Reportable Business Segments (Tables)

12 Months Ended

Dec. 31, 2019

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

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
Refrigeration(2)	Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, and compressorized racks	Light Commercial; Food Preservation; Non-Food/Industrial	United States Canada Europe(1)

⁽¹⁾ Effective January 1, 2019, we realigned our segment structure. We shifted financial reporting of the European Commercial HVAC business from our Commercial Heating & Cooling segment to our Refrigeration segment as we manage both our commercial HVAC and refrigeration operations in Europe together. We have revised our historical segment results to present them on a comparable basis.

⁽²⁾ Descriptions of the products, services, markets and geographic areas of divested businesses were excluded from this table. Refer to Note 7 for details regarding the divestitures of our Australia, Asia, South America and Kysor Warren businesses.

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 2019		Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	2.9	$	2.9	$	2.9
Commercial Heating & Cooling	1.0		2.7		3.7
Refrigeration	1.2		2.6		2.7
Corporate & Other	5.2		5.2		5.2
Total	$	10.3	$	13.4	$	14.5

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,
	2019			2018			2017
Net Sales (1)
Residential Heating & Cooling	$	2,291.1		$	2,225.0		$	2,140.4
Commercial Heating & Cooling	947.4			900.7			819.5
Refrigeration	568.7			758.2			879.7
	$	3,807.2		$	3,883.9		$	3,839.6
Segment profit (loss) (2)
Residential Heating & Cooling	$	464.6		$	399.4		$	373.9
Commercial Heating & Cooling	165.4			157.5			149.3
Refrigeration	61.3			68.1			80.6
Corporate and other	(82.4		)	(84.4		)	(89.2		)
Total segment profit	608.9			540.6			514.6
Reconciliation to Operating income:
Special inventory write down	—			0.2			—
Special product quality adjustments	(0.6		)	—			5.4
Loss (gain), net on sale of businesses and related property	10.6			27.0			1.1
Insurance recoveries received for property damage incurred from natural disaster	(79.6		)	(10.9		)	—
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss) (2)	11.3			11.4			10.4
Restructuring charges	10.3			3.0			3.2
Operating income	$	656.9		$	509.9		$	494.5

⁽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,
	2019		2018		2017
Total Assets:
Residential Heating & Cooling	$	1,055.7	$	837.4	$	771.3
Commercial Heating & Cooling	409.0		349.5		324.3
Refrigeration	393.3		462.9		626.5
Corporate and other	176.9		167.4		169.4
Total assets	$	2,034.9	$	1,817.2	$	1,891.5

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,
	2019		2018		2017
Capital Expenditures:
Residential Heating & Cooling	$	59.2	$	45.2	$	38.9
Commercial Heating & Cooling	11.3		12.5		14.7
Refrigeration	9.4		9.3		11.8
Corporate and other	25.7		28.2		32.9
Total capital expenditures	$	105.6	$	95.2	$	98.3

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

	For the Years Ended December 31,
	2019		2018		2017
Depreciation and Amortization:
Residential Heating & Cooling	$	30.0	$	26.6	$	24.9
Commercial Heating & Cooling	12.5		8.6		8.6
Refrigeration	7.9		8.9		11.4
Corporate and other	20.7		21.9		19.7
Total depreciation and amortization	$	71.1	$	66.0	$	64.6

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

	For the Years Ended December 31,
	2019		2018		2017
Income from Equity Method Investments:
Residential Heating & Cooling	$	8.8	$	8.5	$	11.7
Commercial Heating & Cooling	1.7		1.4		2.8
Refrigeration	2.9		2.1		3.9
Total income from equity method investments	$	13.4	$	12.0	$	18.4

Summary of financial information relating to geographic area based operations

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,
	2019		2018		2017
Property, Plant and Equipment, net:
United States	$	333.6	$	293.3	$	257.6
Mexico	82.0		86.7		79.8
Canada	2.2		1.7		1.7
Other international	27.6		26.6		58.7
Total Property, plant and equipment, net	$	445.4	$	408.3	$	397.8