Reportable Business Segments (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting, Measurement Disclosures [Abstract]

Net sales, segment profit (loss) by business segment and reconciliation of segment profit (loss) to Income from Continuing Operations before Income Taxes

While restructuring charges are excluded from our calculation of segment profit (loss), the table below presents the restructuring charges associated with each segment (in millions):



	Incurred in 2016			Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	—		$	0.9	$	0.9
Commercial Heating & Cooling	0.2			1.1		1.1
Refrigeration	(0.1		)	11.9		11.9
Corporate & Other	1.7			1.7		2.1
Total	$	1.8		$	15.6	$	16.0

We operate in three reportable business segments of the heating, ventilation, air conditioning and refrigeration (“HVACR”) industry. Our segments are organized primarily by the nature of the products and services we provide. The following table describes each segment:



Segment	Products or Services	Markets Served	Geographic Areas
Residential Heating & Cooling	Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies	Residential Replacement; Residential New Construction	United States Canada
Commercial Heating & Cooling	Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products	Light Commercial	United States Canada Europe
Refrigeration	Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems	Light Commercial; Food Preservation; Non-Food/Industrial	United States Canada Europe Asia Pacific South America

Net sales and segment profit (loss) with reconciliation of segment profit (loss)

Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):



	For the Years Ended December 31,
	2016			2015			2014
Net Sales ⁽¹⁾
Residential Heating & Cooling	$	2,000.8		$	1,866.9		$	1,736.5
Commercial Heating & Cooling	917.9			887.2			878.5
Refrigeration	722.9			713.3			752.4
	$	3,641.6		$	3,467.4		$	3,367.4
Segment Profit (Loss) ⁽²⁾
Residential Heating & Cooling	$	348.8		$	278.4		$	235.8
Commercial Heating & Cooling	149.3			130.4			124.0
Refrigeration	68.9			52.9			55.4
Corporate and other	(97.4		)	(84.1		)	(74.3		)
Subtotal segment profit	469.6			377.6			340.9
Reconciliation to Operating income:
Special product quality adjustments	(0.4		)	(2.2		)	(1.4		)
Items in Losses and other expenses, net that are excluded from segment profit (loss) ⁽²⁾	7.4			15.6			4.7
Restructuring charges	1.8			3.2			1.9
Pension settlement	31.4			—			—
Goodwill impairment	—			5.5			—
Asset impairment	—			44.5			—
One time inventory write down	—			5.6			1.0
Operating income	$	429.4		$	305.4		$	334.7

⁽¹⁾ On a consolidated basis, no revenue from transactions with a single customer were 10% or greater of our consolidated net sales for any of the periods presented.

⁽²⁾The

Total assets by business segment

Total assets by segment are shown below (in millions):



	As of December 31,
	2016		2015		2014
Total Assets:
Residential Heating & Cooling	$	673.4	$	628.3	$	632.3
Commercial Heating & Cooling	385.8		363.6		353.4
Refrigeration	442.8		444.9		551.5
Corporate and other	258.3		240.6		227.1
Total assets	$	1,760.3	$	1,677.4	$	1,764.3

Summary of capital expenditures, depreciation and amortization, and income from equity method investments expense by business segment

Total capital expenditures by segment are shown below (in millions):



	For the Years Ended December 31,
	2016		2015		2014
Capital Expenditures:
Residential Heating & Cooling	$	36.7	$	28.1	$	39.4
Commercial Heating & Cooling	11.5		8.6		14.1
Refrigeration	12.1		11.4		15.8
Corporate and other	24.0		21.8		19.1
Total capital expenditures ⁽¹⁾	$	84.3	$	69.9	$	88.4

⁽¹⁾Includes amounts recorded under capital leases. There were no significant new capital leases in 2016, 2015 or 2014.

Depreciation and amortization expenses by segment are shown below (in millions):



	For the Years Ended December 31,
	2016		2015		2014
Depreciation and Amortization:
Residential Heating & Cooling	$	21.0	$	20.7	$	20.7
Commercial Heating & Cooling	9.8		9.7		9.3
Refrigeration	9.7		15.5		16.3
Corporate and other	17.6		16.9		14.5
Total depreciation and amortization	$	58.1	$	62.8	$	60.8

The equity method investments are shown below (in millions):



	For the Years Ended December 31,
	2016		2015		2014
Income from Equity Method Investments:
Refrigeration	$	4.0	$	2.8	$	2.5
Residential	14.4		10.6		11.3
Total income from equity method investments	$	18.4	$	13.4	$	13.8

Summary of financial information relating to geographic area based operations

Net sales for each major geographic area in which we operate are shown below (in millions):



	For the Years Ended December 31,
	2016		2015		2014
Net Sales to External Customers by Point of Shipment:
United States	$	2,966.8	$	2,793.4	$	2,576.4
Canada	218.8		217.7		236.3
International	456.0		456.3		554.7
Total net sales to external customers	$	3,641.6	$	3,467.4	$	3,367.4

Property, plant, and equipment, net for each major geographic area

Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):



	As of December 31,
	2016		2015		2014
Property, Plant and Equipment, net:
United States	$	237.6	$	224.8	$	243.4
Mexico	69.4		60.0		52.4
Canada	1.4		1.2		0.6
International	53.0		53.6		62.2
Total Property, plant and equipment, net	$	361.4	$	339.6	$	358.6