Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.8.0.1
Segment Information
 9 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
We operate in four reportable segments based on four geographic countries or regions in which we operate: the United States, Canada, Europe and Asia. Within our four reportable segments, our primary products and services are focused on thermal solutions primarily related to the electrical heat tracing industry. Each of our reportable segments serves a similar class of customers, including engineering, procurement and construction (“EPC”) companies, international and regional oil and gas companies, commercial sub-contractors, electrical component distributors and direct sales to existing plant or industrial applications. Profitability within our segments is measured by operating income. Profitability can vary in each of our reportable segments based on the competitive environment within the region, the level of corporate overhead, such as the salaries of our senior executives, and the level of research and development and marketing activities in the region, as well as the mix of products and services. Since March 2015, we acquired THS, Unitemp, IPI and Sumac. THS (formerly known as CCI) develops and designs advanced industrial heating and filtration solutions that closely align with Thermon's core business and serve similar end markets in North America. As such, we have elected to report THS's operations through our United States and Canada reportable segments. Both Unitemp and IPI offer thermal solutions and have been included in our Europe and United States reportable segments, respectively. Sumac provides temporary power products that differ from our core thermal solutions business. As we anticipate that our full year operating results from Sumac will comprise less than 10% of our total sales and operating income, Sumac has been aggregated in our Canada segment. For purposes of this note, revenue is attributed to individual countries or regions on the basis of the physical location and jurisdiction of organization of the subsidiary that invoices the material and services.
Total sales to external customers, inter-segment sales, depreciation expense, amortization expense, income from operations, property, plant and equipment, net and total assets for each of our four reportable segments are as follows:
 
Three Months Ended December 31, 2017
 
Three Months Ended December 31, 2016
 
Nine Months Ended December 31, 2017
 
Nine Months Ended
December 31, 2016
Sales to External Customers:
 

 
 

 
 
 
 
United States
$
32,828

 
$
28,945

 
$
77,697

 
$
88,937

Canada
30,178

 
9,126

 
57,714

 
32,286

Europe
20,309

 
18,100

 
48,373

 
50,417

Asia
9,345

 
8,169

 
22,243

 
24,908

 
$
92,660

 
$
64,340

 
$
206,027

 
$
196,548

Inter-Segment Sales:
 
 
 
 
 
 
 
United States
$
13,232

 
$
11,355

 
$
37,123

 
$
35,090

Canada
1,862

 
1,345

 
5,221

 
2,370

Europe
487

 
267

 
1,210

 
1,273

Asia
546

 
129

 
1,093

 
762

 
$
16,127

 
$
13,096

 
$
44,647

 
$
39,495

Depreciation Expense:
 
 
 
 
 
 
 
United States
$
1,126

 
$
905

 
$
3,190

 
$
2,656

Canada
897

 
467

 
2,137

 
1,418

Europe
133

 
74

 
347

 
216

Asia
35

 
39

 
99

 
108

 
$
2,191

 
$
1,485

 
$
5,773

 
$
4,398

Amortization Expense:
 
 
 
 
 
 
 
United States
$
1,505

 
$
1,505

 
$
4,515

 
$
4,355

Canada
2,632

 
870

 
4,373

 
2,661

Europe
351

 
322

 
1,030

 
990

Asia
266

 
266

 
798

 
798

 
$
4,754

 
$
2,963

 
$
10,716

 
$
8,804

Income (loss) from operations:
 

 
 

 
 
 
 
United States
$
340

 
$
3,848

 
$
(1,757
)
 
$
4,311

Canada
7,622

 
1,343

 
17,619

 
5,787

Europe
2,008

 
2,344

 
4,240

 
6,908

Asia
1,444

 
914

 
2,751

 
3,797

Unallocated:


 


 


 


Stock compensation
(895
)
 
(837
)
 
(2,627
)
 
(2,658
)
Public company costs
(309
)
 
(313
)
 
(1,041
)
 
(981
)
 
$
10,210

 
$
7,299

 
$
19,185

 
$
17,164


 
December 31, 2017
 
March 31, 2017
Property, plant and equipment, net:
 
 
 
United States
$
36,744

 
$
34,563

Canada
32,744

 
4,674

Europe
3,521

 
3,532

Asia
741

 
497

 
$
73,750

 
$
43,266

Total Assets:
 
 
 
United States
$
205,132

 
$
186,300

Canada
343,506

 
136,688

Europe
87,843

 
80,589

Asia
44,487

 
50,503

 
$
680,968

 
$
454,080