BUSINESS SEGMENTS

Commercial and Industrial Systems produces medium and large motors, commercial and industrial equipment, generator and custom drives and systems. These products serve markets including commercial Heating, Ventilation, and Air Conditioning ("HVAC"), pool and spa, standby and critical power and oil and gas systems.

Climate Solutions produces small motors, controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters and commercial refrigeration.

Power Transmission Solutions manufactures, sells and services belt and chain drives, helical and worm gearing, mounted and unmounted bearings, couplings, modular plastic belts, conveying chains and components, hydraulic pump drives, large open gearing and specialty mechanical products serving markets including beverage, bulk handling, metals, special machinery, energy, aerospace and general industrial.

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 for the three and nine months ended September 30, 2017 and October 1, 2016 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
Three Months Ended September 30, 2017
External Sales	$	408.0	$	256.0	$	192.9	$	—		$	856.9
Intersegment Sales	16.4		5.0		0.5		(21.9		)	—
Total Sales	424.4		261.0		193.4		(21.9		)	856.9
Gross Profit	98.0		65.8		63.2		—			227.0
Operating Expenses	68.4		27.0		37.6		—			133.0
Income from Operations	29.6		38.8		25.6		—			94.0
Depreciation and Amortization	15.2		5.5		13.6		—			34.3
Capital Expenditures	8.6		3.1		3.6		—			15.3
Three Months Ended October 1, 2016
External Sales	$	389.4	$	250.5	$	169.7	$	—		$	809.6
Intersegment Sales	10.8		5.7		1.1		(17.6		)	—
Total Sales	400.2		256.2		170.8		(17.6		)	809.6
Gross Profit	105.4		71.4		54.9		—			231.7
Operating Expenses	69.2		29.2		43.5		—			141.9
Income from Operations	36.2		42.2		11.4		—			89.8
Depreciation and Amortization	17.7		4.9		15.0		—			37.6
Capital Expenditures	9.6		2.6		2.2		—			14.4



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
Nine Months Ended September 30, 2017
External Sales	$	1,196.6	$	774.2	$	568.8	$	—		$	2,539.6
Intersegment Sales	52.2		19.2		3.4		(74.8		)	—
Total Sales	1,248.8		793.4		572.2		(74.8		)	2,539.6
Gross Profit	285.5		194.8		185.3		—			665.6
Operating Expenses	209.5		84.6		119.7		—			413.8
Income from Operations	76.0		110.2		65.6		—			251.8
Depreciation and Amortization	45.2		16.6		41.3		—			103.1
Capital Expenditures	30.3		9.7		9.0		—			49.0
Nine Months Ended October 1, 2016
External Sales	$	1,161.7	$	744.8	$	559.9	$	—		$	2,466.4
Intersegment Sales	33.5		17.9		3.1		(54.5		)	—
Total Sales	1,195.2		762.7		563.0		(54.5		)	2,466.4
Gross Profit	295.2		192.3		184.5		—			672.0
Operating Expenses	212.2		89.4		119.9		—			421.5
Income from Operations	83.0		102.9		64.6		—			250.5
Depreciation and Amortization	56.6		17.6		42.4		—			116.6
Capital Expenditures	26.5		10.1		9.5		—			46.1

The following table presents identifiable assets information attributable to the Company's operating segments as of September 30, 2017 and December 31, 2016 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Total
Identifiable Assets as of September 30, 2017	$	1,905.7	$	934.8	$	1,623.5	$	4,464.0
Identifiable Assets as of December 31, 2016	$	1,872.7	$	881.8	$	1,604.0	$	4,358.5