Industry Segment and Geographic Data

12 Months Ended

Dec. 31, 2015

Industry Segment and Geographic Data [Abstract]

Industry Segment and Geographic Data

17. Industry Segment and Geographic Data

We have two major reportable operating segments, each of which focuses on a specific line of replacement parts. Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts.

The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1). The following tables contain financial information for each reportable segment (in thousands):

	Year Ended December 31,
	2015			2014			2013
Net sales:
Engine Management	$	698,021		$	709,263		$	711,245
Temperature Control		264,478			259,065			262,537
Other		9,476			12,064			9,922
Total net sales	$	971,975		$	980,392		$	983,704
Intersegment sales:
Engine Management	$	20,178		$	23,633		$	25,720
Temperature Control		6,542			6,966			6,329
Other		(26,720	)		(30,599	)		(32,049	)
Total intersegment sales	$	—		$	—		$	—
Depreciation and Amortization:
Engine Management	$	12,256		$	12,425		$	13,235
Temperature Control		4,329			4,171			3,763
Other		1,052			699			597
Total depreciation and amortization	$	17,637		$	17,295		$	17,595
Operating income (loss):
Engine Management	$	88,007		$	103,861		$	96,335
Temperature Control		6,382			6,445			9,147
Other		(18,529	)		(24,968	)		(18,619	)
Total operating income	$	75,860		$	85,338		$	86,863
Investment in equity affiliates:
Engine Management	$	6,430		$	6,368		$	6,308
Temperature Control		14,192			13,636			—
Other		—			—			—
Total investment in equity affiliates	$	20,622		$	20,004		$	6,308
Capital expenditures:
Engine Management	$	14,574		$	11,182		$	8,628
Temperature Control		3,418			2,650			2,682
Other		55			72			100
Total capital expenditures	$	18,047		$	13,904		$	11,410
Total assets:
Engine Management	$	413,102		$	409,275		$	384,712
Temperature Control		177,201			173,070			150,280
Other		90,761			91,206			80,531
Total assets	$	681,064		$	673,551		$	615,523

Other consists of items pertaining to our corporate headquarters function, as well as our Canadian business unit that does not meet the criteria of a reportable operating segment. During 2014, included in operating income (loss) other is a $10.6 million litigation charge in connection with a settlement agreement in a legal proceeding with a third party.

Reconciliation of segment operating income to net earnings (in thousands):

	Year Ended December 31,
	2015			2014			2013
Operating income	$	75,860		$	85,338		$	86,863
Other non-operating income (expense)		(220	)		(1,969	)		1
Interest expense		1,537			1,616			1,902
Earnings from continuing operations before taxes		74,103			81,753			84,962
Income tax expense		25,983			28,854			31,919
Earnings from continuing operations		48,120			52,899			53,043
Discontinued operations, net of tax		(2,102	)		(9,870	)		(1,593	)
Net earnings	$	46,018		$	43,029		$	51,450

	Year Ended December 31,
	2015		2014		2013
Revenues:	(In thousands)
United States	$	881,206	$	884,701	$	895,648
Canada		48,072		51,526		46,133
Europe		16,305		18,061		15,413
Other foreign		26,392		26,104		26,510
Total revenues	$	971,975	$	980,392	$	983,704

	December 31,
	2015		2014		2013
Long-lived assets:	(In thousands)
United States	$	155,438	$	158,350	$	135,834
Canada		1,190		1,546		1,526
Europe		12,324		11,725		11,310
Other foreign		21,634		20,957		10,497
Total long-lived assets	$	190,586	$	192,578	$	159,167

Revenues are attributed to countries based upon the location of the customer. Long-lived assets are attributed to countries based upon the location of the assets.

Our five largest individual customers, including members of a marketing group, accounted for approximately 68% of our consolidated net sales in 2015, 69% of our consolidated net sales in 2014 and 66% of our consolidated net sales in 2013. During 2015, O’Reilly Automotive, Inc., NAPA Auto Parts, Advance Auto Parts, Inc., and AutoZone, Inc. accounted for 19%, 19%, 17% and 11% of our consolidated net sales, respectively. Net sales from each of the customers were reported in both our Engine Management and Temperature Control Segments.