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Business Segment Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Business Segment Information BUSINESS SEGMENT INFORMATION
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except that the operating segments’ results are prepared on a management basis that is consistent with the manner in which the Company prepares financial information for internal review and decision making. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Intercompany sales between segments are considered immaterial.
The Company's Climate segment delivers energy-efficient products and innovative energy services. It includes Trane® and American Standard® Heating & Air Conditioning which provide heating, ventilation and air conditioning (HVAC) systems, and commercial and residential building services, parts, support and controls; energy services and building automation through Trane Building AdvantageTM and NexiaTM; and Thermo King® transport temperature control solutions.
The Company's Industrial segment delivers products and services that enhance energy efficiency, productivity and operations. It includes compressed air and gas systems and services, power tools, material handling systems, fluid management systems, as well as Club Car ® golf, utility and rough terrain vehicles.
Segment operating income is the measure of profit and loss that the Company's chief operating decision maker uses to evaluate the financial performance of the business and as the basis for performance reviews, compensation and resource allocation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss.
A summary of operations by reportable segments for the years ended December 31 were as follows:
Dollar amounts in millions
 
2019
 
2018
 
2017
Climate
 
 
 
 
 
 
Net revenues
 
$
13,075.9

 
$
12,343.8

 
$
11,167.5

Segment operating income
 
1,908.5

 
1,766.2

 
1,572.7

Segment operating income as a percentage of net revenues
 
14.6
%
 
14.3
%
 
14.1
%
Depreciation and amortization
 
258.0

 
252.0

 
247.6

Capital expenditures
 
188.1

 
217.3

 
103.8

Industrial
 
 
 
 
 
 
Net revenues
 
3,523.0

 
3,324.4

 
3,030.1

Segment operating income
 
455.0

 
405.3

 
357.6

Segment operating income as a percentage of net revenues
 
12.9
%
 
12.2
%
 
11.8
%
Depreciation and amortization
 
108.6

 
79.2

 
77.3

Capital expenditures
 
48.7

 
80.9

 
57.4

 
 
 
 
 
 
 
Total net revenues
 
$
16,598.9

 
$
15,668.2

 
$
14,197.6

 
 
 
 
 
 
 
Reconciliation to Operating Income
 
 
 
 
 
 
Segment operating income from reportable segments
 
$
2,363.5

 
$
2,171.5

 
$
1,930.3

Unallocated corporate expense
 
(345.9
)
 
(254.1
)
 
(265.0
)
Total operating income
 
$
2,017.6

 
$
1,917.4

 
$
1,665.3

Total operating income as a percentage of revenues
 
12.2
%
 
12.2
%
 
11.7
%
Depreciation and Amortization
 
 
 
 
 
 
Depreciation and amortization from reportable segments
 
$
366.6

 
$
331.2

 
$
324.9

Unallocated depreciation and amortization
 
30.8

 
30.3

 
28.4

Total depreciation and amortization
 
$
397.4


$
361.5


$
353.3

Capital Expenditures
 
 
 
 
 
 
Capital expenditures from reportable segments
 
$
236.8

 
$
298.2

 
$
161.2

Corporate capital expenditures
 
17.3

 
67.4

 
60.1

Total capital expenditures
 
$
254.1

 
$
365.6

 
$
221.3


At December 31, a summary of long-lived assets by geographic area were as follows:
In millions
 
2019

2018
United States
 
$
2,327.3

 
$
1,914.7

Non-U.S.
 
790.6

 
781.3

Total
 
$
3,117.9

 
$
2,696.0