Segment Information

The Company is comprised of three operating segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions.

Commercial and Industrial Systems produces medium and large motors, commercial and industrial equipment, generator and custom drives and systems. These products serve markets including commercial Heating, Ventilation, and Air Conditioning ("HVAC"), pool and spa, standby and critical power and oil and gas systems.

Climate Solutions produces small motors, controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters and commercial refrigeration.

Power Transmission Solutions manufactures, sells and services belt and chain drives, helical and worm gearing, mounted and unmounted bearings, couplings, modular plastic belts, conveying chains and components, hydraulic pump drives, large open gearing and specialty mechanical products serving markets including beverage, bulk handling, metals, special machinery, energy, aerospace and general industrial.

The Company evaluates performance based on the segment's income from operations. Corporate costs have been allocated to each segment based on the net sales of each segment. The reported external net sales of each segment are from external customers.

The following sets forth certain financial information attributable to the Company's operating segments for fiscal 2017, fiscal 2016 and fiscal 2015, respectively (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
Fiscal 2017
External Sales	$	1,604.3	$	990.6	$	765.4	$	—		$	3,360.3
Intersegment Sales	66.5		24.9		4.5		(95.9		)	—
Total Sales	1,670.8		1,015.5		769.9		(95.9		)	3,360.3
Gross Profit	377.3		255.2		251.6		—			884.1
Operating Expenses	277.3		114.6		162.1		—			554.0
Income from Operations	100.0		140.6		89.5		—			330.1
Depreciation and Amortization	59.8		22.1		55.3		—			137.2
Capital Expenditures	39.2		13.4		12.6		—			65.2
Fiscal 2016
External Sales	$	1,530.9	$	960.0	$	733.6	$	—		$	3,224.5
Intersegment Sales	49.2		24.1		4.3		(77.6		)	—
Total Sales	1,580.1		984.1		737.9		(77.6		)	3,224.5
Gross Profit	379.2		245.1		240.9		—			865.2
Operating Expenses	275.7		115.2		153.7		—			544.6
Income from Operations	103.5		129.9		87.2		—			320.6
Depreciation and Amortization	74.7		24.4		56.3		—			155.4
Capital Expenditures	36.6		15.0		13.6		—			65.2
Fiscal 2015
External Sales	$	1,694.9	$	1,041.2	$	773.6	$	—		$	3,509.7
Intersegment Sales	71.2		24.1		4.0		(99.3		)	—
Total Sales	1,766.1		1,065.3		777.6		(99.3		)	3,509.7
Gross Profit	441.1		262.2		229.9		—			933.2
Operating Expenses	307.2		115.6		177.7		—			600.5
Goodwill Impairment	79.9		—		—		—			79.9
Income from Operations	54.0		146.6		52.2		—			252.8
Depreciation and Amortization	77.5		28.6		53.3		—			159.4
Capital Expenditures	52.3		18.5		21.4		—			92.2

The following table presents identifiable assets information attributable to the Company's operating segments as of December 30, 2017, December 31, 2016, and January 2, 2016 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Total
Identifiable Assets as of December 30, 2017	$	1,854.1	$	909.9	$	1,624.2	$	4,388.2
Identifiable Assets as of December 31, 2016	$	1,872.7	$	881.8	$	1,604.0	$	4,358.5
Identifiable Assets as of January 2, 2016	$	1,959.5	$	937.2	$	1,695.0	$	4,591.7

The following sets forth net sales by country in which the Company operates for fiscal 2017, fiscal 2016 and fiscal 2015, respectively (in millions):



	Net Sales
	2017		2016		2015
United States	$	2,267.2	$	2,212.6	$	2,374.3
Rest of the World	1,093.1		1,011.9		1,135.4
Total	$	3,360.3	$	3,224.5	$	3,509.7

US net sales for 2017, 2016 and 2015 represented 67.5%, 68.6% and 67.6% of total net sales, respectively. No individual foreign country represented a material portion of total net sales for any of the years presented.

The following sets forth long-lived assets (net property, plant and equipment) by country in which the Company operates for fiscal 2017 and fiscal 2016, respectively (in millions):



	Long-lived Assets
	2017		2016
United States	$	263.6	$	290.3
Mexico	136.3		120.2
China	99.5		99.6
Rest of the World	123.6		117.4
Total	$	623.0	$	627.5

No other individual foreign country represented a material portion of long-lived assets for any of the years presented.