10-Q 1 brhc10033340_10q.htm 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 10-Q

☑
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021

or

☐
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number 1-1373

MODINE MANUFACTURING COMPANY
(Exact name of registrant as specified in its charter)

Wisconsin
  
39-0482000
(State or other jurisdiction of incorporation or organization)
  
(I.R.S. Employer Identification No.)

1500 DeKoven Avenue, Racine, Wisconsin
  
53403
(Address of principal executive offices)
  
(Zip Code)

Registrant’s telephone number, including area code (262) 636-1200

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
     
Common Stock, $0.625 par value
MOD
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☑    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer  ☐
  
Accelerated Filer  ☑
  
       
Non-accelerated Filer     ☐
  
Smaller reporting company  ☐
  
       
   
Emerging growth company  ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐    No ☑

The number of shares outstanding of the registrant’s common stock, $0.625 par value, was 51,913,896 at January 28, 2022.

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.

MODINE MANUFACTURING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended December 31, 2021 and 2020
(In millions, except per share amounts)
(Unaudited)

 
Three months ended
December 31,
    
Nine months ended
December 31,
  
   
2021
    
2020
    
2021
    
2020
  
Net sales
  
$
502.2
    
$
484.3
     $ 1,475.7     $ 1,293.5  
Cost of sales
    
427.6
      
401.6
       1,261.6
       1,083.9
  
Gross profit
    
74.6
      
82.7
       214.1
       209.6
  
Selling, general and administrative expenses
    
50.3
      
56.1
       161.6
       151.6
  
Restructuring expenses
    
2.1
      
0.9
       3.0
       7.0
  
Impairment charges (reversals) – net
    
(57.2
)
    
134.4
       (55.7 )     134.4
  
Loss on sale of assets
    
-
      
-
       6.6
       -  
Operating income (loss)
    
79.4
      
(108.7
)
     98.6       (83.4 )
Interest expense
    
(3.8
)
    
(4.6
)
     (11.8 )     (15.2 )
Other expense – net
    
(1.1
)
    
(0.5
)
     (1.6 )     (1.0 )
Earnings (loss) before income taxes
    
74.5
      
(113.8
)
     85.2       (99.6 )
Provision for income taxes
    
(0.1
)
    
(81.6
)
     (7.4 )     (95.3 )
Net earnings (loss)
    
74.4
      
(195.4
)
     77.8       (194.9 )
Net earnings attributable to noncontrolling interest
    
(0.3
)
    
(0.3
)
     (1.0 )     (0.8 )
Net earnings (loss) attributable to Modine
  
$
74.1
    
$
(195.7
)
   $ 76.8     $ (195.7 )
                                 
Net earnings (loss) per share attributable to Modine shareholders:
                                
Basic
  
$
1.42
    
$
(3.81
)
   $ 1.48     $ (3.82 )
Diluted
  
$
1.41
    
$
(3.81
)
   $ 1.46     $ (3.82 )
                                 
Weighted-average shares outstanding:
                                
Basic
    
52.0
      
51.3
       51.9
       51.2
  
Diluted
    
52.4
      
51.3
       52.5
       51.2
  

The notes to condensed consolidated financial statements are an integral part of these statements.

1
MODINE MANUFACTURING COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three and nine months ended December 31, 2021 and 2020
(In millions)
(Unaudited)

 
Three months ended
December 31,
    
Nine months ended
December 31,
  
   
2021
    
2020
    
2021
    
2020
  
Net earnings (loss)
  
$
74.4
    
$
(195.4
)
   $ 77.8     $ (194.9 )
Other comprehensive income (loss):
                                
Foreign currency translation
    
(3.3
)
    
18.4
       (6.1 )     41.2  
Defined benefit plans, net of income taxes of $0, $0.3, $0, and $1.1 million
    
1.6
      
1.3
       6.6
       3.8
  
Cash flow hedges, net of income taxes of $0, $0, $0.1, and $0.5 million
    
0.2
      
-
       (0.2 )     1.4  
Total other comprehensive income (loss)
    
(1.5
)
    
19.7
       0.3
       46.4  
                                 
Comprehensive income (loss)
    
72.9
      
(175.7
)
     78.1       (148.5 )
Comprehensive income attributable to noncontrolling interest
    
(0.4
)
    
(0.7
)
     (0.9 )     (1.4 )
Comprehensive income (loss) attributable to Modine
  
$
72.5
    
$
(176.4
)
   $ 77.2     $ (149.9 )

The notes to condensed consolidated financial statements are an integral part of these statements.

2
MODINE MANUFACTURING COMPANY
CONSOLIDATED BALANCE SHEETS
December 31, 2021 and March 31, 2021
(In millions, except per share amounts)
(Unaudited)

 
December 31, 2021
    
March 31, 2021
  
ASSETS
            
Cash and cash equivalents
  
$
61.1
    
$
37.8
  
Trade accounts receivable – net
    
309.3
      
267.9
  
Inventories
    
278.1
      
195.6
  
Assets held for sale
    
-
      
107.6
  
Other current assets
    
53.1
      
35.9
  
Total current assets
    
701.6
      
644.8
  
Property, plant and equipment – net
    
318.1
      
269.9
  
Intangible assets – net
    
93.2
      
100.6
  
Goodwill
    
169.5
      
170.7
  
Deferred income taxes
    
28.9
      
24.5
  
Other noncurrent assets
    
70.1
      
66.2
  
Total assets
  
$
1,381.4
    
$
1,276.7
  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Short-term debt
  
$
-
    
$
1.4
  
Long-term debt – current portion
    
21.8
      
21.9
  
Accounts payable
    
295.4
      
233.9
  
Accrued compensation and employee benefits
    
64.2
      
66.5
  
Liabilities held for sale
    
-
      
103.3
  
Other current liabilities
    
52.7
      
42.2
  
Total current liabilities
    
434.1
      
469.2
  
Long-term debt
    
368.8
      
311.2
  
Deferred income taxes
    
6.0
      
5.9
  
Pensions
    
61.0
      
58.6
  
Other noncurrent liabilities
    
73.9
      
75.7
  
Total liabilities
    
943.8
      
920.6
  
Commitments and contingencies (see Note 18)
            
Shareholders’ equity:
                
Preferred stock, $0.025 par value, authorized 16.0 million shares, issued - none
    
-
      
-
  
Common stock, $0.625 par value, authorized 80.0 million shares, issued 54.6 million and 54.3 million shares
    
34.2
      
33.9
  
Additional paid-in capital
    
260.5
      
255.0
  
Retained earnings
    
336.0
      
259.2
  
Accumulated other comprehensive loss
    
(160.8
)
    
(161.2
)
Treasury stock, at cost, 2.8 million and 2.7 million shares
    
(39.7
)
    
(38.2
)
Total Modine shareholders’ equity
    
430.2
      
348.7
  
Noncontrolling interest
    
7.4
      
7.4
  
Total equity
    
437.6
      
356.1
  
Total liabilities and equity
  
$
1,381.4
    
$
1,276.7
  

The notes to condensed consolidated financial statements are an integral part of these statements.

3
MODINE MANUFACTURING COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended December 31, 2021 and 2020
(In millions)
(Unaudited)

 
Nine months ended December 31,
  
   
2021
    
2020
  
Cash flows from operating activities:
            
Net earnings (loss)
  
$
77.8
    
$
(194.9
)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
                
Depreciation and amortization
    
40.4
      
54.2
  
Impairment charges (reversals) – net
    
(55.7
)
    
134.4
  
Loss on sale of assets
    
6.6
      
-
  
Stock-based compensation expense
    
4.7
      
4.2
  
Deferred income taxes
    
(4.7
)
    
77.5
  
Other – net
    
2.0
      
4.7
  
Changes in operating assets and liabilities:
                
Trade accounts receivable
    
5.8
      
24.5
  
Inventories
    
(66.6
)
    
9.9
  
Accounts payable
    
24.9
      
1.1
  
Other assets and liabilities
    
(27.8
)
    
30.9
  
Net cash provided by operating activities
    
7.4
      
146.5
  
                 
Cash flows from investing activities:
                
Expenditures for property, plant and equipment
    
(30.7
)
    
(23.7
)
Proceeds from (payments for) disposition of assets
    
(7.6
)
    
0.7
  
Disbursements for loan origination (see Note 1)     (4.7 )     -  
Other – net
    
1.3
      
0.6
  
Net cash used for investing activities
    
(41.7
)
    
(22.4
)
                 
Cash flows from financing activities:
                
Borrowings of debt
    
278.6
      
12.0
  
Repayments of debt
    
(221.9
)
    
(134.5
)
Borrowings (repayments) on bank overdraft facilities – net
    
(5.0
)
    
3.5
  
Financing fees paid
    
(0.2
)
    
(0.8
)
Dividend paid to noncontrolling interest
    
(0.9
)
    
-
  
Other – net
    
(0.4
)
    
(0.8
)
Net cash provided by (used for) financing activities
    
50.2
      
(120.6
)
                 
Effect of exchange rate changes on cash
    
(0.7
)
    
3.6
  
Net increase in cash, cash equivalents, restricted cash and cash held for sale
    
15.2
      
7.1
  
                 
Cash, cash equivalents, restricted cash and cash held for sale – beginning of period
    
46.1
      
71.3
  
Cash, cash equivalents, restricted cash and cash held for sale – end of period
  
$
61.3
    
$
78.4
  

The notes to condensed consolidated financial statements are an integral part of these statements.

4
MODINE MANUFACTURING COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
For the three and nine months ended December 31, 2021 and 2020
(In millions)
(Unaudited)

 
Common stock
    
Additional
    
Retained
    
Accumulated other
    
Treasury stock,
    
Non-controlling
        
 
Shares
    
Amount
    
paid-in capital
    
earnings
    
comprehensive loss
    
at cost
    
interest
    
Total
  
Balance, March 31, 2021
    
54.3
    
$
33.9
    
$
255.0
    
$
259.2
    
$
(161.2
)
  
$
(38.2
)
  
$
7.4
    
$
356.1
  
Net earnings
    
-
      
-
      
-
      
2.3
      
-
      
-
      
0.5
      
2.8
  
Other comprehensive income
    
-
      
-
      
-
      
-
      
8.0
      
-
      
0.2
      
8.2
  
Stock options and awards
    
0.2
      
0.1
      
0.7
      
-
      
-
      
-
      
-
      
0.8
  
Purchase of treasury stock
    
-
      
-
      
-
      
-
      
-
      
(1.0
)
    
-
      
(1.0
)
Stock-based compensation expense
    
-
      
-
      
1.2
      
-
      
-
      
-
      
-
      
1.2
  
Dividend paid to noncontrolling interest
     -       -       -       -       -       -       (0.9 )     (0.9 )
Balance, June 30, 2021
    
54.5
    
$
34.0
    
$
256.9
    
$
261.5
    
$
(153.2
)
  
$
(39.2
)
  
$
7.2
    
$
367.2
  
Net earnings
    
-
       -       -       0.4       -       -       0.2       0.6  
Other comprehensive loss
    
-
       -       -       -       (6.0 )     -       (0.4 )     (6.4 )
Stock options and awards
     -       0.1       0.1       -       -       -       -       0.2  
Stock-based compensation expense
    
-
       -       2.4       -       -       -       -       2.4  
Balance, September 30, 2021
     54.5     $ 34.1     $ 259.4     $ 261.9     $ (159.2 )   $ (39.2 )   $ 7.0     $ 364.0  
Net earnings
    
-
       -       -       74.1       -       -       0.3       74.4  
Other comprehensive income (loss)
    
-
       -       -       -       (1.6 )     -       0.1       (1.5 )
Stock options and awards
     0.1       0.1       -       -       -       -       -       0.1  
Purchase of treasury stock
     -       -       -       -       -       (0.5 )     -       (0.5 )
Stock-based compensation expense
    
-
       -       1.1       -       -       -       -       1.1  
Balance, December 31, 2021
     54.6     $ 34.2     $ 260.5     $ 336.0     $ (160.8 )   $ (39.7 )   $ 7.4     $ 437.6  

 
Common stock
    
Additional
    
Retained
    
Accumulated other
    
Treasury stock,
    
Non-controlling
        
 
Shares
    
Amount
    
paid-in capital
    
earnings
    
comprehensive loss
    
at cost
    
interest
    
Total
  
Balance, March 31, 2020
    
53.4
    
$
33.3
    
$
245.1
    
$
469.9
    
$
(223.3
)
  
$
(37.1
)
  
$
5.7
    
$
493.6
  
Net (loss) earnings
    
-
      
-
      
-
      
(8.6
)
    
-
      
-
      
0.2
      
(8.4
)
Other comprehensive income
    
-
      
-
      
-
      
-
      
7.5
      
-
      
0.1
      
7.6
  
Stock options and awards
    
0.3
      
0.2
      
(0.2
)
    
-
      
-
      
-
      
-
      
-
  
Purchase of treasury stock
    
-
      
-
      
-
      
-
      
-
      
(0.8
)
    
-
      
(0.8
)
Stock-based compensation expense
    
-
      
-
      
0.7
      
-
      
-
      
-
      
-
      
0.7
  
Balance, June 30, 2020
    
53.7
    
$
33.5
    
$
245.6
    
$
461.3
    
$
(215.8
)
  
$
(37.9
)
  
$
6.0
    
$
492.7
  
Net earnings
    
-
       -
       -
       8.6       -
       -
       0.3
       8.9  
Other comprehensive income
    
-
       -
       -
       -
       19.0       -
       0.1       19.1  
Stock options and awards
     0.1       0.1       -       -       -       -       -       0.1  
Stock-based compensation expense
    
-
       -
       1.4
       -
       -
       -
       -
       1.4
  
Balance, September 30, 2020
     53.8
     $ 33.6     $ 247.0     $ 469.9     $ (196.8 )   $ (37.9 )   $ 6.4     $ 522.2  
Net (loss) earnings
    
-
       -
       -
       (195.7 )     -
       -
       0.3
       (195.4 )
Other comprehensive income
    
-
       -
       -
       -
       19.3
       -
       0.4
       19.7
  
Stock-based compensation expense
    
-
       -
       2.1
       -
       -
       -
       -
       2.1
  
Balance, December 31, 2020
     53.8
     $ 33.6     $ 249.1     $ 274.2     $ (177.5 )   $ (37.9 )   $ 7.1     $ 348.6  

The notes to condensed consolidated financial statements are an integral part of these statements.

5
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 1: General

The accompanying unaudited condensed consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flows required by GAAP for complete financial statements.  The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results for the interim periods.  Results for the first nine months of fiscal 2022 are not necessarily indicative of the results to be expected for the full year.  These financial statements should be read in conjunction with the consolidated financial statements and related notes in Modine’s Annual Report on Form 10-K for the year ended March 31, 2021.

Disposition of Air-cooled Automotive Business
On April 30, 2021, the Company sold its air-cooled automotive business to Schmid Metall GmbH.  As a result of this transaction, the Company recorded a loss of $6.6 million during the first quarter of fiscal 2022, which included the write-off of $1.7 million of net actuarial losses related to the business’s pension plan.  The Company reported this loss within the loss on sale of assets line on the consolidated statement of operations.  Upon transaction closing, $5.9 million of cash within the business transferred to the buyer.  During the third quarter of fiscal 2022, a purchase price adjustment for net working capital and certain other items was finalized and the Company paid the buyer $2.4 million.  The final purchase price adjustment was consistent with the Company’s prior estimate and no adjustment was required to the $6.6 million loss on sale recorded during the first quarter fiscal 2022. Prior to the disposition, the Company reported the financial results of this business within the Automotive segment.  The air-cooled automotive business’s net sales were $63.0 million in fiscal 2021.

In connection with the sale of the air-cooled automotive business, the Company provided the buyer with a 5-year, €4.0 million loan facility.  Borrowings under the agreement currently bear interest at 2.6 percent.  During the second quarter of fiscal 2022, the Company disbursed €4.0 million ($4.7 million) to the buyer under this facility.  The Company recorded the loan receivable within other noncurrent assets on its consolidated balance sheet because the Company expects to receive the principal repayment more than twelve months from the balance sheet date.

Disposition of Previously-Closed Facility
During the first quarter of fiscal 2022, the Company signed a definitive agreement to sell a previously-closed manufacturing facility in the U.S.  As a result, the Company recorded an impairment charge of $0.3 million within the Commercial and Industrial Solutions (“CIS”) segment to write down the property to fair value less costs to sell.  During July 2021, the sale was completed and the Company received net cash proceeds of $0.7 million.

Chief Executive Officer (“CEO”) Transition in Fiscal 2021
In August 2020, Thomas A. Burke stepped down from his position as President and CEO. The Board of Directors subsequently conducted a search for his successor and, effective December 1, 2020, appointed Neil D. Brinker as President and CEO.

As a result of Mr. Burke’s departure and in connection with the search for his successor, the Company recorded costs totaling $5.9 million during the first nine months of fiscal 2021.  These costs, which were recorded as selling, general and administrative (“SG&A”) expenses at Corporate, primarily consisted of severance and benefit-related expenses based upon the terms of Mr. Burke’s transition and separation agreement and costs directly associated with the CEO search, partially offset by the impact of Mr. Burke’s forfeited stock-based compensation awards.

6
Table of Contents
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 2: Assets Held for Sale

Liquid-cooled Automotive Business
On October 25, 2021, the Company announced that it agreed with Dana Incorporated (“Dana”) to terminate an agreement for the sale of the liquid-cooled automotive business.  Both companies had been actively engaged in the regulatory review process in Germany for many months and agreed that it was no longer in the best interest of either party to pursue the sale transaction further.

In connection with the termination of the sale agreement, the Company determined that the liquid-cooled automotive business no longer met the requirements to be classified as held for sale during the third quarter of fiscal 2022.  As a result, the Company remeasured the long-lived assets reverting back to held and used classification at the lower of their (i) carrying value, as if held for sale classification had not been met; or (ii) fair value at the date of the decision not to sell.  These long-lived assets consisted primarily of property, plant and equipment assets and were fully impaired while classified as held for sale.

During the third quarter of fiscal 2022, the Company reversed $57.2 million of held for sale impairment charges based on the remeasurement of the long-lived assets of the liquid-cooled automotive business.  The Company engaged third-party valuation specialists to assist in estimating the fair values of the assets.  The Company primarily used the market and cost valuation approaches and utilized third-party information from various industry-accepted sources, including applicable government-published statistics and data from appraisal and resale service providers.  The market approach focused on prices for comparable assets in arm’s length transactions.  For land and building assets, for example, sales of similar properties near the Company’s facilities were analyzed.  For machinery and equipment assets, the Company referenced available third-party information regarding the selling prices of similar equipment.  The cost approach focused on the amount for which an asset could be replaced or reproduced.  The cost of an asset was then adjusted downward based on various factors including, but not limited to, age, location, and physical condition.  After estimating the fair values of the assets reverting back to held and used classification, the Company compared the fair value for each asset to its carrying value.  Carrying value represented each asset’s carrying value before the initial impairment charge, reduced for depreciation that would have been recorded if the asset had not been classified as held for sale.  The Company then adjusted each asset to the lower of fair value or carrying value, resulting in the reversal of $57.2 million of previous impairment charges.  In addition, the Company resumed depreciating the property, plant and equipment assets of the liquid-cooled automotive business based on the remeasured asset values during the third quarter of fiscal 2022.

On a year-to-date basis, the $57.2 million held for sale impairment reversal during the third quarter of fiscal 2022 was partially offset by $1.2 million of net held for sale impairment charges recorded during the first six months of fiscal 2022.  At both June 30, 2021 and September 30, 2021, while the liquid-cooled automotive business was held for sale, the Company reassessed its fair value less costs to sell.  As a result of these evaluations, the Company recorded a total of $8.6 million of impairment charges during the first and second quarters of fiscal 2022.  These impairment charges reduced the net carrying value of property, plant and equipment additions during each quarter to zero.  In addition, in connection with a modification of the sale perimeter in the first quarter of fiscal 2022, the Company determined that certain manufacturing operations no longer met the requirements to be classified as held for sale.  As a result, the Company reversed $7.4 million of previous impairment charges to adjust the long-lived assets within the asset groups impacted by the sale perimeter change to their estimated fair value as of June 30, 2021.  The Company’s determination of fair value for the long-lived assets within these businesses involved judgement and the use of significant estimates and assumptions, including assumptions regarding future revenue projections and operating profit margins, risk-adjusted discount rates, business trends and market conditions.

The Company’s fair value measurements of the property, plant and equipment assets within the liquid-cooled automotive business are categorized as Level 3 within the fair value hierarchy.  Refer to Note 4 for the definition of a Level 3 fair value measurement.

The liquid-cooled automotive business was initially classified as held for sale during the third quarter of fiscal 2021.  At that time, the Company recorded $134.4 million of impairment charges primarily related to the long-lived assets within the liquid-cooled automotive business.  Upon classification as held for sale, the Company assessed the disposal group’s fair value less costs to sell and reduced the net carrying value of the disposal group’s long-lived assets to zero.

The Company reported all impairment charges and reversals during fiscal 2021 and 2022 within the impairment charges (reversals) line on the consolidated statements of operations.

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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Assets and Liabilities Held for Sale
As of March 31, 2021, the Company presented the assets and liabilities of the liquid- and air-cooled automotive businesses as held for sale.  See Note 1 for additional information regarding the sale of the air-cooled automotive business, which was completed on April 30, 2021.

The major classes of assets and liabilities held for sale at March 31, 2021 were as follows:

ASSETS
      
Cash and cash equivalents
  
$
8.0
  
Trade accounts receivable – net
    
54.4
  
Inventories
    
24.7
  
Other current assets
    
12.8
  
Property, plant and equipment – net
    
164.0
  
Other noncurrent assets
    
8.8
  
Impairment of carrying value
    
(165.1
)
Total assets held for sale
  
$
107.6
  
         
LIABILITIES
        
Short-term debt
  
$
5.0
  
Accounts payable
    
46.3
  
Accrued compensation and employee benefits
    
15.5
  
Other current liabilities
    
12.2
  
Pensions
    
17.8
  
Other noncurrent liabilities
    
6.5
  
Total liabilities held for sale
  
$
103.3
  

Note 3: Revenue Recognition

Disaggregation of Revenue
The table below presents revenue for each of the Company’s business segments, Building HVAC Systems (“BHVAC”), CIS, Heavy Duty Equipment (“HDE”) and Automotive.  Each segment’s revenue is disaggregated by primary end market, by geographic location and based upon the timing of revenue recognition and includes inter-segment sales.

Effective July 1, 2021, the Company aligned the data center businesses previously managed by and reported within the CIS segment under the BHVAC segment; see Note 20 for additional information regarding the Company’s operating segments.  In connection with this segment realignment, the Company also reassessed end market classifications within the impacted businesses.  The primary end market revenue information presented in the tables below for fiscal 2021 has been recast to conform to the Company’s new classifications for its end markets.

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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
 
Three months ended December 31, 2021
    
Three months ended December 31, 2020
  
   
BHVAC
    
CIS
    
HDE
    
Automotive
    
Segment
Total
    
BHVAC
    
CIS
    
HDE
    
Automotive
    
Segment
Total
  
Primary end market:
                                                            
Commercial HVAC&R
  
$
66.1
    
$
129.6
    
$
-
    
$