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Business Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment Information BUSINESS SEGMENT INFORMATION
The Company operates under three reportable 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.
The Company's chief operating decision maker (CODM), the Chief Executive Officer, uses two profitability measures, Segment Adjusted EBITDA and Segment Adjusted Operating Income, in assessing segment performance and deciding how to allocate resources:
•Segment Adjusted EBITDA represents net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, non-cash adjustments for contingent consideration, merger and acquisition-related costs, unallocated corporate expenses, discontinued operations and other non-recurring transactions. Segment Adjusted EBITDA also provides a useful tool for assessing the operating performance and comparability between periods and our ability to generate cash because it excludes the impact of certain non-cash or non-recurring items that can vary significantly from period to period. Segment Adjusted EBITDA is used in the development of annual operating plans, including capital expenditure and operational budgets, and in measuring performance against targets for purposes of incentive compensation.
•Segment Adjusted Operating Income represents operating income adjusted to exclude restructuring costs, merger and acquisition-related costs, non-cash adjustments for contingent consideration and other non-recurring items. Segment Adjusted Operating Income, and ratios based on it, are used to provide a comprehensive view of segment profitability and evaluate efficient returns on assets.
Segment Adjusted EBITDA and Segment Adjusted Operating Income are 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. Measures of total assets by reportable segment are not provided to the CODM. Therefore, asset information by segment is not disclosed.
A summary of results by reportable segment for the years ended December 31 were as follows:
In millions202420232022
Americas
Segment revenues$15,903.2 $13,832.0 $12,640.8 
Segment cost of goods sold(10,249.9)(9,262.4)(8,714.1)
Segment selling and administrative expenses(2,614.2)(2,123.7)(1,857.7)
Segment Adjusted Operating Income$3,039.1 $2,445.9 $2,069.0 
Segment depreciation and amortization299.8 258.8 256.8 
Segment other income/(expense), net(20.6)(35.1)0.5 
Segment Adjusted EBITDA$3,318.3 $2,669.6 $2,326.3 
EMEA
Segment revenues$2,556.7 $2,401.2 $2,034.5 
Segment cost of goods sold(1,641.8)(1,584.4)(1,408.7)
Segment selling and administrative expenses(442.1)(392.3)(315.5)
Segment Adjusted Operating Income$472.8 $424.5 $310.3 
Segment depreciation and amortization43.5 40.5 28.8 
Segment other income/(expense), net(11.2)(0.3)(1.0)
Segment Adjusted EBITDA$505.1 $464.7 $338.1 
Asia Pacific
Segment revenues$1,378.3 $1,444.4 $1,316.4 
Segment cost of goods sold(843.2)(935.2)(886.9)
Segment selling and administrative expenses(226.3)(208.4)(197.8)
Segment Adjusted Operating Income$308.8 $300.8 $231.7 
Segment depreciation and amortization17.9 18.3 17.2 
Segment other income/(expense), net2.6 2.2 (0.6)
Segment Adjusted EBITDA$329.3 $321.3 $248.3 
In millions202420232022
Reconciliation of Segment Adjusted EBITDA and Segment Adjusted Operating Income to earnings before income taxes
Total Segment Adjusted EBITDA$4,152.7 $3,455.6 $2,912.7 
Total Segment depreciation and amortization(361.2)(317.6)(302.9)
Total Segment other income/(expense), net29.1 33.2 1.2 
Total Segment Adjusted Operating Income3,820.6 3,171.2 2,611.0 
Restructuring costs(5.0)(15.1)(20.7)
Non-cash adjustments for contingent consideration25.0 49.3 46.9 
Insurance settlements on property claims— 10.0 25.0 
Acquisition inventory step-up and backlog amortization— (18.5)(1.2)
Unallocated corporate expenses(340.5)(302.9)(242.1)
Interest expense(238.4)(234.5)(223.5)
Other income/(expense), net(19.9)(92.2)(23.3)
Earnings before income taxes$3,241.8 $2,567.3 $2,172.1 
Capital Expenditures
Americas$244.7 $217.2 $230.5 
EMEA36.6 31.9 25.9 
Asia Pacific16.1 14.3 11.2 
Capital expenditures from reportable segments$297.4 $263.4 $267.6 
Corporate capital expenditures73.2 37.3 24.2 
Total capital expenditures$370.6 $300.7 $291.8 
At December 31, a summary of long-lived assets by geographic area were as follows:
In millions20242023
United States$1,936.0 $1,618.6 
Non-U.S.691.1 666.7 
Total$2,627.1 $2,285.3