Segment Financial Data

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Financial Data

Segment Financial DataOur operations are classified into two operating segments: New Equipment and Service. Through the New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators as well as escalators and moving walkways to customers in the residential and commercial building and infrastructure projects. The Service segment provides maintenance and repair services for both our products and those of other manufacturers, and provides modernization services to upgrade elevators and escalators. The operating segments are generally based on the management structure of the Company, how management allocates resources, assesses performance and makes strategic and operational decisions.

Segment Information. Segment information for the quarters ended September 30, 2020 and 2019 are as follows:

	Net Sales				Operating Profit				Operating Profit Margin
(dollars in millions)	2020		2019		2020		2019		2020		2019
New Equipment	$	1,423	$	1,450	$	95	$	115	6.7	%	7.9	%
Service	1,845		1,863		409		407		22.2	%	21.8	%
Total segments	3,268		3,313		504		522		15.4	%	15.8	%
General corporate expenses and other	—		—		(50)		(40)		—		—
Total	$	3,268	$	3,313	$	454	$	482	13.9	%	14.5	%

Segment Information. Segment information for the nine months ended September 30, 2020 and 2019 are as follows:

	Net Sales				Operating Profit				Operating Profit Margin
(dollars in millions)	2020		2019		2020		2019		2020		2019
New Equipment	$	3,840	$	4,221	$	238	$	312	6.2	%	7.4	%
Service	5,423		5,544		1,190		1,181		21.9	%	21.3	%
Total segments	9,263		9,765		1,428		1,493		15.4	%	15.3	%
General corporate expenses and other1	—		—		(229)		(115)		—		—
Total	$	9,263	$	9,765	$	1,199	$	1,378	12.9	%	14.1	%

1 The increase in General corporate expenses and other during the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 is primarily driven by a fixed asset impairment charge and related costs of approximately $67 million, as well as an increase in non-recurring Separation-related costs of $72 million and incremental standalone public company costs, partially offset by favorable foreign exchange activity.

Total assets are not presented for each segment as they are not presented to or reviewed by the Chief Operating Decision Maker.

Geographic External Sales. Geographic Net sales are attributed to the geographic regions based on their location of origin. With the exception of the U.S. and China, there were no individually significant countries with sales exceeding 10% of Net sales during the quarters and nine months ended September 30, 2020 and 2019.

	External Net Sales
	Quarter Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019
United States Operations	$	855	$	899	$	2,550	$	2,723
International Operations
China	624		588		1,557		1,554
Other	1,789		1,826		5,156		5,488
Total	$	3,268	$	3,313	$	9,263	$	9,765

Segment Net sales disaggregated by product and service type for the quarters and nine months ended September 30, 2020 and 2019 are as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019
Disaggregated Net sales by type
New Equipment	$	1,423	$	1,450	$	3,840	$	4,221
Maintenance and Repair	1,515		1,525		4,448		4,554
Modernization	330		338		975		990
Total Service	1,845		1,863		5,423		5,544
Total	$	3,268	$	3,313	$	9,263	$	9,765

Major Customers. There were no customers that individually accounted for 10% or more of the Company's consolidated Net sales for the quarters and nine months ended September 30, 2020 and 2019.