Reportable Business Segments (Tables)

12 Months Ended

Dec. 31, 2018

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 2018		Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	0.6	$	2.0	$	2.0
Commercial Heating & Cooling	1.1		3.1		3.1
Refrigeration	1.3		14.4		15.2
Corporate & Other	—		2.3		2.3
Total	$	3.0	$	21.8	$	22.6

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* Central 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,
	2018			2017			2016
Net Sales ⁽¹⁾
Residential Heating & Cooling	$	2,225.0		$	2,140.4		$	2,000.8
Commercial Heating & Cooling	1,043.5			973.8			917.9
Refrigeration	615.4			725.4			722.9
	$	3,883.9		$	3,839.6		$	3,641.6
Segment profit (loss) ⁽²⁾
Residential Heating & Cooling	$	399.4		$	373.9		$	348.8
Commercial Heating & Cooling	159.5			157.3			149.3
Refrigeration	66.1			72.6			68.9
Corporate and other	(84.4		)	(89.2		)	(97.4		)
Total segment profit	540.6			514.6			469.6
Reconciliation to Operating income:
Special inventory write down	0.2			—			—
Special product quality adjustments	—			5.4			(0.4		)
Loss (gain), net on sale of businesses and related property	27.0			1.1			—
Gain from insurance recoveries, net of losses incurred	(10.9		)	—			—
Pension settlement	0.4			—			31.4
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss) ⁽²⁾	11.4			10.4			7.4
Restructuring charges	3.0			3.2			1.8
Operating income	$	509.5		$	494.5		$	429.4

⁽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⁾

Total assets by business segment

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



	As of December 31,
	2018		2017		2016
Total Assets:
Residential Heating & Cooling	$	837.4	$	771.3	$	673.4
Commercial Heating & Cooling	457.2		443.9		385.8
Refrigeration	355.2		506.9		442.8
Corporate and other	167.4		169.4		258.3
Total assets	$	1,817.2	$	1,891.5	$	1,760.3

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,
	2018		2017		2016
Capital Expenditures:
Residential Heating & Cooling	$	45.2	$	38.9	$	36.7
Commercial Heating & Cooling	14.0		18.5		11.5
Refrigeration	7.8		8.0		12.1
Corporate and other	28.2		32.9		24.0
Total capital expenditures ⁽¹⁾	$	95.2	$	98.3	$	84.3

⁽¹⁾Includes amounts recorded under capital leases. There were no significant new capital leases in 2018, 2017 or 2016.

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



	For the Years Ended December 31,
	2018		2017		2016
Depreciation and Amortization:
Residential Heating & Cooling	$	26.6	$	24.9	$	21.0
Commercial Heating & Cooling	10.4		10.1		9.8
Refrigeration	7.1		9.9		9.7
Corporate and other	21.9		19.7		17.6
Total depreciation and amortization	$	66.0	$	64.6	$	58.1

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



	For the Years Ended December 31,
	2018		2017		2016
Income from Equity Method Investments:
Refrigeration	$	2.1	$	3.9	$	4.0
Residential	8.5		11.7		11.5
Commercial	1.4		2.8		2.9
Total income from equity method investments	$	12.0	$	18.4	$	18.4

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,
	2018		2017		2016
Net Sales to External Customers by Point of Shipment:
United States	$	3,275.9	$	3,128.7	$	2,966.8
Canada	254.8		237.8		218.8
International	353.2		473.1		456.0
Total net sales to external customers	$	3,883.9	$	3,839.6	$	3,641.6

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,
	2018		2017		2016
Property, Plant and Equipment, net:
United States	$	293.3	$	257.6	$	237.6
Mexico	86.7		79.8		69.4
Canada	1.7		1.7		1.4
International	26.6		58.7		53.0
Total Property, plant and equipment, net	$	408.3	$	397.8	$	361.4