Reportable Business Segments (Tables)

12 Months Ended

Dec. 31, 2014

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 2014			Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	0.4		$	1.5	$	1.5
Commercial Heating & Cooling	—			0.9		0.9
Refrigeration	1.6			8.2		9.0
Corporate & Other	(0.1		)	—		—
Total	$	1.9		$	10.6	$	11.4

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	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	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

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Income from continuing operations before income taxes, are shown below (in millions):



	For the Years Ended December 31,
	2014			2013			2012
Net Sales ⁽¹⁾
Residential Heating & Cooling	$	1,736.5		$	1,583.2		$	1,375.8
Commercial Heating & Cooling	878.5			844.4			785.4
Refrigeration	752.4			771.5			788.2
	$	3,367.4		$	3,199.1		$	2,949.4
Segment Profit (Loss) ⁽²⁾
Residential Heating & Cooling	$	235.8		$	180.1		$	102.9
Commercial Heating & Cooling	124.0			118.1			99.5
Refrigeration	55.4			90.2			81.9
Corporate and other	(74.3		)	(87.9		)	(60.1		)
Subtotal that includes segment profit and eliminations	340.9			300.5			224.2
Reconciliation to income from continuing operations before income taxes:
Special product quality adjustments	(1.4		)	(2.3		)	1.1
Items in Losses and other expenses, net that are excluded from segment profit (loss) ⁽²⁾	4.7			8.8			(0.2		)
Restructuring charges	1.9			5.0			4.2
Interest expense, net	17.2			14.5			17.1
Special inventory write down	1.0			—			—
Other expense, net	(0.1		)	0.2			0.3
Income from continuing operations before income taxes	$	317.6		$	274.3		$	201.7

⁽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 and loss as a segment's income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding:


•	Special product quality adjustments;


•	The following items in 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, and


◦	Other items, net;


•	Restructuring charges;


•	Goodwill, long-lived asset, and equity method investment impairments;


•	Interest expense, net;


•	Special inventory write down; and


•	Other expense, net.

Total assets by business segment

Total assets by segment are shown below (in millions):



	As of December 31,
	2014		2013		2012
Total Assets:
Residential Heating & Cooling	$	632.3	$	500.0	$	457.5
Commercial Heating & Cooling	353.4		346.3		321.9
Refrigeration	551.5		572.0		585.3
Corporate and other	227.1		208.4		228.6
Assets for continuing operations	1,764.3		1,626.7		1,593.3
Discontinued operations (See Note 17)	—		—		98.6
Total assets	$	1,764.3	$	1,626.7	$	1,691.9

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,
	2014		2013		2012
Capital Expenditures:
Residential Heating & Cooling	$	39.4	$	34.2	$	13.7
Commercial Heating & Cooling	14.1		11.2		8.7
Refrigeration	15.8		16.5		15.6
Corporate and other	19.1		16.4		12.2
Total capital expenditures ⁽¹⁾	$	88.4	$	78.3	$	50.2

⁽¹⁾Includes amounts recorded under capital leases. There were no significant new capital leases in 2014, 2013 or 2012.

Depreciation and amortization expenses by segment are shown below (in millions):



	For the Years Ended December 31,
	2014		2013		2012
Depreciation and Amortization:
Residential Heating & Cooling	$	20.7	$	20.5	$	19.9
Commercial Heating & Cooling	9.3		9.0		8.5
Refrigeration	16.3		15.3		13.0
Corporate and other	14.5		14.1		14.0
Total depreciation and amortization	$	60.8	$	58.9	$	55.4

The equity method investments are shown below (in millions):



	For the Years Ended December 31,
	2014		2013		2012
Income from Equity Method Investments:
Refrigeration	$	2.5	$	2.5	$	2.6
Corporate and other ⁽¹⁾	11.3		9.7		7.9
Total income from equity method investments	$	13.8	$	12.2	$	10.5

⁽¹⁾ We allocated $11.7 million, $9.6 million and $5.0 million of income from equity method investments to our Residential Heating & Cooling and Commercial Heating & Cooling segments in 2014, 2013 and 2012, respectively. These allocations were recorded as reductions to the segments' Cost of goods sold in the Consolidated Statements of Operations.

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,
	2014		2013		2012
Net Sales to External Customers by Point of Shipment:
United States	$	2,576.4	$	2,382.0	$	2,147.2
Canada	236.3		232.3		226.7
International	554.7		584.8		575.5
Total net sales to external customers	$	3,367.4	$	3,199.1	$	2,949.4

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,
	2014		2013		2012
Property, Plant and Equipment, net:
United States	$	243.4	$	230.3	$	227.9
Mexico	52.4		39.7		28.0
Canada	0.6		0.6		0.6
International	62.2		64.9		41.7
Total Property, plant and equipment, net	$	358.6	$	335.5	$	298.2

- 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.

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