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Reportable Business Segments (Tables) | 12 Months Ended
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Dec. 31, 2022
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 | We operate in three reportable business segments of the 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
Refrigeration(1) |  | Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, and compressorized racks |  | Light Commercial; Food Preservation; Non-Food/Industrial |  | United States Canada Europe
(1) In November 2022, we announced the decision to explore strategic alternatives for our European commercial HVAC and refrigeration businesses. We will continue to invest in our Heatcraft Worldwide Refrigeration business which will become part of the Commercial Heating & Cooling segment beginning in 2023 and the European portfolio will be presented with Corporate and Other beginning in 2023 until disposition. As we will manage the businesses in this manner beginning in 2023, we will present the financial results of the revised segments beginning in 2023.
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,
| 2022 |  | 2021 |  | 2020
Net Sales (1) |  |  |  |  |
Residential Heating & Cooling | $ | 3,198.3 |  |  | $ | 2,775.6 |  |  | $ | 2,361.5 |
Commercial Heating & Cooling | 900.7 |  |  | 864.8 |  |  | 800.9 |
Refrigeration | 619.4 |  |  | 553.7 |  |  | 471.7 |
| $ | 4,718.4 |  |  | $ | 4,194.1 |  |  | $ | 3,634.1 |
Segment profit (loss) (2) |  |  |  |  |
Residential Heating & Cooling | $ | 596.9 |  |  | $ | 540.3 |  |  | $ | 428.5 |
Commercial Heating & Cooling | 80.9 |  |  | 110.9 |  |  | 136.9 |
Refrigeration | 78.8 |  |  | 49.1 |  |  | 32.8 |
Corporate and other | (90.8) |  |  | (96.4) |  |  | (91.5) |
Total segment profit | 665.8 |  |  | 603.9 |  |  | 506.7 |
Reconciliation to Operating income: |  |  |  |  |
Special product quality adjustments | — |  |  | (2.5) |  |  | 1.0 |
Loss from natural disasters, net of insurance recoveries | — |  |  | — |  |  | 3.1 |
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2) | 8.1 |  |  | 14.3 |  |  | 13.3 |
Restructuring charges | 1.5 |  |  | 1.8 |  |  | 10.8 |
Operating income | $ | 656.2 |  |  | $ | 590.3 |  |  | $ | 478.5 |
(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) We define segment profit (loss) as a segment’s operating income included in the accompanying Consolidated Statements of Operations, excluding: •The following items in (Gains) losses and other expenses, net: ◦Net change in unrealized (gains) losses on unsettled futures contracts, ◦Environmental liabilities and special litigation charges, ◦Charges incurred related to COVID-19 pandemic, and ◦Other items, net, •Special product quality adjustments •Loss from natural disasters, net of insurance recoveries •Restructuring charges, and
Total assets by business segment | Total assets by segment are shown below (in millions):
| As of December 31,
| 2022 |  | 2021 |  | 2020
Total Assets: |  |  |  |  |
Residential Heating & Cooling | $ | 1,456.4 |  |  | $ | 1,149.7 |  |  | $ | 1,034.6 |
Commercial Heating & Cooling | 456.4 |  |  | 366.2 |  |  | 366.5 |
Refrigeration | 443.6 |  |  | 426.6 |  |  | 387.9 |
Corporate and other | 211.2 |  |  | 229.4 |  |  | 243.5 |
Total assets | $ | 2,567.6 |  |  | $ | 2,171.9 |  |  | $ | 2,032.5 |
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,
| 2022 |  | 2021 |  | 2020
Capital Expenditures: |  |  |  |  |
Residential Heating & Cooling | $ | 42.4 |  |  | $ | 70.0 |  |  | $ | 44.0 |
Commercial Heating & Cooling | 21.5 |  |  | 4.3 |  |  | 5.9 |
Refrigeration | 11.2 |  |  | 11.5 |  |  | 9.2 |
Corporate and other | 26.0 |  |  | 21.0 |  |  | 19.4 |
Total capital expenditures | $ | 101.1 |  |  | $ | 106.8 |  |  | $ | 78.5 |
Depreciation and amortization expenses by segment are shown below (in millions):
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Depreciation and Amortization: |  |  |  |  |
Residential Heating & Cooling | $ | 31.5 |  |  | $ | 27.6 |  |  | $ | 28.5 |
Commercial Heating & Cooling | 12.9 |  |  | 13.2 |  |  | 13.5 |
Refrigeration | 9.1 |  |  | 7.8 |  |  | 7.8 |
Corporate and other | 24.4 |  |  | 23.8 |  |  | 22.8 |
Total depreciation and amortization | $ | 77.9 |  |  | $ | 72.4 |  |  | $ | 72.6 |
The equity method investments are shown below (in millions):
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Income from Equity Method Investments: |  |  |  |  |
Residential Heating & Cooling | $ | 0.9 |  |  | $ | 6.9 |  |  | $ | 11.4 |
Commercial Heating & Cooling | 0.2 |  |  | 1.2 |  |  | 2.3 |
Refrigeration | 4.0 |  |  | 3.7 |  |  | 1.9 |
Total income from equity method investments | $ | 5.1 |  |  | $ | 11.8 |  |  | $ | 15.6 |
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,
| 2022 |  | 2021 |  | 2020
Property, Plant and Equipment, net: |  |  |  |  |
United States | $ | 408.8 |  |  | $ | 381.0 |  |  | $ | 352.9 |
Mexico | 110.9 |  |  | 102.7 |  |  | 79.2 |
Canada | 2.1 |  |  | 2.1 |  |  | 2.2 |
Other international | 27.1 |  |  | 29.3 |  |  | 30.0 |
Total Property, plant and equipment, net | $ | 548.9 |  |  | $ | 515.1 |  |  | $ | 464.3 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
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