Business Segment Information

9 Months Ended

Sep. 30, 2013

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.

A summary of operations by reportable segment for the three and nine months ended September 30 was as follows:

	Three months ended						Nine months ended
In millions	2013			2012			2013			2012
Net revenues
Climate Solutions	$	2,025.8		$	1,941.7		$	5,700.4		$	5,570.6
Residential Solutions	609.5			558.6			1,786.5			1,632.7
Industrial Technologies	721.9			701.6			2,165.1			2,180.6
Security Technologies	392.3			390.9			1,142.5			1,180.8
Total	$	3,749.5		$	3,592.8		$	10,794.5		$	10,564.7
Segment operating income
Climate Solutions (a)	$	279.8		$	247.0		$	632.0		$	579.6
Residential Solutions	66.0			45.4			152.6			86.3
Industrial Technologies	116.2			106.6			340.8			332.5
Security Technologies (b) (c)	103.8			83.9			248.8			236.2
Total	$	565.8		$	482.9		$	1,374.2		$	1,234.6
Reconciliation to Operating income
Gain (loss) on sale/asset impairment (a) (b)	(111.4		)	—			(111.4		)	4.5
Unallocated corporate expense	(77.8		)	(35.1		)	(209.8		)	(101.4		)
Operating income	$	376.6		$	447.8		$	1,053.0		$	1,137.7

(a) During the nine months ended September 30, 2012, the Company recorded $4.5 million of purchase price adjustments related to the 2011 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.

(b) During the three and nine months ended September 30, 2013, the Company recorded a non-cash, goodwill impairment charge of $111.4 million. These amounts have been excluded from Segment operating income of Security Technologies segment as management excludes these charges from Operating income when making operating decisions about the business.

(c) Results for the three and nine months ended September 30, 2013, include a $21.5 million gain on a property sale in China.