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Business Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
The Company operates under three regional operating segments designed to create deep customer focus and relevance in markets around the world. Intercompany sales between segments are immaterial.
•
The Company's Americas segment innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating and cooling systems, building controls, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.
•
The Company's EMEA segment innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating and cooling systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions.
•
The Company's Asia Pacific segment innovates for customers throughout the Asia Pacific region and India. The Asia Pacific segment encompasses heating and cooling systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.
Beginning in 2020, the Company’s CODM measures profit or loss using segment adjusted EBITDA, or GAAP net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, unallocated corporate expenses and discontinued operations. The Company believes that segment adjusted EBITDA provides profitability as well as earnings power and the ability to generate cash. As a result, the Company's CODM evaluates the financial performance of the business segments based on segment adjusted EBITDA. Segment adjusted EBITDA is a key component for consideration in performance reviews, compensation and resource allocation. For these reasons, the Company believes that segment adjusted EBITDA represents the most relevant measure of segment profit and loss. Segment adjusted EBITDA may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP.
A summary of operations by reportable segment for the three months ended March 31 was as follows:
 
Three months ended
In millions
2020
 
2019
Net revenues
 
 
 
Americas
$
2,097.8

 
$
2,144.3

EMEA
364.3

 
383.8

Asia Pacific
179.2

 
275.6

Total net revenues
$
2,641.3

 
$
2,803.7

 
 
 
 
Segment adjusted EBITDA
 
 
 
Americas
$
262.1

 
$
297.8

EMEA
43.2

 
44.7

Asia Pacific
10.6

 
27.5

Total segment adjusted EBITDA
$
315.9

 
$
370.0

 
 
 
 
Reconciliation of segment adjusted EBITDA to earnings before income taxes
 
 
 
Total segment adjusted EBITDA
$
315.9

 
$
370.0

Interest expense
(63.1
)
 
(51.0
)
Depreciation and amortization
(75.0
)
 
(70.9
)
Restructuring costs
(25.6
)
 
(6.1
)
Unallocated corporate expenses
(48.4
)
 
(74.5
)
Earnings before income taxes
$
103.8

 
$
167.5