An air conditioner is an appliance, system, or mechanism designed to extract heat from an area using a refrigeration cycle. In construction, a complete system of heating, ventilation, and air conditioning is referred to as HVAC. Its purpose, in the home or in the car, is to provide comfort during either hot or cold weather.

Refrigeration cycle
A simple stylized diagram of the refrigeration cycle: 1) condensing coil, 2) expansion valve, 3) evaporator coil, 4) compressor.
In the refrigeration cycle, a heat pump transfers heat from a lower temperature heat source into a higher temperature heat sink. Heat would naturally flow in the opposite direction. This is the most common type of air conditioning. A refrigerator works in much the same way, as it pumps the heat out of the interior into the room in which it stands.
This cycle takes advantage of the way phase changes work, where latent heat is released at a constant temperature during a liquid/gas phase change, and where a different pressure of a pure substance means that it will condense/boil at a different temperature.
The most common refrigeration cycle uses an electric motor to drive a compressor. In an automobile, the compressor is driven by a belt over a pulley, the belt being driven by the engine's crankshaft (similar to the driving of the pulleys for the alternator, power steering, etc.). Whether in a car or the house, both use electric fan motors for air circulation. Since evaporation occurs when heat is absorbed, and condensation occurs when heat is released, air conditioners are designed to use a compressor to cause pressure changes between two compartments, and actively condense and pump a refrigerant around. A refrigerant is pumped into the cooled compartment (the evaporator coil), where the low pressure causes the refrigerant to evaporate into a vapor, taking heat with it. In the other compartment (the condenser), the refrigerant vapor is compressed and forced through another heat exchange coil, condensing into a liquid, rejecting the heat previously absorbed from the cooled space.

Humidity
Refrigeration air conditioning equipment usually reduces the humidity of the air processed by the system. The relatively cold (below the dewpoint) evaporator coil condenses water vapor from the processed air, (much like an ice cold drink will condense water on the outside of a glass), sending the water to a drain and removing water vapor from the cooled space and lowering the relative humidity. Since humans perspire to provide natural cooling by the evaporation of perspiration from the skin, drier air (up to a point) improves the comfort provided. The comfort air conditioner is designed to create a 40% to 60% relative humidity in the occupied space. In food retailing establishments large open chiller cabinets act as highly effective air dehumidifying units.
Some air conditioning units dry the air without cooling it. They work like a normal air conditioner, except that a heat exchanger is placed between the intake and exhaust. In combination with convection fans they achieve a similar level of comfort as an air cooler in humid tropical climates, but only consume about 1/3 of the electricity. They are also preferred by those who find the draft created by air coolers uncomfortable.

Refrigerants
"Freon" is a trade name for a family of haloalkane refrigerants manufactured by DuPont and other companies. These refrigerants were commonly used due to their superior stability and safety properties. Unfortunately, evidence has accumulated that these chlorine bearing refrigerants reach the upper atmosphere when they escape. Once the CFC reaches the stratosphere the UV-radiation is absorbed by the chlorine-carbon bond which causes homolytic cleavage, yielding a chlorine radical. These chlorine atoms act as catalysts in the breakdown of ozone by turning ozone into diatomic oxygen molecules and leaving a chlorine-oxygen radical. This radical in turn steals another oxygen from ozone yielding two diatomic oxygen molecules and regenerating the chlorine radical, which does severe damage to the ozone layer that shields the Earth's surface from the strong UV radiation. The chlorine will remain active as a catalyst until and unless it binds with another free-radical forming a stable molecule and breaking the chain reaction. CFC refrigerants in common but receding usage include R-11 and R-12. Newer and more environmentally-safe refrigerants include HCFCs (R-22, used in most homes today) and HFCs (R-134a, used in most cars) have replaced most CFC use. HCFCs in turn are being phased out under the Montreal Protocol and replaced by hydrofluorocarbons (HFCs), such as R-410A, which lack chlorine.

The external section of a typical single-room air conditioning unit. For ease of installation, these are frequently placed in a window. This one was installed through a hole cut in the wall.

The internal section of the same unit. The front panel swings down to reveal the controls.

A modern Americool window air-conditioner internal section
-ravi (06AR25)

Types of air conditioner equipment

Window and through-wall units
Many traditional air conditioners in homes or other buildings are single rectangular units used to cool an apartment, a house or part of it, or part of a building. For an example, see the photos to the right. Hotels frequently use PTAC systems, which combine heating into the same unit. Air conditioner units need to have access to the space they are cooling (the inside) and a heat sink; normally outside air is used to cool the condenser section. For this reason, single unit air conditioners are placed in windows or through openings in a wall made for the air conditioner; the latter type includes portable air conditioners.
Window and through-wall units have vents on both the inside and outside, so inside air to be cooled can be blown in and out by a fan in the unit, and outside air can also be blown in and out by another fan to act as the heat sink. The controls are on the inside.
A large house or building may have several such units. Should virtually every room be cooled with its own air conditioning unit, most of the day, it would be less expensive to use central air conditioning, though that may not be physically possible.