Reportable Business Segments (Tables)

3 Months Ended

Mar. 31, 2019

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 2019			Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	—		$	2.0	$	2.0
Commercial Heating & Cooling	(0.1		)	2.5		2.5
Refrigeration	0.6			15.5		15.9
Corporate & Other	—			2.3		2.3
Total restructuring charges	$	0.5		$	22.3	$	22.7



	As of March 31, 2019		As of December 31, 2018
Total Assets:
Residential Heating & Cooling	$	1,108.1	$	837.4
Commercial Heating & Cooling	371.0		349.5
Refrigeration	386.2		462.9
Corporate and other	240.4		167.4
Total assets	$	2,105.7	$	1,817.2

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 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⁽¹⁾ Asia Pacific⁽²⁾ South America⁽²⁾ Central America

⁽¹⁾Effective January 1, 2019, we realigned our segment structure. We shifted financial reporting of the European Commercial HVAC business from our Commercial Heating & Cooling segment to our Refrigeration segment as we manage both our commercial HVAC and refrigeration operations in Europe together. We have revised our historical segment results to present them on a comparable basis.

⁽²⁾Our businesses in the Asia Pacific and South America area were sold in the second and third quarters of 2018, respectively. Refer to Note 14 for details regarding the divestiture of these businesses.

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 March 31,
	2019			2018
Net sales
Residential Heating & Cooling	$	465.6		$	453.7
Commercial Heating & Cooling	173.3			179.1
Refrigeration	151.4			202.0
	$	790.3		$	834.8

Segment profit (loss) ⁽¹⁾
Residential Heating & Cooling	$	86.7		$	51.3
Commercial Heating & Cooling	15.1			22.0
Refrigeration	8.4			8.7
Corporate and other	(12.1		)	(11.2		)
Total segment profit	98.1			70.8
Reconciliation to Operating income:
Special inventory write down	—			0.1
Loss on sale of business	8.5			—
Loss on assets held for sale	—			10.3
Gain from insurance recoveries, net of losses incurred	(6.9		)	—
Items in losses (gains) and other expenses, net that are excluded from segment profit (loss) ⁽¹⁾	1.3			6.5
Restructuring charges	0.5			0.9
Operating income	$	94.7		$	53.0

⁽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 on sale of business,


•	Loss on assets held for sale,


•	Gain from insurance recoveries, net of losses incurred; and,

•

Restructuring charges