Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.20.1
Segment Information
 12 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information

We operate in four reportable segments based on four geographic countries or regions in which we operate: (i) United States and Latin America ("US-LAM"), (ii) Canada, (iii) Europe, Middle East and Africa ("EMEA") and (iv) Asia-Pacific ("APAC"). Within our four reportable segments, our core 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 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 TPS, Unitemp, IPI and THS. THS develops and produces advanced industrial heating and filtration solutions for industrial and hazardous area applications that closely align with Thermon's core business and serves similar end markets in North America. As such, we have elected to report THS's operations through our US-LAM and Canada reportable segments. Both Unitemp and IPI offer thermal solutions and have been included in our EMEA and US-LAM reportable segments, respectively. TPS provides temporary power products that differ from our core thermal solutions business. As operating results from TPS comprises less than 10% of our total sales and operating income, TPS 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 and total assets classified by major geographic area in which the Company operates are as follows:
 
 
Year Ended March 31, 2020
 
Year Ended March 31, 2019
 
Year Ended March 31, 2018
Sales to External Customers:
 
 
 
 
 
 
United States and Latin America
 
$
155,465

 
$
165,648

 
$
114,548

Canada
 
128,364

 
127,392

 
94,427

Europe, Middle East and Africa
 
53,762

 
77,508

 
68,352

Asia-Pacific
 
45,895

 
42,094

 
31,282

 
 
$
383,486

 
$
412,642

 
$
308,609

Inter-segment Sales:
 
 
 
 
 
 
United States and Latin America
 
$
48,891

 
$
52,662

 
$
50,155

Canada
 
4,764

 
6,231

 
7,294

Europe, Middle East and Africa
 
2,890

 
3,406

 
1,614

Asia-Pacific
 
991

 
859

 
1,668

 
 
$
57,536

 
$
63,158

 
$
60,731

Depreciation Expense:
 
 
 
 
 
 
United States and Latin America
 
$
6,304

 
$
4,935

 
$
4,326

Canada
 
3,462

 
3,616

 
3,019

Europe, Middle East and Africa
 
551

 
466

 
476

Asia-Pacific
 
185

 
177

 
141

 
 
$
10,502

 
$
9,194

 
$
7,962

Amortization of Intangibles:
 
 
 
 
 
 
United States and Latin America
 
$
5,752

 
$
5,841

 
$
6,018

Canada
 
9,665

 
12,515

 
7,979

Europe, Middle East and Africa
 
1,292

 
1,351

 
1,398

Asia-Pacific
 
1,064

 
1,064

 
1,063

 
 
$
17,773

 
$
20,771

 
$
16,458

Income from Operations:
 
 
 
 
 
 
United States and Latin America
 
$
6,346

 
$
16,421

 
$
484

Canada
 
24,946

 
20,601

 
26,198

Europe, Middle East and Africa
 
1,196

 
11,295

 
6,842

Asia-Pacific
 
6,628

 
5,847

 
4,111

Unallocated:
 


 


 


Public company costs
 
(1,493
)
 
(1,507
)
 
(1,378
)
Stock compensation
 
(4,960
)
 
(4,148
)
 
(3,519
)
 
 
$
32,663

 
$
48,509

 
$
32,738

 
 
 
 
 
 
 
 
 
March 31, 2020
 
March 31, 2019
 
 
Fixed Assets:
 
 
 
 
 
 
United States and Latin America
 
$
39,815

 
$
40,691

 
 
Canada
 
28,703

 
30,045

 
 
Europe, Middle East and Africa
 
3,246

 
3,497

 
 
Asia-Pacific
 
778

 
722

 
 
 
 
$
72,542

 
$
74,955

 
 
Total Assets:
 


 


 
 
United States and Latin America
 
$
239,751

 
$
230,149

 
 
Canada
 
270,055

 
298,233

 
 
Europe, Middle East and Africa
 
73,334

 
84,214

 
 
Asia-Pacific
 
37,765

 
43,166

 
 
 
 
$
620,905

 
$
655,762

 
 
At March 31, 2020 and 2019, non-current deferred tax assets of $4,795 and $4,483 respectively, were applicable to the United States.
Capital expenditures by geographic area were as follows:
 
 
Year Ended March 31, 2020
 
Year Ended March 31, 2019
 
Year Ended March 31, 2018
Capital Expenditures:
 
 
 
 
 
 
United States and Latin America
 
$
5,607

 
$
8,432

 
$
4,257

Canada
 
4,221

 
2,753

 
5,295

Europe, Middle East and Africa
 
654

 
612

 
118

Asia-Pacific
 
373

 
239

 
338

 
 
$
10,855

 
$
12,036

 
$
10,008