Segment Information

12 Months Ended

Dec. 28, 2019

Effective December 28, 2019, the Company transitioned from three operating segments to four operating segments to align with the change to its management structure and operating model. All prior periods have been recast to reflect the current segment presentation. The Company's four operating segments are: Commercial Systems, Industrial Systems, Climate Solutions and Power Transmission Solutions.

Commercial Systems segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, fans, and blowers for commercial applications. These products serve markets including commercial building ventilation and HVAC, pool and spa, irrigation, dewatering, agriculture, and general commercial equipment.

Industrial Systems segment produces integral motors, generators, alternators and switchgear for industrial applications, along with aftermarket parts and kits to support such products. These products serve markets including agriculture, marine, mining, oil and gas, food and beverage, data centers, healthcare, prime and standby power, and general industrial equipment.

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

Power Transmission Solutions segment produces, 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 2019, fiscal 2018 and fiscal 2017, respectively (in millions):



	Commercial Systems			Industrial Systems			Climate Solutions			Power Transmission Solutions			Eliminations			Total
Fiscal 2019
External Sales	$	905.3		$	575.4		$	968.5		$	788.8		$	—		$	3,238.0
Intersegment Sales	46.9			35.9			17.4			4.3			(104.5		)	—
Total Sales	952.2			611.3			985.9			793.1			(104.5		)	3,238.0
Gross Profit	232.9			99.3			269.8			258.7			—			860.7
Operating Expenses	162.4			107.6			110.6			163.7			—			544.3
Asset Impairments	6.7			0.9			1.3			1.1			—			10.0
(Gain) Loss on Sale of Businesses	(39.3		)	0.1			(6.0		)	0.5			—			(44.7		)
Income (Loss) from Operations	103.1			(9.3		)	163.9			93.4			—			351.1
Depreciation and Amortization	34.6			24.4			19.8			55.7			—			134.5
Capital Expenditures	29.9			21.0			23.3			18.2			—			92.4
Fiscal 2018
External Sales	$	1,110.9		$	671.1		$	1,024.8		$	838.8		$	—		$	3,645.6
Intersegment Sales	47.3			31.9			22.1			24.1			(125.4		)	—
Total Sales	1,158.2			703.0			1,046.9			862.9			(125.4		)	3,645.6
Gross Profit	287.0			136.4			262.7			278.5			—			964.6
Operating Expenses	184.8			111.6			128.9			174.1			—			599.4
Goodwill Impairment	—			—			9.5			—			—			9.5
Asset Impairments	—			—			8.7			—			—			8.7
Income from Operations	102.2			24.8			115.6			104.4			—			347.0
Depreciation and Amortization	40.3			26.7			21.0			54.4			—			142.4
Capital Expenditures	24.6			17.2			17.7			18.1			—			77.6
Fiscal 2017
External Sales	$	957.5		$	646.8		$	990.6		$	765.4		$	—		$	3,360.3
Intersegment Sales	55.2			38.1			24.9			4.5			(122.7		)	—
Total Sales	1,012.7			684.9			1,015.5			769.9			(122.7		)	3,360.3
Gross Profit	244.0			132.8			255.4			251.4			—			883.6
Operating Expenses	164.4			112.6			113.9			161.7			—			552.6
Gain on Sale of Businesses	—			—			—			(0.1		)	—			(0.1		)
Income from Operations	79.6			20.2			141.5			89.8			—			331.1
Depreciation and Amortization	35.8			24.0			22.1			55.3			—			137.2
Capital Expenditures	26.4			12.8			13.4			12.6			—			65.2

The following table presents identifiable assets information attributable to the Company's operating segments as of December 28, 2019 and December 29, 2018 (in millions):



	Commercial Systems		Industrial Systems		Climate Solutions		Power Transmission Solutions		Total
Identifiable Assets as of December 28, 2019	$	1,198.5	$	802.8	$	878.3	$	1,551.1	$	4,430.7
Identifiable Assets as of December 29, 2018	1,299.7		808.3		907.7		1,608.1		4,623.8

The following sets forth net sales by country in which the Company operates for fiscal 2019, fiscal 2018 and fiscal 2017, respectively (in millions):



	Net Sales
	2019		2018		2017
United States	$	2,071.9	$	2,402.9	$	2,267.2
Rest of the World	1,166.1		1,242.7		1,093.1
Total	$	3,238.0	$	3,645.6	$	3,360.3

U.S. net sales for fiscal 2019, fiscal 2018 and fiscal 2017 represented 64.0%, 65.9% and 67.5% 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 2019 and fiscal 2018, respectively (in millions):



	Long-lived Assets
	2019		2018
United States	$	237.6	$	242.7
Mexico	149.0		139.7
China	84.9		90.2
Rest of the World	133.5		142.9
Total	$	605.0	$	615.5

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