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Reportable Business Segments | 3 Months Ended
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Mar. 31, 2025
Segment Reporting, Measurement Disclosures [Abstract] |
Reportable Business Segments | 2. Reportable Business Segments: We operate in two 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 |  | Product 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 |  | Commercial heating, air conditioning and refrigeration systems. Products include rooftop packaged units, variable refrigerant flow systems, heat pumps, air cooled condensing units, air handlers, unit coolers, and process chillers. Services include installation, energy monitoring, service and maintenance, and HVAC recycling. |  | Light Commercial; Food Preservation; Non-Food Industry |  | United States Canada
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 interest and income taxes included in the accompanying Consolidated Statements of Operations, excluding certain items. The reconciliation in the table 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 for the periods presented. The chief operating decision maker uses segment profit or loss from operations before interest and income taxes, excluding certain items, and return on sales to allocate resources (including employees, financial, or capital resources) for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances in segment profit or loss and its individual components as well as return on sales on a monthly basis when evaluating segment performance and making decisions about allocating resources to the segments. Our chief operating decision maker is Alok Maskara, Chief Executive Officer. Key financial information for each segment is shown below (in millions):
| Home Comfort Solutions |  | Business Climate Solutions |  | Corporate and Other |  | Total
Three months ended March 31, 2025 |  |  |  |  |  |  |
Net Sales(1) | $ | 721.4 |  |  | $ | 351.2 |  |  | $ | — |  |  | $ | 1,072.6 |
Cost of Goods Sold | 507.2 |  |  | 237.2 |  |  | (0.3) |  |  | 744.1 |
Selling, general and administrative | 98.4 |  |  | 60.4 |  |  | 12.5 |  |  | 171.3 |
Other (income) expense(2) | (1.0) |  |  | 0.1 |  |  | 2.5 |  |  | 1.6 |
Segment profit (loss)(3) | $ | 116.8 |  |  | $ | 53.5 |  |  | $ | (14.7) |  |  | $ | 155.6 |
Three months ended March 31, 2024 |  |  |  |  |  |  |
Net Sales(1) | $ | 674.6 |  |  | $ | 372.5 |  |  | $ | — |  |  | $ | 1,047.1 |
Cost of Goods Sold | 466.1 |  |  | 241.3 |  |  | (0.3) |  |  | 707.1 |
Selling, general and administrative | 97.5 |  |  | 53.6 |  |  | 19.6 |  |  | 170.7 |
Other (income) expense(2) | (1.1) |  |  | (0.6) |  |  | 4.2 |  |  | 2.5 |
Segment profit (loss)(3) | $ | 112.1 |  |  | $ | 78.2 |  |  | $ | (23.5) |  |  | $ | 166.8 |
(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) Other (income) expense is primarily comprised of (income) loss from equity method investments and losses and other expenses, net. (3) We define segment profit (loss) as a segment's operating income (loss) included in the accompanying Consolidated Statements of Operations, excluding: •Restructuring charges, and; •Loss (gain) on sale from previous dispositions. The reconciliations of segment profit to Operating income and Net income before income taxes are presented below (in millions):
| For the Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Total segment profit(1) | $ | 155.6 |  |  | $ | 166.8 |  |  |  |  |
Reconciliation to Operating income: |  |  |  |  |  |  |
Restructuring charges | — |  |  | — |  |  |  |  |
Loss (gain) on sale from previous dispositions | — |  |  | — |  |  |  |  |
Operating income | 155.6 |  |  | 166.8 |  |  |  |  |
Reconciliation to income before income taxes: |  |  |  |  |  |  |
Pension settlements | 0.1 |  |  | — |  |  |  |  |
Interest expense, net | 6.2 |  |  | 11.8 |  |  |  |  |
Other expense, net | 0.9 |  |  | 0.8 |  |  |  |  |
Income before income taxes | $ | 148.4 |  |  | $ | 154.2 |  |  |  |  |
(1) We define segment profit (loss) as a segment's operating income (loss) included in the accompanying Consolidated Statements of Operations, excluding: •Restructuring charges, and; •Loss (gain) on sale from previous dispositions. Total assets by segment are shown below (in millions) as of:
| March 31, 2025 |  | December 31, 2024
Total Assets: |  |  |
Home Comfort Solutions | $ | 1,761.6 |  |  | $ | 1,626.0 |
Building Climate Solutions | 1,108.0 |  |  | 1,052.6 |
Corporate and Other | 585.8 |  |  | 793.2 |
Total assets | $ | 3,455.4 |  |  | $ | 3,471.8 |
The assets in the Corporate and Other segment primarily consist of cash, property, plant and equipment and short-term investments and deferred tax assets. 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 Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Capital Expenditures: |  |  |  |  |  |  |
Home Comfort Solutions | $ | 11.4 |  |  | $ | 14.2 |  |  |  |  |
Building Climate Solutions | 6.3 |  |  | 10.4 |  |  |  |  |
Corporate and Other | 7.8 |  |  | 4.9 |  |  |  |  |
Total capital expenditures | $ | 25.5 |  |  | $ | 29.5 |  |  |  |  |
Depreciation and amortization expenses by segment are shown below (in millions):
| For the Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Depreciation and Amortization: |  |  |  |  |  |  |
Home Comfort Solutions | $ | 10.4 |  |  | $ | 10.8 |  |  |  |  |
Building Climate Solutions | 7.9 |  |  | 5.7 |  |  |  |  |
Corporate and Other | 7.3 |  |  | 7.5 |  |  |  |  |
Total depreciation and amortization | $ | 25.6 |  |  | $ | 24.0 |  |  |  |  |
The income from equity method investments is shown below (in millions):
| For the Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Income from Equity Method Investments: |  |  |  |  |  |  |
Home Comfort Solutions | $ | 0.7 |  |  | $ | 0.9 |  |  |  |  |
Building Climate Solutions | 0.4 |  |  | 0.4 |  |  |  |  |
Corporate and Other | 0.1 |  |  | (0.1) |  |  |  |  |
Total income from equity method investments | $ | 1.2 |  |  | $ | 1.2 |  |  |  |  |
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:
| March 31, 2025 |  | December 31, 2024 |  |  |  |
Property, Plant and Equipment, net: |  |  |  |  |  |  |
United States | $ | 544.3 |  |  | $ | 537.3 |  |  |  |  |
Mexico | 255.7 |  |  | 254.0 |  |  |  |  |
Canada | 2.8 |  |  | 2.9 |  |  |  |  |
Other international | 7.5 |  |  | 5.9 |  |  |  |  |
Total Property, plant and equipment, net | $ | 810.3 |  |  | $ | 800.1 |  |  |  |  |

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- 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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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