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Reportable Business Segments (Tables) | 12 Months Ended
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Dec. 31, 2017
Segment Reporting, Measurement Disclosures [Abstract] |
Net sales, segment profit (loss) by business segment and reconciliation of segment profit (loss) to Income from Continuing Operations before Income Taxes | While restructuring charges are excluded from our calculation of segment profit (loss), the table below presents the restructuring charges associated with each segment (in millions):
| Incurred in 2017 |  | Incurred to Date |  | Total Expected to be Incurred
Residential Heating & Cooling | $ | 0.5 |  |  | $ | 1.4 |  |  | $ | 1.4 |
Commercial Heating & Cooling | 0.9 |  |  | 2.0 |  |  | 2.1 |
Refrigeration | 1.2 |  |  | 13.1 |  |  | 13.1 |
Corporate & Other | 0.6 |  |  | 2.3 |  |  | 2.8 |
Total | $ | 3.2 |  |  | $ | 18.8 |  |  | $ | 19.4 |
We operate in three reportable business segments of the heating, ventilation, air conditioning and refrigeration (“HVACR”) industry. Our segments are organized primarily by the nature of the products and services we provide. The following table describes each segment:
Segment |  | Products or Services |  | Markets Served |  | Geographic Areas
Residential Heating & Cooling |  | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies |  | Residential Replacement; Residential New Construction |  | United States Canada
Commercial Heating & Cooling |  | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products |  | Light Commercial |  | United States Canada Europe
Refrigeration |  | Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems |  | Light Commercial; Food Preservation; Non-Food/Industrial |  | United States Canada Europe Asia Pacific South America
Net sales and segment profit (loss) with reconciliation of segment profit (loss) | Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):
| For the Years Ended December 31,
| 2017 |  | 2016 |  | 2015
Net Sales (1) |  |  |  |  |
Residential Heating & Cooling | $ | 2,140.4 |  |  | $ | 2,000.8 |  |  | $ | 1,866.9 |
Commercial Heating & Cooling | 973.8 |  |  | 917.9 |  |  | 887.2 |
Refrigeration | 725.4 |  |  | 722.9 |  |  | 713.3 |
| $ | 3,839.6 |  |  | $ | 3,641.6 |  |  | $ | 3,467.4 |
Segment Profit (Loss) (2) |  |  |  |  |
Residential Heating & Cooling | $ | 373.9 |  |  | $ | 348.8 |  |  | $ | 278.4 |
Commercial Heating & Cooling | 157.3 |  |  | 149.3 |  |  | 130.4 |
Refrigeration | 72.6 |  |  | 68.9 |  |  | 52.9 |
Corporate and other | (89.2 | ) |  | (97.4 | ) |  | (84.1 | )
Subtotal segment profit | 514.6 |  |  | 469.6 |  |  | 377.6 |
Reconciliation to Operating income: |  |  |  |  |
Special product quality adjustments | 5.4 |  |  | (0.4 | ) |  | (2.2 | )
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss) (2) | 11.5 |  |  | 7.4 |  |  | 15.6 |
Restructuring charges | 3.2 |  |  | 1.8 |  |  | 3.2 |
Pension settlement | — |  |  | 31.4 |  |  | — |
Goodwill impairment | — |  |  | — |  |  | 5.5 |
Asset impairment | — |  |  | — |  |  | 44.5 |
One time inventory write down | — |  |  | — |  |  | 5.6 |
Operating income | $ | 494.5 |  |  | $ | 429.4 |  |  | $ | 305.4 |
(1) On a consolidated basis, no revenue from transactions with a single customer were 10% or greater of our consolidated net sales for any of the periods presented. (2) The Company defines segment profit (loss) as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding:
• | Special product quality adjustments;
• | The following items in (Gains) Losses and other expenses, net:
◦ | Net change in unrealized gains and/or losses on unsettled futures contracts,
◦ | Special legal contingency charges,
◦ | Asbestos-related litigation,
◦ | Environmental liabilities,
◦ | Contractor tax payments,
◦ | Acquisition/disposition costs, and
◦ | Other items, net;
• | Restructuring charges;
• | Pension settlement;
• | Goodwill and asset impairments; and
• | One time inventory write down.
Total assets by business segment | Total assets by segment are shown below (in millions):
| As of December 31,
| 2017 |  | 2016 |  | 2015
Total Assets: |  |  |  |  |
Residential Heating & Cooling | $ | 771.3 |  |  | $ | 673.4 |  |  | $ | 628.3 |
Commercial Heating & Cooling | 443.9 |  |  | 385.8 |  |  | 363.6 |
Refrigeration | 506.9 |  |  | 442.8 |  |  | 444.9 |
Corporate and other | 169.4 |  |  | 258.3 |  |  | 240.6 |
Total assets | $ | 1,891.5 |  |  | $ | 1,760.3 |  |  | $ | 1,677.4 |
Summary of capital expenditures, depreciation and amortization, and income from equity method investments expense by business segment | Total capital expenditures by segment are shown below (in millions):
| For the Years Ended December 31,
| 2017 |  | 2016 |  | 2015
Capital Expenditures: |  |  |  |  |
Residential Heating & Cooling | $ | 38.9 |  |  | $ | 36.7 |  |  | $ | 28.1 |
Commercial Heating & Cooling | 18.5 |  |  | 11.5 |  |  | 8.6 |
Refrigeration | 8.0 |  |  | 12.1 |  |  | 11.4 |
Corporate and other | 32.9 |  |  | 24.0 |  |  | 21.8 |
Total capital expenditures (1) | $ | 98.3 |  |  | $ | 84.3 |  |  | $ | 69.9 |
(1) Includes amounts recorded under capital leases. There were no significant new capital leases in 2017, 2016 or 2015. Depreciation and amortization expenses by segment are shown below (in millions):
| For the Years Ended December 31,
| 2017 |  | 2016 |  | 2015
Depreciation and Amortization: |  |  |  |  |
Residential Heating & Cooling | $ | 24.9 |  |  | $ | 21.0 |  |  | $ | 20.7 |
Commercial Heating & Cooling | 10.1 |  |  | 9.8 |  |  | 9.7 |
Refrigeration | 9.9 |  |  | 9.7 |  |  | 15.5 |
Corporate and other | 19.7 |  |  | 17.6 |  |  | 16.9 |
Total depreciation and amortization | $ | 64.6 |  |  | $ | 58.1 |  |  | $ | 62.8 |
The equity method investments are shown below (in millions):
| For the Years Ended December 31,
| 2017 |  | 2016 |  | 2015
Income from Equity Method Investments: |  |  |  |  |
Refrigeration | $ | 3.9 |  |  | $ | 4.0 |  |  | $ | 2.8 |
Residential | 11.7 |  |  | 11.5 |  |  | 8.0 |
Commercial | 2.8 |  |  | 2.9 |  |  | 2.6 |
Total income from equity method investments | $ | 18.4 |  |  | $ | 18.4 |  |  | $ | 13.4 |
Summary of financial information relating to geographic area based operations | Net sales for each major geographic area in which we operate are shown below (in millions):
| For the Years Ended December 31,
| 2017 |  | 2016 |  | 2015
Net Sales to External Customers by Point of Shipment: |  |  |  |  |
United States | $ | 3,128.7 |  |  | $ | 2,966.8 |  |  | $ | 2,793.4 |
Canada | 237.8 |  |  | 218.8 |  |  | 217.7 |
International | 473.1 |  |  | 456.0 |  |  | 456.3 |
Total net sales to external customers | $ | 3,839.6 |  |  | $ | 3,641.6 |  |  | $ | 3,467.4 |
Property, plant, and equipment, net for each major geographic area | Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):
| As of December 31,
| 2017 |  | 2016 |  | 2015
Property, Plant and Equipment, net: |  |  |  |  |
United States | $ | 257.6 |  |  | $ | 237.6 |  |  | $ | 224.8 |
Mexico | 79.8 |  |  | 69.4 |  |  | 60.0 |
Canada | 1.7 |  |  | 1.4 |  |  | 1.2 |
International | 58.7 |  |  | 53.0 |  |  | 53.6 |
Total Property, plant and equipment, net | $ | 397.8 |  |  | $ | 361.4 |  |  | $ | 339.6 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
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