Reportable Business Segments (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting, Measurement Disclosures [Abstract]

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):



	Charges Incurred in 2018			Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	0.5		$	1.9	$	2.1
Commercial Heating & Cooling	0.8			2.8		2.8
Refrigeration	0.7			13.8		13.8
Corporate & Other	(0.1		)	2.2		2.2
Total restructuring charges	$	1.9		$	20.7	$	20.9

The following table describes each segment:



Segment	Product 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 Central America South America
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* Central America

Net sales and segment profit (loss) and reconciliation of segment profit (loss) to income from continuing operations before income taxes

Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2018			2017
Net sales
Residential Heating & Cooling	$	594.7		$	590.5		$	1,764.4		$	1,663.8
Commercial Heating & Cooling	275.8			269.4			773.5			723.5
Refrigeration	159.7			192.4			502.5			560.6
	$	1,030.2		$	1,052.3		$	3,040.4		$	2,947.9

Segment profit (loss) ⁽¹⁾
Residential Heating & Cooling	$	113.0		$	114.7		$	317.9		$	297.6
Commercial Heating & Cooling	46.7			50.0			118.9			113.8
Refrigeration	23.0			20.0			55.8			55.7
Corporate and other	(28.1		)	(23.7		)	(61.8		)	(58.5		)
Total segment profit	154.6			161.0			430.8			408.6
Reconciliation to Operating income:
Special inventory write down	—			—			0.2			—
Special product quality adjustment	—			0.5			—			5.7
Loss (gain), net on sale of businesses and related property	6.2			—			25.8			—
Loss from natural disaster, net of insurance recoveries	0.3			—			0.3			—
Items in losses (gains) and other expenses, net that are excluded from segment profit (loss) ⁽¹⁾	2.4			4.0			9.3			10.0
Restructuring charges	0.5			1.9			1.9			2.1
Operating income	$	145.2		$	154.6		$	393.3		$	390.8

⁽¹⁾ We define segment profit (loss) as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding:


•	The following items in Losses (gains) and other expenses, net:


◦	Net change in unrealized losses (gains) on unsettled futures contracts,


◦	Special legal contingency charges,


◦	Asbestos-related litigation,


◦	Environmental liabilities,


◦	Divestiture costs,


◦	Other items, net,


•	Special inventory write down,


•	Loss (gain), net on sale of businesses and related property,


•	Loss from natural disaster, net of insurance recoveries; and,


•	Restructuring charges