Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
 6 Months Ended
Sep. 30, 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 Unitemp Close Corporation ("Unitemp"), Industrial Process Insulators, Inc. ("IPI"), Sumac and CCI. Our THS business line provides 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 operations attributable to our THS products 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. Our TPS product line provides temporary power products that differ from our core thermal solutions business. As we anticipate that our full year operating results from TPS will comprise less than 10% of our total sales and operating income, operations attributable to our TPS products have 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 September 30, 2020 Three Months Ended September 30, 2019 Six Months Ended September 30, 2020 Six Months Ended September 30, 2019
Sales to External Customers:    
United States and Latin America $ 23,876  $ 43,821  $ 42,519  $ 84,248 
Canada 19,216  30,951  38,529  58,203 
Europe, Middle East and Africa 12,330  15,688  21,797  29,027 
Asia-Pacific 10,984  12,475  20,409  23,169 
  $ 66,406  $ 102,935  $ 123,254  $ 194,647 
Inter-Segment Sales:
United States and Latin America $ 9,825  $ 15,720  $ 21,098  $ 25,461 
Canada 1,363  1,005  2,855  2,129 
Europe, Middle East and Africa 378  1,033  1,073  1,594 
Asia-Pacific 345  157  518  445 
$ 11,911  $ 17,915  $ 25,544  $ 29,629 
Depreciation Expense:
United States and Latin America $ 1,542  $ 1,596  $ 3,080  $ 3,095 
Canada 1,079  840  2,111  1,600 
Europe, Middle East and Africa 115  125  227  264 
Asia-Pacific 48  49  95  103 
$ 2,784  $ 2,610  $ 5,513  $ 5,062 
Amortization Expense:
United States and Latin America $ 198  $ 1,438  $ 874  $ 2,876 
Canada 1,758  2,434  3,655  4,836 
Europe, Middle East and Africa 33  323  397  650 
Asia-Pacific 108  266  204  532 
$ 2,097  $ 4,461  $ 5,130  $ 8,894 
Income (Loss) from Operations:    
United States and Latin America $ 896  $ 5,333  $ (7,832) $ 6,336 
Canada 2,019  5,282  4,178  8,777 
Europe, Middle East and Africa 1,124  1,472  1,476  1,829 
Asia-Pacific 837  2,527  1,834  4,097 
Unallocated:
Stock compensation (1,358) (1,323) (2,491) (2,342)
Public company costs (472) (450) (874) (865)
  $ 3,046  $ 12,841  $ (3,709) $ 17,832 
September 30, 2020 March 31, 2020
Property, Plant and Equipment, Net:
United States and Latin America $ 39,476  $ 39,815 
Canada 29,218  28,703 
Europe, Middle East and Africa 3,221  3,246 
Asia-Pacific 776  778 
$ 72,691  $ 72,542 
Total Assets:
United States and Latin America $ 240,019  $ 239,751 
Canada 272,741  270,055 
Europe, Middle East and Africa 75,581  73,334 
Asia-Pacific 38,734  37,765 
$ 627,075  $ 620,905 

Capital expenditures for our reportable segments were as follows:
Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Six Months Ended
September 30, 2020		 Six Months Ended
September 30, 2019
Capital Expenditures:
United States and Latin America $ 1,363  $ 827  $ 3,157  $ 1,988 
Canada 634  1,196  867  1,584 
Europe, Middle East and Africa 29  (17) 48  151 
Asia-Pacific 47  109  60  116 
  $ 2,073  $ 2,115  $ 4,132  $ 3,839