BUSINESS SEGMENTS

The Commercial and Industrial Systems segment produces medium and large electric motors, power generation products, high-performance drives and controls, and starters. Applications include general commercial and industrial equipment, commercial HVAC, power generation, and oil and gas.

The Climate Solutions segment produces small motors, controls and air moving solutions. Applications include residential and light commercial HVAC, commercial refrigeration and water heaters.

The Power Transmission Solutions segment produces power transmission gearing, hydraulic pump drives, large open gearing and specialty mechanical products. Applications include material handling, industrial equipment, energy and off-road equipment.

The Company evaluates performance based on the segment's income from operations. Corporate costs have been allocated to each segment based on the net sales of each segment. The reported external net sales of each segment are from external customers.

The following sets forth certain financial information attributable to the Company's operating segments as of and for the three and six months ended July 1, 2017 and July 2, 2016 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
As of and for Three Months Ended July 1, 2017
External Sales	$	407.4	$	270.5	$	191.3	$	—		$	869.2
Intersegment Sales	19.9		6.0		2.2		(28.1		)	—
Total Sales	427.3		276.5		193.5		(28.1		)	869.2
Gross Profit	91.9		68.3		62.8		—			223.0
Operating Expenses	71.3		28.1		40.6		—			140.0
Income from Operations	20.6		40.2		22.2		—			83.0
Depreciation and Amortization	14.8		5.6		14.0		—			34.4
Capital Expenditures	11.1		2.3		3.3		—			16.7
As of and for Three Months Ended July 2, 2016
External Sales	$	394.7	$	254.5	189.4		$	—		$	838.6
Intersegment Sales	11.4		7.0		1.1		(19.5		)	—
Total Sales	406.1		261.5		190.5		(19.5		)	838.6
Gross Profit	96.2		64.7		62.0		—			222.9
Operating Expenses	71.1		28.6		31.8		—			131.5
Income from Operations	25.1		36.1		30.2		—			91.4
Depreciation and Amortization	19.2		6.5		13.2		—			38.9
Capital Expenditures	9.6		3.6		3.6		—			16.8



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
As of and for Six Months Ended July 1, 2017
External Sales	$	788.6	$	518.2	$	375.9	$	—		$	1,682.7
Intersegment Sales	35.8		14.2		2.9		(52.9		)	—
Total Sales	824.4		532.4		378.8		(52.9		)	1,682.7
Gross Profit	187.5		129.0		122.1		—			438.6
Operating Expenses	141.1		57.6		82.1		—			280.8
Income from Operations	46.4		71.4		40.0		—			157.8
Depreciation and Amortization	30.0		11.1		27.7		—			68.8
Capital Expenditures	21.7		6.6		5.4		—			33.7
As of and for Six Months Ended July 2, 2016										—
External Sales	$	772.3	$	494.3	390.2		$	—		$	1,656.8
Intersegment Sales	22.7		12.2		2.0		(36.9		)	—
Total Sales	795.0		506.5		392.2		(36.9		)	1,656.8
Gross Profit	189.8		120.9		129.6		—			440.3
Operating Expenses	143.0		60.2		76.4		—			279.6
Income from Operations	46.8		60.7		53.2		—			160.7
Depreciation and Amortization	38.9		12.7		27.4		—			79.0
Capital Expenditures	16.9		7.5		7.3		—			31.7

The following table presents identifiable assets information attributable to the Company's operating segments as of July 1, 2017 and December 31, 2016 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Total
Identifiable Assets as of July 1, 2017	$	1,926.2	$	946.1	$	1,610.7	$	4,483.0
Identifiable Assets as of December 31, 2016	$	1,872.7	$	881.8	$	1,604.0	$	4,358.5