Business Segment Information

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except that the operating segments’ results are prepared on a management basis that is consistent with the manner in which the Company prepares financial information for internal review and decision making. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Intercompany sales between segments are considered immaterial.

The Company's Climate segment delivers energy-efficient products and innovative energy services. It includes Trane^®and American Standard^®Heating & Air Conditioning which provide heating, ventilation and air conditioning (HVAC) systems, and commercial and residential building services, parts, support and controls; energy services and building automation through Trane Building Advantage and Nexia; and Thermo King^®transport temperature control solutions.

The Company's Industrial segment delivers products and services that enhance energy efficiency, productivity and operations. It includes compressed air and gas systems and services, power tools, material handling systems, ARO^®fluid management equipment, as well as Club Car ^®golf, utility and consumer low-speed vehicles.

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.

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	2018			2017			2018			2017
Net revenues
Climate	$	3,238.7		$	2,939.3		$	9,342.3		$	8,407.2
Industrial	792.2			731.2			2,430.8			2,172.3
Total	$	4,030.9		$	3,670.5		$	11,773.1		$	10,579.5
Segment operating income
Climate	$	535.6		$	480.1		$	1,378.7		$	1,224.5
Industrial	110.7			89.0			291.8			247.0
Unallocated corporate expense	(59.3		)	(63.0		)	(199.8		)	(192.8		)
Operating income	$	587.0		$	506.1		$	1,470.7		$	1,278.7

In the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, the amounts disclosed for long-lived assets by geographic area at December 31, 2017 were inadvertently misstated. Management determined the disclosure error was not material to the 2017 financial statements. The revised amounts have been included below:



In millions	December 31, 2017
United States	$	1,878.1
Non-U.S.	758.5
Total	$	2,636.6