Business Segment Information

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company classifies its businesses into the following four reportable segments based on industry and market focus: Climate Solutions, Residential Solutions, Industrial Technologies and Security Technologies.

Segment operating income is the measure of profit and loss that the Company's chief operating decision maker uses to evaluate the financial performance of the business and as the basis for performance reviews, compensation and resource allocation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss. The Company may exclude certain charges or gains from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base its operating decisions.

On September 30, 2011 and November 30, 2011, the Company completed transactions to sell the Hussmann Business and Branches, respectively, to a newly-formed affiliate (Hussmann Parent) of private equity firm Clayton Dubilier & Rice, LLC (CD&R).  During the three months ended March 31, 2011, the Company recorded a pre-tax asset impairment charge related to the Hussmann divestiture totaling $186 million. This charge has been excluded from Segment operating income within the Climate Solutions segment as management excludes this charge from Operating income when making operating decisions about the business. See Note 15 for a further discussion of the Hussmann divestiture.

2011 Net revenues and Segment operating income for the Climate Solutions segment includes the operating results of the Hussmann Business and Branches prior to the sale. The operating results for the Hussmann Business and Branches for the three months ended March 31, 2011, were as follows:

In millions
Net revenues	$	213.1
Segment operating income (loss)	$	(4.0	)

On December 30, 2011, the Company completed the divestiture of its security installation and service business, which was sold under the Integrated Systems and Services brand in the United States and Canada, to Kratos Public Safety & Security Solutions, Inc. This business, which was previously reported as part of the Security Technologies segment, designs, installs and services security systems. Segment information has been revised to exclude the results of this business for all periods presented.

A summary of operations by reportable segment for the three months ended March 31 was as follows:

In millions	2012			2011
Net revenues
Climate Solutions	$	1,661.8		$	1,824.9
Residential Solutions	421.7			433.3
Industrial Technologies	688.7			640.5
Security Technologies	378.5			375.1
Total	$	3,150.7		$	3,273.8
Segment operating income
Climate Solutions *	$	94.0		$	94.1
Residential Solutions	(10.7		)	8.0
Industrial Technologies	91.5			85.2
Security Technologies	69.9			71.1
Total	$	244.7		$	258.4
Reconciliation to Operating income
Loss on sale/asset impairment *	0.3			(186.3		)
Unallocated corporate expense	(33.0		)	(30.3		)
Operating income	$	212.0		$	41.8

* During the three months ended March 31, 2011, the Company recorded a pre-tax asset impairment charge related to the Hussmann divestiture totaling $186.3 million. During the three months ended March 31, 2012, the Company recorded $0.3 million of purchase price adjustments related to the Hussmann sale. These amounts have been excluded from Segment operating income within the Climate Solutions segment as management excludes these charges from Operating income when making operating decisions about the business.