Information on Reportable and Other Operating Segments

We are a global supplier of highly specialized, engineered solutions with operations in approximately 15 countries and sales in over 100 countries around the world.

As indicated in Note 1, our DBT and Heat Transfer operating segments are now being reported in an “All Other” category for segment reporting purposes. We have aggregated our other operating segments into the following three reportable segments: HVAC, Detection and Measurement and Engineered Solutions. The factors considered in determining our aggregated segments are the economic similarity of the businesses, the nature of products sold or services provided, production processes, types of customers, distribution methods, and regulatory environment. In determining our reportable segments, we apply the threshold criteria of the Segment Reporting Topic of the Codification. Operating income or loss for each of our operating segments is determined before considering impairment and special charges, pension and postretirement expense/income, long-term incentive compensation, gains (losses) on the sale of our dry cooling business, and other indirect corporate expenses. This is consistent with the way our Chief Operating Decision Maker evaluates the results of each segment.

HVAC Reportable Segment

Our HVAC reportable segment engineers, designs, manufactures, installs and services cooling products for the HVAC and industrial markets, as well as boilers, comfort heating and ventilation products for the residential and commercial markets. The primary distribution channels for the segment’s products are direct to customers, independent manufacturing representatives, third-party distributors, and retailers. The segment serves a customer base in North America, Europe, and Asia Pacific.

Detection and Measurement Reportable Segment

Our Detection and Measurement reportable segment engineers, designs, manufactures and installs underground pipe and cable locators, inspection and rehabilitation equipment, bus fare collection systems, communication technologies, and specialty lighting. The primary distribution channels for the segment’s products are direct to customers and third-party distributors. The segment serves a global customer base, with a strong presence in North America, Europe and Asia Pacific.

Engineered Solutions Reportable Segment

Our Engineered Solutions reportable segment engineers, designs, manufactures, installs and services transformers for the power transmission and distribution market and process cooling equipment for the industrial and power generation markets. The primary distribution channels for the segment’s products are direct to customers and third-party representatives. The segment has a strong presence in North America.

All Other

Our “All Other” group of operating segments engineer, design, manufacture, install and service equipment, including heat exchangers, for the industrial and power generation markets. The primary distribution channels for the group’s products are direct to customers and third-party representatives. These operating segments have a presence in North America and South Africa.

Corporate Expense

Corporate expense generally relates to the cost of our Charlotte, NC corporate headquarters.

Financial data for our reportable segments and other operating segments for the years ended December 31, 2018, 2017 and 2016 were as follows:



	2018			2017			2016
Revenues:
HVAC reportable segment	$	582.1		$	511.0		$	509.5
Detection and Measurement reportable segment	320.9			260.3			226.4
Engineered Solutions reportable segment	537.0			560.7			598.0
All Other ⁽¹⁾	98.6			93.8			138.4
Consolidated revenues	$	1,538.6		$	1,425.8		$	1,472.3
Income (loss):
HVAC reportable segment	$	90.0		$	74.1		$	80.2
Detection and Measurement reportable segment	72.4			63.4			45.3
Engineered Solutions reportable segment	35.0			44.2			39.1
All Other ⁽¹⁾⁽²⁾	(18.9		)	(56.8		)	(21.8		)
Total income for segments	178.5			124.9			142.8
Corporate expense	48.5			46.2			41.7
Pension and postretirement expense	—			0.3			0.4
Long-term incentive compensation expense	15.5			15.8			13.7
Impairment of intangible assets	—			—			30.1
Special charges, net	6.3			2.7			5.3
Gain (loss) on sale of dry cooling business	(0.6		)	—			18.4
Consolidated operating income	$	107.6		$	59.9		$	70.0

Capital expenditures:
HVAC reportable segment	$	2.7		$	2.2		$	1.9
Detection and Measurement reportable segment	1.9			0.8			0.7
Engineered Solutions reportable segment	6.9			5.8			5.6
All Other	0.1			0.3			0.9
General corporate	0.8			1.9			2.6
Total capital expenditures	$	12.4		$	11.0		$	11.7
Depreciation and amortization:
HVAC reportable segment	$	5.4		$	5.5		$	5.3
Detection and Measurement reportable segment	8.4			4.1			3.5
Engineered Solutions reportable segment	10.6			10.4			11.0
All Other	1.8			2.1			4.2
General corporate	3.0			3.1			2.5
Total depreciation and amortization	$	29.2		$	25.2		$	26.5

	2018			2017			2016
Identifiable assets:
HVAC reportable segment	$	778.5		$	747.1		$	710.1
Detection and Measurement reportable segment	479.0			277.8			244.2
Engineered Solutions reportable segment	422.4			466.2			462.5
All Other	82.2			91.6			105.1
General corporate	295.4			457.7			390.6
Total identifiable assets	$	2,057.5		$	2,040.4		$	1,912.5
Geographic Areas:
Revenues: ⁽³⁾
United States	$	1,317.5		$	1,243.3		$	1,235.2
China	38.5			28.0			33.5
South Africa ⁽¹⁾	72.7			56.9			105.4
United Kingdom	62.4			60.8			59.1
Other	47.5			36.8			39.1
	$	1,538.6		$	1,425.8		$	1,472.3



Tangible Long-Lived Assets:
United States	$	837.4	$	919.6	$	897.0
Other	28.9		24.8		29.6
Total tangible long-lived assets	$	866.3	$	944.4	$	926.6

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⁽¹⁾

As further discussed in Note 14, during the third quarter of 2018 and second and fourth quarters of 2017, we made revisions to our estimates of expected revenues and costs on our large power projects in South Africa. As a result of these revisions, we reduced 2018 revenues by $2.7 and 2017 revenues by $36.9 ($13.5 and $23.4 during the second and fourth quarters of 2017, respectively), and 2018 segment income by $4.7 and 2017 segment income by $52.8 ($22.9 and $29.9 in the second and fourth quarters of 2017, respectively).


⁽²⁾	During the third quarter of 2017, we settled a contract that had been suspended and then ultimately canceled by a customer of our Heat Transfer operating segment for cash proceeds of $9.0 and other consideration. In connection with the settlement, we recorded a gain of $10.2.


⁽³⁾	Revenues are included in the above geographic areas based on the country that recorded the customer revenue.