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Reportable Business Segments
 12 Months Ended
Dec. 31, 2021
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(1)
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) 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 Kysor Warren business.

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,
 202120202019
Net Sales (1)
Residential Heating & Cooling$2,775.6 $2,361.5 $2,291.1 
Commercial Heating & Cooling864.8 800.9 947.4 
Refrigeration553.7 471.7 568.7 
$4,194.1 $3,634.1 $3,807.2 
Segment profit (loss) (2)
Residential Heating & Cooling$540.3 $428.5 $464.6 
Commercial Heating & Cooling110.9 136.9 165.4 
Refrigeration49.1 32.8 61.3 
Corporate and other(96.4)(91.5)(82.4)
Total segment profit603.9 506.7 608.9 
Reconciliation to Operating income:
Special product quality adjustments(2.5)1.0 (0.6)
Loss on sale of businesses and related property— — 10.6 
(Gain) loss from natural disasters, net of insurance recoveries— 3.1 (79.6)
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2)
14.3 13.3 11.3 
Restructuring charges1.8 10.8 10.3 
Operating income$590.3 $478.5 $656.9 
 
(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 product quality adjustments
•(Gain) loss from natural disasters, net of insurance recoveries
•Restructuring charges, and
•Loss on sale of business and related property

Total assets by segment are shown below (in millions):
As of December 31,
202120202019
Total Assets:
Residential Heating & Cooling
$1,149.7 $1,034.6 $1,055.7 
Commercial Heating & Cooling366.2 366.5 409.0 
Refrigeration426.6 387.9 393.3 
Corporate and other229.4 243.5 176.9 
Total assets$2,171.9 $2,032.5 $2,034.9 

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,
202120202019
Capital Expenditures:
Residential Heating & Cooling
$70.0 $44.0 $59.2 
Commercial Heating & Cooling4.3 5.9 11.3 
Refrigeration11.5 9.2 9.4 
Corporate and other21.0 19.4 25.7 
Total capital expenditures $106.8 $78.5 $105.6 

Depreciation and amortization expenses by segment are shown below (in millions):
For the Years Ended December 31,
202120202019
Depreciation and Amortization:
Residential Heating & Cooling
$27.6 $28.5 $30.0 
Commercial Heating & Cooling13.2 13.5 12.5 
Refrigeration7.8 7.8 7.9 
Corporate and other23.8 22.8 20.7 
Total depreciation and amortization$72.4 $72.6 $71.1 

The equity method investments are shown below (in millions):
For the Years Ended December 31,
202120202019
Income from Equity Method Investments:
Residential Heating & Cooling$6.9 $11.4 $8.8 
Commercial Heating & Cooling1.2 2.3 1.7 
Refrigeration3.7 1.9 2.9 
Total income from equity method investments$11.8 $15.6 $13.4 


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,
202120202019
Property, Plant and Equipment, net:
United States
$381.0 $352.9 $333.6 
Mexico102.7 79.2 82.0 
Canada2.1 2.2 2.2 
Other international29.3 30.0 27.6 
Total Property, plant and equipment, net$515.1 $464.3 $445.4