XML 29 R13.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Reportable Business Segments | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting, Measurement Disclosures [Abstract] |
Reportable Business Segments | 3. Reportable Business Segments: Description of Segments We operate in two 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
Home Comfort Solutions |  | 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
Building Climate Solutions |  | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products, curb, curb adapters, drop box diffusers, HVAC recycling and salvage service, condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks |  | Light Commercial; Food Preservation; Non-Food Industry |  | United States Canada
Prior to January 1, 2023, we operated in three reportable business segments. In November 2022, we announced the decision to explore strategic alternatives for our European commercial HVAC and refrigeration businesses. We continue to invest in our Heatcraft Worldwide Refrigeration business which is included in the Building Climate Solutions segment while our European portfolio is presented with Corporate and Other until disposition. The consolidation of our Heatcraft business within the Building Climate Solutions segment provides the opportunity to leverage synergies and create long-term growth opportunities by integrating entities with similar products, end consumers and financial performance metrics under the same management. The change in segment reporting better aligns with how the businesses are managed and evaluated given the change in portfolio. In the fourth quarter of 2023, we successfully completed the divestiture of our European operations. Segment Data We use segment profit or loss as the primary measure of profitability to evaluate operating performance and to allocate capital resources. We define segment profit or loss as a segment’s income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding certain items. The reconciliation below details the items excluded. Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations included in the results presented in the table below. 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,
| 2023 |  | 2022 |  | 2021
Net Sales (1) |  |  |  |  |
Home Comfort Solutions | $ | 3,222.9 |  |  | $ | 3,198.3 |  |  | $ | 2,775.6 |
Building Climate Solutions (3) | 1,511.4 |  |  | 1,286.4 |  |  | 1,188.8 |
Corporate and Other (3) | 247.6 |  |  | 233.7 |  |  | 229.7 |
| $ | 4,981.9 |  |  | $ | 4,718.4 |  |  | $ | 4,194.1 |
Segment profit (loss) (2) |  |  |  |  |
Home Comfort Solutions | $ | 610.2 |  |  | $ | 596.9 |  |  | $ | 540.3 |
Building Climate Solutions (3) | 340.8 |  |  | 162.9 |  |  | 164.6 |
Corporate and Other (3) | (93.9) |  |  | (94.0) |  |  | (101.0) |
Total segment profit | 857.1 |  |  | 665.8 |  |  | 603.9 |
Reconciliation to Operating income: |  |  |  |  |
Gain on sale of businesses (2) | (14.1) |  |  | — |  |  | — |
Impairment of net assets held for sale (2) | 63.2 |  |  | — |  |  | — |
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2) | 14.8 |  |  | 8.1 |  |  | 14.3 |
Special product quality adjustments (2) | — |  |  | — |  |  | (2.5) |
Restructuring charges (2) | 3.1 |  |  | 1.5 |  |  | 1.8 |
Operating income | $ | 790.1 |  |  | $ | 656.2 |  |  | $ | 590.3 |
(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 (loss) included in the accompanying Consolidated Statements of Operations, excluding: •The following items in Losses (gains) and other expenses, net: ◦Net change in unrealized (gains) losses on unsettled futures contracts, ◦Environmental liabilities and special litigation charges, and; ◦Other items, net •Restructuring charges; •Special product quality adjustments; •Impairment on assets held for sale; and •Gain on sale of businesses. (3) Previously, we operated in three reportable business segments. In November 2022, we announced the decision to explore strategic alternatives for our European portfolio and that we would continue to invest in our Heatcraft Worldwide Refrigeration business, all of which were previously in our Refrigeration segment. On January 1, 2023, we adjusted our segment presentation to better align with how the segments are managed and evaluated after the change in portfolio. Heatcraft Worldwide Refrigeration is now part of the Business Climate Solutions segment while the European portfolio is presented with Corporate and Other until disposition. Amounts presented in this table have been recast to reflect the revised segment presentation. In the fourth quarter of 2023, we successfully completed the divestiture of our European operations. Total assets by segment are shown below (in millions):
| As of December 31,
| 2023 |  | 2022 |  | 2021
Total Assets: |  |  |  |  |
Home Comfort Solutions | $ | 1,449.4 |  |  | $ | 1,456.4 |  |  | $ | 1,149.7 |
Building Climate Solutions | 989.2 |  |  | 730.3 |  |  | 626.7 |
Corporate and Other | 359.7 |  |  | 380.9 |  |  | 395.5 |
Total assets | $ | 2,798.3 |  |  | $ | 2,567.6 |  |  | $ | 2,171.9 |
The assets in the Corporate and Other segment primarily consist of cash, short-term investments and deferred tax assets as well as the assets in the European portfolio which was disposed of in the fourth quarter of 2023. Assets recorded in the operating segments represent those assets directly associated with those segments. Total capital expenditures by segment are shown below (in millions):
| For the Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Capital Expenditures: |  |  |  |  |
Home Comfort Solutions | $ | 59.1 |  |  | $ | 42.4 |  |  | $ | 70.0 |
Building Climate Solutions | 119.6 |  |  | 29.7 |  |  | 9.7 |
Corporate and Other | 71.5 |  |  | 29.0 |  |  | 27.1 |
Total capital expenditures | $ | 250.2 |  |  | $ | 101.1 |  |  | $ | 106.8 |
Depreciation and amortization expenses by segment are shown below (in millions):
| For the Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Depreciation and Amortization: |  |  |  |  |
Home Comfort Solutions | $ | 35.3 |  |  | $ | 31.5 |  |  | $ | 27.6 |
Building Climate Solutions | 19.4 |  |  | 17.9 |  |  | 17.4 |
Corporate and Other | 31.3 |  |  | 28.5 |  |  | 27.4 |
Total depreciation and amortization | $ | 86.0 |  |  | $ | 77.9 |  |  | $ | 72.4 |
The income from equity method investments is shown below (in millions):
| For the Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Income from Equity Method Investments: |  |  |  |  |
Home Comfort Solutions | $ | 5.5 |  |  | $ | 0.9 |  |  | $ | 6.9 |
Building Climate Solutions | 3.0 |  |  | 4.2 |  |  | 4.9 |
Total income from equity method investments | $ | 8.5 |  |  | $ | 5.1 |  |  | $ | 11.8 |
Geographic Information 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,
| 2023 |  | 2022 |  | 2021
Property, Plant and Equipment, net: |  |  |  |  |
United States | $ | 487.1 |  |  | $ | 408.8 |  |  | $ | 381.0 |
Mexico | 228.7 |  |  | 110.9 |  |  | 102.7 |
Canada | 2.2 |  |  | 2.1 |  |  | 2.1 |
Other international | 2.4 |  |  | 27.1 |  |  | 29.3 |
Total Property, plant and equipment, net | $ | 720.4 |  |  | $ | 548.9 |  |  | $ | 515.1 |

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingMeasurementDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration