SEGMENT INFORMATION

The Company is comprised of three operating segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.

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 29, 2018 and September 30, 2017 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
Three Months Ended September 29, 2018
External Sales	$	462.3	$	255.4	$	207.7	$	—		$	925.4
Intersegment Sales	11.7		5.7		5.6		(23.0		)	—
Total Sales	474.0		261.1		213.3		(23.0		)	925.4
Gross Profit	109.8		62.1		70.7		—			242.6
Operating Expenses	74.5		37.9		42.6		—			155.0
Goodwill Impairment	—		9.5		—		—			9.5
Asset Impairments	—		8.7		—		—			8.7
Income From Operations	35.3		6.0		28.1		—			69.4
Depreciation and Amortization	16.4		5.4		13.5		—			35.3
Capital Expenditures	11.3		3.6		3.8		—			18.7
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	97.9		66.0		63.0		—			226.9
Operating Expenses	68.4		26.9		37.3		—			132.6
Income From Operations	29.5		39.1		25.7		—			94.3
Depreciation and Amortization	15.2		5.5		13.6		—			34.3
Capital Expenditures	8.6		3.1		3.6		—			15.3



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Eliminations			Total
Nine Months Ended September 29, 2018
External Sales	$	1,345.3	$	792.6	$	626.0	$	—		$	2,763.9
Intersegment Sales	39.3		17.0		17.6		(73.9		)	—
Total Sales	1,384.6		809.6		643.6		(73.9		)	2,763.9
Gross Profit	315.3		198.7		210.9		—			724.9
Operating Expenses	220.4		98.2		130.9		—			449.5
Goodwill Impairment	—		9.5		—		—			9.5
Asset Impairments	—		8.7		—		—			8.7
Income From Operations	94.9		82.3		80.0		—			257.2
Depreciation and Amortization	49.0		16.0		41.3		—			106.3
Capital Expenditures	31.2		16.0		12.0		—			59.2
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	285.2		195.0		185.0		—			665.2
Operating Expenses	209.4		84.1		119.2		—			412.7
Income From Operations	75.8		110.9		65.8		—			252.5
Depreciation and Amortization	45.2		16.6		41.3		—			103.1
Capital Expenditures	30.3		9.7		9.0		—			49.0

The following table presents identifiable assets information attributable to the Company's operating segments as of September 29, 2018 and December 30, 2017 (in millions):



	Commercial and Industrial Systems		Climate Solutions		Power Transmission Solutions		Total
Identifiable Assets as of September 29, 2018	$	2,081.4	$	898.1	$	1,621.8	$	4,601.3
Identifiable Assets as of December 30, 2017	$	1,854.1	$	909.9	$	1,624.2	$	4,388.2