Industry Segment and Geographic Data

12 Months Ended

Dec. 31, 2019

Industry Segment and Geographic Data [Abstract]

Industry Segment and Geographic Data

20. 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,
	2019			2018			2017 (b)
Net sales (a):
Engine Management	$	849,161		$	803,487		$	829,413
Temperature Control		278,355			278,456			279,127
Other		10,397			10,108			7,603
Total net sales	$	1,137,913		$	1,092,051		$	1,116,143
Intersegment sales (a):
Engine Management	$	19,569		$	23,367		$	24,995
Temperature Control		6,545			8,160			7,334
Other		(26,114	)		(31,527	)		(32,329	)
Total intersegment sales	$	—		$	—		$	—
Depreciation and Amortization:
Engine Management	$	19,463		$	17,858		$	17,981
Temperature Control		4,568			4,704			4,373
Other		1,778			1,542			1,562
Total depreciation and amortization	$	25,809		$	24,104		$	23,916
Operating income (loss):
Engine Management	$	103,808		$	84,844		$	97,403
Temperature Control		13,667			14,586			19,609
Other		(22,980	)		(18,162	)		(19,491	)
Total operating income	$	94,495		$	81,268		$	97,521
Investment in unconsolidated affiliates:
Engine Management	$	2,243		$	2,158		$	4,162
Temperature Control		36,615			30,311			27,022
Other		—			—			—
Total investment in unconsolidated affiliates	$	38,858		$	32,469		$	31,184
Capital expenditures:
Engine Management	$	12,593		$	11,435		$	17,750
Temperature Control		2,273			7,245			5,151
Other		1,319			1,461			1,541
Total capital expenditures	$	16,185		$	20,141		$	24,442
Total assets:
Engine Management	$	601,637		$	553,480		$	527,200
Temperature Control		218,783			205,039			177,006
Other		92,310			84,613			83,361
Total assets	$	912,730		$	843,132		$	787,567

(a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.

(b) Net sales and intersegment sales for 2017 have not been restated and are reported under accounting standards in effect in the period presented, as we adopted ASU 2014-09, Revenue from Contracts with Customers, on January 1, 2018 using the modified retrospective method.

Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments, as well as items pertaining to our Canadian business unit that does not meet the criteria of a reportable operating segment and our corporate headquarters function.

Reconciliation of segment operating income to net earnings:

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Operating income	$	94,495		$	81,268		$	97,521
Other non-operating income (expense), net		2,587			(411	)		1,250
Interest expense		5,286			4,026			2,329
Earnings from continuing operations before taxes		91,796			76,831			96,442
Income tax expense		22,745			19,977			52,812
Earnings from continuing operations		69,051			56,854			43,630
Discontinued operations, net of tax		(11,134	)		(13,851	)		(5,654	)
Net earnings	$	57,917		$	43,003		$	37,976

	Year Ended December 31,
	2019		2018		2017 (b)
Revenues (a):	(In thousands)
United States	$	1,023,903	$	976,030	$	1,001,003
Canada		50,158		57,460		52,005
Mexico		20,035		20,214		24,521
Europe		13,875		13,684		14,088
Other foreign		29,942		24,663		24,526
Total revenues	$	1,137,913	$	1,092,051	$	1,116,143

	December 31,
	2019		2018		2017
Long-lived assets (c):	(In thousands)
United States	$	253,384	$	198,494	$	202,875
Canada		4,659		2,718		2,017
Mexico		12,036		4,012		4,449
Europe		17,004		16,880		18,530
Other foreign		38,942		32,470		31,185
Total long-lived assets	$	326,025	$	254,574	$	259,056

(a) Revenues are attributed to countries based upon the location of the customer.

(b) Revenues for 2017 have not been restated and are reported under accounting standards in effect in the period presented, as we adopted ASU 2014-09, Revenue from Contracts with Customers, on January 1, 2018 using the modified retrospective method.

(c) Long-lived assets are attributed to countries based upon the location of the assets.

Our five largest individual customers accounted for approximately 69% of our consolidated net sales in 2019, and approximately 70% of our consolidated net sales in 2018 and 2017. During 2019, O’Reilly, Advance, NAPA, and AutoZone accounted for 22%, 16%, 15% 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.

For the disaggregation of our net sales from contracts with customers by geographic area, major product group and major sales channels for each of our segments, see Note 21, “Net Sales.”