Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 17, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LENNOX INTERNATIONAL INC | |
Entity Central Index Key | 1069202 | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,506,813 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $37.80 | $51.80 |
Accounts and notes receivable, net of allowances of $9.3 and $9.5 in 2013 and 2012, respectively | 489.2 | 373.4 |
Inventories, net | 430 | 374.8 |
Deferred income taxes, net | 29.5 | 27.5 |
Other assets | 50.8 | 61 |
Assets of discontinued operations | 0 | 98.6 |
Total current assets | 1,037.30 | 987.1 |
Property, plant and equipment, net of accumulated depreciation of $615.8 and $584.8 in 2013 and 2012, respectively | 314.8 | 298.2 |
Goodwill | 218.8 | 223.8 |
Deferred income taxes | 111.8 | 102.8 |
Other assets, net | 73 | 80 |
Total assets | 1,755.70 | 1,691.90 |
Current Liabilities: | ||
Short-term debt | 167.9 | 34.9 |
Current maturities of long-term debt | 0.8 | 0.7 |
Accounts payable | 324.1 | 284.7 |
Accrued expenses | 281.4 | 259.6 |
Income taxes payable | 21.6 | 4.5 |
Liabilities of discontinued operations | 0 | 55.2 |
Total current liabilities | 795.8 | 639.6 |
Long-term debt | 266.2 | 351 |
Post-retirement benefits, other than pensions | 3.8 | 6.1 |
Pensions | 138.1 | 134.4 |
Other liabilities | 69.6 | 62.5 |
Total liabilities | 1,273.50 | 1,193.60 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $.01 par value, 200,000,000 shares authorized, 87,170,197 shares issued | 0.9 | 0.9 |
Additional paid-in capital | 916.2 | 898.3 |
Retained earnings | 847.1 | 744.4 |
Accumulated other comprehensive loss | -93.9 | -22.3 |
Treasury stock, at cost, 37,593,995 shares and 36,937,632 shares in 2013 and 2012, respectively | -1,189.40 | -1,124.50 |
Stockholders' Equity Attributable to Noncontrolling Interest | 1.3 | 1.5 |
Total stockholders’ equity | 482.2 | 498.3 |
Total liabilities and stockholders' equity | $1,755.70 | $1,691.90 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowances, accounts and notes receivable | $9.30 | $9.50 |
Accumulated depreciation | $615.80 | $584.80 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 87,170,197 | 87,170,197 |
Treasury stock, shares | 37,593,995 | 36,937,632 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
Net sales | $868 | $809.70 | $2,449.50 | $2,264.50 |
Cost of goods sold | 630.6 | 604.8 | 1,796.10 | 1,710.60 |
Gross profit | 237.4 | 204.9 | 653.4 | 553.9 |
Operating Expenses: | ||||
Selling, general and administrative expenses | 136.9 | 125.9 | 424 | 379.8 |
Losses (gains) and other expenses, net | -0.3 | 0.3 | 2.8 | 0.2 |
Restructuring charges | 0.3 | 0.4 | 3.2 | 3.1 |
Income from equity method investments | -3.3 | -2.6 | -10.7 | -8.8 |
Operational income from continuing operations | 103.8 | 80.9 | 234.1 | 179.6 |
Interest expense, net | 3.8 | 4.4 | 10.8 | 13.4 |
Other expense (income), net | 0 | 0 | -0.1 | 0.1 |
Income from continuing operations before income taxes | 100 | 76.5 | 223.4 | 166.1 |
Provision for income taxes | 34.2 | 26.8 | 77.5 | 57.6 |
Income from continuing operations | 65.8 | 49.7 | 145.9 | 108.5 |
Discontinued Operations: | ||||
Loss from discontinued operations before income taxes | -2.3 | -24.6 | -15.7 | -57.2 |
Benefit from income taxes | -0.8 | -4.3 | -6.4 | -16.7 |
Loss from discontinued operations | -1.5 | -20.3 | -9.3 | -40.5 |
Net income | $64.30 | $29.40 | $136.60 | $68 |
Earnings per share – Basic: | ||||
Income from continuing operations | $1.32 | $0.98 | $2.92 | $2.13 |
Loss from discontinued operations | ($0.03) | ($0.40) | ($0.19) | ($0.79) |
Net income | $1.29 | $0.58 | $2.73 | $1.34 |
Earnings per share – Diluted: | ||||
Income from continuing operations | $1.30 | $0.97 | $2.87 | $2.11 |
Loss from discontinued operations | ($0.03) | ($0.40) | ($0.18) | ($0.79) |
Net income | $1.27 | $0.57 | $2.69 | $1.32 |
Average shares outstanding: | ||||
Basic | 49.7 | 50.6 | 50 | 50.8 |
Diluted | 50.5 | 51.3 | 50.8 | 51.5 |
Cash dividends declared per share | $0.24 | $0.20 | $0.68 | $0.56 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $64.30 | $29.40 | $136.60 | $68 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net | 6.7 | 25.4 | -21.6 | 16.2 |
Reclassification of foreign currency translation gains into earnings | 0 | 0 | -41.1 | -3.7 |
Net change in pension and post-retirement liabilities | -0.7 | -0.9 | 0.6 | 5.6 |
Change in fair value of available-for-sale marketable equity securities | -1.5 | -0.3 | -6.2 | 1.5 |
Net change in fair value of derivatives | 5.1 | 5.2 | -8.3 | 7.3 |
Reclassification of derivative losses into earnings | 2.1 | 2.8 | 3.3 | 7.6 |
Other comprehensive income (loss) before income taxes | 11.7 | 32.2 | -73.3 | 34.5 |
Tax (expense) benefit | -2.5 | -2.7 | 1.7 | -7.6 |
Other comprehensive income (loss), net of tax | 9.2 | 29.5 | -71.6 | 26.9 |
Comprehensive income | $73.50 | $58.90 | $65 | $94.90 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $136.60 | $68 |
Net loss from discontinued operations | 9.3 | 40.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income from equity method investments | -10.7 | -8.8 |
Dividends from affiliates | 9.1 | 6.9 |
Restructuring expenses, net of cash paid | -1.2 | 0 |
Provision for bad debts | 2.7 | 2 |
Unrealized losses (gains) on derivative contracts | 0.7 | -1.4 |
Stock-based compensation expense | 20.5 | 10.5 |
Depreciation and amortization | 43.1 | 41.1 |
Deferred income taxes | 0.1 | 0.5 |
Other items, net | 13.5 | 3.3 |
Changes in assets and liabilities, net of effects of divestitures: | ||
Accounts and notes receivable | -125.3 | -62.4 |
Inventories | -76.4 | -81.3 |
Other current assets | -13.7 | -5 |
Accounts payable | 29.4 | 20.8 |
Accrued expenses | 18.3 | 32.1 |
Income taxes payable and receivable | 12.9 | 13.7 |
Other | 9.3 | -3.6 |
Net cash used in discontinued operations | -13.2 | -12.5 |
Net cash provided by operating activities | 65 | 64.4 |
Cash flows from investing activities: | ||
Proceeds from the disposal of property, plant and equipment | 0.1 | 0.1 |
Purchases of property, plant and equipment | -41 | -28 |
Net proceeds from sale of businesses | 8.1 | 10.1 |
Net cash used in discontinued operations | -0.1 | -0.3 |
Net cash used in investing activities | -32.9 | -18.1 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 3.8 | 1.3 |
Asset securitization borrowings | 330 | 480 |
Asset securitization payments | -200 | -455 |
Long-term debt payments | -0.7 | -0.9 |
Borrowings from revolving credit facility | 998 | 696 |
Payments on revolving credit facility | -1,083.50 | -706 |
Proceeds from employee stock purchases | 1.3 | 0.3 |
Repurchases of common stock | -66 | -35 |
Repurchases of common stock to satisfy employee withholding tax obligations | -7.7 | -3.4 |
Excess tax benefits related to share-based payments | 4.7 | 1.7 |
Cash dividends paid | -22.1 | -27.5 |
Net cash used in financing activities | -42.2 | -48.5 |
Decrease in cash and cash equivalents | -10.1 | -2.2 |
Effect of exchange rates on cash and cash equivalents | -3.9 | 6 |
Cash and cash equivalents, beginning of period | 51.8 | 45 |
Cash and cash equivalents, end of period | 37.8 | 48.8 |
Cash paid during the period for: | ||
Interest, net | 9.4 | 11.8 |
Income taxes (net of refunds) | $53.60 | $27.80 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General: |
References in this Quarterly Report on Form 10-Q to "we," "our," "us," "LII," or the "Company" refer to Lennox International Inc. and its subsidiaries, unless the context requires otherwise. | |
Basis of Presentation | |
The accompanying unaudited Consolidated Balance Sheet as of September 30, 2013, the accompanying unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012, the accompanying unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012, and the accompanying unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012 should be read in conjunction with our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2012. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying consolidated financial statements contain all material adjustments, consisting principally of normal recurring adjustments, necessary for a fair presentation of our financial position, results of operations and cash flows. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to applicable rules and regulations, although we believe that the disclosures herein are adequate to make the information presented not misleading. The operating results for the interim periods are not necessarily indicative of the results that may be expected for a full year. | |
Our fiscal year ends on December 31 and each of our quarters are comprised of 13 weeks. For convenience, throughout these financial statements, the 13 weeks comprising each quarterly period are denoted by the last day of the respective calendar quarter. | |
Use of Estimates | |
The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation among others. These estimates and assumptions are based on our best estimates and judgment. | |
We evaluate these estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates and assumptions to be reasonable under the circumstances and will adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency and commodity markets combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |
Reclassifications | |
Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories: | |||||||
The components of inventories are as follows (in millions): | ||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Finished goods | $ | 292.9 | $ | 258 | ||||
Work in process | 12.7 | 12 | ||||||
Raw materials and parts | 199.7 | 180.1 | ||||||
505.3 | 450.1 | |||||||
Excess of current cost over last-in, first-out cost | (75.3 | ) | (75.3 | ) | ||||
Total inventories, net | $ | 430 | $ | 374.8 | ||||
Goodwill
Goodwill | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill | Goodwill: | |||||||||||||||
The changes in the carrying amount of goodwill for the first nine months of 2013, in total and by segment, are summarized in the table below (in millions): | ||||||||||||||||
Balance at December 31, 2012 | Acquisitions / (Dispositions) | Other(1) | Balance at September 30, 2013 | |||||||||||||
Residential Heating & Cooling | $ | 26.1 | $ | — | $ | — | $ | 26.1 | ||||||||
Commercial Heating & Cooling | 63.8 | — | 0.4 | 64.2 | ||||||||||||
Refrigeration | 133.9 | — | (5.4 | ) | 128.5 | |||||||||||
$ | 223.8 | $ | — | $ | (5.0 | ) | $ | 218.8 | ||||||||
(1) Other consists of changes in foreign currency translation rates. | ||||||||||||||||
We performed our annual goodwill impairment test in the first quarter of 2013 and did not recognize any impairments for our reporting units. We will continue to monitor our reporting units throughout the year to determine if a change in facts or circumstances warrants a re-evaluation of our goodwill for impairment. Refer to Note 13 for information on goodwill related to discontinued operations. |
Derivatives
Derivatives | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Derivatives | Derivatives: | |||||||||||||||
Objectives and Strategies for Using Derivative Instruments | ||||||||||||||||
Commodity Price Risk | ||||||||||||||||
We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes. Our hedging program includes the use of futures contracts to lock in prices, and as a result, we are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase. We utilize a dollar cost averaging strategy so that a higher percentage of commodity price exposures are hedged near-term with lower percentages hedged at future dates. This strategy allows for protection against near-term price volatility while allowing us to adjust to market price movements over time. | ||||||||||||||||
Interest Rate Risk | ||||||||||||||||
A portion of our debt bears interest at variable interest rates, and as a result, we are subject to variability in the cash paid for interest. In order to mitigate a portion of that risk, we may choose to engage in an interest rate swap hedging strategy to eliminate the variability of interest payment cash flows. | ||||||||||||||||
Prior to 2013, we used an interest rate swap hedge to fix the interest payments associated with the first $100 million of the total variable-rate debt outstanding under our revolving credit facility that is solely due to changes in the benchmark interest rate. The variable portion of the interest rate swap was tied to the 1-Month LIBOR (the benchmark interest rate). On a monthly basis, the interest rates for both the interest rate swap and the underlying debt were reset, the swap was settled with the counterparty, and the interest was paid. That interest rate swap was classified as a cash flow hedge and it expired on October 12, 2012. Subsequently, we have not hedged against interest rate risk. | ||||||||||||||||
Foreign Currency Risk | ||||||||||||||||
Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of assets and liabilities arising in foreign currencies. We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts. These forward contracts are not designated as hedges and generally expire during the quarter that we enter into them. By entering into forward contracts, we lock in exchange rates that would otherwise cause losses should the U.S. dollar appreciate and gains should the U.S. dollar depreciate. | ||||||||||||||||
Cash Flow Hedges | ||||||||||||||||
We have commodity futures contracts designated as cash flows hedges that are scheduled to mature through March 2015. Unrealized gains or losses from our commodity cash flow hedges are included in accumulated other comprehensive income (“AOCI”) and are expected to be reclassified into earnings within the next 18 months based on the prices of the commodities at the settlement dates. Assuming commodity prices remain constant, we expect to reclassify $2.1 million of derivative losses into earnings within the next 12 months. | ||||||||||||||||
We recorded the following amounts related to our cash flow hedges (in millions): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Commodity Hedges: | ||||||||||||||||
Losses (gains) included in AOCI, net of tax | $ | 2 | $ | (1.1 | ) | |||||||||||
Income tax expense (benefit) | (1.1 | ) | 0.7 | |||||||||||||
We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
(pounds) | (pounds) | |||||||||||||||
Copper | 20 | 22.8 | ||||||||||||||
Derivatives not Designated as Cash Flow Hedges | ||||||||||||||||
For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as derivatives designated as cash flow hedges, except that we elect not to designate them as cash flow hedges at the inception of the arrangement. We had the following outstanding commodity futures contracts not designated as cash flow hedges (in millions): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
(pounds) | (pounds) | |||||||||||||||
Copper | 2.1 | 2.1 | ||||||||||||||
Aluminum | 2.5 | 2.8 | ||||||||||||||
We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (local currency, in millions): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Notional Amounts: | ||||||||||||||||
Brazilian Real | 5.2 | 10.8 | ||||||||||||||
Mexican Peso | 248.5 | 220.2 | ||||||||||||||
Euro | 2 | 1.3 | ||||||||||||||
British Pound | 3.4 | 5.4 | ||||||||||||||
Indian Rupee | 112 | 19.5 | ||||||||||||||
Polish Zloty | 30.5 | 12.4 | ||||||||||||||
Information About the Locations and Amounts of Derivative Instruments | ||||||||||||||||
The following tables provide the locations and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations (in millions): | ||||||||||||||||
Fair Values of Derivative Instruments(1) | ||||||||||||||||
Derivatives Designated as Hedging Instruments | Derivatives Not Designated as | |||||||||||||||
Hedging Instruments | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | As of September 30, 2013 | As of December 31, 2012 | |||||||||||||
Current Assets: | ||||||||||||||||
Other Assets | ||||||||||||||||
Commodity futures contracts | $ | — | $ | 1.6 | $ | — | $ | 0.2 | ||||||||
Foreign currency forward contracts | — | — | — | 0.1 | ||||||||||||
Non-Current Assets: | ||||||||||||||||
Other Assets, net | ||||||||||||||||
Commodity futures contracts | 0.1 | 0.3 | — | — | ||||||||||||
Total Assets | $ | 0.1 | $ | 1.9 | $ | — | $ | 0.3 | ||||||||
Current Liabilities: | ||||||||||||||||
Accrued Expenses | ||||||||||||||||
Commodity futures contracts | $ | 3.3 | $ | — | $ | 0.4 | $ | — | ||||||||
Foreign currency forward contracts | — | — | 0.2 | 0.1 | ||||||||||||
Non-Current Liabilities: | ||||||||||||||||
Other Liabilities | ||||||||||||||||
Commodity futures contracts | — | — | — | — | ||||||||||||
Total Liabilities | $ | 3.3 | $ | — | $ | 0.6 | $ | 0.1 | ||||||||
(1) All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 16 for more information. | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Amount of Loss Reclassified from AOCI into Income | ||||||||||||||||
(Effective Portion): | ||||||||||||||||
Commodity futures contracts(1) | $ | 2.1 | $ | 2.2 | $ | 3.3 | $ | 5.8 | ||||||||
Interest rate swap(2) | — | 0.6 | — | 1.8 | ||||||||||||
$ | 2.1 | $ | 2.8 | $ | 3.3 | $ | 7.6 | |||||||||
Amount of Loss (Gain) Recognized in Income (Ineffective Portion): | ||||||||||||||||
Commodity futures contracts(3) | $ | (0.1 | ) | $ | (0.1 | ) | $ | 0.2 | $ | (0.2 | ) | |||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Amount of Loss (Gain) Recognized in Income: | ||||||||||||||||
Commodity futures contracts(3) | $ | (0.6 | ) | $ | (0.8 | ) | $ | 1.2 | $ | (0.9 | ) | |||||
Foreign currency forward contracts(3) | (0.6 | ) | 0.6 | 0.2 | 0.3 | |||||||||||
$ | (1.2 | ) | $ | (0.2 | ) | $ | 1.4 | $ | (0.6 | ) | ||||||
(1) The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations. | ||||||||||||||||
(2) The loss was recorded in Interest expense, net in the accompanying Consolidated Statements of Operations. | ||||||||||||||||
(3) The loss (gain) was recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statements of Operations. |
Income_Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: |
As of September 30, 2013, we had approximately $1.9 million in total gross unrecognized tax benefits. Of this amount, $1.5 million (net of federal benefit on state issues), if recognized, would be recorded through the Consolidated Statement of Operations. As of September 30, 2013, we had approximately $0.2 million (net of federal tax benefits) in interest and penalties recognized in income tax expense in accordance with FASB Accounting Standards Codification ("ASC") Topic 740. | |
We are currently under examination for our U.S. federal income taxes for 2012 and 2013 and are subject to examination by numerous other taxing authorities in the U.S. and in jurisdictions such as Australia, Belgium, France, Canada, and Germany. We are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years prior to 2007. | |
Since January 1, 2013, numerous states, including New Mexico, North Dakota, Minnesota, Texas, West Virginia and North Carolina, enacted legislation effective for tax years beginning on or after January 1, 2013, including changes to rates and apportionment methods. The impact of these changes is immaterial. | |
On January 2, 2013, the American Taxpayer Relief Act of 2012 was enacted which retroactively reinstated and extended the Federal Research and Development Tax Credit (Federal R&D Tax Credit) from January 1, 2012 to December 31, 2013, in addition to other extenders. As a result, the Company's income tax provision for the first nine months of calendar year 2013 includes a discrete tax benefit that will reduce the annual effective income tax rate. On a full year basis, the impact to the annual effective income tax rate is not expected to be material. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | Commitments and Contingencies: | |||||||
Leases | ||||||||
On March 22, 2013, we entered into an agreement with a financial institution to renew the lease of our corporate headquarters in Richardson, Texas (the "Lake Park Renewal") for a term of approximately six years through March 1, 2019. The leased property consists of an office building of approximately 192,000 square feet, land and related improvements. During the lease term, the Lake Park Renewal requires us to pay base rent in quarterly installments, payable in arrears. At the end of the lease term, we must do one of the following: (i) purchase the property for approximately $41.2 million; (ii) vacate the property and return it in good condition; (iii) arrange for the sale of the leased property to a third party; or (iv) renew the lease under mutually agreeable terms. If we elect to sell the property to a third party and the sales proceeds are less than the lease balance, we must pay any such deficit to the financial institution. Any such deficit payment cannot exceed 86% of the lease balance. The Lake Park Renewal is classified as an operating lease. | ||||||||
Our obligations under the Lake Park Renewal are secured by a pledge of our interest in the leased property. The Lake Park Renewal contains customary lease covenants and events of default as well as events of default if (i) indebtedness of $75 million or more is not paid when due, (ii) there is a change of control or (iii) we fail to comply with certain covenants incorporated from our Domestic Credit Facility. We were in compliance with those covenants as of September 30, 2013. | ||||||||
Product Warranties and Product Related Contingencies | ||||||||
Liabilities for estimated product warranty costs related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions): | ||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Accrued expenses | $ | 23.7 | $ | 25.1 | ||||
Other liabilities | 52 | 46.8 | ||||||
$ | 75.7 | $ | 71.9 | |||||
The changes in product warranty liabilities related to continuing operations for the nine months ended September 30, 2013 were as follows (in millions): | ||||||||
Total warranty liability as of December 31, 2012 | $ | 71.9 | ||||||
Payments made in 2013 | (15.3 | ) | ||||||
Changes resulting from issuance of new warranties | 22.5 | |||||||
Changes in estimates associated with pre-existing liabilities | (3.2 | ) | ||||||
Changes in foreign currency translation rates and other | (0.2 | ) | ||||||
Total warranty liability as of September 30, 2013 | $ | 75.7 | ||||||
We evaluate our heating, ventilation and air conditioning ("HVAC") warranty liabilities at the end of each accounting period and also perform a complete re-evaluation of these liabilities annually in the second quarter. As a result of the second quarter 2013 re-evaluation, we decreased our warranty liability by $3.2 million and recorded the related adjustment in Cost of Goods Sold in the Consolidated Statements of Operations. | ||||||||
We incur the risk of liability for claims related to the installation and service of heating and air conditioning products, and we maintain liabilities for those claims that we self-insure. We are involved in various claims and lawsuits related to our products. Our product liability insurance policies have limits that, if exceeded, may result in substantial costs that could have an adverse effect on our results of operations. In addition, warranty claims are not covered by our product liability insurance and certain product liability claims also may not be covered by our product liability insurance. There have been no material changes in the circumstances that affect our product warranties since our latest fiscal year-end. | ||||||||
We may also incur costs related to our products that may not be covered under our warranties and are not covered by insurance, and we may, from time to time, repair or replace installed products experiencing quality issues in order to satisfy our customers and to protect our brand. These product quality issues may be caused by vendor-supplied components that fail to meet required specifications. | ||||||||
We have non-warranty product quality issues we believe resulted from vendor supplied materials, including a heating and cooling product line produced in 2006 and 2007 and a refrigerant product quality issue. The expense for these product quality issues, and the related liabilities, are not included in the above tables related to our estimated warranty liabilities. The expenses related to these product quality issues were classified in Cost of Goods Sold in the Consolidated Statements of Operations and the related liabilities are included in Accrued Expenses in the Consolidated Balance Sheets. We may incur additional charges in the future as more information becomes available. The changes in the accrued product quality issues for the nine months ended September 30, 2013 were as follows (in millions): | ||||||||
Total accrued product quality issues as of December 31, 2012 | $ | 6.7 | ||||||
Changes in estimates associated with pre-existing liabilities | 0.3 | |||||||
Product quality claims paid in 2013 | (1.1 | ) | ||||||
Total accrued product quality issues as of September 30, 2013 | $ | 5.9 | ||||||
Litigation | ||||||||
We are involved in a number of claims and lawsuits incident to the operation of our businesses. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits based on experience involving similar matters and specific facts known. Costs related to such matters were not material to the periods presented. | ||||||||
Some of these claims and lawsuits allege health problems resulting from exposure to asbestos. For the three months ended September 30, 2013, no expense was recorded and for the nine months ended September 30, 2013, $0.5 million of expense, net of insurance recoveries, was recorded for asbestos matters. These charges were included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. We also expect that additional asbestos-related claims will be brought against us in the future. However, the Company believes our liability exposure related to those additional future claims cannot currently be estimated because of numerous uncertainties, including the number of such claims and lawsuits and the costs of defending and settling them, possible adverse judgments in amounts greater than previously experienced, and possible changes in the laws and process governing the compensation of asbestos claimants. | ||||||||
We are also involved in patent litigation claims related to products from an acquired business. The Company has indemnification protection (with certain limitations) for these claims. | ||||||||
It is management's opinion that none of these claims or lawsuits or any threatened litigation will have a material adverse effect on our financial condition, results of operations or cash flows. Claims and lawsuits, however, involve uncertainties and it is possible that their eventual outcome could adversely affect our results of operations for a particular period. |
Lines_of_Credit_and_Financing_
Lines of Credit and Financing Arrangements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Lines of Credit and Financing Arrangements | Lines of Credit and Financing Arrangements: | |||||||||||||||
The following table summarizes our outstanding debt obligations and the classification in the accompanying Consolidated Balance Sheets (in millions): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Short-Term Debt: | ||||||||||||||||
Asset Securitization Program | $ | 160 | $ | 30 | ||||||||||||
Foreign obligations | 7.9 | 4.9 | ||||||||||||||
Total short-term debt | $ | 167.9 | $ | 34.9 | ||||||||||||
Current maturities of long-term debt: | $ | 0.8 | $ | 0.7 | ||||||||||||
Long-Term Debt: | ||||||||||||||||
Capital lease obligations | $ | 16.7 | $ | 16 | ||||||||||||
Domestic revolving credit facility | 49.5 | 135 | ||||||||||||||
Senior unsecured notes | 200 | 200 | ||||||||||||||
Total long-term debt | $ | 266.2 | $ | 351 | ||||||||||||
Total debt | $ | 434.9 | $ | 386.6 | ||||||||||||
Short-Term Debt | ||||||||||||||||
Foreign Obligations | ||||||||||||||||
Through several of our foreign subsidiaries, we have available to us facilities to assist in financing seasonal borrowing needs for our foreign locations. We had $7.9 million and $4.9 million of foreign obligations as of September 30, 2013 and December 31, 2012, respectively, that are primarily borrowings under non-committed facilities. | ||||||||||||||||
Asset Securitization Program | ||||||||||||||||
Under the Asset Securitization Program (“ASP”), we are eligible to sell beneficial interests in a portion of our trade accounts receivable to participating financial institutions for cash. The ASP is subject to annual renewal and contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. Our continued involvement with the transferred assets includes servicing, collection and administration of the transferred beneficial interests. The accounts receivable securitized under the ASP are high-quality domestic customer accounts that have not aged significantly. The receivables represented by the retained interest that we service are exposed to risk of loss for any uncollectible amounts in the pool of receivables sold under the ASP. The fair values assigned to the retained and transferred interests are based on the sold accounts receivable carrying value given the short term to maturity and low credit risk. | ||||||||||||||||
The sale of the beneficial interests in our trade accounts receivable are reflected as short-term borrowings in the accompanying Consolidated Balance Sheets and proceeds received are included in cash flows from financing activities in the accompanying Consolidated Statements of Cash Flows. | ||||||||||||||||
The ASP provides for a maximum securitization amount of the lesser of $160.0 million or 100% of the net pool balance as defined by the ASP. However, eligibility for securitization is limited based on the amount and quality of the qualifying accounts receivable and is calculated monthly. The eligible amounts available and beneficial interests sold were as follows (in millions): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Eligible amount available under the ASP on qualified accounts receivable | $ | 160 | $ | 160 | ||||||||||||
Beneficial interest sold | 160 | 30 | ||||||||||||||
Remaining amount available | $ | — | $ | 130 | ||||||||||||
Under the ASP, we pay certain discount fees to use the program and to have the facility available to us. These fees relate to both the used and unused portions of the securitization. The used fee is based on the beneficial interest sold and calculated on the average floating commercial paper rate determined by the purchaser of the beneficial interest, plus a program fee of 0.60%. The average rates for September 30, 2013 and December 31, 2012 were 0.81% and 0.85%, respectively. The unused fee is based on 102% of the maximum available amount less the beneficial interest sold and calculated at a 0.30% fixed rate throughout the term of the agreement. We recorded these fees in Interest expense, net in the accompanying Consolidated Statements of Operations. The interest expense, including all fees, related to the ASP was as follows (in millions): | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest expense (including fees) | $ | 0.3 | $ | 0.3 | $ | 1 | $ | 0.9 | ||||||||
The ASP contains certain restrictive covenants relating to the quality of our accounts receivable and certain cross-default provisions with our Fourth Amended and Restated Revolving Credit Facility Agreement ("Domestic Revolving Credit Facility"), senior unsecured notes and any other indebtedness we may have over $75.0 million. The administrative agent under the ASP is also a participant in our Domestic Revolving Credit Facility. The participating financial institutions have investment grade credit ratings. We continue to evaluate their credit ratings and have no reason to believe they will not perform under the ASP. As of September 30, 2013, we were in compliance with all covenant requirements. | ||||||||||||||||
Long-Term Debt | ||||||||||||||||
Domestic Revolving Credit Facility | ||||||||||||||||
Under our $650 million Domestic Revolving Credit Facility, we had outstanding borrowings of $49.5 million as well as $33.5 million committed to standby letters of credit as of September 30, 2013. Subject to covenant limitations, $567.0 million was available for future borrowings. This Domestic Revolving Credit Facility provides for issuance of letters of credit for the full amount of the credit facility and matures in October 2016. Additionally, at our request and subject to certain conditions, the commitments under the Domestic Revolving Credit Facility may be increased by a maximum of $100 million as long as existing or new lenders agree to provide such additional commitments. | ||||||||||||||||
Our weighted average borrowing rate on the facility was as follows: | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Weighted average borrowing rate | 1.41 | % | 1.46 | % | ||||||||||||
Our Domestic Revolving Credit Facility is guaranteed by certain of our subsidiaries and contains financial covenants relating to leverage and interest coverage. Other covenants contained in the Domestic Revolving Credit Facility restrict, among other things, certain mergers, asset dispositions, guarantees, debt, liens, and affiliate transactions. The financial covenants require us to maintain a defined Consolidated Indebtedness to Adjusted EBITDA Ratio and a Cash Flow (defined as EBITDA minus capital expenditures) to Net Interest Expense Ratio. The required ratios under our Domestic Revolving Credit Facility are detailed below: | ||||||||||||||||
Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than | 3.5 : 1.0 | |||||||||||||||
Cash Flow to Net Interest Expense Ratio no less than | 3.0 : 1.0 | |||||||||||||||
Our Domestic Revolving Credit Facility contains customary events of default. These events of default include nonpayment of principal or interest, breach of covenants or other restrictions or requirements, default on certain other indebtedness or receivables securitizations (cross default), and bankruptcy. A cross default under our revolving credit facility could occur if: | ||||||||||||||||
• | We fail to pay any principal or interest when due on any other indebtedness or receivables securitization of at least $75.0 million; or | |||||||||||||||
• | We are in default in the performance of, or compliance with any term of any other indebtedness or receivables securitization in an aggregate principal amount of at least $75.0 million or any other condition exists which would give the holders the right to declare such indebtedness due and payable prior to its stated maturity. | |||||||||||||||
Each of our major debt agreements contains provisions by which a default under one agreement causes a default in the others (a cross default). If a cross default under the Domestic Revolving Credit Facility, our senior unsecured notes, the Lake Park Renewal, or our ASP were to occur, it could have a wider impact on our liquidity than might otherwise occur from a default of a single debt instrument or lease commitment. | ||||||||||||||||
If any event of default occurs and is continuing, lenders with a majority of the aggregate commitments may require the administrative agent to terminate our right to borrow under our Domestic Revolving Credit Facility and accelerate amounts due under our Domestic Revolving Credit Facility (except for a bankruptcy event of default, in which case such amounts will automatically become due and payable and the lenders’ commitments will automatically terminate). As of September 30, 2013, we were in compliance with all covenant requirements. | ||||||||||||||||
Senior Unsecured Notes | ||||||||||||||||
We issued $200.0 million of senior unsecured notes in May 2010 through a public offering. Interest is paid semiannually on May 15 and November 15 at a fixed interest rate of 4.90% per annum. These notes mature on May 15, 2017. | ||||||||||||||||
The notes are guaranteed, on a senior unsecured basis, by each of our domestic subsidiaries that guarantee payment by us of any indebtedness under our Domestic Revolving Credit Facility. The indenture governing the notes contains covenants that, among other things, limit our ability and the ability of the subsidiary guarantors to: create or incur certain liens; enter into certain sale and leaseback transactions; enter into certain mergers, consolidations and transfers of substantially all of our assets; and transfer certain properties. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date. As of September 30, 2013, we were in compliance with all covenant requirements. |
Pension_and_Postretirement_Ben
Pension and Post-retirement Benefit Plans | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Pension and Post-retirement Benefit Plans | Pension and Post-retirement Benefit Plans: | |||||||||||||||
The components of net periodic benefit cost were as follows (in millions): | ||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||
Service cost | $ | 1.3 | $ | 1.4 | $ | — | $ | — | ||||||||
Interest cost | 4 | 4.3 | — | 0.1 | ||||||||||||
Expected return on plan assets | (5.1 | ) | (4.7 | ) | — | — | ||||||||||
Amortization of prior service cost | 0.1 | 0.1 | (0.7 | ) | (0.8 | ) | ||||||||||
Recognized actuarial loss | 2.3 | 2.1 | 0.4 | 0.4 | ||||||||||||
Settlements and curtailments | 0.1 | 1 | — | — | ||||||||||||
Net periodic benefit cost (1) | $ | 2.7 | $ | 4.2 | $ | (0.3 | ) | $ | (0.3 | ) | ||||||
For the Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||
Service cost | $ | 3.9 | $ | 4.1 | $ | — | $ | 0.2 | ||||||||
Interest cost | 12.3 | 12.9 | 0.1 | 0.4 | ||||||||||||
Expected return on plan assets | (15.7 | ) | (14.1 | ) | — | — | ||||||||||
Amortization of prior service cost | 0.3 | 0.3 | (2.2 | ) | (2.0 | ) | ||||||||||
Recognized actuarial loss | 6.9 | 6.5 | 1.1 | 1 | ||||||||||||
Settlements and curtailments (2) | 1.3 | 7.3 | — | — | ||||||||||||
Net periodic benefit cost (1) | $ | 9 | $ | 17 | $ | (1.0 | ) | $ | (0.4 | ) | ||||||
(1) Pension Expense of $0.1 million and $0.2 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2013, respectively. Pension expense of $0.6 million and $7.0 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||
(2) Settlements and curtailments for the nine months ended September 30, 2012 included a $6.3 million settlement charge related to actuarial losses recognized upon transition of a pension obligation to the acquirer of the Lennox Hearth Products business. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation: | |||||||||||||||
The Lennox International Inc. 2010 Incentive Plan, as amended and restated, provides for various long-term incentive awards, including performance share units, restricted stock units and stock appreciation rights. Stock-based compensation expense related to continuing operations is included in Selling, General and Administrative expenses in the accompanying Consolidated Statements of Operations as follows (in millions): | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Compensation expense(1) | $ | 5.3 | $ | 2.7 | $ | 20.5 | $ | 10.5 | ||||||||
(1) Stock-Based Compensation expense is recorded in our Corporate and other business segment. |
Stock_Repurchases
Stock Repurchases | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchases | Stock Repurchases: |
Our Board of Directors has authorized a total of $700.0 million towards the repurchase of shares of our common stock (the "Share Repurchase Plans"), including a $300.0 million share repurchase authorization approved in December 2012. The Share Repurchase Plans do not have an expiration date. For the nine months ended September 30, 2013, we repurchased 0.9 million shares for $66.0 million under the Share Repurchase Plans. As of September 30, 2013, $305.2 million of share repurchases remain authorized. | |
We also repurchased 0.1 million shares for $7.7 million for the nine months ended September 30, 2013 from employees who surrendered their shares to satisfy minimum tax withholding obligations upon the vesting of stock-based compensation awards. |
Comprehensive_Income_Notes
Comprehensive Income (Notes) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Comprehensive Income | Comprehensive Income: | ||||||||||||||||||||
The following table provides information on items not reclassified in their entirety from AOCI to Net Income in the accompanying Consolidated Statements of Operations (in millions): | |||||||||||||||||||||
AOCI Component | For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||
Losses on cash flow hedges: | |||||||||||||||||||||
Commodity derivative contracts | $ | (2.1 | ) | $ | (3.3 | ) | Cost of goods sold | ||||||||||||||
Income tax benefit (expense) | 0.8 | 1.2 | Provision for income taxes | ||||||||||||||||||
Net of tax | $ | (1.3 | ) | $ | (2.1 | ) | |||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||
Sale of foreign business (1) | $ | — | $ | 41.1 | Loss from discontinued operations | ||||||||||||||||
Total reclassifications from AOCI | $ | (1.3 | ) | $ | 39 | ||||||||||||||||
(1) The reclassification of foreign currency translation adjustments relates to the sale of the Service Experts business in the first quarter of 2013. Refer to Note 13 for details. | |||||||||||||||||||||
The following table provides information on changes in AOCI by component (net of tax) for the nine months ended September 30, 2013 (in millions): | |||||||||||||||||||||
Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Available-for-Sale Securities | Defined Benefit Pension Plan Items | Foreign Currency Translation Adjustments | Total AOCI | |||||||||||||||||
Balance as of December 31, 2012 | $ | 1.1 | $ | 9.3 | $ | (147.5 | ) | $ | 114.8 | $ | (22.3 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (5.2 | ) | (6.2 | ) | 0.4 | (21.6 | ) | (32.6 | ) | ||||||||||||
Amounts reclassified from AOCI | 2.1 | — | — | (41.1 | ) | (39.0 | ) | ||||||||||||||
Net other comprehensive (loss) income | (3.1 | ) | (6.2 | ) | 0.4 | (62.7 | ) | (71.6 | ) | ||||||||||||
Balance as of September 30, 2013 | $ | (2.0 | ) | $ | 3.1 | $ | (147.1 | ) | $ | 52.1 | $ | (93.9 | ) | ||||||||
Restructuring_Charges
Restructuring Charges | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Restructuring Charges [Abstract] | ||||||||||||||||||||
Restructuring Charges | Restructuring Charges: | |||||||||||||||||||
As part of the efforts to achieve our strategic priorities of manufacturing and sourcing excellence and expense reduction, we initiated various rationalization actions in prior periods designed to lower our cost structure. There were several ongoing restructuring activities as of September 30, 2013, however, none were significant. | ||||||||||||||||||||
In the third quarter of 2013, we substantially completed the Regional Distribution Network restructuring activities and below are details of those activities in 2013. | ||||||||||||||||||||
Regional Distribution Network | ||||||||||||||||||||
In 2008, our Residential Heating & Cooling segment commenced the transition of activities performed at our North American Parts Center in Des Moines, Iowa to other locations, including our North American Distribution Center in Marshalltown, Iowa. In the first nine months of 2013, we recorded expense of $1.4 million with no expected future costs remaining for this restructuring activity. As of September 30, 2013, we have incurred $7.7 million in costs related to this restructuring activity. | ||||||||||||||||||||
Total Restructuring | ||||||||||||||||||||
Restructuring charges include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, lease termination costs and other related costs. Restructuring charges are generally recorded based on planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. | ||||||||||||||||||||
Information regarding the charges for all ongoing restructuring actions related to continuing operations is as follows (in millions): | ||||||||||||||||||||
Incurred in 2013 | Incurred to Date | Total Expected to be Incurred | ||||||||||||||||||
Severance and related expense | $ | 0.8 | $ | 11.9 | $ | 12.5 | ||||||||||||||
Asset write-offs and accelerated depreciation | 0.8 | 1.8 | 1.8 | |||||||||||||||||
Equipment moves | 0.1 | 0.4 | 0.4 | |||||||||||||||||
Lease termination | — | 2.6 | 2.6 | |||||||||||||||||
Other | 1.5 | 7.1 | 7.2 | |||||||||||||||||
Total restructuring charges | $ | 3.2 | $ | 23.8 | $ | 24.5 | ||||||||||||||
While restructuring charges are excluded from our calculation of segment profit (loss), as more fully explained in Note 15, the table below presents the restructuring charges associated with each segment (in millions): | ||||||||||||||||||||
Incurred in 2013 | Incurred to Date | Total Expected to be Incurred | ||||||||||||||||||
Residential Heating & Cooling | $ | 1.4 | $ | 7.7 | $ | 7.7 | ||||||||||||||
Commercial Heating & Cooling | 0.9 | 7.8 | 8.4 | |||||||||||||||||
Refrigeration | 0.9 | 8.3 | 8.4 | |||||||||||||||||
Corporate & Other | — | — | — | |||||||||||||||||
Total restructuring charges | $ | 3.2 | $ | 23.8 | $ | 24.5 | ||||||||||||||
Restructuring reserves related to continuing operations are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The table below details the activity in 2013 within the restructuring reserves (in millions): | ||||||||||||||||||||
Description of Reserves | Balance as of | Charged | Cash | Non-Cash | Balance as of | |||||||||||||||
31-Dec-12 | to | Utilization | Utilization | 30-Sep-13 | ||||||||||||||||
Earnings | and Other | |||||||||||||||||||
Severance and related expense | $ | 0.7 | $ | 0.8 | $ | (1.1 | ) | $ | — | $ | 0.4 | |||||||||
Asset write-offs and accelerated depreciation | — | 0.8 | (0.2 | ) | (0.6 | ) | — | |||||||||||||
Equipment moves | — | 0.1 | (0.1 | ) | — | — | ||||||||||||||
Lease termination | 1.2 | — | (1.2 | ) | — | — | ||||||||||||||
Other | 0.5 | 1.5 | (1.8 | ) | — | 0.2 | ||||||||||||||
Total restructuring reserves | $ | 2.4 | $ | 3.2 | $ | (4.4 | ) | $ | (0.6 | ) | $ | 0.6 | ||||||||
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Discontinued Operation, Additional Disclosures [Abstract] | ||||||||||||||||
Discontinued Operations | Discontinued Operations: | |||||||||||||||
Service Experts | ||||||||||||||||
On March 22, 2013, the Company sold its Service Experts business to a majority-owned entity of American Capital, Ltd. in an all cash transaction for proceeds, excluding transaction costs, of $10.4 million. The proceeds included a determinable working capital adjustment of $3.8 million. | ||||||||||||||||
A summary of net trade sales, pre-tax operating losses and other supplemental information for our Service Experts business is detailed below (in millions): | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net trade sales(1) | $ | — | $ | 98.3 | $ | 73.5 | $ | 292.6 | ||||||||
Pre-tax operating loss (1)(2) | (2.3 | ) | (26.8 | ) | (17.8 | ) | (42.7 | ) | ||||||||
Gain on sale of business | — | — | 1.7 | — | ||||||||||||
(1) Excludes eliminations of intercompany sales and any associated profit. | ||||||||||||||||
(2) Pre-tax operating loss for the nine months ended September 30, 2013 included $2.3 million in retention bonus and severance costs and $0.2 million in stock-based compensation expense. | ||||||||||||||||
The assets and liabilities of the Service Experts business include the following in the accompanying Consolidated Balance Sheets (in millions): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Assets of discontinued operations: | ||||||||||||||||
Accounts receivable, net | $ | — | $ | 11.2 | ||||||||||||
Inventories, net | — | 4.8 | ||||||||||||||
Property, plant and equipment, net | — | 3.6 | ||||||||||||||
Goodwill and intangible assets, net (1) | — | 66.2 | ||||||||||||||
Deferred income taxes | — | 5.5 | ||||||||||||||
Other assets | — | 7.3 | ||||||||||||||
Liabilities of discontinued operations: | ||||||||||||||||
Accounts payable | $ | — | $ | 16.7 | ||||||||||||
Accrued expenses | — | 38.5 | ||||||||||||||
(1) Includes goodwill of $66.0 million as of December 31, 2012. No goodwill impairments were recorded in 2013, and all goodwill was eliminated on March 22, 2013 as a result of the sale of the business. | ||||||||||||||||
Hearth | ||||||||||||||||
In April 2012, the Company sold its Hearth business to Comvest Investment Partners IV in an all cash transaction for net proceeds of $10.1 million, excluding the transaction costs and cash transferred with the business. | ||||||||||||||||
A summary of net trade sales and pre-tax operating losses for our Hearth business is detailed below (in millions): | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net trade sales(1) | $ | — | $ | — | $ | — | $ | 23.5 | ||||||||
Pre-tax operating income (loss)(1) | — | (1.2 | ) | 0.5 | (13.1 | ) | ||||||||||
Loss on sale of business | — | 2.9 | — | (0.9 | ) | |||||||||||
(1) | Excludes eliminations of intercompany sales and any associated profit. | |||||||||||||||
There were no assets and liabilities related to the Hearth business included in the accompanying Consolidated Balance Sheets as of September 30, 2013 or December 31, 2012. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings (Loss) Per Share | Earnings Per Share: | |||||||||||||||
Basic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share are computed by dividing net income by the sum of the weighted-average number of shares and the number of equivalent shares assumed outstanding, if dilutive, under our stock-based compensation plans. | ||||||||||||||||
The computations of basic and diluted earnings per share for Net income were as follows (in millions, except per share data): | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 64.3 | $ | 29.4 | $ | 136.6 | $ | 68 | ||||||||
Add: Loss from discontinued operations | 1.5 | 20.3 | 9.3 | 40.5 | ||||||||||||
Income from continuing operations | $ | 65.8 | $ | 49.7 | $ | 145.9 | $ | 108.5 | ||||||||
Weighted-average shares outstanding – basic | 49.7 | 50.6 | 50 | 50.8 | ||||||||||||
Effect of diluted securities attributable to stock-based payments | 0.8 | 0.7 | 0.8 | 0.7 | ||||||||||||
Weighted-average shares outstanding – diluted | 50.5 | 51.3 | 50.8 | 51.5 | ||||||||||||
Earnings per share – Basic: | ||||||||||||||||
Income from continuing operations | $ | 1.32 | $ | 0.98 | $ | 2.92 | $ | 2.13 | ||||||||
Loss from discontinued operations | (0.03 | ) | (0.40 | ) | (0.19 | ) | (0.79 | ) | ||||||||
Net income | $ | 1.29 | $ | 0.58 | $ | 2.73 | $ | 1.34 | ||||||||
Earnings per share – Diluted: | ||||||||||||||||
Income from continuing operations | $ | 1.3 | $ | 0.97 | $ | 2.87 | $ | 2.11 | ||||||||
Loss from discontinued operations | (0.03 | ) | (0.40 | ) | (0.18 | ) | (0.79 | ) | ||||||||
Net income | $ | 1.27 | $ | 0.57 | $ | 2.69 | $ | 1.32 | ||||||||
The following stock appreciation rights were outstanding but not included in the diluted earnings per share calculation because the assumed exercise of such rights would have been anti-dilutive (in millions, except for per share data): | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted-average number of shares | — | 0.4 | — | 0.4 | ||||||||||||
Price per share | $ | — | $ | 46.78 | $ | — | $ | 46.78 | ||||||||
Reportable_Business_Segments
Reportable Business Segments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | ||||||||||||||||
Reportable Business Segments | Reportable Business Segments: | |||||||||||||||
We operate in three reportable business segments of the heating, ventilation, air conditioning and refrigeration (“HVACR”) industry. Our segments are organized primarily by the nature of the products and services we provide. | ||||||||||||||||
In March 2013, we sold our Service Experts business to a majority-owned entity of American Capital, Ltd. The Service Experts business had previously been reported within our Service Experts segment along with a commercial service business called Lennox National Account Services (NAS). Beginning in the third quarter of 2012, the Service Experts business was included in discontinued operations, NAS was included in our Commercial Heating & Cooling segment, and the Service Experts reportable segment was eliminated. Segment results for all periods have been revised to conform to this new presentation. | ||||||||||||||||
The table below details the nature of the operations for each reportable segment: | ||||||||||||||||
Segment | Product or Services | Markets Served | Geographic Areas | |||||||||||||
Residential Heating & Cooling | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts | Residential Replacement; | United States | |||||||||||||
Residential New Construction | Canada | |||||||||||||||
Commercial Heating & Cooling | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment | Light Commercial | United States | |||||||||||||
Canada | ||||||||||||||||
Europe | ||||||||||||||||
Refrigeration | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems | Light Commercial; | North America | |||||||||||||
Food Preservation; | South America Europe | |||||||||||||||
Non-Food/Industrial | Asia Pacific | |||||||||||||||
We use segment profit or loss as the primary measure of profitability to evaluate operating performance and to allocate capital resources. We define segment profit or loss as a segment’s income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding certain items. The reconciliation below details the items excluded. | ||||||||||||||||
Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Corporate costs also include the long-term share-based incentive awards provided to employees throughout LII. We recorded these share-based awards as Corporate costs because they are determined at the discretion of the Board of Directors and based on the historical practice of doing so for internal reporting purposes. | ||||||||||||||||
As they arise, transactions between segments are recorded on an arm’s-length basis using the relevant market prices. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations included in the results presented in the table below. | ||||||||||||||||
Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Income from continuing operations before income taxes are shown below (in millions): | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Sales | ||||||||||||||||
Residential Heating & Cooling | $ | 433.9 | $ | 386.3 | $ | 1,224.50 | $ | 1,070.70 | ||||||||
Commercial Heating & Cooling | 239.1 | 219.7 | 631.8 | 597.9 | ||||||||||||
Refrigeration | 195 | 203.7 | 593.2 | 595.9 | ||||||||||||
$ | 868 | $ | 809.7 | $ | 2,449.50 | $ | 2,264.50 | |||||||||
Segment Profit (Loss) (1) | ||||||||||||||||
Residential Heating & Cooling | $ | 57 | $ | 37.7 | $ | 143.7 | $ | 90.7 | ||||||||
Commercial Heating & Cooling | 39.2 | 32.5 | 84.8 | 74.1 | ||||||||||||
Refrigeration | 23.9 | 25.1 | 66.5 | 60.6 | ||||||||||||
Corporate and other | (16.6 | ) | (14.3 | ) | (56.2 | ) | (43.7 | ) | ||||||||
Subtotal that includes segment profit and eliminations | 103.5 | 81 | 238.8 | 181.7 | ||||||||||||
Reconciliation to income from continuing operations before income taxes: | ||||||||||||||||
Special product quality adjustment | (0.4 | ) | 0.9 | (0.5 | ) | 1 | ||||||||||
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2) | (0.2 | ) | (1.2 | ) | 2 | (2.0 | ) | |||||||||
Restructuring charges | 0.3 | 0.4 | 3.2 | 3.1 | ||||||||||||
Interest expense, net | 3.8 | 4.4 | 10.8 | 13.4 | ||||||||||||
Other expense (income), net | — | — | (0.1 | ) | 0.1 | |||||||||||
Income from continuing operations before income taxes | $ | 100 | $ | 76.5 | $ | 223.4 | $ | 166.1 | ||||||||
(1) We define segment profit and loss as a segment's income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding: | ||||||||||||||||
• | Special product quality adjustments; | |||||||||||||||
• | Items in Losses (gains) and other expenses, net (see table note 2 below); | |||||||||||||||
• | Restructuring charges; | |||||||||||||||
• | Goodwill, long-lived asset, and equity method investment impairments; | |||||||||||||||
• | Interest expense, net; | |||||||||||||||
• | Other expense (income), net | |||||||||||||||
(2) Items in Losses (gains) and other expenses, net that are excluded from segment profit are the net change in unrealized gains and/or losses on unsettled futures contracts, special legal contingency charges, and other items |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair Value Measurements | Fair Value Measurements: | |||||||
Assets Measured at Fair Value on a Recurring Basis | ||||||||
The following table presents the fair value hierarchy for those assets measured at fair value on a recurring basis (in millions): | ||||||||
Quoted Prices in Active Markets for | ||||||||
Identical Assets (Level 1) | ||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Investment in marketable equity securities (1) | $ | 5.1 | $ | 10.6 | ||||
(1) | Investment in marketable equity securities is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. | |||||||
Other Fair Value Measurements | ||||||||
The carrying amounts of cash and cash equivalents, accounts and notes receivable, net, accounts payable, other current liabilities, and short-term debt approximate fair value due to the short maturities of these instruments. The carrying amount of our Domestic Revolving Credit Facility in Long-term debt also approximates fair value due to its variable-rate characteristics. | ||||||||
The fair values of our Senior unsecured notes in Long-term debt are based on the amount of future cash flows using current market rates for debt instruments of similar maturities and credit risk. The fair values presented in the table below are estimates and are not necessarily indicative of amounts for which we could settle such instruments currently or indicative of our intent or ability to dispose of or liquidate them. The estimated fair values of our Senior unsecured notes were as follows (in millions): | ||||||||
Quoted Prices in Active Markets for | ||||||||
Similar Instruments (Level 2) | ||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Senior unsecured notes | $ | 212.1 | $ | 212.3 | ||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Condensed Consolidating Financial Statements [Abstract] | ||||||||||||||||||||
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements: | |||||||||||||||||||
The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor | ||||||||||||||||||||
Subsidiaries”) and are not secured by our other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned, all guarantees are full and unconditional, and all guarantees are joint and several. As a result of the guarantee arrangements, we are required to present the following condensed consolidating financial statements. | ||||||||||||||||||||
On March 22, 2013, the Company sold its Service Experts business to a majority-owned entity of American Capital, Ltd. The primary subsidiary for the U.S. Service Experts business had previously been included as a "Guarantor Subsidiary" and the Canada Service Experts subsidiary had previously been included as a "Non-Guarantor Subsidiary." As of September 30, 2013, the U.S. and Canada Service Experts businesses were included in discontinued operations of the condensed consolidating financial statements. | ||||||||||||||||||||
The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. | ||||||||||||||||||||
Condensed consolidating financial statements of the Company, its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 are shown on the following pages. | ||||||||||||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1.5 | $ | 15.3 | $ | 21 | $ | — | $ | 37.8 | ||||||||||
Accounts and notes receivable, net | — | 30.7 | 458.5 | — | 489.2 | |||||||||||||||
Inventories, net | — | 290.3 | 140.2 | (0.5 | ) | 430 | ||||||||||||||
Deferred income taxes, net | 2.5 | 23 | 5.8 | (1.8 | ) | 29.5 | ||||||||||||||
Other assets | 31.8 | 55.4 | 76.6 | (113.0 | ) | 50.8 | ||||||||||||||
Assets of discontinued operations | — | — | 0.3 | (0.3 | ) | — | ||||||||||||||
Total current assets | 35.8 | 414.7 | 702.4 | (115.6 | ) | 1,037.30 | ||||||||||||||
Property, plant and equipment, net | — | 234.1 | 80.7 | — | 314.8 | |||||||||||||||
Goodwill | — | 140.4 | 78.4 | — | 218.8 | |||||||||||||||
Investment in subsidiaries | 2,358.70 | 305.8 | (0.5 | ) | (2,664.0 | ) | — | |||||||||||||
Deferred income taxes | 0.2 | 98.7 | 18.7 | (5.8 | ) | 111.8 | ||||||||||||||
Other assets, net | 4.3 | 52.6 | 17.5 | (1.4 | ) | 73 | ||||||||||||||
Intercompany receivables (payables), net | (1,503.8 | ) | 1,424.40 | 79.4 | — | — | ||||||||||||||
Total assets | $ | 895.2 | $ | 2,670.70 | $ | 976.6 | $ | (2,786.8 | ) | $ | 1,755.70 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | 167.9 | $ | — | $ | 167.9 | ||||||||||
Current maturities of long-term debt | — | 0.6 | 0.2 | — | 0.8 | |||||||||||||||
Accounts payable | 11.9 | 229.1 | 83.1 | — | 324.1 | |||||||||||||||
Accrued expenses | 8.5 | 207.9 | 65.3 | (0.3 | ) | 281.4 | ||||||||||||||
Income taxes payable | — | 76.9 | 56.4 | (111.7 | ) | 21.6 | ||||||||||||||
Liabilities of discontinued operations | — | — | — | — | — | |||||||||||||||
Total current liabilities | 20.4 | 514.5 | 372.9 | (112.0 | ) | 795.8 | ||||||||||||||
Long-term debt | 249.5 | 16.5 | 0.2 | — | 266.2 | |||||||||||||||
Post-retirement benefits, other than pensions | — | 3.8 | — | — | 3.8 | |||||||||||||||
Pensions | — | 119.3 | 18.8 | — | 138.1 | |||||||||||||||
Other liabilities | 0.4 | 66.7 | 9.6 | (7.1 | ) | 69.6 | ||||||||||||||
Total liabilities | 270.3 | 720.8 | 401.5 | (119.1 | ) | 1,273.50 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Total stockholders' equity | 624.9 | 1,949.90 | 575.1 | (2,667.7 | ) | 482.2 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 895.2 | $ | 2,670.70 | $ | 976.6 | $ | (2,786.8 | ) | $ | 1,755.70 | |||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 13.4 | $ | 37.4 | $ | — | $ | 51.8 | ||||||||||
Accounts and notes receivable, net | — | 225.8 | 344.7 | (197.1 | ) | 373.4 | ||||||||||||||
Inventories, net | — | 257.3 | 121.5 | (4.0 | ) | 374.8 | ||||||||||||||
Deferred income taxes, net | — | 22.9 | 6.3 | (1.7 | ) | 27.5 | ||||||||||||||
Other assets | 2 | 19.7 | 78.1 | (38.8 | ) | 61 | ||||||||||||||
Assets of discontinued operations | — | 25.2 | 78.4 | (5.0 | ) | 98.6 | ||||||||||||||
Total current assets | 3 | 564.3 | 666.4 | (246.6 | ) | 987.1 | ||||||||||||||
Property, plant and equipment, net | — | 239.7 | 58.5 | — | 298.2 | |||||||||||||||
Goodwill | — | 131.8 | 92 | — | 223.8 | |||||||||||||||
Investment in subsidiaries | 2,179.90 | 337 | (0.2 | ) | (2,516.7 | ) | — | |||||||||||||
Deferred income taxes | — | 87.8 | 20.8 | (5.8 | ) | 102.8 | ||||||||||||||
Other assets, net | 3.7 | 53 | 23.3 | — | 80 | |||||||||||||||
Intercompany receivables (payables), net | (1,289.8 | ) | 1,013.60 | 89.8 | 186.4 | — | ||||||||||||||
Total assets | $ | 896.8 | $ | 2,427.20 | $ | 950.6 | $ | (2,582.7 | ) | $ | 1,691.90 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | 34.9 | $ | — | $ | 34.9 | ||||||||||
Current maturities of long-term debt | — | 0.5 | 0.2 | — | 0.7 | |||||||||||||||
Accounts payable | — | 198.6 | 86.1 | — | 284.7 | |||||||||||||||
Accrued expenses | 2.5 | 196.6 | 60.8 | (0.3 | ) | 259.6 | ||||||||||||||
Income taxes payable | (27.3 | ) | 35 | 38.5 | (41.7 | ) | 4.5 | |||||||||||||
Liabilities of discontinued operations | — | 42.3 | 12.9 | — | 55.2 | |||||||||||||||
Total current liabilities | (24.8 | ) | 473 | 233.4 | (42.0 | ) | 639.6 | |||||||||||||
Long-term debt | 335 | 15.6 | 0.4 | — | 351 | |||||||||||||||
Post-retirement benefits, other than pensions | — | 6.1 | — | — | 6.1 | |||||||||||||||
Pensions | — | 114.7 | 19.7 | — | 134.4 | |||||||||||||||
Other liabilities | 0.5 | 60.1 | 9.2 | (7.3 | ) | 62.5 | ||||||||||||||
Total liabilities | 310.7 | 669.5 | 262.7 | (49.3 | ) | 1,193.60 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Total stockholders' equity | 586.1 | 1,757.70 | 687.9 | (2,533.4 | ) | 498.3 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 896.8 | $ | 2,427.20 | $ | 950.6 | $ | (2,582.7 | ) | $ | 1,691.90 | |||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Net Sales | $ | — | $ | 668.4 | $ | 221.7 | $ | (22.1 | ) | $ | 868 | |||||||||
Cost of goods sold | — | 494.5 | 161.7 | (25.6 | ) | 630.6 | ||||||||||||||
Gross profit | — | 173.9 | 60 | 3.5 | 237.4 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 107.5 | 29.4 | — | 136.9 | |||||||||||||||
Losses and other expenses, net | (1.7 | ) | 2 | (0.6 | ) | — | (0.3 | ) | ||||||||||||
Restructuring charges | — | 0.1 | 0.2 | — | 0.3 | |||||||||||||||
Income from equity method investments | (65.5 | ) | (14.9 | ) | (2.5 | ) | 79.6 | (3.3 | ) | |||||||||||
Operational income from continuing operations | 67.2 | 79.2 | 33.5 | (76.1 | ) | 103.8 | ||||||||||||||
Interest expense, net | 3.5 | (0.4 | ) | 0.7 | — | 3.8 | ||||||||||||||
Other expense, net | — | — | — | — | — | |||||||||||||||
Income from continuing operations before income taxes | 63.7 | 79.6 | 32.8 | (76.1 | ) | 100 | ||||||||||||||
Provision for income taxes | (0.6 | ) | 22.7 | 10.7 | 1.4 | 34.2 | ||||||||||||||
Income from continuing operations | 64.3 | 56.9 | 22.1 | (77.5 | ) | 65.8 | ||||||||||||||
Loss from discontinued operations | — | (1.5 | ) | — | — | (1.5 | ) | |||||||||||||
Net income | $ | 64.3 | $ | 55.4 | $ | 22.1 | $ | (77.5 | ) | $ | 64.3 | |||||||||
Other comprehensive income | $ | 4.5 | $ | 0.8 | $ | 3.5 | $ | 0.4 | $ | 9.2 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Net Sales | $ | — | $ | 1,984.50 | $ | 619.3 | $ | (154.3 | ) | $ | 2,449.50 | |||||||||
Cost of goods sold | — | 1,473.90 | 474.9 | (152.7 | ) | 1,796.10 | ||||||||||||||
Gross profit | — | 510.6 | 144.4 | (1.6 | ) | 653.4 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 327.8 | 96.2 | — | 424 | |||||||||||||||
Losses and other expenses, net | 0.8 | 2.2 | — | (0.2 | ) | 2.8 | ||||||||||||||
Restructuring charges | — | 1.6 | 1.6 | — | 3.2 | |||||||||||||||
Income from equity method investments | (144.1 | ) | (6.0 | ) | (8.7 | ) | 148.1 | (10.7 | ) | |||||||||||
Operational income from continuing operations | 143.3 | 185 | 55.3 | (149.5 | ) | 234.1 | ||||||||||||||
Interest expense, net | 10.6 | (1.5 | ) | 1.7 | — | 10.8 | ||||||||||||||
Other expense, net | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||
Income from continuing operations before income taxes | 132.7 | 186.5 | 53.7 | (149.5 | ) | 223.4 | ||||||||||||||
Provision for income taxes | (3.9 | ) | 63.3 | 18.7 | (0.6 | ) | 77.5 | |||||||||||||
Income from continuing operations | 136.6 | 123.2 | 35 | (148.9 | ) | 145.9 | ||||||||||||||
Loss from discontinued operations | — | 16.2 | (25.5 | ) | — | (9.3 | ) | |||||||||||||
Net income | $ | 136.6 | $ | 139.4 | $ | 9.5 | $ | (148.9 | ) | $ | 136.6 | |||||||||
Other comprehensive income (loss) | $ | (3.1 | ) | $ | 1.9 | $ | (3.8 | ) | $ | (66.6 | ) | $ | (71.6 | ) | ||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Three Months Ended September 30, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
Net Sales | $ | — | $ | 654.5 | $ | 214.3 | $ | (59.1 | ) | $ | 809.7 | |||||||||
Cost of goods sold | — | 499.7 | 163.9 | (58.8 | ) | 604.8 | ||||||||||||||
Gross profit | — | 154.8 | 50.4 | (0.3 | ) | 204.9 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 99.2 | 26.8 | (0.1 | ) | 125.9 | ||||||||||||||
Losses and other expenses, net | 0.1 | (1.0 | ) | 1.2 | — | 0.3 | ||||||||||||||
Restructuring charges | — | 0.1 | 0.3 | — | 0.4 | |||||||||||||||
Income from equity method investments | (38.4 | ) | (6.5 | ) | (1.9 | ) | 44.2 | (2.6 | ) | |||||||||||
Operational income from continuing operations | 38.3 | 63 | 24 | (44.4 | ) | 80.9 | ||||||||||||||
Interest expense, net | 4.3 | (0.6 | ) | 0.7 | — | 4.4 | ||||||||||||||
Other expense, net | — | — | — | — | — | |||||||||||||||
Income from continuing operations before income taxes | 34 | 63.6 | 23.3 | (44.4 | ) | 76.5 | ||||||||||||||
Provision for income taxes | (1.6 | ) | 20.1 | 10 | (1.7 | ) | 26.8 | |||||||||||||
Income from continuing operations | 35.6 | 43.5 | 13.3 | (42.7 | ) | 49.7 | ||||||||||||||
Loss from discontinued operations | — | (12.6 | ) | (7.7 | ) | — | (20.3 | ) | ||||||||||||
Net income | $ | 35.6 | $ | 30.9 | $ | 5.6 | $ | (42.7 | ) | $ | 29.4 | |||||||||
Other comprehensive income | $ | 5.6 | $ | 4.6 | $ | 17.4 | $ | 1.9 | $ | 29.5 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
Net Sales | $ | — | $ | 1,814.50 | $ | 610.2 | $ | (160.2 | ) | $ | 2,264.50 | |||||||||
Cost of goods sold | 0.1 | 1,401.70 | 468.4 | (159.6 | ) | 1,710.60 | ||||||||||||||
Gross profit | (0.1 | ) | 412.8 | 141.8 | (0.6 | ) | 553.9 | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 286.5 | 93.3 | — | 379.8 | |||||||||||||||
Losses and other expenses, net | (2.1 | ) | (0.4 | ) | 2.7 | — | 0.2 | |||||||||||||
Restructuring charges | — | 2.6 | 0.5 | — | 3.1 | |||||||||||||||
Income from equity method investments | (81.9 | ) | (8.1 | ) | (6.9 | ) | 88.1 | (8.8 | ) | |||||||||||
Operational income from continuing operations | 83.9 | 132.2 | 52.2 | (88.7 | ) | 179.6 | ||||||||||||||
Interest expense, net | 13.1 | (1.8 | ) | 2.1 | — | 13.4 | ||||||||||||||
Other expense, net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Income from continuing operations before income taxes | 70.8 | 134 | 50 | (88.7 | ) | 166.1 | ||||||||||||||
Provision for income taxes | (4.0 | ) | 45.1 | 16.7 | (0.2 | ) | 57.6 | |||||||||||||
Income from continuing operations | 74.8 | 88.9 | 33.3 | (88.5 | ) | 108.5 | ||||||||||||||
Loss from discontinued operations | — | (27.9 | ) | (12.6 | ) | — | (40.5 | ) | ||||||||||||
Net income | $ | 74.8 | $ | 61 | $ | 20.7 | $ | (88.5 | ) | $ | 68 | |||||||||
Other comprehensive income | $ | 7.9 | $ | 4.4 | $ | 8.4 | $ | 6.2 | $ | 26.9 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | $ | (41.6 | ) | $ | 267 | $ | (160.4 | ) | $ | — | $ | 65 | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from the disposal of property, plant and equipment | — | 0.1 | — | — | 0.1 | |||||||||||||||
Purchases of property, plant and equipment | — | (30.3 | ) | (10.7 | ) | — | (41.0 | ) | ||||||||||||
Net proceeds from sale of businesses | 4.8 | — | 3.3 | — | 8.1 | |||||||||||||||
Net cash used in discontinued operations | — | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||
Net cash used in investing activities | 4.8 | (30.3 | ) | (7.4 | ) | — | (32.9 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Short-term borrowings, net | — | — | 3.8 | — | 3.8 | |||||||||||||||
Asset securitization borrowings | — | — | 330 | — | 330 | |||||||||||||||
Asset securitization payments | — | — | (200.0 | ) | — | (200.0 | ) | |||||||||||||
Long-term debt payments | — | (0.5 | ) | (0.2 | ) | — | (0.7 | ) | ||||||||||||
Borrowings from revolving credit facility | 998 | — | — | — | 998 | |||||||||||||||
Payments on revolving credit facility | (1,083.5 | ) | — | — | — | (1,083.5 | ) | |||||||||||||
Proceeds from employee stock purchases | 1.3 | — | — | — | 1.3 | |||||||||||||||
Repurchases of common stock | (66.0 | ) | — | — | — | (66.0 | ) | |||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (7.7 | ) | — | — | — | (7.7 | ) | |||||||||||||
Excess tax benefits related to share-based payments | 4.7 | — | — | — | 4.7 | |||||||||||||||
Intercompany debt | (44.4 | ) | 8.4 | 36 | — | — | ||||||||||||||
Intercompany financing activity | 257 | (242.7 | ) | (14.3 | ) | — | — | |||||||||||||
Cash dividends paid | (22.1 | ) | — | — | — | (22.1 | ) | |||||||||||||
Net cash used in financing activities | 37.3 | (234.8 | ) | 155.3 | — | (42.2 | ) | |||||||||||||
Decrease in cash and cash equivalents | 0.5 | 1.9 | (12.5 | ) | — | (10.1 | ) | |||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | (3.9 | ) | — | (3.9 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 1 | 13.4 | 37.4 | — | 51.8 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 1.5 | $ | 15.3 | $ | 21 | $ | — | $ | 37.8 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | $ | 21.4 | $ | 83.4 | $ | (40.4 | ) | $ | — | $ | 64.4 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from the disposal of property, plant and equipment | — | 0.1 | — | — | 0.1 | |||||||||||||||
Purchases of property, plant and equipment | — | (21.5 | ) | (6.5 | ) | — | (28.0 | ) | ||||||||||||
Net proceeds from sale of businesses | — | 10.1 | — | — | 10.1 | |||||||||||||||
Net cash used in discontinued operations | — | (0.4 | ) | 0.1 | — | (0.3 | ) | |||||||||||||
Net cash used in investing activities | — | (11.7 | ) | (6.4 | ) | — | (18.1 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Short-term borrowings, net | — | — | 1.3 | — | 1.3 | |||||||||||||||
Asset securitization borrowings | — | — | 480 | — | 480 | |||||||||||||||
Asset securitization payments | — | — | (455.0 | ) | — | (455.0 | ) | |||||||||||||
Long-term debt payments | — | (0.6 | ) | (0.3 | ) | — | (0.9 | ) | ||||||||||||
Borrowings from revolving credit facility | 696 | — | — | — | 696 | |||||||||||||||
Payments on revolving credit facility | (706.0 | ) | — | — | — | (706.0 | ) | |||||||||||||
Proceeds from employee stock purchases | 0.3 | — | — | — | 0.3 | |||||||||||||||
Repurchases of common stock | (35.0 | ) | — | — | — | (35.0 | ) | |||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (3.4 | ) | — | — | — | (3.4 | ) | |||||||||||||
Excess tax benefits related to share-based payments | 1.7 | — | — | — | 1.7 | |||||||||||||||
Intercompany debt | (5.3 | ) | (3.9 | ) | 9.2 | — | — | |||||||||||||
Intercompany financing activity | 57.8 | (55.3 | ) | (2.5 | ) | — | — | |||||||||||||
Cash dividends paid | (27.5 | ) | — | — | — | (27.5 | ) | |||||||||||||
Net cash used in financing activities | (21.4 | ) | (59.8 | ) | 32.7 | — | (48.5 | ) | ||||||||||||
Decrease in cash and cash equivalents | — | 11.9 | (14.1 | ) | — | (2.2 | ) | |||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | 6 | — | 6 | |||||||||||||||
Cash and cash equivalents, beginning of period | 1 | 9.7 | 34.3 | — | 45 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 1 | $ | 21.6 | $ | 26.2 | $ | — | $ | 48.8 | ||||||||||
General_Policies
General (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited Consolidated Balance Sheet as of September 30, 2013, the accompanying unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012, the accompanying unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012, and the accompanying unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012 should be read in conjunction with our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2012. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying consolidated financial statements contain all material adjustments, consisting principally of normal recurring adjustments, necessary for a fair presentation of our financial position, results of operations and cash flows. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to applicable rules and regulations, although we believe that the disclosures herein are adequate to make the information presented not misleading. The operating results for the interim periods are not necessarily indicative of the results that may be expected for a full year. | |
Our fiscal year ends on December 31 and each of our quarters are comprised of 13 weeks. For convenience, throughout these financial statements, the 13 weeks comprising each quarterly period are denoted by the last day of the respective calendar quarter. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation among others. These estimates and assumptions are based on our best estimates and judgment. | |
We evaluate these estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates and assumptions to be reasonable under the circumstances and will adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency and commodity markets combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |
Reclassifications | Reclassifications |
Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Components of inventories | The components of inventories are as follows (in millions): | |||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Finished goods | $ | 292.9 | $ | 258 | ||||
Work in process | 12.7 | 12 | ||||||
Raw materials and parts | 199.7 | 180.1 | ||||||
505.3 | 450.1 | |||||||
Excess of current cost over last-in, first-out cost | (75.3 | ) | (75.3 | ) | ||||
Total inventories, net | $ | 430 | $ | 374.8 | ||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill | The changes in the carrying amount of goodwill for the first nine months of 2013, in total and by segment, are summarized in the table below (in millions): | |||||||||||||||
Balance at December 31, 2012 | Acquisitions / (Dispositions) | Other(1) | Balance at September 30, 2013 | |||||||||||||
Residential Heating & Cooling | $ | 26.1 | $ | — | $ | — | $ | 26.1 | ||||||||
Commercial Heating & Cooling | 63.8 | — | 0.4 | 64.2 | ||||||||||||
Refrigeration | 133.9 | — | (5.4 | ) | 128.5 | |||||||||||
$ | 223.8 | $ | — | $ | (5.0 | ) | $ | 218.8 | ||||||||
(1) Other consists of changes in foreign currency translation rates. |
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Amounts related to cash flow hedges | We recorded the following amounts related to our cash flow hedges (in millions): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Commodity Hedges: | ||||||||||||||||
Losses (gains) included in AOCI, net of tax | $ | 2 | $ | (1.1 | ) | |||||||||||
Income tax expense (benefit) | (1.1 | ) | 0.7 | |||||||||||||
Outstanding commodity futures contracts designated as cash flow hedges | We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
(pounds) | (pounds) | |||||||||||||||
Copper | 20 | 22.8 | ||||||||||||||
Outstanding commodity futures contracts not designated as cash flow hedges | We had the following outstanding commodity futures contracts not designated as cash flow hedges (in millions): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
(pounds) | (pounds) | |||||||||||||||
Copper | 2.1 | 2.1 | ||||||||||||||
Aluminum | 2.5 | 2.8 | ||||||||||||||
Outstanding foreign currency forward contracts not designated as cash flow hedges | We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (local currency, in millions): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Notional Amounts: | ||||||||||||||||
Brazilian Real | 5.2 | 10.8 | ||||||||||||||
Mexican Peso | 248.5 | 220.2 | ||||||||||||||
Euro | 2 | 1.3 | ||||||||||||||
British Pound | 3.4 | 5.4 | ||||||||||||||
Indian Rupee | 112 | 19.5 | ||||||||||||||
Polish Zloty | 30.5 | 12.4 | ||||||||||||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | The following tables provide the locations and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations (in millions): | |||||||||||||||
Fair Values of Derivative Instruments(1) | ||||||||||||||||
Derivatives Designated as Hedging Instruments | Derivatives Not Designated as | |||||||||||||||
Hedging Instruments | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | As of September 30, 2013 | As of December 31, 2012 | |||||||||||||
Current Assets: | ||||||||||||||||
Other Assets | ||||||||||||||||
Commodity futures contracts | $ | — | $ | 1.6 | $ | — | $ | 0.2 | ||||||||
Foreign currency forward contracts | — | — | — | 0.1 | ||||||||||||
Non-Current Assets: | ||||||||||||||||
Other Assets, net | ||||||||||||||||
Commodity futures contracts | 0.1 | 0.3 | — | — | ||||||||||||
Total Assets | $ | 0.1 | $ | 1.9 | $ | — | $ | 0.3 | ||||||||
Current Liabilities: | ||||||||||||||||
Accrued Expenses | ||||||||||||||||
Commodity futures contracts | $ | 3.3 | $ | — | $ | 0.4 | $ | — | ||||||||
Foreign currency forward contracts | — | — | 0.2 | 0.1 | ||||||||||||
Non-Current Liabilities: | ||||||||||||||||
Other Liabilities | ||||||||||||||||
Commodity futures contracts | — | — | — | — | ||||||||||||
Total Liabilities | $ | 3.3 | $ | — | $ | 0.6 | $ | 0.1 | ||||||||
(1) All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 16 for more information. | ||||||||||||||||
Effect of Derivative Instruments on Consolidated Statements of Operations | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Amount of Loss Reclassified from AOCI into Income | ||||||||||||||||
(Effective Portion): | ||||||||||||||||
Commodity futures contracts(1) | $ | 2.1 | $ | 2.2 | $ | 3.3 | $ | 5.8 | ||||||||
Interest rate swap(2) | — | 0.6 | — | 1.8 | ||||||||||||
$ | 2.1 | $ | 2.8 | $ | 3.3 | $ | 7.6 | |||||||||
Amount of Loss (Gain) Recognized in Income (Ineffective Portion): | ||||||||||||||||
Commodity futures contracts(3) | $ | (0.1 | ) | $ | (0.1 | ) | $ | 0.2 | $ | (0.2 | ) | |||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Amount of Loss (Gain) Recognized in Income: | ||||||||||||||||
Commodity futures contracts(3) | $ | (0.6 | ) | $ | (0.8 | ) | $ | 1.2 | $ | (0.9 | ) | |||||
Foreign currency forward contracts(3) | (0.6 | ) | 0.6 | 0.2 | 0.3 | |||||||||||
$ | (1.2 | ) | $ | (0.2 | ) | $ | 1.4 | $ | (0.6 | ) | ||||||
(1) The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations. | ||||||||||||||||
(2) The loss was recorded in Interest expense, net in the accompanying Consolidated Statements of Operations. | ||||||||||||||||
(3) The loss (gain) was recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statements of Operations. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Summary of total liabilities for estimated warranty are included in the accompanying Consolidated Balance Sheets | iabilities for estimated product warranty costs related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions): | |||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Accrued expenses | $ | 23.7 | $ | 25.1 | ||||
Other liabilities | 52 | 46.8 | ||||||
$ | 75.7 | $ | 71.9 | |||||
Summary of changes in the total warranty liabilities | The changes in product warranty liabilities related to continuing operations for the nine months ended September 30, 2013 were as follows (in millions): | |||||||
Total warranty liability as of December 31, 2012 | $ | 71.9 | ||||||
Payments made in 2013 | (15.3 | ) | ||||||
Changes resulting from issuance of new warranties | 22.5 | |||||||
Changes in estimates associated with pre-existing liabilities | (3.2 | ) | ||||||
Changes in foreign currency translation rates and other | (0.2 | ) | ||||||
Total warranty liability as of September 30, 2013 | $ | 75.7 | ||||||
Summary of changes in the accrued product quality issue | The changes in the accrued product quality issues for the nine months ended September 30, 2013 were as follows (in millions): | |||||||
Total accrued product quality issues as of December 31, 2012 | $ | 6.7 | ||||||
Changes in estimates associated with pre-existing liabilities | 0.3 | |||||||
Product quality claims paid in 2013 | (1.1 | ) | ||||||
Total accrued product quality issues as of September 30, 2013 | $ | 5.9 | ||||||
Lines_of_Credit_and_Financing_1
Lines of Credit and Financing Arrangements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Outstanding debt obligations | The following table summarizes our outstanding debt obligations and the classification in the accompanying Consolidated Balance Sheets (in millions): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Short-Term Debt: | ||||||||||||||||
Asset Securitization Program | $ | 160 | $ | 30 | ||||||||||||
Foreign obligations | 7.9 | 4.9 | ||||||||||||||
Total short-term debt | $ | 167.9 | $ | 34.9 | ||||||||||||
Current maturities of long-term debt: | $ | 0.8 | $ | 0.7 | ||||||||||||
Long-Term Debt: | ||||||||||||||||
Capital lease obligations | $ | 16.7 | $ | 16 | ||||||||||||
Domestic revolving credit facility | 49.5 | 135 | ||||||||||||||
Senior unsecured notes | 200 | 200 | ||||||||||||||
Total long-term debt | $ | 266.2 | $ | 351 | ||||||||||||
Total debt | $ | 434.9 | $ | 386.6 | ||||||||||||
Eligible amounts available and beneficial interests sold | The eligible amounts available and beneficial interests sold were as follows (in millions): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Eligible amount available under the ASP on qualified accounts receivable | $ | 160 | $ | 160 | ||||||||||||
Beneficial interest sold | 160 | 30 | ||||||||||||||
Remaining amount available | $ | — | $ | 130 | ||||||||||||
Discount fees in Selling, General and Administrative Expenses | The interest expense, including all fees, related to the ASP was as follows (in millions): | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest expense (including fees) | $ | 0.3 | $ | 0.3 | $ | 1 | $ | 0.9 | ||||||||
Summary of weighted average borrowing rate facility | Our weighted average borrowing rate on the facility was as follows: | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Weighted average borrowing rate | 1.41 | % | 1.46 | % | ||||||||||||
Financial Covenants, Leverage and Interest Coverage | The required ratios under our Domestic Revolving Credit Facility are detailed below: | |||||||||||||||
Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than | 3.5 : 1.0 | |||||||||||||||
Cash Flow to Net Interest Expense Ratio no less than | 3.0 : 1.0 |
Pension_and_Postretirement_Ben1
Pension and Post-retirement Benefit Plans Pension and Post-retirement Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Components of net periodic benefit cost | The components of net periodic benefit cost were as follows (in millions): | |||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||
Service cost | $ | 1.3 | $ | 1.4 | $ | — | $ | — | ||||||||
Interest cost | 4 | 4.3 | — | 0.1 | ||||||||||||
Expected return on plan assets | (5.1 | ) | (4.7 | ) | — | — | ||||||||||
Amortization of prior service cost | 0.1 | 0.1 | (0.7 | ) | (0.8 | ) | ||||||||||
Recognized actuarial loss | 2.3 | 2.1 | 0.4 | 0.4 | ||||||||||||
Settlements and curtailments | 0.1 | 1 | — | — | ||||||||||||
Net periodic benefit cost (1) | $ | 2.7 | $ | 4.2 | $ | (0.3 | ) | $ | (0.3 | ) | ||||||
For the Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||
Service cost | $ | 3.9 | $ | 4.1 | $ | — | $ | 0.2 | ||||||||
Interest cost | 12.3 | 12.9 | 0.1 | 0.4 | ||||||||||||
Expected return on plan assets | (15.7 | ) | (14.1 | ) | — | — | ||||||||||
Amortization of prior service cost | 0.3 | 0.3 | (2.2 | ) | (2.0 | ) | ||||||||||
Recognized actuarial loss | 6.9 | 6.5 | 1.1 | 1 | ||||||||||||
Settlements and curtailments (2) | 1.3 | 7.3 | — | — | ||||||||||||
Net periodic benefit cost (1) | $ | 9 | $ | 17 | $ | (1.0 | ) | $ | (0.4 | ) | ||||||
(1) Pension Expense of $0.1 million and $0.2 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2013, respectively. Pension expense of $0.6 million and $7.0 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2012, respectively. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Schedule of stock -based compensation expense in operations | Stock-based compensation expense related to continuing operations is included in Selling, General and Administrative expenses in the accompanying Consolidated Statements of Operations as follows (in millions): | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Compensation expense(1) | $ | 5.3 | $ | 2.7 | $ | 20.5 | $ | 10.5 | ||||||||
(1) Stock-Based Compensation expense is recorded in our Corporate and other business segment. |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Items not reclassified in their entirety from Accumulated Other Comprehensive Income to Net Income | The following table provides information on items not reclassified in their entirety from AOCI to Net Income in the accompanying Consolidated Statements of Operations (in millions): | ||||||||||||||||||||
AOCI Component | For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||
Losses on cash flow hedges: | |||||||||||||||||||||
Commodity derivative contracts | $ | (2.1 | ) | $ | (3.3 | ) | Cost of goods sold | ||||||||||||||
Income tax benefit (expense) | 0.8 | 1.2 | Provision for income taxes | ||||||||||||||||||
Net of tax | $ | (1.3 | ) | $ | (2.1 | ) | |||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||
Sale of foreign business (1) | $ | — | $ | 41.1 | Loss from discontinued operations | ||||||||||||||||
Total reclassifications from AOCI | $ | (1.3 | ) | $ | 39 | ||||||||||||||||
(1) The reclassification of foreign currency translation adjustments relates to the sale of the Service Experts business in the first quarter of 2013. Refer to Note 13 for details. | |||||||||||||||||||||
Changes in AOCI by component (net of tax) | The following table provides information on changes in AOCI by component (net of tax) for the nine months ended September 30, 2013 (in millions): | ||||||||||||||||||||
Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Available-for-Sale Securities | Defined Benefit Pension Plan Items | Foreign Currency Translation Adjustments | Total AOCI | |||||||||||||||||
Balance as of December 31, 2012 | $ | 1.1 | $ | 9.3 | $ | (147.5 | ) | $ | 114.8 | $ | (22.3 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (5.2 | ) | (6.2 | ) | 0.4 | (21.6 | ) | (32.6 | ) | ||||||||||||
Amounts reclassified from AOCI | 2.1 | — | — | (41.1 | ) | (39.0 | ) | ||||||||||||||
Net other comprehensive (loss) income | (3.1 | ) | (6.2 | ) | 0.4 | (62.7 | ) | (71.6 | ) | ||||||||||||
Balance as of September 30, 2013 | $ | (2.0 | ) | $ | 3.1 | $ | (147.1 | ) | $ | 52.1 | $ | (93.9 | ) | ||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Restructuring Charges [Abstract] | ||||||||||||||||||||
Information regarding restructuring charges | Information regarding the charges for all ongoing restructuring actions related to continuing operations is as follows (in millions): | |||||||||||||||||||
Incurred in 2013 | Incurred to Date | Total Expected to be Incurred | ||||||||||||||||||
Severance and related expense | $ | 0.8 | $ | 11.9 | $ | 12.5 | ||||||||||||||
Asset write-offs and accelerated depreciation | 0.8 | 1.8 | 1.8 | |||||||||||||||||
Equipment moves | 0.1 | 0.4 | 0.4 | |||||||||||||||||
Lease termination | — | 2.6 | 2.6 | |||||||||||||||||
Other | 1.5 | 7.1 | 7.2 | |||||||||||||||||
Total restructuring charges | $ | 3.2 | $ | 23.8 | $ | 24.5 | ||||||||||||||
Information regarding restructuring charges by segment | the restructuring charges associated with each segment (in millions): | |||||||||||||||||||
Incurred in 2013 | Incurred to Date | Total Expected to be Incurred | ||||||||||||||||||
Residential Heating & Cooling | $ | 1.4 | $ | 7.7 | $ | 7.7 | ||||||||||||||
Commercial Heating & Cooling | 0.9 | 7.8 | 8.4 | |||||||||||||||||
Refrigeration | 0.9 | 8.3 | 8.4 | |||||||||||||||||
Corporate & Other | — | — | — | |||||||||||||||||
Total restructuring charges | $ | 3.2 | $ | 23.8 | $ | 24.5 | ||||||||||||||
Details activity within the restructuring reserves | The table below details the activity in 2013 within the restructuring reserves (in millions): | |||||||||||||||||||
Description of Reserves | Balance as of | Charged | Cash | Non-Cash | Balance as of | |||||||||||||||
31-Dec-12 | to | Utilization | Utilization | 30-Sep-13 | ||||||||||||||||
Earnings | and Other | |||||||||||||||||||
Severance and related expense | $ | 0.7 | $ | 0.8 | $ | (1.1 | ) | $ | — | $ | 0.4 | |||||||||
Asset write-offs and accelerated depreciation | — | 0.8 | (0.2 | ) | (0.6 | ) | — | |||||||||||||
Equipment moves | — | 0.1 | (0.1 | ) | — | — | ||||||||||||||
Lease termination | 1.2 | — | (1.2 | ) | — | — | ||||||||||||||
Other | 0.5 | 1.5 | (1.8 | ) | — | 0.2 | ||||||||||||||
Total restructuring reserves | $ | 2.4 | $ | 3.2 | $ | (4.4 | ) | $ | (0.6 | ) | $ | 0.6 | ||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Service Experts [Member] | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Summary of net trade sales and pre-tax operating losses | A summary of net trade sales, pre-tax operating losses and other supplemental information for our Service Experts business is detailed below (in millions): | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net trade sales(1) | $ | — | $ | 98.3 | $ | 73.5 | $ | 292.6 | ||||||||
Pre-tax operating loss (1)(2) | (2.3 | ) | (26.8 | ) | (17.8 | ) | (42.7 | ) | ||||||||
Gain on sale of business | — | — | 1.7 | — | ||||||||||||
(1) Excludes eliminations of intercompany sales and any associated profit. | ||||||||||||||||
(2) Pre-tax operating loss for the nine months ended September 30, 2013 included $2.3 million in retention bonus and severance costs and $0.2 million in stock-based compensation expense | ||||||||||||||||
Assets and liabilities of the discontinued operations | The assets and liabilities of the Service Experts business include the following in the accompanying Consolidated Balance Sheets (in millions): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||
Assets of discontinued operations: | ||||||||||||||||
Accounts receivable, net | $ | — | $ | 11.2 | ||||||||||||
Inventories, net | — | 4.8 | ||||||||||||||
Property, plant and equipment, net | — | 3.6 | ||||||||||||||
Goodwill and intangible assets, net (1) | — | 66.2 | ||||||||||||||
Deferred income taxes | — | 5.5 | ||||||||||||||
Other assets | — | 7.3 | ||||||||||||||
Liabilities of discontinued operations: | ||||||||||||||||
Accounts payable | $ | — | $ | 16.7 | ||||||||||||
Accrued expenses | — | 38.5 | ||||||||||||||
(1) Includes goodwill of $66.0 million as of December 31, 2012. No goodwill impairments were recorded in 2013, and all goodwill was eliminated on March 22, 2013 as a result of the sale of the business. | ||||||||||||||||
Hearth [Member] | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Summary of net trade sales and pre-tax operating losses | A summary of net trade sales and pre-tax operating losses for our Hearth business is detailed below (in millions): | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net trade sales(1) | $ | — | $ | — | $ | — | $ | 23.5 | ||||||||
Pre-tax operating income (loss)(1) | — | (1.2 | ) | 0.5 | (13.1 | ) | ||||||||||
Loss on sale of business | — | 2.9 | — | (0.9 | ) | |||||||||||
(1) | Excludes eliminations of intercompany sales and any associated profit. | |||||||||||||||
Assets and liabilities of the discontinued operations | accompanying Consolidated Balance Sheets as of September 30, 2013 or December 31, 2012. |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Computations of basic and diluted loss per share for Loss from Continuing Operations | The computations of basic and diluted earnings per share for Net income were as follows (in millions, except per share data): | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 64.3 | $ | 29.4 | $ | 136.6 | $ | 68 | ||||||||
Add: Loss from discontinued operations | 1.5 | 20.3 | 9.3 | 40.5 | ||||||||||||
Income from continuing operations | $ | 65.8 | $ | 49.7 | $ | 145.9 | $ | 108.5 | ||||||||
Weighted-average shares outstanding – basic | 49.7 | 50.6 | 50 | 50.8 | ||||||||||||
Effect of diluted securities attributable to stock-based payments | 0.8 | 0.7 | 0.8 | 0.7 | ||||||||||||
Weighted-average shares outstanding – diluted | 50.5 | 51.3 | 50.8 | 51.5 | ||||||||||||
Earnings per share – Basic: | ||||||||||||||||
Income from continuing operations | $ | 1.32 | $ | 0.98 | $ | 2.92 | $ | 2.13 | ||||||||
Loss from discontinued operations | (0.03 | ) | (0.40 | ) | (0.19 | ) | (0.79 | ) | ||||||||
Net income | $ | 1.29 | $ | 0.58 | $ | 2.73 | $ | 1.34 | ||||||||
Earnings per share – Diluted: | ||||||||||||||||
Income from continuing operations | $ | 1.3 | $ | 0.97 | $ | 2.87 | $ | 2.11 | ||||||||
Loss from discontinued operations | (0.03 | ) | (0.40 | ) | (0.18 | ) | (0.79 | ) | ||||||||
Net income | $ | 1.27 | $ | 0.57 | $ | 2.69 | $ | 1.32 | ||||||||
Stock appreciation rights were outstanding, but not included in the diluted loss per share calculation | stock appreciation rights were outstanding but not included in the diluted earnings per share calculation because the assumed exercise of such rights would have been anti-dilutive (in millions, except for per share data): | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted-average number of shares | — | 0.4 | — | 0.4 | ||||||||||||
Price per share | $ | — | $ | 46.78 | $ | — | $ | 46.78 | ||||||||
Reportable_Business_Segments_T
Reportable Business Segments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | ||||||||||||||||
Summary of nature of operations of reportable segment | The table below details the nature of the operations for each reportable segment: | |||||||||||||||
Segment | Product or Services | Markets Served | Geographic Areas | |||||||||||||
Residential Heating & Cooling | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts | Residential Replacement; | United States | |||||||||||||
Residential New Construction | Canada | |||||||||||||||
Commercial Heating & Cooling | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment | Light Commercial | United States | |||||||||||||
Canada | ||||||||||||||||
Europe | ||||||||||||||||
Refrigeration | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems | Light Commercial; | North America | |||||||||||||
Food Preservation; | South America Europe | |||||||||||||||
Non-Food/Industrial | Asia Pacific | |||||||||||||||
Net sales, segment profit (loss) by business segment and reconciliation of segment profit (loss) to Income from Continuing Operations before Income Taxes | Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Income from continuing operations before income taxes are shown below (in millions): | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Sales | ||||||||||||||||
Residential Heating & Cooling | $ | 433.9 | $ | 386.3 | $ | 1,224.50 | $ | 1,070.70 | ||||||||
Commercial Heating & Cooling | 239.1 | 219.7 | 631.8 | 597.9 | ||||||||||||
Refrigeration | 195 | 203.7 | 593.2 | 595.9 | ||||||||||||
$ | 868 | $ | 809.7 | $ | 2,449.50 | $ | 2,264.50 | |||||||||
Segment Profit (Loss) (1) | ||||||||||||||||
Residential Heating & Cooling | $ | 57 | $ | 37.7 | $ | 143.7 | $ | 90.7 | ||||||||
Commercial Heating & Cooling | 39.2 | 32.5 | 84.8 | 74.1 | ||||||||||||
Refrigeration | 23.9 | 25.1 | 66.5 | 60.6 | ||||||||||||
Corporate and other | (16.6 | ) | (14.3 | ) | (56.2 | ) | (43.7 | ) | ||||||||
Subtotal that includes segment profit and eliminations | 103.5 | 81 | 238.8 | 181.7 | ||||||||||||
Reconciliation to income from continuing operations before income taxes: | ||||||||||||||||
Special product quality adjustment | (0.4 | ) | 0.9 | (0.5 | ) | 1 | ||||||||||
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2) | (0.2 | ) | (1.2 | ) | 2 | (2.0 | ) | |||||||||
Restructuring charges | 0.3 | 0.4 | 3.2 | 3.1 | ||||||||||||
Interest expense, net | 3.8 | 4.4 | 10.8 | 13.4 | ||||||||||||
Other expense (income), net | — | — | (0.1 | ) | 0.1 | |||||||||||
Income from continuing operations before income taxes | $ | 100 | $ | 76.5 | $ | 223.4 | $ | 166.1 | ||||||||
(1) We define segment profit and loss as a segment's income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding: | ||||||||||||||||
• | Special product quality adjustments; | |||||||||||||||
• | Items in Losses (gains) and other expenses, net (see table note 2 below); | |||||||||||||||
• | Restructuring charges; | |||||||||||||||
• | Goodwill, long-lived asset, and equity method investment impairments; | |||||||||||||||
• | Interest expense, net; | |||||||||||||||
• | Other expense (income), net | |||||||||||||||
(2) Items in Losses (gains) and other expenses, net that are excluded from segment profit are the net change in unrealized gains and/or losses on unsettled futures contracts, special legal contingency charges, and other items |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the fair value hierarchy for those assets measured at fair value on a recurring basis (in millions): | |||||||
Quoted Prices in Active Markets for | ||||||||
Identical Assets (Level 1) | ||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Investment in marketable equity securities (1) | $ | 5.1 | $ | 10.6 | ||||
(1) | Investment in marketable equity securities is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. | |||||||
Other Fair Value Measurements | The estimated fair values of our Senior unsecured notes were as follows (in millions): | |||||||
Quoted Prices in Active Markets for | ||||||||
Similar Instruments (Level 2) | ||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||
Senior unsecured notes | $ | 212.1 | $ | 212.3 | ||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Condensed Consolidating Financial Statements [Abstract] | ||||||||||||||||||||
Condensed Consolidating Financial Statements | Condensed consolidating financial statements of the Company, its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 are shown on the following pages. | |||||||||||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1.5 | $ | 15.3 | $ | 21 | $ | — | $ | 37.8 | ||||||||||
Accounts and notes receivable, net | — | 30.7 | 458.5 | — | 489.2 | |||||||||||||||
Inventories, net | — | 290.3 | 140.2 | (0.5 | ) | 430 | ||||||||||||||
Deferred income taxes, net | 2.5 | 23 | 5.8 | (1.8 | ) | 29.5 | ||||||||||||||
Other assets | 31.8 | 55.4 | 76.6 | (113.0 | ) | 50.8 | ||||||||||||||
Assets of discontinued operations | — | — | 0.3 | (0.3 | ) | — | ||||||||||||||
Total current assets | 35.8 | 414.7 | 702.4 | (115.6 | ) | 1,037.30 | ||||||||||||||
Property, plant and equipment, net | — | 234.1 | 80.7 | — | 314.8 | |||||||||||||||
Goodwill | — | 140.4 | 78.4 | — | 218.8 | |||||||||||||||
Investment in subsidiaries | 2,358.70 | 305.8 | (0.5 | ) | (2,664.0 | ) | — | |||||||||||||
Deferred income taxes | 0.2 | 98.7 | 18.7 | (5.8 | ) | 111.8 | ||||||||||||||
Other assets, net | 4.3 | 52.6 | 17.5 | (1.4 | ) | 73 | ||||||||||||||
Intercompany receivables (payables), net | (1,503.8 | ) | 1,424.40 | 79.4 | — | — | ||||||||||||||
Total assets | $ | 895.2 | $ | 2,670.70 | $ | 976.6 | $ | (2,786.8 | ) | $ | 1,755.70 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | 167.9 | $ | — | $ | 167.9 | ||||||||||
Current maturities of long-term debt | — | 0.6 | 0.2 | — | 0.8 | |||||||||||||||
Accounts payable | 11.9 | 229.1 | 83.1 | — | 324.1 | |||||||||||||||
Accrued expenses | 8.5 | 207.9 | 65.3 | (0.3 | ) | 281.4 | ||||||||||||||
Income taxes payable | — | 76.9 | 56.4 | (111.7 | ) | 21.6 | ||||||||||||||
Liabilities of discontinued operations | — | — | — | — | — | |||||||||||||||
Total current liabilities | 20.4 | 514.5 | 372.9 | (112.0 | ) | 795.8 | ||||||||||||||
Long-term debt | 249.5 | 16.5 | 0.2 | — | 266.2 | |||||||||||||||
Post-retirement benefits, other than pensions | — | 3.8 | — | — | 3.8 | |||||||||||||||
Pensions | — | 119.3 | 18.8 | — | 138.1 | |||||||||||||||
Other liabilities | 0.4 | 66.7 | 9.6 | (7.1 | ) | 69.6 | ||||||||||||||
Total liabilities | 270.3 | 720.8 | 401.5 | (119.1 | ) | 1,273.50 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Total stockholders' equity | 624.9 | 1,949.90 | 575.1 | (2,667.7 | ) | 482.2 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 895.2 | $ | 2,670.70 | $ | 976.6 | $ | (2,786.8 | ) | $ | 1,755.70 | |||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 13.4 | $ | 37.4 | $ | — | $ | 51.8 | ||||||||||
Accounts and notes receivable, net | — | 225.8 | 344.7 | (197.1 | ) | 373.4 | ||||||||||||||
Inventories, net | — | 257.3 | 121.5 | (4.0 | ) | 374.8 | ||||||||||||||
Deferred income taxes, net | — | 22.9 | 6.3 | (1.7 | ) | 27.5 | ||||||||||||||
Other assets | 2 | 19.7 | 78.1 | (38.8 | ) | 61 | ||||||||||||||
Assets of discontinued operations | — | 25.2 | 78.4 | (5.0 | ) | 98.6 | ||||||||||||||
Total current assets | 3 | 564.3 | 666.4 | (246.6 | ) | 987.1 | ||||||||||||||
Property, plant and equipment, net | — | 239.7 | 58.5 | — | 298.2 | |||||||||||||||
Goodwill | — | 131.8 | 92 | — | 223.8 | |||||||||||||||
Investment in subsidiaries | 2,179.90 | 337 | (0.2 | ) | (2,516.7 | ) | — | |||||||||||||
Deferred income taxes | — | 87.8 | 20.8 | (5.8 | ) | 102.8 | ||||||||||||||
Other assets, net | 3.7 | 53 | 23.3 | — | 80 | |||||||||||||||
Intercompany receivables (payables), net | (1,289.8 | ) | 1,013.60 | 89.8 | 186.4 | — | ||||||||||||||
Total assets | $ | 896.8 | $ | 2,427.20 | $ | 950.6 | $ | (2,582.7 | ) | $ | 1,691.90 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | 34.9 | $ | — | $ | 34.9 | ||||||||||
Current maturities of long-term debt | — | 0.5 | 0.2 | — | 0.7 | |||||||||||||||
Accounts payable | — | 198.6 | 86.1 | — | 284.7 | |||||||||||||||
Accrued expenses | 2.5 | 196.6 | 60.8 | (0.3 | ) | 259.6 | ||||||||||||||
Income taxes payable | (27.3 | ) | 35 | 38.5 | (41.7 | ) | 4.5 | |||||||||||||
Liabilities of discontinued operations | — | 42.3 | 12.9 | — | 55.2 | |||||||||||||||
Total current liabilities | (24.8 | ) | 473 | 233.4 | (42.0 | ) | 639.6 | |||||||||||||
Long-term debt | 335 | 15.6 | 0.4 | — | 351 | |||||||||||||||
Post-retirement benefits, other than pensions | — | 6.1 | — | — | 6.1 | |||||||||||||||
Pensions | — | 114.7 | 19.7 | — | 134.4 | |||||||||||||||
Other liabilities | 0.5 | 60.1 | 9.2 | (7.3 | ) | 62.5 | ||||||||||||||
Total liabilities | 310.7 | 669.5 | 262.7 | (49.3 | ) | 1,193.60 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Total stockholders' equity | 586.1 | 1,757.70 | 687.9 | (2,533.4 | ) | 498.3 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 896.8 | $ | 2,427.20 | $ | 950.6 | $ | (2,582.7 | ) | $ | 1,691.90 | |||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Net Sales | $ | — | $ | 668.4 | $ | 221.7 | $ | (22.1 | ) | $ | 868 | |||||||||
Cost of goods sold | — | 494.5 | 161.7 | (25.6 | ) | 630.6 | ||||||||||||||
Gross profit | — | 173.9 | 60 | 3.5 | 237.4 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 107.5 | 29.4 | — | 136.9 | |||||||||||||||
Losses and other expenses, net | (1.7 | ) | 2 | (0.6 | ) | — | (0.3 | ) | ||||||||||||
Restructuring charges | — | 0.1 | 0.2 | — | 0.3 | |||||||||||||||
Income from equity method investments | (65.5 | ) | (14.9 | ) | (2.5 | ) | 79.6 | (3.3 | ) | |||||||||||
Operational income from continuing operations | 67.2 | 79.2 | 33.5 | (76.1 | ) | 103.8 | ||||||||||||||
Interest expense, net | 3.5 | (0.4 | ) | 0.7 | — | 3.8 | ||||||||||||||
Other expense, net | — | — | — | — | — | |||||||||||||||
Income from continuing operations before income taxes | 63.7 | 79.6 | 32.8 | (76.1 | ) | 100 | ||||||||||||||
Provision for income taxes | (0.6 | ) | 22.7 | 10.7 | 1.4 | 34.2 | ||||||||||||||
Income from continuing operations | 64.3 | 56.9 | 22.1 | (77.5 | ) | 65.8 | ||||||||||||||
Loss from discontinued operations | — | (1.5 | ) | — | — | (1.5 | ) | |||||||||||||
Net income | $ | 64.3 | $ | 55.4 | $ | 22.1 | $ | (77.5 | ) | $ | 64.3 | |||||||||
Other comprehensive income | $ | 4.5 | $ | 0.8 | $ | 3.5 | $ | 0.4 | $ | 9.2 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Net Sales | $ | — | $ | 1,984.50 | $ | 619.3 | $ | (154.3 | ) | $ | 2,449.50 | |||||||||
Cost of goods sold | — | 1,473.90 | 474.9 | (152.7 | ) | 1,796.10 | ||||||||||||||
Gross profit | — | 510.6 | 144.4 | (1.6 | ) | 653.4 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 327.8 | 96.2 | — | 424 | |||||||||||||||
Losses and other expenses, net | 0.8 | 2.2 | — | (0.2 | ) | 2.8 | ||||||||||||||
Restructuring charges | — | 1.6 | 1.6 | — | 3.2 | |||||||||||||||
Income from equity method investments | (144.1 | ) | (6.0 | ) | (8.7 | ) | 148.1 | (10.7 | ) | |||||||||||
Operational income from continuing operations | 143.3 | 185 | 55.3 | (149.5 | ) | 234.1 | ||||||||||||||
Interest expense, net | 10.6 | (1.5 | ) | 1.7 | — | 10.8 | ||||||||||||||
Other expense, net | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||
Income from continuing operations before income taxes | 132.7 | 186.5 | 53.7 | (149.5 | ) | 223.4 | ||||||||||||||
Provision for income taxes | (3.9 | ) | 63.3 | 18.7 | (0.6 | ) | 77.5 | |||||||||||||
Income from continuing operations | 136.6 | 123.2 | 35 | (148.9 | ) | 145.9 | ||||||||||||||
Loss from discontinued operations | — | 16.2 | (25.5 | ) | — | (9.3 | ) | |||||||||||||
Net income | $ | 136.6 | $ | 139.4 | $ | 9.5 | $ | (148.9 | ) | $ | 136.6 | |||||||||
Other comprehensive income (loss) | $ | (3.1 | ) | $ | 1.9 | $ | (3.8 | ) | $ | (66.6 | ) | $ | (71.6 | ) | ||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Three Months Ended September 30, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
Net Sales | $ | — | $ | 654.5 | $ | 214.3 | $ | (59.1 | ) | $ | 809.7 | |||||||||
Cost of goods sold | — | 499.7 | 163.9 | (58.8 | ) | 604.8 | ||||||||||||||
Gross profit | — | 154.8 | 50.4 | (0.3 | ) | 204.9 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 99.2 | 26.8 | (0.1 | ) | 125.9 | ||||||||||||||
Losses and other expenses, net | 0.1 | (1.0 | ) | 1.2 | — | 0.3 | ||||||||||||||
Restructuring charges | — | 0.1 | 0.3 | — | 0.4 | |||||||||||||||
Income from equity method investments | (38.4 | ) | (6.5 | ) | (1.9 | ) | 44.2 | (2.6 | ) | |||||||||||
Operational income from continuing operations | 38.3 | 63 | 24 | (44.4 | ) | 80.9 | ||||||||||||||
Interest expense, net | 4.3 | (0.6 | ) | 0.7 | — | 4.4 | ||||||||||||||
Other expense, net | — | — | — | — | — | |||||||||||||||
Income from continuing operations before income taxes | 34 | 63.6 | 23.3 | (44.4 | ) | 76.5 | ||||||||||||||
Provision for income taxes | (1.6 | ) | 20.1 | 10 | (1.7 | ) | 26.8 | |||||||||||||
Income from continuing operations | 35.6 | 43.5 | 13.3 | (42.7 | ) | 49.7 | ||||||||||||||
Loss from discontinued operations | — | (12.6 | ) | (7.7 | ) | — | (20.3 | ) | ||||||||||||
Net income | $ | 35.6 | $ | 30.9 | $ | 5.6 | $ | (42.7 | ) | $ | 29.4 | |||||||||
Other comprehensive income | $ | 5.6 | $ | 4.6 | $ | 17.4 | $ | 1.9 | $ | 29.5 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
Net Sales | $ | — | $ | 1,814.50 | $ | 610.2 | $ | (160.2 | ) | $ | 2,264.50 | |||||||||
Cost of goods sold | 0.1 | 1,401.70 | 468.4 | (159.6 | ) | 1,710.60 | ||||||||||||||
Gross profit | (0.1 | ) | 412.8 | 141.8 | (0.6 | ) | 553.9 | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative expenses | — | 286.5 | 93.3 | — | 379.8 | |||||||||||||||
Losses and other expenses, net | (2.1 | ) | (0.4 | ) | 2.7 | — | 0.2 | |||||||||||||
Restructuring charges | — | 2.6 | 0.5 | — | 3.1 | |||||||||||||||
Income from equity method investments | (81.9 | ) | (8.1 | ) | (6.9 | ) | 88.1 | (8.8 | ) | |||||||||||
Operational income from continuing operations | 83.9 | 132.2 | 52.2 | (88.7 | ) | 179.6 | ||||||||||||||
Interest expense, net | 13.1 | (1.8 | ) | 2.1 | — | 13.4 | ||||||||||||||
Other expense, net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Income from continuing operations before income taxes | 70.8 | 134 | 50 | (88.7 | ) | 166.1 | ||||||||||||||
Provision for income taxes | (4.0 | ) | 45.1 | 16.7 | (0.2 | ) | 57.6 | |||||||||||||
Income from continuing operations | 74.8 | 88.9 | 33.3 | (88.5 | ) | 108.5 | ||||||||||||||
Loss from discontinued operations | — | (27.9 | ) | (12.6 | ) | — | (40.5 | ) | ||||||||||||
Net income | $ | 74.8 | $ | 61 | $ | 20.7 | $ | (88.5 | ) | $ | 68 | |||||||||
Other comprehensive income | $ | 7.9 | $ | 4.4 | $ | 8.4 | $ | 6.2 | $ | 26.9 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | $ | (41.6 | ) | $ | 267 | $ | (160.4 | ) | $ | — | $ | 65 | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from the disposal of property, plant and equipment | — | 0.1 | — | — | 0.1 | |||||||||||||||
Purchases of property, plant and equipment | — | (30.3 | ) | (10.7 | ) | — | (41.0 | ) | ||||||||||||
Net proceeds from sale of businesses | 4.8 | — | 3.3 | — | 8.1 | |||||||||||||||
Net cash used in discontinued operations | — | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||
Net cash used in investing activities | 4.8 | (30.3 | ) | (7.4 | ) | — | (32.9 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Short-term borrowings, net | — | — | 3.8 | — | 3.8 | |||||||||||||||
Asset securitization borrowings | — | — | 330 | — | 330 | |||||||||||||||
Asset securitization payments | — | — | (200.0 | ) | — | (200.0 | ) | |||||||||||||
Long-term debt payments | — | (0.5 | ) | (0.2 | ) | — | (0.7 | ) | ||||||||||||
Borrowings from revolving credit facility | 998 | — | — | — | 998 | |||||||||||||||
Payments on revolving credit facility | (1,083.5 | ) | — | — | — | (1,083.5 | ) | |||||||||||||
Proceeds from employee stock purchases | 1.3 | — | — | — | 1.3 | |||||||||||||||
Repurchases of common stock | (66.0 | ) | — | — | — | (66.0 | ) | |||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (7.7 | ) | — | — | — | (7.7 | ) | |||||||||||||
Excess tax benefits related to share-based payments | 4.7 | — | — | — | 4.7 | |||||||||||||||
Intercompany debt | (44.4 | ) | 8.4 | 36 | — | — | ||||||||||||||
Intercompany financing activity | 257 | (242.7 | ) | (14.3 | ) | — | — | |||||||||||||
Cash dividends paid | (22.1 | ) | — | — | — | (22.1 | ) | |||||||||||||
Net cash used in financing activities | 37.3 | (234.8 | ) | 155.3 | — | (42.2 | ) | |||||||||||||
Decrease in cash and cash equivalents | 0.5 | 1.9 | (12.5 | ) | — | (10.1 | ) | |||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | (3.9 | ) | — | (3.9 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 1 | 13.4 | 37.4 | — | 51.8 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 1.5 | $ | 15.3 | $ | 21 | $ | — | $ | 37.8 | ||||||||||
Lennox International Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | $ | 21.4 | $ | 83.4 | $ | (40.4 | ) | $ | — | $ | 64.4 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from the disposal of property, plant and equipment | — | 0.1 | — | — | 0.1 | |||||||||||||||
Purchases of property, plant and equipment | — | (21.5 | ) | (6.5 | ) | — | (28.0 | ) | ||||||||||||
Net proceeds from sale of businesses | — | 10.1 | — | — | 10.1 | |||||||||||||||
Net cash used in discontinued operations | — | (0.4 | ) | 0.1 | — | (0.3 | ) | |||||||||||||
Net cash used in investing activities | — | (11.7 | ) | (6.4 | ) | — | (18.1 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Short-term borrowings, net | — | — | 1.3 | — | 1.3 | |||||||||||||||
Asset securitization borrowings | — | — | 480 | — | 480 | |||||||||||||||
Asset securitization payments | — | — | (455.0 | ) | — | (455.0 | ) | |||||||||||||
Long-term debt payments | — | (0.6 | ) | (0.3 | ) | — | (0.9 | ) | ||||||||||||
Borrowings from revolving credit facility | 696 | — | — | — | 696 | |||||||||||||||
Payments on revolving credit facility | (706.0 | ) | — | — | — | (706.0 | ) | |||||||||||||
Proceeds from employee stock purchases | 0.3 | — | — | — | 0.3 | |||||||||||||||
Repurchases of common stock | (35.0 | ) | — | — | — | (35.0 | ) | |||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (3.4 | ) | — | — | — | (3.4 | ) | |||||||||||||
Excess tax benefits related to share-based payments | 1.7 | — | — | — | 1.7 | |||||||||||||||
Intercompany debt | (5.3 | ) | (3.9 | ) | 9.2 | — | — | |||||||||||||
Intercompany financing activity | 57.8 | (55.3 | ) | (2.5 | ) | — | — | |||||||||||||
Cash dividends paid | (27.5 | ) | — | — | — | (27.5 | ) | |||||||||||||
Net cash used in financing activities | (21.4 | ) | (59.8 | ) | 32.7 | — | (48.5 | ) | ||||||||||||
Decrease in cash and cash equivalents | — | 11.9 | (14.1 | ) | — | (2.2 | ) | |||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | 6 | — | 6 | |||||||||||||||
Cash and cash equivalents, beginning of period | 1 | 9.7 | 34.3 | — | 45 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 1 | $ | 21.6 | $ | 26.2 | $ | — | $ | 48.8 | ||||||||||
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Components of inventories | ||
Finished goods | $292.90 | $258 |
Work in process | 12.7 | 12 |
Raw materials and repair parts | 199.7 | 180.1 |
Gross inventories | 505.3 | 450.1 |
Excess of current cost over last-in, first-out cost | -75.3 | -75.3 |
Total inventories, net | $430 | $374.80 |
Goodwill_Details
Goodwill (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Goodwill | ||
Goodwill, Beginning Balance | $223.80 | |
Acquisitions/(Dispositions) | 0 | |
Other | -5 | [1] |
Goodwill, Ending Balance | 218.8 | |
Residential Heating & Cooling [Member] | ||
Goodwill | ||
Goodwill, Beginning Balance | 26.1 | |
Acquisitions/(Dispositions) | 0 | |
Other | 0 | [1] |
Goodwill, Ending Balance | 26.1 | |
Commercial Heating & Cooling [Member] | ||
Goodwill | ||
Goodwill, Beginning Balance | 63.8 | |
Acquisitions/(Dispositions) | 0 | |
Other | 0.4 | [1] |
Goodwill, Ending Balance | 64.2 | |
Refrigeration [Member] | ||
Goodwill | ||
Goodwill, Beginning Balance | 133.9 | |
Acquisitions/(Dispositions) | 0 | |
Other | -5.4 | [1] |
Goodwill, Ending Balance | $128.50 | |
[1] | Other consists of changes in foreign currency translation rates. |
Derivatives_Details
Derivatives (Details) (Commodity Price Hedges [Member], Cash Flow Hedging [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commodity Price Hedges [Member] | Cash Flow Hedging [Member] | ||
Amounts related to cash flow hedges | ||
Losses (gains) included in AOCI, net of tax | $2 | ($1.10) |
Expense for (benefit from) income taxes | ($1.10) | $0.70 |
Derivatives_Details_1
Derivatives (Details 1) | Sep. 30, 2013 | Dec. 31, 2012 |
lb | lb | |
Copper [Member] | ||
Outstanding commodity futures contracts not designated as cash flow hedges | ||
Notional amounts | 20,000,000 | 22,800,000 |
Notional amounts | 2,100,000 | 2,100,000 |
Aluminum [Member] | ||
Outstanding commodity futures contracts not designated as cash flow hedges | ||
Notional amounts | 2,500,000 | 2,800,000 |
Derivatives_Details_2
Derivatives (Details 2) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Brazilian Real [Member] | Brazilian Real [Member] | Mexican Peso [Member] | Mexican Peso [Member] | Euro [Member] | Euro [Member] | British Pound [Member] | British Pound [Member] | Indian Rupee [Member] | Indian Rupee [Member] | Polish Zloty [Member] | Polish Zloty [Member] |
BRL | BRL | MXN | MXN | EUR (€) | EUR (€) | GBP (£) | GBP (£) | INR | INR | PLN | PLN | |
Outstanding foreign currency forward contracts not designated as cash flow hedges | ||||||||||||
Derivative, Notional Amount | 5.2 | 10.8 | 248.5 | 220.2 | € 2 | € 1.30 | £ 3.4 | £ 5.4 | 112 | 19.5 | 30.5 | 12.4 |
Derivatives_Details_3
Derivatives (Details 3) (Fair Value, Inputs, Level 2 [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Designated as Hedging Instrument [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | $0.10 | [1] | $1.90 | [1] |
Derivative Liability, Fair Value | 3.3 | [1] | 0 | [1] |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Current Assets [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | 0 | [1] | 1.6 | [1] |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Assets Non Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | 0.1 | [1] | 0.3 | [1] |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Liabilities Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Liability, Fair Value | 3.3 | [1] | 0 | [1] |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Liabilities Non Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Liability, Fair Value | 0 | [1] | 0 | [1] |
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | 0 | [1] | 0 | [1] |
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Liabilities Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Liability, Fair Value | 0 | [1] | 0 | [1] |
Not Designated as Hedging Instrument [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | 0 | [1] | 0.3 | [1] |
Derivative Liability, Fair Value | 0.6 | [1] | 0.1 | [1] |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Current Assets [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | 0 | [1] | 0.2 | [1] |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Assets Non Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | 0 | [1] | 0 | [1] |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Liabilities Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Liability, Fair Value | 0.4 | [1] | 0 | [1] |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Liabilities Non Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Liability, Fair Value | 0 | [1] | 0 | [1] |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Asset, Fair Value | 0 | [1] | 0.1 | [1] |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Liabilities Current [Member] | ||||
Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations | ||||
Derivative Liability, Fair Value | $0.20 | [1] | $0.10 | [1] |
[1] | All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 16 for more information. |
Derivatives_Details_4
Derivatives (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Cash Flow Hedging [Member] | ||||||
Amount of Loss or (Gain) Reclassified from AOCI into Income (Effective Portion): | ||||||
Effective portion | $2.10 | $2.80 | ($3.30) | ($7.60) | ||
Cash Flow Hedging [Member] | Cost of Goods Sold [Member] | Commodity Futures Contracts [Member] | ||||||
Amount of Loss or (Gain) Reclassified from AOCI into Income (Effective Portion): | ||||||
Effective portion | 2.1 | [1] | 2.2 | [1] | -3.3 | -5.8 |
Cash Flow Hedging [Member] | Interest Expense Net [Member] | Interest Rate Swap [Member] | ||||||
Amount of Loss or (Gain) Reclassified from AOCI into Income (Effective Portion): | ||||||
Effective portion | 0 | [2] | 0.6 | [2] | 0 | -1.8 |
Cash Flow Hedging [Member] | Losses and Other Expenses Net [Member] | Commodity Futures Contracts [Member] | ||||||
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion): | ||||||
Ineffective portion | -0.1 | [3] | -0.1 | [3] | -0.2 | 0.2 |
Not Designated as Hedging Instrument [Member] | ||||||
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion): | ||||||
Amount of (Gain) or Loss Recognized in Income on Derivatives | -1.2 | -0.2 | -1.4 | 0.6 | ||
Not Designated as Hedging Instrument [Member] | Losses and Other Expenses Net [Member] | Commodity Futures Contracts [Member] | ||||||
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion): | ||||||
Amount of (Gain) or Loss Recognized in Income on Derivatives | -0.6 | [3] | -0.8 | [3] | -1.2 | 0.9 |
Not Designated as Hedging Instrument [Member] | Losses and Other Expenses Net [Member] | Foreign Currency Forward Contracts [Member] | ||||||
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion): | ||||||
Amount of (Gain) or Loss Recognized in Income on Derivatives | ($0.60) | [3] | $0.60 | [3] | ($0.20) | ($0.30) |
[1] | The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations. | |||||
[2] | The loss was recorded in Interest expense, net in the accompanying Consolidated Statements of Operations. | |||||
[3] | The loss (gain) was recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statements of Operations. |
Derivatives_Details_Textual
Derivatives (Details Textual) (USD $) | 9 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Interest Rate Swap [Member] | Commodity Futures Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Long-term Line of Credit | $100 | ||
Cash flow hedge derivative gains (losses) expected to be reclassified into earnings within the next 12 months | $2.10 | ||
Derivative, Description of Variable Rate Basis | 1-Month LIBOR |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Income Taxes (Textual) [Abstract] | |
Total gross unrecognized tax benefits | $1.90 |
Amount of unrecognized tax benefits that would be recorded through consolidated statement of operation | 1.5 |
Interest and penalties in income tax expenses | $0.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 1) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Mar. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
sqft | |||
Loss Contingencies [Line Items] | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | ($3.20) | ||
Liability for Asbestos and Environmental Claims, Net, Claims Paid | 0 | 0.5 | |
Operating Lease Term | 6 years | ||
Area of Leased Office Building | 192,000 | ||
Purchase Price of Property at End of Lease Term | 41.2 | ||
Percentage of Lease Balance as Final Payment End of Lease Term | 86.00% | ||
Annual Warranty Review [Member] | |||
Loss Contingencies [Line Items] | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $3.20 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Total liabilities for estimated warranty | ||
Accrued expenses | $23.70 | $25.10 |
Other liabilities | 52 | 46.8 |
Total liabilities for estimated warranty | $75.70 | $71.90 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Changes in the total warranty liabilities | |
Total warranty liability, Beginning Balance | $71.90 |
Payments made in 2013 | -15.3 |
Changes resulting from issuance of new warranties | 22.5 |
Change in estimates associated with pre-existing liabilities | -3.2 |
Changes in foreign currency translation rates and other | -0.2 |
Total warranty liability, Ending Balance | $75.70 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details 4) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Loss Contingencies [Line Items] | ||
Liability for Asbestos and Environmental Claims, Net, Incurred Loss | $0 | $0.50 |
Changes in the accrued product quality issue | ||
Total accrued product quality issue, beginning balance | 6.7 | |
Changes in estimates associated with pre-existing liabilities | 0.3 | |
Product quality claims | -1.1 | |
Total accrued product quality issue, ending balance | $5.90 | $5.90 |
Lines_of_Credit_and_Financing_2
Lines of Credit and Financing Arrangements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-10 |
In Millions, unless otherwise specified | |||
Short-Term Debt: | |||
Asset Securitization Program | $160 | $30 | |
Total short-term debt | 167.9 | 34.9 | |
Current maturities of long-term debt | 0.8 | 0.7 | |
Long-Term Debt: | |||
Capital lease obligations | 16.7 | 16 | |
Domestic revolving credit facility | 49.5 | 135 | |
Total long-term debt | 266.2 | 351 | |
Total debt | 434.9 | 386.6 | |
Senior Notes [Member] | |||
Long-Term Debt: | |||
Senior unsecured notes | 200 | 200 | 200 |
Foreign Obligations [Member] | |||
Short-Term Debt: | |||
Foreign obligations | $7.90 | $4.90 |
Lines_of_Credit_and_Financing_3
Lines of Credit and Financing Arrangements (Details 2) (Eligible amounts available and beneficial interest sold [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Eligible amounts available and beneficial interest sold [Member] | ||
Eligible amounts available and beneficial interests sold | ||
Eligible amount available under the ASP on qualified accounts receivable | $160 | $160 |
Beneficial interest sold | 160 | 30 |
Remaining amount available | $0 | $130 |
Lines_of_Credit_and_Financing_4
Lines of Credit and Financing Arrangements (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Discount fees in Selling, General and Administrative Expenses | ||||
Interest expense, net | $3.80 | $4.40 | $10.80 | $13.40 |
Asset Securitization [Member] | ||||
Discount fees in Selling, General and Administrative Expenses | ||||
Interest expense, net | $0.30 | $0.30 | $1 | $0.90 |
Lines_of_Credit_and_Financing_5
Lines of Credit and Financing Arrangements (Details 4) | Sep. 30, 2013 | Dec. 31, 2012 |
Summary of weighted average borrowing rate facility | ||
Weighted average borrowing rate | 1.41% | 1.46% |
Lines_of_Credit_and_Financing_6
Lines of Credit and Financing Arrangements (Details Textual) (Foreign Obligations [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Foreign Obligations [Member] | ||
Lines of Credit and Financing Arrangements (Textual) [Abstract] | ||
Borrowings under foreign lines of credit facility | $7.90 | $4.90 |
Lines_of_Credit_and_Financing_7
Lines of Credit and Financing Arrangements (Details Textual 1) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Lines of Credit and Financing Arrangements (Textual) [Abstract] | ||
Maximum securitization, amount | $160,000,000 | |
Maximum securitization as percentage of net pool balance | 100.00% | |
Program fee | 0.60% | |
Average floating commercial paper rate | 0.81% | 0.85% |
Unused fee | 102.00% | |
Fixed rate of agreement | 0.30% | |
Domestic revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Domestic Revolving Credit Facility | 650,000,000 | |
Borrowings under Domestic Revolving Credit Facility | 49,500,000 | |
Committed standby letters of credit | 33,500,000 | |
Available for future borrowings | 567,000,000 | |
Extended maturity date | 31-Oct-16 | |
Maximum increase in borrowings under Domestic Revolving Credit Facility | $100,000,000 | |
Indebtedness to Adjusted EBITDA Ratio | 3.5 | |
Cash Flow to Net Interest Expense ratio | 3 |
Lines_of_Credit_and_Financing_8
Lines of Credit and Financing Arrangements (Details Textual 2) (Line of Credit [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Line of Credit [Member] | |
Lines of Credit and Financing Arrangements (Textual) [Abstract] | |
Minimum amount of principal or interest due on indebtedness or receivable securitization | $75 |
Lines_of_Credit_and_Financing_9
Lines of Credit and Financing Arrangements (Details Textual 3) (Senior Notes [Member], USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-10 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes | $200 | $200 | $200 |
Fixed interest rate for senior unsecured notes | 4.90% | ||
Maturity date of senior unsecured notes | 15-May-17 | ||
Minimum principal amount accelerated | $75 | ||
Notice Date | 30 days |
Pension_and_Postretirement_Ben2
Pension and Post-retirement Benefit Plans Three months ended (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Pension Plan, Defined Benefit [Member] | ||||||||
Defined Benefit Plan, Service Cost | $1.30 | $1.40 | $3.90 | $4.10 | ||||
Defined Benefit Plan, Interest Cost | 4 | 4.3 | 12.3 | 12.9 | ||||
Defined Benefit Plan, Expected Return on Plan Assets | 5.1 | 4.7 | 15.7 | 14.1 | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0.1 | 0.1 | 0.3 | 0.3 | ||||
Defined Benefit Plan, Amortization of Gains (Losses) | -2.3 | -2.1 | -6.9 | -6.5 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | -0.1 | -1 | -1.3 | -7.3 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | 2.7 | [1] | 4.2 | [1] | 9 | [1] | 17 | [1] |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||||||
Defined Benefit Plan, Service Cost | 0 | 0 | 0 | 0.2 | ||||
Defined Benefit Plan, Interest Cost | 0 | 0.1 | 0.1 | 0.4 | ||||
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 | 0 | 0 | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | -0.7 | -0.8 | -2.2 | -2 | ||||
Defined Benefit Plan, Amortization of Gains (Losses) | -0.4 | -0.4 | -1.1 | -1 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | 0 | 0 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ($0.30) | [1] | ($0.30) | [1] | ($1) | [1] | ($0.40) | [1] |
[1] | Pension Expense of $0.1 million and $0.2 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2013, respectively. Pension expense of $0.6 million and $7.0 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2012, respectively. |
Pension_and_Postretirement_Ben3
Pension and Post-retirement Benefit Plans Nine Months Ended (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Pension Plan, Defined Benefit [Member] | ||||||||
Defined Benefit Plan, Service Cost | $1.30 | $1.40 | $3.90 | $4.10 | ||||
Defined Benefit Plan, Interest Cost | 4 | 4.3 | 12.3 | 12.9 | ||||
Defined Benefit Plan, Expected Return on Plan Assets | 5.1 | 4.7 | 15.7 | 14.1 | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0.1 | 0.1 | 0.3 | 0.3 | ||||
Defined Benefit Plan, Amortization of Gains (Losses) | -2.3 | -2.1 | -6.9 | -6.5 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | -0.1 | -1 | -1.3 | -7.3 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | 2.7 | [1] | 4.2 | [1] | 9 | [1] | 17 | [1] |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||||||
Defined Benefit Plan, Service Cost | 0 | 0 | 0 | 0.2 | ||||
Defined Benefit Plan, Interest Cost | 0 | 0.1 | 0.1 | 0.4 | ||||
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 | 0 | 0 | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | -0.7 | -0.8 | -2.2 | -2 | ||||
Defined Benefit Plan, Amortization of Gains (Losses) | -0.4 | -0.4 | -1.1 | -1 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | 0 | 0 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ($0.30) | [1] | ($0.30) | [1] | ($1) | [1] | ($0.40) | [1] |
[1] | Pension Expense of $0.1 million and $0.2 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2013, respectively. Pension expense of $0.6 million and $7.0 million was included in Loss from discontinued operations for the three and nine months ended September 30, 2012, respectively. |
Pension_and_Postretirement_Ben4
Pension and Post-retirement Benefit Plans Text (Details) (Discontinued Operations [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Discontinued Operations [Member] | ||||
Pension Expense | $0.10 | $0.60 | $0.20 | $7 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $0 | $0 | $0 | ($6.30) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Schedule of stock -based compensation expense in operations | ||||||
Compensation expense | $5.30 | [1] | $2.70 | [1] | $20.50 | $10.50 |
[1] | Stock-Based Compensation expense is recorded in our Corporate and other business segment. |
Stock_Repurchases_Details_Text
Stock Repurchases (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
2012 Share Repurchase Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount for share repurchase | $700 | $300 | |||
Remaining authorized amount for share repurchase | 305.2 | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 0.1 | ||||
Payments Related to Tax Withholding for Share-based Compensation | 7.7 | 3.4 | |||
Shares repurchased | 0.9 | ||||
Stock Redeemed or Called During Period, Value | $66 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of goods sold | $630.60 | $604.80 | $1,796.10 | $1,710.60 | ||
Income tax expense | 34.2 | 26.8 | 77.5 | 57.6 | ||
Discontinued operations | -1.5 | -20.3 | -9.3 | -40.5 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications from AOCI | -1.3 | 39 | ||||
Gains/(Losses) on cash flow hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income tax expense | 0.8 | 1.2 | ||||
Total reclassifications from AOCI | -1.3 | -2.1 | ||||
Foreign currency translation adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Discontinued operations | 0 | [1] | 41.1 | [1] | ||
Commodity derivative contracts [Member] | Gains/(Losses) on cash flow hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of goods sold | ($2.10) | ($3.30) | ||||
[1] | The reclassification of foreign currency translation adjustments relates to the sale of the Service Experts business in the first quarter of 2013. Refer to Note 13 for details. |
Comprehensive_Income_Details_1
Comprehensive Income (Details 1) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of December 31, 2012 | ($22.30) |
Other comprehensive income/(loss) before reclassifications | -32.6 |
Amounts reclassified from AOCI | -39 |
Net other comprehensive income/(loss) | -71.6 |
Balance as of March 31, 2013 | -93.9 |
Gains / (Losses) on Cash Flow Hedges [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of December 31, 2012 | 1.1 |
Other comprehensive income/(loss) before reclassifications | -5.2 |
Amounts reclassified from AOCI | 2.1 |
Net other comprehensive income/(loss) | -3.1 |
Balance as of March 31, 2013 | -2 |
Unrealized Gains / (Losses) on Available-for-Sale Securities [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of December 31, 2012 | 9.3 |
Other comprehensive income/(loss) before reclassifications | -6.2 |
Amounts reclassified from AOCI | 0 |
Net other comprehensive income/(loss) | -6.2 |
Balance as of March 31, 2013 | 3.1 |
Defined Benefit Pension Plan Items [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of December 31, 2012 | -147.5 |
Other comprehensive income/(loss) before reclassifications | 0.4 |
Amounts reclassified from AOCI | 0 |
Net other comprehensive income/(loss) | 0.4 |
Balance as of March 31, 2013 | -147.1 |
Foreign Currency Translation Adjustments [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of December 31, 2012 | 114.8 |
Other comprehensive income/(loss) before reclassifications | -21.6 |
Amounts reclassified from AOCI | -41.1 |
Net other comprehensive income/(loss) | -62.7 |
Balance as of March 31, 2013 | $52.10 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | $3.20 | |||
Charges Incurred to Date | 23.8 | |||
Total Charges Expected to be Incurred | 24.5 | |||
Details activity within the restructuring reserves | ||||
Beginning balance | 2.4 | |||
Restructuring charges | 0.3 | 0.4 | 3.2 | 3.1 |
Cash Utilization | -4.4 | |||
Non-Cash Utilization and Other | -0.6 | |||
Ending balance | 0.6 | 0.6 | ||
Severance and related expense [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 0.8 | |||
Charges Incurred to Date | 11.9 | |||
Total Charges Expected to be Incurred | 12.5 | |||
Details activity within the restructuring reserves | ||||
Beginning balance | 0.7 | |||
Restructuring charges | 0.8 | |||
Cash Utilization | -1.1 | |||
Non-Cash Utilization and Other | 0 | |||
Ending balance | 0.4 | 0.4 | ||
Asset write-offs and accelerated depreciation [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 0.8 | |||
Charges Incurred to Date | 1.8 | |||
Total Charges Expected to be Incurred | 1.8 | |||
Details activity within the restructuring reserves | ||||
Beginning balance | 0 | |||
Restructuring charges | 0.8 | |||
Cash Utilization | -0.2 | |||
Non-Cash Utilization and Other | -0.6 | |||
Ending balance | 0 | 0 | ||
Equipment moves [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 0.1 | |||
Charges Incurred to Date | 0.4 | |||
Total Charges Expected to be Incurred | 0.4 | |||
Details activity within the restructuring reserves | ||||
Beginning balance | 0 | |||
Restructuring charges | 0.1 | |||
Cash Utilization | -0.1 | |||
Non-Cash Utilization and Other | 0 | |||
Ending balance | 0 | 0 | ||
Lease termination [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 0 | |||
Charges Incurred to Date | 2.6 | |||
Total Charges Expected to be Incurred | 2.6 | |||
Details activity within the restructuring reserves | ||||
Beginning balance | 1.2 | |||
Restructuring charges | 0 | |||
Cash Utilization | -1.2 | |||
Non-Cash Utilization and Other | 0 | |||
Ending balance | 0 | 0 | ||
Other [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 1.5 | |||
Charges Incurred to Date | 7.1 | |||
Total Charges Expected to be Incurred | 7.2 | |||
Details activity within the restructuring reserves | ||||
Beginning balance | 0.5 | |||
Restructuring charges | 1.5 | |||
Cash Utilization | -1.8 | |||
Non-Cash Utilization and Other | 0 | |||
Ending balance | 0.2 | 0.2 | ||
Residential Heating & Cooling [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 1.4 | |||
Charges Incurred to Date | 7.7 | |||
Total Charges Expected to be Incurred | 7.7 | |||
Commercial Heating & Cooling [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 0.9 | |||
Charges Incurred to Date | 7.8 | |||
Total Charges Expected to be Incurred | 8.4 | |||
Refrigeration [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 0.9 | |||
Charges Incurred to Date | 8.3 | |||
Total Charges Expected to be Incurred | 8.4 | |||
Corporate & other [Member] | ||||
Information regarding restructuring charges | ||||
Charges Incurred in 2013 | 0 | |||
Charges Incurred to Date | 0 | |||
Total Charges Expected to be Incurred | $0 |
Restructuring_Charges_Details_
Restructuring Charges (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Charges (Textual) [Line Items] | ||||
Restructuring charges | $0.30 | $0.40 | $3.20 | $3.10 |
Expected future restructuring charges | 24.5 | |||
Charges Incurred to Date | 23.8 | |||
Regional Distribution Network [Member] | ||||
Restructuring Charges (Textual) [Line Items] | ||||
Restructuring charges | 1.4 | |||
Expected future restructuring charges | 0 | |||
Charges Incurred to Date | $7.70 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Service Experts [Member] | ||||
Summary of net trade sales and pre-tax operating losses | ||||
Net trade sales | $0 | $98.30 | $73.50 | $292.60 |
Pre-tax operating income (loss) | -2.3 | -26.8 | -17.8 | -42.7 |
Gain on sale of business | 0 | 0 | 1.7 | 0 |
Hearth [Member] | ||||
Summary of net trade sales and pre-tax operating losses | ||||
Net trade sales | 0 | 0 | 0 | 23.5 |
Pre-tax operating income (loss) | 0 | -1.2 | 0.5 | -13.1 |
Gain on sale of business | $0 | $2.90 | $0 | ($0.90) |
Discontinued_Operations_Detail1
Discontinued Operations (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Hearth [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Revenue | $0 | $0 | $0 | $23.50 | ||||
Liabilities of discontinued operations: | ||||||||
Pre Tax Operating Loss before Loss on Sale | 0 | -1.2 | 0.5 | -13.1 | ||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 0 | 2.9 | 0 | -0.9 | ||||
Service Experts [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Revenue | 0 | 98.3 | 73.5 | 292.6 | ||||
Assets of discontinued operations: | ||||||||
Accounts receivable, net | 0 | 0 | 11.2 | |||||
Inventories, net | 0 | 0 | 4.8 | |||||
Property, Plant and Equipment, net | 0 | 0 | 3.6 | |||||
Goodwill and intangible assets, net | 0 | [1] | 0 | [1] | 66.2 | [1] | ||
Deferred income taxes | 0 | 0 | 5.5 | |||||
Other assets | 0 | 0 | 7.3 | |||||
Liabilities of discontinued operations: | ||||||||
Accounts payable | 0 | 0 | 16.7 | |||||
Accrued expenses | 0 | 0 | 38.5 | |||||
Pre Tax Operating Loss before Loss on Sale | -2.3 | -26.8 | -17.8 | -42.7 | ||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $0 | $0 | $1.70 | $0 | ||||
[1] | Includes goodwill of $66.0 million as of December 31, 2012. No goodwill impairments were recorded in 2013, and all goodwill was eliminated on March 22, 2013 as a result of the sale of the business. |
Discontinued_Operations_Detail2
Discontinued Operations (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | ||
Service Experts [Member] | Service Experts [Member] | Service Experts [Member] | Service Experts [Member] | Hearth [Member] | ||||||||
Goodwill in assets of discontinued operations [Member] | Goodwill in assets of discontinued operations [Member] | |||||||||||
Discontinued Operations (Textual) [Abstract] | ||||||||||||
Goodwill | $218.80 | $218.80 | $223.80 | $66 | ||||||||
Goodwill impairment | 0 | |||||||||||
Net proceeds from sale of discontinued operations | 10.4 | 10.1 | ||||||||||
Working capital adjustment included in net proceeds from sale of discontinued operations | 3.8 | |||||||||||
Sale of equipment | 0.1 | 0.1 | ||||||||||
Severance expense | 2.3 | |||||||||||
Stock-based compensation expense | $5.30 | [1] | $2.70 | [1] | $20.50 | $10.50 | $0.20 | |||||
[1] | Stock-Based Compensation expense is recorded in our Corporate and other business segment. |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0.4 | 0 | 0.4 |
Computations of basic and diluted earnings per share for income from continuing operations | ||||
Net income | $64.30 | $29.40 | $136.60 | $68 |
Add: Loss from discontinued operations | 1.5 | 20.3 | 9.3 | 40.5 |
Income from continuing operations | $65.80 | $49.70 | $145.90 | $108.50 |
Weighted-average shares outstanding - basic | 49.7 | 50.6 | 50 | 50.8 |
Effect of diluted securities attributable to stock-based payments | 0.8 | 0.7 | 0.8 | 0.7 |
Weighted-average shares outstanding - diluted | 50.5 | 51.3 | 50.8 | 51.5 |
Earnings per share: | ||||
Income from continuing operations, Basic | $1.32 | $0.98 | $2.92 | $2.13 |
Loss from discontinued operations, Basic | ($0.03) | ($0.40) | ($0.19) | ($0.79) |
Net income (loss), Basic | $1.29 | $0.58 | $2.73 | $1.34 |
Income from continuing operations, Diluted | $1.30 | $0.97 | $2.87 | $2.11 |
Loss from discontinued operations, Diluted | ($0.03) | ($0.40) | ($0.18) | ($0.79) |
Net income (loss), Diluted | $1.27 | $0.57 | $2.69 | $1.32 |
Earnings_Loss_Per_Share_Detail1
Earnings (Loss) Per Share (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock appreciation rights were outstanding, but not included in the diluted loss per share calculation | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0.4 | 0 | 0.4 |
Price ranges per share, minimum | $0 | $46.78 | $0 | $46.78 |
Price ranges per share, maximum | $0 | $46.78 | $0 | $46.78 |
Reportable_Business_Segments_D
Reportable Business Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Other Nonoperating Income (Expense) | $0 | $0 | ($0.10) | $0.10 |
Residential Heating & Cooling [Member] | United States [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts | |||
Markets Served | Residential Replacement; Residential New Construction | |||
Residential Heating & Cooling [Member] | Canada [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts | |||
Markets Served | Residential Replacement; Residential New Construction | |||
Commercial Heating & Cooling [Member] | United States [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment | |||
Markets Served | Light Commercial | |||
Commercial Heating & Cooling [Member] | Canada [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment | |||
Markets Served | Light Commercial | |||
Commercial Heating & Cooling [Member] | Europe [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment | |||
Markets Served | Light Commercial | |||
Refrigeration [Member] | United States [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems | |||
Refrigeration [Member] | Canada [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems | |||
Markets Served | Light Commercial Food Preservation; Non-Food/Industrial | |||
Refrigeration [Member] | Europe [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems | |||
Markets Served | Light Commercial Food Preservation; Non-Food/Industrial | |||
Refrigeration [Member] | North America [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Markets Served | Light Commercial; Food Preservation; Non-Food/Industrial | |||
Refrigeration [Member] | South America [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems | |||
Markets Served | Light Commercial Food Preservation; Non-Food/Industrial | |||
Refrigeration [Member] | Asia Pacific [Member] | ||||
Summary of nature of operations of reportable segment | ||||
Product or Services | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems | |||
Markets Served | Light Commercial Food Preservation; Non-Food/Industrial |
Reportable_Business_Segments_D1
Reportable Business Segments (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales, segment profit (loss) by business segment and reconciliation of segment profit (loss) to Income from Continuing Operations before income taxes | ||||
Number Of Business Segments | 3 | |||
Net Sales | ||||
Net Sales | $868 | $809.70 | $2,449.50 | $2,264.50 |
Segment Profit (Loss) | ||||
Subtotal that includes segment profit and eliminations | 103.5 | 81 | 238.8 | 181.7 |
Reconciliation to income from continuing operations before income taxes: | ||||
Special product quality adjustment | -0.4 | 0.9 | -0.5 | 1 |
Items in (Gains) losses and other expenses, net that are excluded from segment profit | -0.2 | -1.2 | 2 | -2 |
Restructuring charges | 0.3 | 0.4 | 3.2 | 3.1 |
Interest expense, net | 3.8 | 4.4 | 10.8 | 13.4 |
Other expense (income), net | 0 | 0 | -0.1 | 0.1 |
Income from continuing operations before income taxes | 100 | 76.5 | 223.4 | 166.1 |
Residential Heating & Cooling [Member] | ||||
Net Sales | ||||
Net Sales | 433.9 | 386.3 | 1,224.50 | 1,070.70 |
Segment Profit (Loss) | ||||
Subtotal that includes segment profit and eliminations | 57 | 37.7 | 143.7 | 90.7 |
Commercial Heating & Cooling [Member] | ||||
Net Sales | ||||
Net Sales | 239.1 | 219.7 | 631.8 | 597.9 |
Segment Profit (Loss) | ||||
Subtotal that includes segment profit and eliminations | 39.2 | 32.5 | 84.8 | 74.1 |
Refrigeration [Member] | ||||
Net Sales | ||||
Net Sales | 195 | 203.7 | 593.2 | 595.9 |
Segment Profit (Loss) | ||||
Subtotal that includes segment profit and eliminations | 23.9 | 25.1 | 66.5 | 60.6 |
Corporate & other [Member] | ||||
Segment Profit (Loss) | ||||
Subtotal that includes segment profit and eliminations | ($16.60) | ($14.30) | ($56.20) | ($43.70) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Quoted Prices in Active Markets for Identical Assets (Level 1) [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Investment in marketable equity securities | $5.10 | [1] | $10.60 | [1] |
[1] | Investment in marketable equity securities is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Quoted Prices in Active Markets for Similar Instruments (Level 2), Senior unsecured notes [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Quoted Prices in Active Markets for Similar Instruments (Level 2) | Senior unsecured notes [Member] | ||
Other Fair Value Measurements | ||
Senior unsecured notes | $212.10 | $212.30 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $37.80 | $51.80 | $48.80 | $45 |
Accounts and notes receivable, net | 489.2 | 373.4 | ||
Inventories, net | 430 | 374.8 | ||
Deferred income taxes, net | 29.5 | 27.5 | ||
Other assets | 50.8 | 61 | ||
Assets of discontinued operations | 0 | 98.6 | ||
Total current assets | 1,037.30 | 987.1 | ||
Property, plant and equipment, net | 314.8 | 298.2 | ||
Goodwill | 218.8 | 223.8 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||
Deferred income taxes | 111.8 | 102.8 | ||
Other assets, net | 73 | 80 | ||
Related Party Transaction, Due from (to) Related Party | 0 | 0 | ||
Total assets | 1,755.70 | 1,691.90 | ||
Current Liabilities: | ||||
Short-term debt | 167.9 | 34.9 | ||
Current maturities of long-term debt | 0.8 | 0.7 | ||
Accounts payable | 324.1 | 284.7 | ||
Accrued expenses | 281.4 | 259.6 | ||
Income taxes payable | 21.6 | 4.5 | ||
Liabilities of discontinued operations | 0 | 55.2 | ||
Total current liabilities | 795.8 | 639.6 | ||
Long-term debt | 266.2 | 351 | ||
Post-retirement benefits, other than pensions | 3.8 | 6.1 | ||
Pensions | 138.1 | 134.4 | ||
Other liabilities | 69.6 | 62.5 | ||
Total liabilities | 1,273.50 | 1,193.60 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 482.2 | 498.3 | ||
Total liabilities and stockholders' equity | 1,755.70 | 1,691.90 | ||
Parent [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 1.5 | 1 | 1 | 1 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Deferred income taxes, net | 2.5 | 0 | ||
Other assets | 31.8 | 2 | ||
Assets of discontinued operations | 0 | 0 | ||
Total current assets | 35.8 | 3 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 2,358.70 | 2,179.90 | ||
Deferred income taxes | 0.2 | 0 | ||
Other assets, net | 4.3 | 3.7 | ||
Related Party Transaction, Due from (to) Related Party | -1,503.80 | -1,289.80 | ||
Total assets | 895.2 | 896.8 | ||
Current Liabilities: | ||||
Short-term debt | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 11.9 | 0 | ||
Accrued expenses | 8.5 | 2.5 | ||
Income taxes payable | 0 | -27.3 | ||
Liabilities of discontinued operations | 0 | 0 | ||
Total current liabilities | 20.4 | -24.8 | ||
Long-term debt | 249.5 | 335 | ||
Post-retirement benefits, other than pensions | 0 | 0 | ||
Pensions | 0 | 0 | ||
Other liabilities | 0.4 | 0.5 | ||
Total liabilities | 270.3 | 310.7 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 624.9 | 586.1 | ||
Total liabilities and stockholders' equity | 895.2 | 896.8 | ||
Guarantor Subsidiaries [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 15.3 | 13.4 | 21.6 | 9.7 |
Accounts and notes receivable, net | 30.7 | 225.8 | ||
Inventories, net | 290.3 | 257.3 | ||
Deferred income taxes, net | 23 | 22.9 | ||
Other assets | 55.4 | 19.7 | ||
Assets of discontinued operations | 0 | 25.2 | ||
Total current assets | 414.7 | 564.3 | ||
Property, plant and equipment, net | 234.1 | 239.7 | ||
Goodwill | 140.4 | 131.8 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 305.8 | 337 | ||
Deferred income taxes | 98.7 | 87.8 | ||
Other assets, net | 52.6 | 53 | ||
Related Party Transaction, Due from (to) Related Party | 1,424.40 | 1,013.60 | ||
Total assets | 2,670.70 | 2,427.20 | ||
Current Liabilities: | ||||
Short-term debt | 0 | 0 | ||
Current maturities of long-term debt | 0.6 | 0.5 | ||
Accounts payable | 229.1 | 198.6 | ||
Accrued expenses | 207.9 | 196.6 | ||
Income taxes payable | 76.9 | 35 | ||
Liabilities of discontinued operations | 0 | 42.3 | ||
Total current liabilities | 514.5 | 473 | ||
Long-term debt | 16.5 | 15.6 | ||
Post-retirement benefits, other than pensions | 3.8 | 6.1 | ||
Pensions | 119.3 | 114.7 | ||
Other liabilities | 66.7 | 60.1 | ||
Total liabilities | 720.8 | 669.5 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 1,949.90 | 1,757.70 | ||
Total liabilities and stockholders' equity | 2,670.70 | 2,427.20 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 21 | 37.4 | 26.2 | 34.3 |
Accounts and notes receivable, net | 458.5 | 344.7 | ||
Inventories, net | 140.2 | 121.5 | ||
Deferred income taxes, net | 5.8 | 6.3 | ||
Other assets | 76.6 | 78.1 | ||
Assets of discontinued operations | 0.3 | 78.4 | ||
Total current assets | 702.4 | 666.4 | ||
Property, plant and equipment, net | 80.7 | 58.5 | ||
Goodwill | 78.4 | 92 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | -0.5 | -0.2 | ||
Deferred income taxes | 18.7 | 20.8 | ||
Other assets, net | 17.5 | 23.3 | ||
Related Party Transaction, Due from (to) Related Party | 79.4 | 89.8 | ||
Total assets | 976.6 | 950.6 | ||
Current Liabilities: | ||||
Short-term debt | 167.9 | 34.9 | ||
Current maturities of long-term debt | 0.2 | 0.2 | ||
Accounts payable | 83.1 | 86.1 | ||
Accrued expenses | 65.3 | 60.8 | ||
Income taxes payable | 56.4 | 38.5 | ||
Liabilities of discontinued operations | 0 | 12.9 | ||
Total current liabilities | 372.9 | 233.4 | ||
Long-term debt | 0.2 | 0.4 | ||
Post-retirement benefits, other than pensions | 0 | 0 | ||
Pensions | 18.8 | 19.7 | ||
Other liabilities | 9.6 | 9.2 | ||
Total liabilities | 401.5 | 262.7 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 575.1 | 687.9 | ||
Total liabilities and stockholders' equity | 976.6 | 950.6 | ||
Eliminations [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts and notes receivable, net | 0 | -197.1 | ||
Inventories, net | -0.5 | -4 | ||
Deferred income taxes, net | -1.8 | -1.7 | ||
Other assets | -113 | -38.8 | ||
Assets of discontinued operations | -0.3 | -5 | ||
Total current assets | -115.6 | -246.6 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | -2,664 | -2,516.70 | ||
Deferred income taxes | -5.8 | -5.8 | ||
Other assets, net | -1.4 | 0 | ||
Related Party Transaction, Due from (to) Related Party | 0 | 186.4 | ||
Total assets | -2,786.80 | -2,582.70 | ||
Current Liabilities: | ||||
Short-term debt | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | -0.3 | -0.3 | ||
Income taxes payable | -111.7 | -41.7 | ||
Liabilities of discontinued operations | 0 | 0 | ||
Total current liabilities | -112 | -42 | ||
Long-term debt | 0 | 0 | ||
Post-retirement benefits, other than pensions | 0 | 0 | ||
Pensions | 0 | 0 | ||
Other liabilities | -7.1 | -7.3 | ||
Total liabilities | -119.1 | -49.3 | ||
Commitments and contingencies | ||||
Total stockholders' equity | -2,667.70 | -2,533.40 | ||
Total liabilities and stockholders' equity | ($2,786.80) | ($2,582.70) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Statements of Operations | ||||
Net sales | $868 | $809.70 | $2,449.50 | $2,264.50 |
Cost of goods sold | 630.6 | 604.8 | 1,796.10 | 1,710.60 |
Gross profit | 237.4 | 204.9 | 653.4 | 553.9 |
Operating Expenses: | ||||
Selling, general and administrative expenses | 136.9 | 125.9 | 424 | 379.8 |
Losses (gains) and other expenses, net | -0.3 | 0.3 | 2.8 | 0.2 |
Restructuring charges | 0.3 | 0.4 | 3.2 | 3.1 |
Income from equity method investments | -3.3 | -2.6 | -10.7 | -8.8 |
Operational income from continuing operations | 103.8 | 80.9 | 234.1 | 179.6 |
Interest expense, net | 3.8 | 4.4 | 10.8 | 13.4 |
Other expense (income), net | 0 | 0 | -0.1 | 0.1 |
Income from continuing operations before income taxes | 100 | 76.5 | 223.4 | 166.1 |
Provision for income taxes | 34.2 | 26.8 | 77.5 | 57.6 |
Income from continuing operations | 65.8 | 49.7 | 145.9 | 108.5 |
Net loss from discontinued operations | 1.5 | 20.3 | 9.3 | 40.5 |
Net income | 64.3 | 29.4 | 136.6 | 68 |
Other comprehensive (loss) income | 9.2 | 29.5 | -71.6 | 26.9 |
Parent [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0.1 |
Gross profit | 0 | 0 | 0 | -0.1 |
Operating Expenses: | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Losses (gains) and other expenses, net | -1.7 | 0.1 | 0.8 | -2.1 |
Restructuring charges | 0 | 0 | 0 | 0 |
Income from equity method investments | -65.5 | -38.4 | -144.1 | -81.9 |
Operational income from continuing operations | 67.2 | 38.3 | 143.3 | 83.9 |
Interest expense, net | 3.5 | 4.3 | 10.6 | 13.1 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes | 63.7 | 34 | 132.7 | 70.8 |
Provision for income taxes | -0.6 | -1.6 | -3.9 | -4 |
Income from continuing operations | 64.3 | 35.6 | 136.6 | 74.8 |
Net loss from discontinued operations | 0 | 0 | 0 | 0 |
Net income | 64.3 | 35.6 | 136.6 | 74.8 |
Other comprehensive (loss) income | 4.5 | 5.6 | -3.1 | 7.9 |
Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 668.4 | 654.5 | 1,984.50 | 1,814.50 |
Cost of goods sold | 494.5 | 499.7 | 1,473.90 | 1,401.70 |
Gross profit | 173.9 | 154.8 | 510.6 | 412.8 |
Operating Expenses: | ||||
Selling, general and administrative expenses | 107.5 | 99.2 | 327.8 | 286.5 |
Losses (gains) and other expenses, net | 2 | -1 | 2.2 | -0.4 |
Restructuring charges | 0.1 | 0.1 | 1.6 | 2.6 |
Income from equity method investments | -14.9 | -6.5 | -6 | -8.1 |
Operational income from continuing operations | 79.2 | 63 | 185 | 132.2 |
Interest expense, net | -0.4 | -0.6 | -1.5 | -1.8 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes | 79.6 | 63.6 | 186.5 | 134 |
Provision for income taxes | 22.7 | 20.1 | 63.3 | 45.1 |
Income from continuing operations | 56.9 | 43.5 | 123.2 | 88.9 |
Net loss from discontinued operations | 1.5 | 12.6 | -16.2 | 27.9 |
Net income | 55.4 | 30.9 | 139.4 | 61 |
Other comprehensive (loss) income | 0.8 | 4.6 | 1.9 | 4.4 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 221.7 | 214.3 | 619.3 | 610.2 |
Cost of goods sold | 161.7 | 163.9 | 474.9 | 468.4 |
Gross profit | 60 | 50.4 | 144.4 | 141.8 |
Operating Expenses: | ||||
Selling, general and administrative expenses | 29.4 | 26.8 | 96.2 | 93.3 |
Losses (gains) and other expenses, net | -0.6 | 1.2 | 0 | 2.7 |
Restructuring charges | 0.2 | 0.3 | 1.6 | 0.5 |
Income from equity method investments | -2.5 | -1.9 | -8.7 | -6.9 |
Operational income from continuing operations | 33.5 | 24 | 55.3 | 52.2 |
Interest expense, net | 0.7 | 0.7 | 1.7 | 2.1 |
Other expense (income), net | 0 | 0 | -0.1 | 0.1 |
Income from continuing operations before income taxes | 32.8 | 23.3 | 53.7 | 50 |
Provision for income taxes | 10.7 | 10 | 18.7 | 16.7 |
Income from continuing operations | 22.1 | 13.3 | 35 | 33.3 |
Net loss from discontinued operations | 0 | 7.7 | 25.5 | 12.6 |
Net income | 22.1 | 5.6 | 9.5 | 20.7 |
Other comprehensive (loss) income | 3.5 | 17.4 | -3.8 | 8.4 |
Eliminations [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | -22.1 | -59.1 | -154.3 | -160.2 |
Cost of goods sold | -25.6 | -58.8 | -152.7 | -159.6 |
Gross profit | 3.5 | -0.3 | -1.6 | -0.6 |
Operating Expenses: | ||||
Selling, general and administrative expenses | 0 | -0.1 | 0 | 0 |
Losses (gains) and other expenses, net | 0 | 0 | -0.2 | 0 |
Restructuring charges | 0 | 0 | 0 | 0 |
Income from equity method investments | 79.6 | 44.2 | 148.1 | 88.1 |
Operational income from continuing operations | -76.1 | -44.4 | -149.5 | -88.7 |
Interest expense, net | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes | -76.1 | -44.4 | -149.5 | -88.7 |
Provision for income taxes | 1.4 | -1.7 | -0.6 | -0.2 |
Income from continuing operations | -77.5 | -42.7 | -148.9 | -88.5 |
Net loss from discontinued operations | 0 | 0 | 0 | 0 |
Net income | -77.5 | -42.7 | -148.9 | -88.5 |
Other comprehensive (loss) income | $0.40 | $1.90 | ($66.60) | $6.20 |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Details 2) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Statements of Cash Flows | ||
Cash flows from operating activities: | $65 | $64.40 |
Cash flows from investing activities: | ||
Proceeds from the disposal of property, plant and equipment | 0.1 | 0.1 |
Purchases of property, plant and equipment | -41 | -28 |
Net proceeds from sale of businesses | 8.1 | 10.1 |
Net cash used in discontinued operations | -0.1 | -0.3 |
Net cash used in investing activities | -32.9 | -18.1 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 3.8 | 1.3 |
Asset securitization borrowings | 330 | 480 |
Asset securitization payments | -200 | -455 |
Long-term debt payments | -0.7 | -0.9 |
Borrowings from revolving credit facility | 998 | 696 |
Payments on revolving credit facility | -1,083.50 | -706 |
Proceeds from employee stock purchases | 1.3 | 0.3 |
Repurchases of common stock | -35 | |
Repurchases of common stock | -66 | -35 |
Repurchases of common stock to satisfy employee withholding tax obligations | -7.7 | -3.4 |
Excess tax benefits related to share-based payments | 4.7 | 1.7 |
Intercompany debt | 0 | 0 |
Intercompany financing activity | 0 | 0 |
Cash dividends paid | -22.1 | -27.5 |
Net cash used in financing activities | -42.2 | -48.5 |
Decrease in cash and cash equivalents | -10.1 | -2.2 |
Effect of exchange rates on cash and cash equivalents | -3.9 | 6 |
Cash and cash equivalents, beginning of period | 51.8 | 45 |
Cash and cash equivalents, end of period | 37.8 | 48.8 |
Parent [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Cash flows from operating activities: | -41.6 | 21.4 |
Cash flows from investing activities: | ||
Proceeds from the disposal of property, plant and equipment | 0 | 0 |
Purchases of property, plant and equipment | 0 | 0 |
Net proceeds from sale of businesses | 4.8 | 0 |
Net cash used in discontinued operations | 0 | 0 |
Net cash used in investing activities | 4.8 | 0 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 0 | 0 |
Asset securitization borrowings | 0 | 0 |
Asset securitization payments | 0 | 0 |
Long-term debt payments | 0 | 0 |
Borrowings from revolving credit facility | 998 | 696 |
Payments on revolving credit facility | -1,083.50 | -706 |
Proceeds from employee stock purchases | 1.3 | 0.3 |
Repurchases of common stock | -35 | |
Repurchases of common stock | -66 | |
Repurchases of common stock to satisfy employee withholding tax obligations | -7.7 | -3.4 |
Excess tax benefits related to share-based payments | 4.7 | 1.7 |
Intercompany debt | -44.4 | -5.3 |
Intercompany financing activity | 257 | 57.8 |
Cash dividends paid | -22.1 | -27.5 |
Net cash used in financing activities | 37.3 | -21.4 |
Decrease in cash and cash equivalents | 0.5 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 1 | 1 |
Cash and cash equivalents, end of period | 1.5 | 1 |
Guarantor Subsidiaries [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Cash flows from operating activities: | 267 | 83.4 |
Cash flows from investing activities: | ||
Proceeds from the disposal of property, plant and equipment | 0.1 | 0.1 |
Purchases of property, plant and equipment | -30.3 | -21.5 |
Net proceeds from sale of businesses | 0 | 10.1 |
Net cash used in discontinued operations | -0.1 | -0.4 |
Net cash used in investing activities | -30.3 | -11.7 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 0 | 0 |
Asset securitization borrowings | 0 | 0 |
Asset securitization payments | 0 | 0 |
Long-term debt payments | -0.5 | -0.6 |
Borrowings from revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Proceeds from employee stock purchases | 0 | 0 |
Repurchases of common stock | 0 | |
Repurchases of common stock | 0 | |
Repurchases of common stock to satisfy employee withholding tax obligations | 0 | 0 |
Excess tax benefits related to share-based payments | 0 | 0 |
Intercompany debt | 8.4 | -3.9 |
Intercompany financing activity | -242.7 | -55.3 |
Cash dividends paid | 0 | 0 |
Net cash used in financing activities | -234.8 | -59.8 |
Decrease in cash and cash equivalents | 1.9 | 11.9 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 13.4 | 9.7 |
Cash and cash equivalents, end of period | 15.3 | 21.6 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Cash flows from operating activities: | -160.4 | -40.4 |
Cash flows from investing activities: | ||
Proceeds from the disposal of property, plant and equipment | 0 | 0 |
Purchases of property, plant and equipment | -10.7 | -6.5 |
Net proceeds from sale of businesses | 3.3 | 0 |
Net cash used in discontinued operations | 0 | 0.1 |
Net cash used in investing activities | -7.4 | -6.4 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 3.8 | 1.3 |
Asset securitization borrowings | 330 | 480 |
Asset securitization payments | -200 | -455 |
Long-term debt payments | -0.2 | -0.3 |
Borrowings from revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Proceeds from employee stock purchases | 0 | 0 |
Repurchases of common stock | 0 | |
Repurchases of common stock | 0 | |
Repurchases of common stock to satisfy employee withholding tax obligations | 0 | 0 |
Excess tax benefits related to share-based payments | 0 | 0 |
Intercompany debt | 36 | 9.2 |
Intercompany financing activity | -14.3 | -2.5 |
Cash dividends paid | 0 | 0 |
Net cash used in financing activities | 155.3 | 32.7 |
Decrease in cash and cash equivalents | -12.5 | -14.1 |
Effect of exchange rates on cash and cash equivalents | -3.9 | 6 |
Cash and cash equivalents, beginning of period | 37.4 | 34.3 |
Cash and cash equivalents, end of period | 21 | 26.2 |
Eliminations [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Cash flows from operating activities: | 0 | 0 |
Cash flows from investing activities: | ||
Proceeds from the disposal of property, plant and equipment | 0 | 0 |
Purchases of property, plant and equipment | 0 | 0 |
Net proceeds from sale of businesses | 0 | 0 |
Net cash used in discontinued operations | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 0 | 0 |
Asset securitization borrowings | 0 | 0 |
Asset securitization payments | 0 | 0 |
Long-term debt payments | 0 | 0 |
Borrowings from revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Proceeds from employee stock purchases | 0 | 0 |
Repurchases of common stock | 0 | |
Repurchases of common stock | 0 | |
Repurchases of common stock to satisfy employee withholding tax obligations | 0 | 0 |
Excess tax benefits related to share-based payments | 0 | 0 |
Intercompany debt | 0 | 0 |
Intercompany financing activity | 0 | 0 |
Cash dividends paid | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Statements (Details Textual) (Guarantor Subsidiaries [Member]) | Sep. 30, 2013 |
Guarantor Subsidiaries [Member] | |
Condensed Consolidating Financial Statements (Textual) [Abstract] | |
Percentage of ownership of guarantor subsidiaries | 100.00% |