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 the three and six months ended June 30, 2018 and July 1, 2017 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
Three Months Ended June 30, 2018
External Sales	$	469.0	$	277.3	$	213.4	$	—		$	959.7
Intersegment Sales	12.5		5.8		7.4		(25.7		)	—
Total Sales	481.5		283.1		220.8		(25.7		)	959.7
Gross Profit	105.7		72.9		68.8		—			247.4
Operating Expenses	75.2		28.9		43.7		—			147.8
Income From Operations	30.5		44.0		25.1		—			99.6
Depreciation and Amortization	17.2		5.2		13.8		—			36.2
Capital Expenditures	8.9		7.9		4.4		—			21.2
Three Months Ended July 1, 2017
External Sales	$	407.4	$	270.5	$	191.3	$	—		$	869.2
Intersegment Sales	19.9		6.0		2.2		(28.1		)	—
Total Sales	427.3		276.5		193.5		(28.1		)	869.2
Gross Profit	91.8		68.2		62.8		—			222.8
Operating Expenses	71.2		27.8		40.6		—			139.6
Income From Operations	20.6		40.4		22.2		—			83.2
Depreciation and Amortization	14.8		5.6		14.0		—			34.4
Capital Expenditures	11.1		2.3		3.3		—			16.7



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
Six Months Ended June 30, 2018
External Sales	$	883.0	$	537.2	$	418.3	$	—		$	1,838.5
Intersegment Sales	27.6		11.3		12.0		(50.9		)	—
Total Sales	910.6		548.5		430.3		(50.9		)	1,838.5
Gross Profit	205.5		136.6		140.2		—			482.3
Operating Expenses	145.9		60.3		88.3		—			294.5
Income From Operations	59.6		76.3		51.9		—			187.8
Depreciation and Amortization	32.6		10.6		27.8		—			71.0
Capital Expenditures	19.9		12.4		8.2		—			40.5
Six Months Ended July 1, 2017
External Sales	$	788.6	$	518.2	$	375.9	$	—		$	1,682.7
Intersegment Sales	35.8		14.2		2.9		(52.9		)	—
Total Sales	824.4		532.4		378.8		(52.9		)	1,682.7
Gross Profit	187.3		129.0		122.0		—			438.3
Operating Expenses	141.0		57.2		81.9		—			280.1
Income From Operations	46.3		71.8		40.1		—			158.2
Depreciation and Amortization	30.0		11.1		27.7		—			68.8
Capital Expenditures	21.7		6.6		5.4		—			33.7

The following table presents identifiable assets information attributable to the Company's operating segments as of June 30, 2018 and December 30, 2017 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Total
Identifiable Assets as of June 30, 2018	$	2,085.1	$	927.1	$	1,622.5	$	4,634.7
Identifiable Assets as of December 30, 2017	$	1,854.1	$	909.9	$	1,624.2	$	4,388.2