BUSINESS SEGMENTS INFORMATION

The Company designs and manufactures products and delivers services that bring technology and engineering together to provide innovative solutions for customers in a wide range of industrial, commercial and consumer markets around the world.

In connection with the strategic portfolio repositioning actions undertaken to transform the Company into a more focused enterprise, the Company realigned its businesses. Starting in fiscal 2017, the Company began reporting three segments: Automation Solutions, and Climate Technologies and Tools & Home Products which together comprise the Commercial & Residential Solutions business. Fiscal 2016 results were reclassified in the prior year to conform to the current presentation.

The Automation Solutions segment enables process, hybrid and discrete manufacturers to maximize production, protect personnel and the environment, reduce project costs, and optimize their energy efficiency and operating costs through a broad offering of integrated solutions and products, including measurement and analytical instrumentation, industrial valves and equipment, and process control systems. Significant markets served include oil and gas, refining, chemicals and power generation, as well as pharmaceuticals, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies. The segment's major product offerings are described below.


•	Measurement & Analytical Instrumentation products measure the physical properties of liquids or gases in a process stream and communicate this information to a process control system or other software applications, and analyze the chemical composition of process fluids and emissions to enhance quality and efficiency, as well as environmental compliance.

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Valves, Actuators & Regulators consists of control, isolation and pressure relief valves which respond to commands from a control system to continuously and precisely modulate the flow of process fluids, smart actuation and control technologies, pressure management products, and industrial and residential regulators that reduce the pressure of fluids moving from high-pressure supply lines into lower pressure systems.


•	Industrial Solutions provides fluid control and pneumatic mechanisms, electrical distribution equipment, and materials joining and precision cleaning products which are used in a variety of manufacturing operations to provide integrated solutions to customers.


•	Process Control Systems & Solutions provides a digital ecosystem that controls plant processes by communicating with and adjusting the "intelligent" plant devices described above to provide precision measurement, control, monitoring, asset optimization, and plant safety and reliability for plants that produce power, or process fluids or other items.

The Commercial & Residential Solutions business consists of the Climate Technologies and Tools & Home Products segments. This business provides products and solutions that promote energy efficiency, enhance household and commercial comfort, and protect food quality and sustainability through heating, air conditioning and refrigeration technology, as well as a broad range of tools and appliance solutions.

The Climate Technologies segment provides products, services and solutions for all areas of the climate control industry, including residential heating and cooling, commercial air conditioning, commercial and industrial refrigeration, and cold chain management. Products include compressors, temperature sensors and controls, thermostats, flow controls, and stationary and mobile remote monitoring technologies and services that enable homeowners and businesses to better manage their heating, air conditioning and refrigeration systems for improved control and comfort, and lower energy costs.

The Tools & Home Products segment offers tools for professionals and homeowners and appliance solutions. Products include professional pipe-working tools, electrical and utility tools, residential and commercial food waste disposers, and wet-dry vacuums.

The principal distribution method for each segment is direct sales forces, although the Company also uses independent sales representatives and distributors. Due to its global presence, certain of the Company's international operations are subject to risks including the stability of governments and business conditions in foreign countries which could result in adverse changes in exchange rates, changes in regulations or disruption of operations.

The primary income measure used for assessing segment performance and making operating decisions is earnings before interest and income taxes. Intersegment selling prices approximate market prices. Accounting method differences between segment reporting and the consolidated financial statements are primarily management fees allocated to segments based on a percentage of sales and the accounting for pension and other retirement plans. Corporate and other includes corporate operations, stock compensation expense, acquisition related costs and other items. Corporate assets are primarily comprised of cash and equivalents, investments and certain fixed assets. Summarized below is information about the Company's operations by business segment and by geography.

Business Segments



	Sales							Earnings							Total Assets
	2016			2017		2018		2016			2017		2018		2016		2017	2018
Automation Solutions	$	8,977		9,418		11,441		$	1,456		1,522		1,886		$	8,759	12,581	13,720

Climate Technologies	3,944			4,212		4,454		902			975		972		2,489		2,547	2,936
Tools & Home Products	1,611			1,645		1,528		384			383		380		809		830	1,560
Commercial & Residential Solutions	5,555			5,857		5,982		1,286			1,358		1,352		3,298		3,377	4,496

Differences in accounting methods								189			148		218
Corporate and other (a)								(427		)	(528	)	(630	)	9,675		3,631	2,174
Eliminations/Interest	(10		)	(11	)	(15	)	(188		)	(165	)	(159	)
Total	$	14,522		15,264		17,408		$	2,316		2,335		2,667		$	21,732	19,589	20,390

(a) Corporate and other in 2018 includes higher stock compensation expense of $106 and first year pretax acquisition accounting charges of $79 ($58 after-tax, $0.09 per share). The increase in 2017 compared to 2016 was due to valves & controls first year pretax acquisition accounting charges related to inventory and backlog of $93 ($65 after-tax, $0.10 per share). See Note 3. Assets held-for-sale of $6,030 are included in Corporate and other for 2016. See Note 4.

Automation Solutions sales by major product offering are summarized below:



	2016		2017	2018

Measurement & Analytical Instrumentation	$	3,137	3,070	3,604
Valves, Actuators & Regulators	2,137		2,668	3,769
Industrial Solutions	1,621		1,680	1,947
Process Control Systems & Solutions	2,082		2,000	2,121
Total	$	8,977	9,418	11,441



	Depreciation and Amortization				Capital Expenditures
	2016		2017	2018	2016		2017	2018
Automation Solutions	$	330	400	507	$	246	234	295

Climate Technologies	150		156	171	133		182	209
Tools & Home Products	44		45	44	44		45	64
Commercial & Residential Solutions	194		201	215	177		227	273

Corporate and other	44		35	36	24		15	49
Total	$	568	636	758	$	447	476	617

Geographic Information



	Sales by Destination				Property, Plant and Equipment
	2016		2017	2018	2016		2017	2018
United States and Canada	$	7,505	7,854	8,620	$	1,780	1,852	2,036
Asia	2,926		3,253	3,936	459		525	547
Europe	2,300		2,434	2,898	435		626	676
Latin America	834		767	849	203		203	198
Middle East/Africa	957		956	1,105	54		115	105
Total	$	14,522	15,264	17,408	$	2,931	3,321	3,562

Sales in the U.S. were $7,939, $7,273 and $6,940 for 2018, 2017 and 2016, respectively, while Asia includes sales in China of $1,955, $1,540 and $1,320 in those years. Assets located in the U.S. were $2,027 in 2018, $1,840 in 2017 and $1,772 in 2016.