Business Segments Information | BUSINESS SEGMENTS INFORMATION The Company designs and manufactures products and delivers services that bring technology and engineering together to provide innovative solutions for customers in a wide range of industrial, commercial and consumer markets around the world. The Company reports three segments: Automation Solutions ; and Climate Technologies and Tools & Home Products , which together comprise the Commercial & Residential Solutions business. The Automation Solutions segment enables process, hybrid and discrete manufacturers to maximize production, protect personnel and the environment, reduce project costs, and optimize their energy efficiency and operating costs through a broad offering of integrated solutions, software, services and products, including measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems. Markets served include oil and gas, refining, chemicals, power generation, life sciences, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies. The segment's major product offerings are described below. • Measurement & Analytical Instrumentation products measure the physical properties of liquids or gases in a process stream and communicate this information to a process control system or other software applications, and analyze the chemical composition of process fluids and emissions to enhance quality and efficiency, as well as environmental compliance. • Valves, Actuators & Regulators consists of control, isolation and pressure relief valves which respond to commands from a control system to continuously and precisely modulate the flow of process fluids, smart actuation and control technologies, pressure management products, and industrial and residential regulators that reduce the pressure of fluids moving from high-pressure supply lines into lower pressure systems. • Industrial Solutions provides fluid control and pneumatic mechanisms, electrical distribution equipment, and materials joining and precision cleaning products which are used in a variety of manufacturing operations to provide integrated solutions to customers. • Process Control Systems & Solutions provides a digital ecosystem that controls plant processes by communicating with and adjusting the "intelligent" plant devices described above to provide precision measurement, control, monitoring, asset optimization, and plant safety and reliability for plants that produce power, or process fluids or other items. The Commercial & Residential Solutions business consists of the Climate Technologies and Tools & Home Products segments. This business provides products and solutions that promote energy efficiency, enhance household and commercial comfort, and protect food quality and sustainability through heating, air conditioning and refrigeration technology, as well as a broad range of mechanical, electrical, utility and do-it-yourself tools and appliance solutions. The Climate Technologies segment provides products, services and solutions for all areas of the climate control industry, including residential heating and cooling, commercial air conditioning, commercial and industrial refrigeration, and cold chain management. Products include compressors, temperature sensors and controls, thermostats, flow controls, and stationary and mobile remote monitoring technologies and services that enable homeowners and businesses to better manage their heating, air conditioning and refrigeration systems for improved control and comfort, and lower energy costs. The Tools & Home Products segment offers tools for professionals and homeowners and appliance solutions. Products include professional pipe-working tools, electrical and utility tools, residential and commercial food waste disposers, and wet-dry vacuums. The principal distribution method for each segment is direct sales forces, although the Company also uses independent sales representatives and distributors. Due to its global presence, certain of the Company's international operations are subject to risks including the stability of governments and business conditions in foreign countries which could result in adverse changes in exchange rates, changes in regulations or disruption of operations. The primary income measure used for assessing segment performance and making operating decisions is earnings before interest and income taxes. Certain expenses are reported at Corporate, including stock compensation expense and a portion of pension and postretirement benefit costs. Corporate and other includes unallocated corporate expenses, acquisition/divestiture costs, first year acquisition accounting charges (which include fair value adjustments related to inventory, backlog and deferred revenue) and other items. Corporate assets are primarily comprised of cash and equivalents, investments and certain fixed assets. Summarized below is information about the Company's operations by business segment and by geography. Business Segments Sales Earnings Total Assets 2018 2019 2020 2018 2019 2020 2018 2019 2020 Automation Solutions $ 11,441 12,202 11,155 $ 1,886 1,947 1,523 $ 13,720 13,996 14,250 Climate Technologies 4,454 4,313 3,980 972 883 801 2,936 2,885 3,065 Tools & Home Products 1,528 1,856 1,663 380 388 317 1,560 1,462 1,491 Commercial & Residential Solutions 5,982 6,169 5,643 1,352 1,271 1,118 4,496 4,347 4,556 Corporate items: Stock compensation — (216) (120) (110) — — Unallocated pension and postretirement costs 79 108 53 Corporate and other (275) (173) (93) 2,174 2,154 4,076 Eliminations/Interest (15) 1 (13) (159) (174) (156) Total $ 17,408 18,372 16,785 $ 2,667 2,859 2,335 $ 20,390 20,497 22,882 Automation Solutions sales by major product offering are summarized below: 2018 2019 2020 Measurement & Analytical Instrumentation $ 3,604 3,807 3,237 Valves, Actuators & Regulators 3,749 3,794 3,589 Industrial Solutions 1,967 2,232 2,012 Process Control Systems & Solutions 2,121 2,369 2,317 Total $ 11,441 12,202 11,155 Depreciation Capital 2018 2019 2020 2018 2019 2020 Automation Solutions $ 488 535 557 $ 295 297 308 Climate Technologies 171 176 184 209 222 158 Tools & Home Products 44 71 77 64 59 58 Commercial & Residential Solutions 215 247 261 273 281 216 Corporate and other 55 40 36 49 16 14 Total $ 758 822 854 $ 617 594 538 Depreciation and amortization includes intellectual property, customer relationships and capitalized software. Geographic Information Automation Solutions Commercial & Residential Solutions Total 2018 2019 2020 2018 2019 2020 2018 2019 2020 Americas $ 5,517 5,850 5,051 $ 3,967 4,253 3,896 $ 9,484 10,103 8,947 Asia, Middle East & Africa 3,657 3,891 3,801 1,384 1,192 1,053 5,041 5,083 4,854 Europe 2,267 2,461 2,303 631 724 694 2,898 3,185 2,997 Total $ 11,441 12,202 11,155 $ 5,982 6,169 5,643 $ 17,423 18,371 16,798 Sales in the U.S. were $7,420, $8,390 and $7,939 for 2020, 2019 and 2018, respectively, while Asia, Middle East & Africa includes sales in China of $1,845, $1,962 and $1,955 in those years. Property, Plant and Equipment 2018 2019 2020 Americas $ 2,234 2,339 2,345 Asia, Middle East & Africa 652 671 679 Europe 676 632 664 Total $ 3,562 3,642 3,688 Assets located in the U.S. were $2,124 in 2020, $2,128 in 2019 and $2,027 in 2018. |