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Business Segment Information | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information The Company operates under three regional operating segments designed to create deep customer focus and relevance in markets around the world. Intercompany sales between segments are immaterial. •The Company’s Americas segment innovates for customers in North America and Latin America. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions. •The Company’s EMEA segment innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions. •The Company’s Asia Pacific segment innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions. Management measures segment operating performance based on net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, non-cash adjustment for contingent consideration, merger and acquisition-related costs, impairment of an equity investment, unallocated corporate expenses and discontinued operations (Segment Adjusted EBITDA). Segment Adjusted EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP. The Company believes Segment Adjusted EBITDA provides the most relevant measure of profitability as well as earnings power and the ability to generate cash. This measure is a useful financial metric to assess the Company’s operating performance from period to period by excluding certain items that it believes are not representative of its core business and the Company uses this measure for business planning purposes. Segment Adjusted EBITDA also provides a useful tool for assessing the comparability between periods and the Company’s ability to generate cash, service debt and undertake capital expenditures because it eliminates non-cash charges such as depreciation and amortization expense. A summary of operations by reportable segment for the three and nine months ended September 30 was as follows:
| Three months ended |  | Nine months ended
In millions | 2024 |  | 2023 |  | 2024 |  | 2023
Net revenues |  |  |  |  |  |  |
Americas | $ | 4,474.9 |  |  | $ | 3,888.0 |  |  | $ | 12,100.7 |  |  | $ | 10,441.5 |
EMEA | 667.8 |  |  | 618.6 |  |  | 1,866.5 |  |  | 1,746.8 |
Asia Pacific | 298.5 |  |  | 376.3 |  |  | 997.0 |  |  | 1,065.2 |
Total Net revenues | $ | 5,441.2 |  |  | $ | 4,882.9 |  |  | $ | 14,964.2 |  |  | $ | 13,253.5 |
Segment Adjusted EBITDA |  |  |  |  |  |  |
Americas | $ | 993.9 |  |  | $ | 809.0 |  |  | $ | 2,576.9 |  |  | $ | 2,056.0 |
EMEA | 144.3 |  |  | 130.4 |  |  | 374.7 |  |  | 342.6 |
Asia Pacific | 62.7 |  |  | 87.7 |  |  | 228.4 |  |  | 231.6 |
Total Segment Adjusted EBITDA | $ | 1,200.9 |  |  | $ | 1,027.1 |  |  | $ | 3,180.0 |  |  | $ | 2,630.2 |
Reconciliation of Segment Adjusted EBITDA to earnings before income taxes |  |  |  |  |  |  |
Total Segment Adjusted EBITDA | $ | 1,200.9 |  |  | $ | 1,027.1 |  |  | $ | 3,180.0 |  |  | $ | 2,630.2 |
Interest expense | (63.0) |  |  | (57.9) |  |  | (178.5) |  |  | (177.1) |
Depreciation and amortization | (95.0) |  |  | (92.0) |  |  | (282.7) |  |  | (260.2) |
Restructuring costs | 1.9 |  |  | (2.3) |  |  | (3.6) |  |  | (10.1) |
Non-cash adjustment for contingent consideration | — |  |  | — |  |  | 8.9 |  |  | 49.3 |
Impairment of an equity investment | — |  |  | — |  |  | — |  |  | (52.2) |
Acquisition inventory step-up | — |  |  | (1.6) |  |  | — |  |  | (6.4) |
Unallocated corporate expenses | (76.9) |  |  | (77.0) |  |  | (232.9) |  |  | (221.0) |
Earnings before income taxes | $ | 967.9 |  |  | $ | 796.3 |  |  | $ | 2,491.2 |  |  | $ | 1,952.5 |

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- Definition The entire disclosure for reporting segments including data and tables. 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