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Reportable Business Segments
 12 Months Ended
Dec. 31, 2020
Segment Reporting, Measurement Disclosures [Abstract]  
Reportable Business Segments scription of Segments
We operate in three reportable business segments of the HVACR industry. Our segments are organized primarily by the nature of the products and services we provide. The following table describes each segment:

SegmentProducts or ServicesMarkets ServedGeographic Areas
Residential Heating & CoolingFurnaces, 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 & CoolingUnitary 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.

Segment Data

We use segment profit or loss as the primary measure of profitability to evaluate operating performance and to allocate capital resources. We define segment profit or loss as a segment’s income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding certain items. The reconciliation below details the items excluded.

Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Corporate costs also include the long-term, share-based incentive awards provided to employees throughout our business. We recorded these share-based awards as Corporate costs because they are determined at the discretion of the Board of Directors and based on the historical practice of doing so for internal reporting purposes.

Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations included in the results presented in the table below.
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,
 202020192018
Net Sales (1)
Residential Heating & Cooling$2,361.5 $2,291.1 $2,225.0 
Commercial Heating & Cooling800.9 947.4 900.7 
Refrigeration471.7 568.7 758.2 
$3,634.1 $3,807.2 $3,883.9 
Segment profit (loss) (2)
Residential Heating & Cooling$428.5 $464.6 $399.4 
Commercial Heating & Cooling136.9 165.4 157.5 
Refrigeration32.8 61.3 68.1 
Corporate and other(91.5)(82.4)(84.4)
Total segment profit506.7 608.9 540.6 
Reconciliation to Operating income:
Special product quality adjustments1.0 (0.6)— 
Special inventory write down— — 0.2 
Loss (gain), net on sale of businesses and related property— 10.6 27.0 
Loss (gain) from natural disasters, net of insurance recoveries3.1 (79.6)(10.9)
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2)
13.3 11.3 11.4 
Restructuring charges10.8 10.3 3.0 
Operating income$478.5 $656.9 $509.9 
 
(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) We define segment profit (loss) as a segment’s operating income included in the accompanying Consolidated Statements of Operations, excluding:
•The following items in Losses (gains) and other expenses, net:
◦Net change in unrealized losses (gains) on unsettled futures contracts,
◦Special legal contingency charges,
◦Asbestos-related litigation,
◦Environmental liabilities,
◦Charges incurred related to COVID-19 pandemic,
◦Other items, net,
•Special inventory write down,
•Special product quality adjustments
•Loss (gain), net on sale of businesses and related property,
•Loss (gain) from natural disasters, net of insurance recoveries, and
•Restructuring charges.

Total assets by segment are shown below (in millions):
As of December 31,
202020192018
Total Assets:
Residential Heating & Cooling
$1,034.6 $1,055.7 $837.4 
Commercial Heating & Cooling366.5 409.0 349.5 
Refrigeration387.9 393.3 462.9 
Corporate and other243.5 176.9 167.4 
Total assets$2,032.5 $2,034.9 $1,817.2 
The assets in the Corporate and other segment primarily consist of cash, short-term investments and deferred tax assets. Assets recorded in the operating segments represent those assets directly associated with those segments.

Total capital expenditures by segment are shown below (in millions):
For the Years Ended December 31,
202020192018
Capital Expenditures:
Residential Heating & Cooling
$44.0 $59.2 $45.2 
Commercial Heating & Cooling5.9 11.3 12.5 
Refrigeration9.2 9.4 9.3 
Corporate and other19.4 25.7 28.2 
Total capital expenditures $78.5 $105.6 $95.2 

Depreciation and amortization expenses by segment are shown below (in millions):
For the Years Ended December 31,
202020192018
Depreciation and Amortization:
Residential Heating & Cooling
$28.5 $30.0 $26.6 
Commercial Heating & Cooling13.5 12.5 8.6 
Refrigeration7.8 7.9 8.9 
Corporate and other22.8 20.7 21.9 
Total depreciation and amortization$72.6 $71.1 $66.0 

The equity method investments are shown below (in millions):
For the Years Ended December 31,
202020192018
Income from Equity Method Investments:
Residential Heating & Cooling$11.4 $8.8 $8.5 
Commercial Heating & Cooling2.3 1.7 1.4 
Refrigeration1.9 2.9 2.1 
Total income from equity method investments$15.6 $13.4 $12.0 


Geographic Information

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,
202020192018
Property, Plant and Equipment, net:
United States
$352.9 $333.6 $293.3 
Mexico79.2 82.0 86.7 
Canada2.2 2.2 1.7 
Other international30.0 27.6 26.6 
Total Property, plant and equipment, net$464.3 $445.4 $408.3