
Corporate and eliminations (a)
|
|
|
(49.6 |
) |
|
|
(39.3 |
) |
|
|
(31.6 |
) |
|
Operating income
|
|
$
|
240.7
|
|
|
$
|
150.4
|
|
|
$
|
119.2
|
|
| (a) |
The operating loss for Corporate includes certain research and development costs,
legal, finance and other general corporate and central services expenses, and other costs that are either not directly attributable to an operating segment or not considered when management evaluates segment performance.
|
The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets:
|
|
March 31,
|
|
| Assets: |
|
2024
|
|
|
2023
|
|
|
|
|
$
|
400.6
|
|
|
$
|
334.8
|
|
|
|
|
|
380.2
|
|
|
|
388.1
|
|
|
|
|
|
1,070.7
|
|
|
|
843.0
|
|
|
Total assets
|
|
$
|
1,851.5
|
|
|
$
|
1,565.9
|
|
| (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.
|
The following is a summary of capital expenditures and depreciation and amortization expense by segment:
|
|
Years ended March 31,
|
|
|
Capital expenditures:
|
|
2024
|
|
|
2023
|
|
|
2022
|
|
|
|
|
$
|
50.6
|
|
|
$
|
24.2
|
|
|
$
|
9.9
|
|
|
|
|
|
36.4
|
|
|
|
25.2
|
|
|
|
29.2
|
|
|
|
|
|
0.7
|
|
|
|
1.3
|
|
|
|
1.2
|
|
|
Total capital expenditures
|
|
$
|
87.7
|
|
|
$
|
50.7
|
|
|
$
|
40.3
|
|
|
(a)
|
In March 2024, the Company purchased a manufacturing
site in the U.K. for $13.4 million in order to expand its production capacity for data center cooling products.
|
|
|
Years ended March 31,
|
|
|
Depreciation and amortization expense:
|
|
2024
|
|
|
2023
|
|
|
2022
|
|
|
|
|
$
|
23.5
|
|
|
$
|
21.7
|
|
|
$
|
23.6
|
|
|
|
|
|
31.7
|
|
|
|
31.8
|
|
|
|
29.9
|
|
|
Corporate
|
|
|
0.9
|
|
|
|
1.0
|
|
|
|
1.3
|
|
|
Total depreciation and amortization expense
|
|
$
|
56.1
|
|
|
$
|
54.5
|
|
|
$
|
54.8
|
|
The following is a summary of net sales by geographic area, based upon the location of the selling unit:
|
|
Years ended March 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2022
|
|
|
United States
|
|
$
|
1,233.7
|
|
|
$
|
1,139.3
|
|
|
$
|
949.6
|
|
|
Italy
|
|
|
242.4
|
|
|
|
249.5
|
|
|
|
232.0
|
|
|
Hungary
|
|
|
224.7
|
|
|
|
210.7
|
|
|
|
185.2
|
|
|
China
|
|
|
144.2
|
|
|
|
151.6
|
|
|
|
166.0
|
|
|
United Kingdom
|
|
|
135.8
|
|
|
|
93.6
|
|
|
|
118.6
|
|
|
Other
|
|
|
427.0
|
|
|
|
453.2
|
|
|
|
398.7
|
|
|
Net sales
|
|
$
|
2,407.8
|
|
|
$
|
2,297.9
|
|
|
$
|
2,050.1
|
|
The following is a summary of property, plant and equipment by geographic area:
|
|
March 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
United States
|
|
$
|
117.5
|
|
|
$
|
96.4
|
|
Hungary
|
|
|
40.7 |
|
|
|
40.8 |
|
|
China
|
|
|
39.4
|
|
|
|
40.2
|
|
|
Mexico
|
|
|
35.2
|
|
|
|
34.0
|
|
|
Italy
|
|
|
33.8
|
|
|
|
32.8
|
|
|
Other
|
|
|
99.1
|
|
|
|
70.3
|
|
|
Total property, plant and equipment
|
|
$
|
365.7
|
|
|
$
|
314.5
|
|
|