Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 14, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LENNOX INTERNATIONAL INC | |
Entity Central Index Key | 1,069,202 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
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 | 42,673,655 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 48.8 | $ 50.2 |
Accounts and notes receivable, net of allowances of $6.0 and $6.7 in 2017 and 2016, respectively | 513.4 | 469.8 |
Inventories, net | 522.8 | 418.5 |
Other assets | 101.4 | 67.4 |
Total current assets | 1,186.4 | 1,005.9 |
Property, plant and equipment, net of accumulated depreciation of $734.1 and $717.2 in 2017 and 2016, respectively | 365.6 | 361.4 |
Goodwill | 197.6 | 195.1 |
Deferred income taxes | 134 | 136.7 |
Other assets, net | 67 | 61.2 |
Total assets | 1,950.6 | 1,760.3 |
Current Liabilities: | ||
Short-term debt | 201.6 | 52.4 |
Current maturities of long-term debt | 207.6 | 200.1 |
Accounts payable | 401 | 361.2 |
Accrued expenses | 224.8 | 265.9 |
Income taxes payable | 2.5 | 9 |
Total current liabilities | 1,037.5 | 888.6 |
Long-term debt | 693.9 | 615.7 |
Post-retirement benefits, other than pensions | 2.4 | 2.8 |
Pensions | 88.3 | 87.5 |
Other liabilities | 129.5 | 127.7 |
Total liabilities | 1,951.6 | 1,722.3 |
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 | 1,034.1 | 1,046.2 |
Retained earnings | 1,378.1 | 1,353 |
Accumulated other comprehensive loss | (176.5) | (195.1) |
Treasury stock, at cost, 44,436,331 shares and 44,195,250 shares as of March 31,2017 and December 31,2016, respectively | (2,238) | (2,167.4) |
Noncontrolling interests | 0.4 | 0.4 |
Total stockholders’ equity | (1) | 38 |
Total liabilities and stockholders' equity | $ 1,950.6 | $ 1,760.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances, accounts and notes receivable | $ 6 | $ 6.7 |
Accumulated depreciation | $ 734.1 | $ 717.2 |
Preferred stock, par value (in dollars per share) | $ 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 (in dollars per share) | $ 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 | 44,436,331 | 44,126,432 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 793.4 | $ 715.2 |
Cost of goods sold | 582.5 | 531.6 |
Gross profit | 210.9 | 183.6 |
Operating Expenses: | ||
Selling, general and administrative expenses | 152.4 | 140.4 |
Losses and other expenses, net | 3.1 | 4.3 |
Restructuring charges (gains) | 0.1 | (0.2) |
Income from equity method investments | (5.5) | (4.6) |
Operating income | 60.8 | 43.7 |
Interest expense, net | 7.4 | 5.8 |
Income from continuing operations before income taxes | 53.4 | 37.9 |
Provision for income taxes | 9.9 | 13 |
Income from continuing operations | 43.5 | 24.9 |
Discontinued Operations: | ||
Loss from discontinued operations before income taxes | 0 | 0 |
Benefit from income taxes | 0 | 0 |
Loss from discontinued operations | 0 | 0 |
Net income | $ 43.5 | $ 24.9 |
Earnings per share – Basic: | ||
Income from continuing operations (in dollars per share) | $ 1.02 | $ 0.57 |
Loss from discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | 1.02 | 0.57 |
Earnings per share – Diluted: | ||
Income from continuing operations (in dollars per share) | 1 | 0.56 |
Loss from discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | $ 1 | $ 0.56 |
Average shares outstanding: | ||
Weighted Average Number of Shares Outstanding - Basic | 42.8 | 44 |
Weighted Average Number of Shares Outstanding - Diluted | 43.5 | 44.7 |
Cash dividends declared per share | $ 0.43 | $ 0.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 43.5 | $ 24.9 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 15.9 | 9.5 |
Net change in pension and post-retirement liabilities | (2.3) | (1.9) |
Reclassification of pension and post-retirement benefit losses into earnings | 1.9 | 1.8 |
Change in fair value of available-for-sale marketable equity securities | 0.8 | (0.1) |
Net change in fair value of cash flow hedges | 6.4 | 2.3 |
Reclassification of cash flow hedge (gains) losses into earnings | (3) | 4.8 |
Other comprehensive income before income taxes | 19.7 | 16.4 |
Income tax expense | (1.1) | (2.4) |
Other comprehensive income, net of tax | 18.6 | 14 |
Comprehensive income | $ 62.1 | $ 38.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Net income | $ 43.5 | $ 24.9 |
Income from equity method investments | (5.5) | (4.6) |
Restructuring gains, net of cash paid | 0 | 0.5 |
Provision for bad debts | 1.1 | 1.3 |
Unrealized gains on derivative contracts | (0.5) | (0.5) |
Stock-based compensation expense | 4.9 | 6.3 |
Depreciation and amortization | 15.7 | 14.2 |
Deferred income taxes | (1.1) | (0.5) |
Other items, net | 0.1 | 0.1 |
Net cash used in operating activities | (107.6) | (101.6) |
Changes in assets and liabilities, net of effects of divestitures: | ||
Accounts and notes receivable | (40.9) | (44.5) |
Inventories | (101.2) | (95.5) |
Other current assets | (4.3) | (6.2) |
Accounts payable | 47.3 | 67.9 |
Accrued expenses | (41.7) | (28) |
Income taxes payable and receivable | (28) | (37.6) |
Other | 3 | 1.6 |
Cash flows from investing activities: | ||
Proceeds from Sale of Property, Plant, and Equipment | 0.1 | 0 |
Purchases of property, plant and equipment | (24.9) | (23.8) |
Net cash used in investing activities | (24.8) | (23.8) |
Cash flows from financing activities: | ||
Short-term borrowings, net | (0.8) | (0.4) |
Asset securitization payments | 0 | (20) |
Long-term debt payments | (0.2) | (0.3) |
Borrowings from credit facility | 583 | 770.5 |
Payments on credit facility | (497.5) | (392) |
Proceeds from employee stock purchases | 0.7 | 0.6 |
Repurchases of common stock | (75) | (200) |
Repurchases of common stock to satisfy employee withholding tax obligations | (13.3) | (16.8) |
Cash dividends paid | (18.5) | (16.1) |
Net cash provided by financing activities | 128.4 | 125.5 |
(Decrease) increase in cash and cash equivalents | (4) | 0.1 |
Effect of exchange rates on cash and cash equivalents | 2.6 | 1.6 |
Cash and cash equivalents, beginning of period | 50.2 | 38.9 |
Cash and cash equivalents, end of period | 48.8 | 40.6 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 2.4 | 3.3 |
Income taxes paid (net of refunds) | $ 36.7 | $ 51.2 |
General
General | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , the accompanying unaudited Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 , the accompanying unaudited Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016 , and the accompanying unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 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, 2016 . 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 quarter is comprised of approximately 13 weeks but the number of days per quarter may vary year-over-year. For convenience, throughout these financial statements, the 13 weeks comprising each quarterly period are denoted by the last day of the respective calendar quarter. The first quarter of 2017 included the benefit of five more days, or 6%, this year than in the first quarter last year. This balances out on a full-year basis with the fourth quarter having 6% fewer days than a year ago. 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 will be reflected in the financial statements in future periods. Recently Adopted Accounting Guidance On March 30, 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the excess tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. This is in comparison to the prior requirement that these excess tax benefits be recognized in additional paid-in capital. The new guidance also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows rather than, as previously required, a financing activity. We have adopted ASU 2016-09 effective January 1, 2017 on a prospective basis where permitted by the new standard. As a result of this adoption: • We recognized discrete tax benefits of $7.4 million in the income taxes line item of our consolidated statement of operations for the three months ended March 31, 2017 related to excess tax benefits upon vesting or settlement in that period. • We elected to adopt the cash flow presentation of the excess tax benefits retrospectively where these benefits are classified along with other income tax cash flows as operating cash flows. • We have elected to continue to estimate the number of stock-based awards expected to vest, rather than electing to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period. • We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the three months ended March 31, 2017. Reclassifications Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The components of inventories are as follows (in millions): As of March 31, 2017 As of December 31, 2016 Finished goods $ 381.6 $ 287.2 Work in process 5.9 5.1 Raw materials and parts 192.4 183.4 Subtotal 579.9 475.7 Excess of current cost over last-in, first-out cost (57.1 ) (57.2 ) Total inventories, net $ 522.8 $ 418.5 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill: The changes in the carrying amount of goodwill for the first three months of 2017, in total and by segment, are summarized in the table below (in millions): Balance at December 31, 2016 Acquisitions / (Dispositions) Other (1) Balance at March 31, 2017 Residential Heating & Cooling $ 26.1 $ — $ — $ 26.1 Commercial Heating & Cooling 60.1 — 0.2 60.3 Refrigeration 108.9 — 2.3 111.2 Total Goodwill $ 195.1 $ — $ 2.5 $ 197.6 (1) Other consists of changes in foreign currency translation rates. We perform our annual goodwill impairment test in the fourth quarter of each year. We continue to monitor our reporting units for indicators of impairment throughout the year to determine if a change in facts or circumstances warrants a re-evaluation of our goodwill. In the current year, we have noted no indicators of impairment of our reporting units. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2017 | |
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 and 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 rates, and as a result, we are subject to variability in the cash paid for interest. 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. We are not currently 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. Cash Flow Hedges We have commodity futures contracts and foreign exchange forward contracts designated as cash flow hedges that are scheduled to mature through August 2018 and December 2017 , respectively. Unrealized gains or losses from our cash flow hedges are included in Accumulated other comprehensive loss (“ AOCL ”) and are expected to be reclassified into earnings within the next 18 months based on the prices of the commodities and foreign currencies at the settlement dates. We recorded the following amounts in AOCL related to our cash flow hedges (in millions): As of March 31, 2017 As of December 31, 2016 Unrealized gains on unsettled contracts $ (12.3 ) $ (8.9 ) Income tax expense 4.5 3.3 Gains included in AOCL, net of tax (1) $ (7.8 ) $ (5.6 ) (1) Assuming commodity and foreign currency prices remain constant, we expect to reclassify $7.3 million of derivative gains into earnings within the next 12 months. We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions of pounds): As of March 31, 2017 As of December 31, 2016 Copper 26.0 30.4 We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions): As of March 31, 2017 As of December 31, 2016 Notional Amounts (in local currency): Mexican Peso 232.0 310.1 Canadian Dollar — 24.9 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 of pounds): As of March 31, 2017 As of December 31, 2016 Copper 2.2 2.4 Aluminum 2.4 2.6 We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions): As of March 31, 2017 As of December 31, 2016 Notional Amounts (in local currency): Chinese Yuan 13.0 10.5 Mexican Peso 59.5 64.5 Euro 43.0 46.9 British Pound 0.6 1.3 Indian Rupee 488.5 584.6 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 March 31, 2017 As of December 31, 2016 As of March 31, 2017 As of December 31, 2016 Current Assets: Other Assets Commodity futures contracts $ 11.0 $ 8.7 $ 1.2 $ 0.7 Foreign currency forward contracts 0.6 0.5 0.1 0.2 Non-Current Assets: Other Assets, net Commodity futures contracts 0.9 1.9 0.1 0.2 Total Assets $ 12.5 $ 11.1 $ 1.4 $ 1.1 Current Liabilities: Accrued Expenses Commodity futures contracts $ — $ — $ — $ — Foreign currency forward contracts — 0.8 2.0 3.2 Non-Current Liabilities: Other Liabilities Commodity futures contracts — — — — Foreign currency forward contracts — — — — Total Liabilities $ — $ 0.8 $ 2.0 $ 3.2 (1) All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 15 for more information. Derivatives Designated as Cash Flow Hedges For the Three Months Ended March 31, 2017 2016 Amount of (Gain)/Loss reclassified from AOCL into Income (effective portion) (1) $ (3.0 ) $ 4.8 Amount of Loss recognized in Net income (ineffective portion) (2) $ 1.1 $ 0.1 Derivatives Not Designated as Hedging Instruments For the Three Months Ended March 31, 2017 2016 Amount of (Gain)/Loss Recognized in Net Income: Commodity futures contracts (2) $ (0.8 ) $ — Foreign currency forward contracts (2) (0.7 ) 0.3 $ (1.5 ) $ 0.3 (1) The (gain)/loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations. (2) The (gain)/loss was recorded in Losses and other expenses, net in the accompanying Consolidated Statements of Operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: As of March 31, 2017 , we had approximately $2.4 million in total gross unrecognized tax benefits. Of this amount, $2.3 million , if recognized, would be recorded through the Consolidated Statement of Operations. As of March 31, 2017, we had approximately $0.1 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 under the Internal Revenue Service's Compliance Assurance Program for 2017, 2016 and 2015 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 2011. Since January 1, 2017, numerous states and the District of Columbia have enacted legislation effective for tax years beginning on or after January 1, 2017, including changes to tax rates. The impact of these changes is immaterial. On March 30, 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the excess tax benefit to be recorded when it arises. The new guidance also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows rather than, as previously required, a financing activity. We recognized discrete tax benefits of $7.4 million in the income taxes line item of our consolidated statement of operations for the three months ended March 31, 2017 related to excess tax benefits upon vesting or settlement in that period. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Product Warranties and Product Related Contingencies We offer warranties to customers for some of our products and record liabilities for estimated future warranty-related costs based on failure rates, cost experience and other factors. We periodically review the assumptions used to determine the product warranty liabilities and will adjust the liabilities in future periods for changes in assumptions, as necessary. 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 March 31, 2017 As of December 31, 2016 Accrued expenses $ 30.8 $ 30.0 Other liabilities 71.8 71.1 Total warranty liability $ 102.6 $ 101.1 The changes in product warranty liabilities related to continuing operations for the three months ended March 31, 2017 were as follows (in millions): Total warranty liability as of December 31, 2016 $ 101.1 Warranty claims paid (5.2 ) Changes resulting from issuance of new warranties 8.2 Changes in estimates associated with pre-existing liabilities (1.7 ) Changes in foreign currency translation rates and other 0.2 Total warranty liability as of March 31, 2017 $ 102.6 We have incurred, and will likely continue to incur, product costs not covered by insurance or our suppliers’ warranties, which is not included in the estimated warranty liabilities tables immediately above. Also, to satisfy our customers and protect our brands, we have repaired or replaced installed products experiencing quality-related issues, and will likely continue such repairs and replacements. We currently estimate our probable liability for a certain supplier quality issue within a range of $0.9 million and $9.1 million with all amounts in that range equally likely. We have accrued a $0.9 million liability in Accrued expenses on the Consolidated Balance Sheet at March 31, 2017. The supplier is reimbursing the majority of costs related to this liability. 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. Some of these claims and lawsuits allege personal injury or health problems resulting from exposure to asbestos that was integrated into certain of our products. We have never manufactured asbestos and have not incorporated asbestos-containing components into our products for several decades. A substantial majority of asbestos-related claims have been covered by insurance or other forms of indemnity or have been dismissed without payment. The remainder of our closed cases have been resolved for amounts that are not material, individually or in the aggregate. Our defense costs for asbestos-related claims are generally covered by insurance; however, our insurance coverage for settlements and judgments for asbestos-related claims varies depending on several factors and are subject to policy limits, so we may have greater financial exposure for future settlements and judgments. For the three months ended March 31, 2017 and 2016 , expense for asbestos-related litigation was $1.7 million and $0.8 million , respectively, net of probable insurance recoveries, for known and future asbestos-related litigation. In October 2016, we self-reported to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) an alleged payment in the amount of 30,000 rubles (approximately US $475 ) to a Russian customs broker or official. Under the oversight of our Audit Committee, we initiated an investigation into this matter with the assistance of external legal counsel and external forensic accountants. The alleged payment was purportedly made to release a shipment of goods being held by Russian customs officials due to inaccurate paperwork. The value of the shipment was approximately €62,000 (approximately US $68,500 ). The allegations are related to our subsidiary in Russia, which had 2016 annual sales of US $4 million . The scope of the investigation was later expanded to include our operations in Poland and Ukraine. To date, the investigation has not resulted in any evidence of other potentially improper payments. However, the investigation has raised questions regarding possible irregularities with respect to possible non-compliance with customs documents and procedures related to these operations. The investigation is ongoing. We continue to fully cooperate with the SEC and the DOJ regarding this matter. We do not anticipate any material adverse effect on our business or financial condition as a result of this matter. 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 A
Lines of Credit and Financing Arrangements | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Lines of Credit and Financing Arrangements | Lines of Credit and Financing Arrangements: The following table summarizes our outstanding debt obligations and their classification in the accompanying Consolidated Balance Sheets (in millions): As of March 31, 2017 As of December 31, 2016 Short-Term Debt: Asset Securitization Program $ 200.0 $ 50.0 Foreign obligations 1.6 2.4 Total short-term debt $ 201.6 $ 52.4 Current maturities of long-term debt: Capital lease obligations $ 0.7 $ 0.8 Domestic credit facility 7.5 — Senior unsecured notes 200.0 200.0 Debt issuance costs (0.6 ) (0.7 ) Total current maturities of long-term debt $ 207.6 $ 200.1 Long-Term Debt: Capital lease obligations $ 14.9 $ 15.0 Domestic credit facility 334.0 256.0 Senior unsecured notes 350.0 350.0 Debt issuance costs (5.0 ) (5.3 ) Total long-term debt $ 693.9 $ 615.7 Total debt $ 1,103.1 $ 868.2 Short-Term Debt Foreign Obligations Through several of our foreign subsidiaries, we have facilities available to assist in financing seasonal borrowing needs for our foreign locations. We had $1.6 million and $2.4 million of foreign obligations as of March 31, 2017 and December 31, 2016 , respectively, that were primarily borrowings under non-committed facilities. Proceeds on these facilities were $0.3 million and $1.2 million during the three months ended March 31, 2017 and 2016 , respectively. Repayments on the facilities were $1.1 million and $1.6 million during the three months ended March 31, 2017 and 2016 , respectively. 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 a financial institution for cash. The ASP 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 the 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 secured 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 range from $200.0 million to $325.0 million , depending on the period. The maximum capacity under the ASP is the lesser of the maximum securitization amount or 100% of the net pool balance less allowances, as defined by the ASP. 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 March 31, 2017 As of December 31, 2016 Eligible amount available under the ASP on qualified accounts receivable $ 200.0 $ 250.0 Beneficial interest sold 200.0 50.0 Remaining amount available $ — $ 200.0 We pay certain discount fees to use the ASP 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 floating commercial paper rates determined by the purchaser of the beneficial interest, plus a program fee of 0.65% . The average rates for March 31, 2017 and December 31, 2016 were 1.70% and 1.66% , respectively. The unused fee is based on 102% of the maximum available amount less the beneficial interest sold and is calculated at a 0.33% fixed rate throughout the term of the agreement. In addition, a 0.05% unused fee is charged on incremental available amounts above $200 million during certain months of the year. We recorded these fees in Interest expense, net in the accompanying Consolidated Statements of Operations. The ASP contains certain restrictive covenants relating to the quality of our accounts receivable and cross-default provisions with our Sixth Amended and Restated Credit Facility Agreement ("Domestic 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 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 March 31, 2017 , we believe we were in compliance with all covenant requirements. Long-Term Debt Domestic Credit Facility On August 30, 2016, we replaced an earlier $950.0 million credit facility with a $900.0 million credit facility (the "Domestic Credit Facility"), which consisted of a $650.0 million unsecured revolving credit facility and a $250.0 million unsecured term loan and matures in August 2021 (the "Maturity Date"). Under our Domestic Credit Facility, we had outstanding borrowings of $341.5 million , of which $220.0 million was the term loan balance, as well as $4.4 million committed to standby letters of credit as of March 31, 2017 . Subject to covenant limitations, $524.1 million was available for future borrowings. The unsecured term loan also matures on the Maturity Date and requires quarterly principal repayments of $7.5 million ; however, we made $30.0 million of required principal repayments for 2017 in November 2016. The revolving credit facility allows up to $100.0 million of letters of credit to be issued and also includes a subfacility for swingline loans of up to $65.0 million . Additionally, at our request and subject to certain conditions, the commitments under the Domestic Credit Facility may be increased by a maximum of $350.0 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 March 31, 2017 As of December 31, 2016 Weighted average borrowing rate 2.23 % 2.00 % Our Domestic 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 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 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 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 Domestic 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 Credit Facility, our senior unsecured notes, our lease of our corporate headquarters in Richardson, Texas (recorded as an operating lease), 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 Credit Facility and accelerate amounts due under our Domestic 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 March 31, 2017 , we believe we were in compliance with all covenant requirements. Senior Unsecured Notes We issued $350.0 million of senior unsecured notes in November 2016 (the "2016 Notes") which will mature on November 15, 2023 with interest being paid on May 15 and November 15 at 3.00% per annum semiannually. We also have $200.0 million of senior unsecured notes issued in 2010 (the "2010 Notes") which will mature on May 15, 2017 with interest being paid at 4.90% per annum semiannually. Both 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 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, in the case of the 2010 Notes, transfer certain properties. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75.0 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date. As of March 31, 2017 , we believe we were in compliance with all covenant requirements. |
Pension and Post-retirement Ben
Pension and Post-retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 2017 2016 Pension Benefits Other Benefits Service cost $ 1.3 $ 1.1 $ — $ — Interest cost 3.2 3.7 — — Expected return on plan assets (5.4 ) (5.1 ) — — Amortization of prior service cost 0.1 0.1 (0.6 ) (0.8 ) Recognized actuarial loss 2.1 2.1 0.3 0.4 Settlements and curtailments 0.3 — — — Net periodic benefit cost (1) $ 1.6 $ 1.9 $ (0.3 ) $ (0.4 ) For the Three Months Ended March 31, 2017 2016 2017 2016 Pension Benefits Other Benefits Service cost $ 1.3 $ 1.1 $ — $ — Interest cost 3.2 3.7 — — Expected return on plan assets (5.4 ) (5.1 ) — — Amortization of prior service cost 0.1 0.1 (0.6 ) (0.8 ) Recognized actuarial loss 2.1 2.1 0.3 0.4 Settlements and curtailments 0.3 — — — Net periodic benefit cost (1) $ 1.6 $ 1.9 $ (0.3 ) $ (0.4 ) (1) All net periodic benefit cost for the three months ended March 31, 2017 and 2016 related to continuing operations. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation: We issue various long-term incentive awards, including performance share units, restricted stock units and stock appreciation rights under the Lennox International Inc. 2010 Incentive Plan, as amended and restated. 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 March 31, 2017 2016 Stock-based compensation expense (1) $ 4.9 $ 6.3 (1) All expense was recorded in our Corporate and Other business segment. |
Stock Repurchases
Stock Repurchases | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchases | Stock Repurchases: Our Board of Directors has authorized a total of $2 billion towards the repurchase of shares of our common stock (collectively referred to as the "Share Repurchase Plans"), including a $550 million share repurchase authorization in 2016. The Share Repurchase Plans authorize open market repurchase transactions and do not have a stated expiration date. As of March 31, 2017 , $571 million of shares may yet be repurchased under the Share Repurchase Plans. On February 9, 2017, the Company entered into a Fixed Dollar Accelerated Share Repurchase Transaction (the “ASR Agreement”) with J.P. Morgan Stanley, to effect an accelerated stock buyback of the Company’s common stock (the “Common Stock”). Under the ASR Agreement, on February 9, 2017, the Company paid J.P. Morgan Stanley an initial purchase price of $75 million , and J.P. Morgan Stanley delivered to the Company approximately 0.4 million shares of Common Stock, representing approximately 85% of the shares expected to be purchased under the ASR Agreement. The ASR Agreement will be completed in the second quarter of 2017. We also repurchased 0.1 million shares for $13.3 million during the three months ended March 31, 2017 from employees who surrendered their shares to satisfy minimum tax withholding obligations upon the exercise of long-term incentive awards. |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive Income: The following table provides information on items not reclassified in their entirety from AOCL to Net income in the accompanying Consolidated Statements of Operations (in millions): For the Three Months Ended March 31, Affected Line Item(s) in the Consolidated Statements of Operations 2017 2016 (Losses)/Gains on cash flow hedges: Commodity futures contracts $ 3.0 $ (4.8 ) Cost of goods sold Income tax benefit (1.0 ) 1.7 Provision for income taxes Net of tax $ 2.0 $ (3.1 ) Defined Benefit Plan items: Pension and post-retirement benefit costs $ (1.9 ) $ (1.8 ) Cost of goods sold; Selling, general and administrative expenses Income tax benefit 0.6 0.6 Provision for income taxes Net of tax $ (1.3 ) $ (1.2 ) Total reclassifications from AOCL $ 0.7 $ (4.3 ) The following table provides information on changes in AOCL , by component (net of tax), for the three months ended March 31, 2017 (in millions): (Losses) Gains on Cash Flow Hedges Unrealized Gains (Losses) on Available-for-Sale Securities Defined Benefit Pension Plan Items Foreign Currency Translation Adjustments Total AOCL Balance as of December 31, 2016 $ 5.6 $ 2.3 $ (130.0 ) $ (73.0 ) $ (195.1 ) Other comprehensive (loss) income before reclassifications 4.2 0.8 (1.6 ) 15.9 19.3 Amounts reclassified from AOCL (2.0 ) — 1.3 — (0.7 ) Net other comprehensive (loss) income 2.2 0.8 (0.3 ) 15.9 18.6 Balance as of March 31,2017 $ 7.8 $ 3.1 $ (130.3 ) $ (57.1 ) $ (176.5 ) |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges: We record restructuring charges associated with management-approved restructuring plans when we reorganize or remove duplicative headcount and infrastructure within our businesses. Restructuring charges include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other related activities. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. Restructuring charges are not included in our calculation of segment profit (loss), as more fully explained in Note 14. Restructuring Activities in 2017 Information regarding the restructuring charges for all ongoing activities is presented in the following table (in millions): Charges Incurred in 2017 Charges Incurred to Date Total Charges Expected to be Incurred Severance and related (gains) expense $ — $ 9.3 $ 9.3 Asset write-offs and accelerated depreciation 0.1 2.5 2.5 Equipment moves — — — Lease termination — 0.2 0.2 Other — 3.7 4.1 Total restructuring charges $ 0.1 $ 15.7 $ 16.1 While restructuring charges are excluded from our calculation of segment profit (loss), the table below presents the restructuring charges associated with each segment (in millions): Charges Incurred in 2017 Charges Incurred to Date Total Charges Expected to be Incurred Residential Heating & Cooling $ — $ 0.9 $ 0.9 Commercial Heating & Cooling — 1.1 1.1 Refrigeration 0.1 12.0 12.0 Corporate & Other — 1.7 2.1 Total restructuring charges $ 0.1 $ 15.7 $ 16.1 Restructuring accruals are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The table below details the activity in 2017 within the restructuring accruals (in millions): Balance as of Included in Cash Non-Cash Utilization and Other Balance as of March 31, 2017 Severance and related expense $ — $ — $ — $ — $ — Asset write-offs and accelerated depreciation — 0.1 (0.1 ) — — Equipment moves — — — — — Lease termination — — — — Other — — — — — Total restructuring accruals $ — $ 0.1 $ (0.1 ) $ — $ — |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings 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 Income from continuing operations were as follows (in millions, except per share data): For the Three Months Ended March 31, 2017 2016 Net income $ 43.5 $ 24.9 Add: Loss from discontinued operations — — Income from continuing operations $ 43.5 $ 24.9 Weighted-average shares outstanding – basic 42.8 44.0 Add: Potential effect of dilutive securities attributable to stock-based payments 0.7 0.7 Weighted-average shares outstanding – diluted 43.5 44.7 Earnings per share – Basic: Income from continuing operations $ 1.02 $ 0.57 Loss from discontinued operations — — Net income $ 1.02 $ 0.57 Earnings per share – Diluted: Income from continuing operations $ 1.00 $ 0.56 Loss from discontinued operations — — Net income $ 1.00 $ 0.56 The following stock appreciation rights and restricted stock units 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 March 31, 2017 2016 Weighted-average number of shares 0.2 0.3 Price range per share $ 156.94 $124.97 - $131.94 |
Reportable Business Segments
Reportable Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
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. The following table describes each 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; Residential New Construction United States 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; Food Preservation; Non-Food/Industrial United States Canada Europe Asia Pacific South America 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 in the table 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. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations for the periods presented. Segment Data Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions): For the Three Months Ended March 31, 2017 2016 Net sales Residential Heating & Cooling $ 419.8 $ 377.3 Commercial Heating & Cooling 195.5 170.3 Refrigeration 178.1 167.6 $ 793.4 $ 715.2 Segment profit (loss) (1) Residential Heating & Cooling $ 42.5 $ 38.3 Commercial Heating & Cooling 19.1 14.2 Refrigeration 14.1 9.0 Corporate and other (11.0 ) (14.8 ) Total segment profit 64.7 46.7 Reconciliation to Operating income: Special product quality adjustments — (0.4 ) Items in Losses and other expenses, net that are excluded from segment profit (loss) (1) 3.8 3.6 Restructuring charges (gains) 0.1 (0.2 ) Operating income $ 60.8 $ 43.7 (1) The Company defines segment profit and loss as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding: • Special product quality adjustments; • The following items in Losses (gains) and other expenses, net: ◦ Net change in unrealized losses (gains) on unsettled futures contracts, ◦ Special legal contingency charges, ◦ Asbestos-related litigation, ◦ Contractor tax payments, ◦ Environmental liabilities, ◦ Acquisition costs, ◦ Other items, net; and • Restructuring charges (gains). Total Assets by Segment Except for the seasonal increase in total assets across all reportable segments, there have not been any material changes in the composition of total assets by segment since December 31, 2016. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements: Fair Value Hierarchy The methodologies used to determine the fair value of our financial assets and liabilities at March 31, 2017 were the same as those used at December 31, 2016 . Assets and Liabilities Carried at Fair Value on a Recurring Basis Derivatives Derivatives were classified as Level 2 and primarily valued using estimated future cash flows based on observed prices from exchange-traded derivatives. We also considered the counterparty's creditworthiness, or our own creditworthiness, as appropriate. Adjustments were recorded to reflect the risk of credit default, however, they were insignificant to the overall value of the derivatives. Refer to Note 4 for more information related to our derivative instruments. Marketable Equity Securities The following table presents the fair values of an investment in marketable equity securities, classified as Level 1 and related to publicly traded stock of a non-U.S. company, recorded in Other assets, net in the accompanying Consolidated Balance Sheets (in millions): As of March 31, 2017 As of December 31, 2016 Investment in marketable equity securities $ 5.2 $ 4.4 Other Fair Value Disclosures The carrying amounts of Cash and cash equivalents, Accounts and notes receivable, net, Accounts payable, and Short-term debt approximate fair value due to the short maturities of these instruments. The carrying amount of our Domestic Credit Facility in Long-term debt also approximates fair value due to its variable-rate characteristics. The fair value of our senior unsecured notes in Long-term debt, classified as Level 2, was based on the amount of future cash flows using current market rates for debt instruments of similar maturities and credit risk. The following table presents their fair value (in millions): As of March 31, 2017 As of December 31, 2016 Senior unsecured notes $ 505.6 $ 499.3 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [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 guaranteed 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. 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 March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016 are shown on the following pages. Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2017 (Amounts in millions) Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 1.5 $ 14.0 $ 33.3 $ — $ 48.8 Accounts and notes receivable, net — 45.4 468.0 — 513.4 Inventories, net — 406.8 127.3 (11.3 ) 522.8 Other assets 16.1 50.9 89.4 (55.0 ) 101.4 Total current assets 17.6 517.1 718.0 (66.3 ) 1,186.4 Property, plant and equipment, net — 238.9 131.4 (4.7 ) 365.6 Goodwill — 134.9 62.7 — 197.6 Investment in subsidiaries 961.7 427.3 (0.6 ) (1,388.4 ) — Deferred income taxes 8.1 109.3 31.3 (14.7 ) 134.0 Other assets, net 2.4 41.2 24.9 (1.5 ) 67.0 Intercompany receivables (payables), net (62.1 ) 62.4 72.9 (73.2 ) — Total assets $ 927.7 $ 1,531.1 $ 1,040.6 $ (1,548.8 ) $ 1,950.6 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 201.6 $ — $ 201.6 Current maturities of long-term debt 206.9 0.4 0.3 — 207.6 Accounts payable 18.4 270.8 111.8 — 401.0 Accrued expenses 11.0 163.4 50.4 — 224.8 Income taxes payable 12.3 5.5 64.9 (80.2 ) 2.5 Total current liabilities 248.6 440.1 429.0 (80.2 ) 1,037.5 Long-term debt 679.2 14.4 0.3 — 693.9 Post-retirement benefits, other than pensions — 2.4 — — 2.4 Pensions — 76.4 11.9 — 88.3 Other liabilities 0.9 120.2 10.9 (2.5 ) 129.5 Total liabilities 928.7 653.5 452.1 (82.7 ) 1,951.6 Commitments and contingencies Total stockholders' equity (1.0 ) 877.6 588.5 (1,466.1 ) (1.0 ) Total liabilities and stockholders' equity $ 927.7 $ 1,531.1 $ 1,040.6 $ (1,548.8 ) $ 1,950.6 Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2016 (Amounts in millions) Parent Guarantor Non- Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 1.2 $ 17.1 $ 31.9 $ — $ 50.2 Accounts and notes receivable, net — 30.6 439.2 — 469.8 Inventories, net — 314.7 108.9 (5.1 ) 418.5 Other assets 12.8 48.8 67.5 (61.7 ) 67.4 Total current assets 14.0 411.2 647.5 (66.8 ) 1,005.9 Property, plant and equipment, net — 237.6 123.8 — 361.4 Goodwill — 134.9 60.2 — 195.1 Investment in subsidiaries 1,166.9 524.7 (0.5 ) (1,691.1 ) — Deferred income taxes 6.8 113.5 31.1 (14.7 ) 136.7 Other assets, net 3.6 40.0 19.0 (1.4 ) 61.2 Intercompany (payables) receivables, net (382.4 ) 375.2 80.4 (73.2 ) — Total assets $ 808.9 $ 1,837.1 $ 961.5 $ (1,847.2 ) $ 1,760.3 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 52.4 $ — $ 52.4 Current maturities of long-term debt 199.3 0.4 0.4 — 200.1 Accounts payable 18.5 248.5 94.2 — 361.2 Accrued expenses 6.3 206.3 53.3 — 265.9 Income taxes (receivable) payable (54.0 ) 89.8 52.5 (79.3 ) 9.0 Total current liabilities 170.1 545.0 252.8 (79.3 ) 888.6 Long-term debt 600.9 14.5 0.3 — 615.7 Post-retirement benefits, other than pensions — 2.8 — — 2.8 Pensions — 75.5 12.0 — 87.5 Other liabilities — 119.1 11.1 (2.5 ) 127.7 Total liabilities 771.0 756.9 276.2 (81.8 ) 1,722.3 Commitments and contingencies Total stockholders' equity 37.9 1,080.2 685.3 (1,765.4 ) 38.0 Total liabilities and stockholders' equity $ 808.9 $ 1,837.1 $ 961.5 $ (1,847.2 ) $ 1,760.3 Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2017 (Amounts in millions) Parent Guarantor Non-Guarantor Eliminations Consolidated Net Sales $ — $ 686.3 $ 258.8 $ (151.7 ) $ 793.4 Cost of goods sold — 513.3 217.7 (148.5 ) 582.5 Gross profit — 173.0 41.1 (3.2 ) 210.9 Operating expenses: Selling, general and administrative expenses — 130.5 22.1 (0.2 ) 152.4 Losses (gains) and other expenses, net 0.6 2.0 0.6 (0.1 ) 3.1 Restructuring charges — — 0.1 — 0.1 Income from equity method investments (48.6 ) (12.7 ) (4.9 ) 60.7 (5.5 ) Operating income 48.0 53.2 23.2 (63.6 ) 60.8 Interest expense, net 7.2 (0.8 ) 1.0 — 7.4 Income from continuing operations before income taxes 40.8 54.0 22.2 (63.6 ) 53.4 Provision for income taxes (2.7 ) 7.1 6.3 (0.8 ) 9.9 Income from continuing operations 43.5 46.9 15.9 (62.8 ) 43.5 Loss from discontinued operations — — — — — Net income $ 43.5 $ 46.9 $ 15.9 $ (62.8 ) $ 43.5 Other comprehensive income (loss), net of tax (71.2 ) (29.4 ) 10.8 108.4 18.6 Comprehensive income $ (27.7 ) $ 17.5 $ 26.7 $ 45.6 $ 62.1 Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2016 (Amounts in millions) Parent Guarantor Non- Eliminations Consolidated Net Sales $ — $ 613.8 $ 143.8 $ (42.4 ) $ 715.2 Cost of goods sold — 460.7 111.3 (40.4 ) 531.6 Gross profit — 153.1 32.5 (2.0 ) 183.6 Operating expenses: Selling, general and administrative expenses — 118.9 21.5 — 140.4 Losses and other expenses, net (0.6 ) 2.5 2.4 — 4.3 Restructuring gains — 0.1 (0.3 ) — (0.2 ) Income from equity method investments (28.1 ) — (4.0 ) 27.5 (4.6 ) Operating income 28.7 31.6 12.9 (29.5 ) 43.7 Interest expense, net 5.3 (0.5 ) 1.0 — 5.8 Income from continuing operations before income taxes 23.4 32.1 11.9 (29.5 ) 37.9 Provision for income taxes (1.5 ) 11.9 3.5 (0.9 ) 13.0 Income from continuing operations 24.9 20.2 8.4 (28.6 ) 24.9 Loss from discontinued operations — — — — — Net income $ 24.9 $ 20.2 $ 8.4 $ (28.6 ) $ 24.9 Other comprehensive loss, net of tax 4.6 2.1 6.3 1.0 14.0 Comprehensive income (loss) $ 29.5 $ 22.3 $ 14.7 $ (27.6 ) $ 38.9 Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2017 (Amounts in millions) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities $ 341.2 $ (308.6 ) $ (140.2 ) $ — $ (107.6 ) Cash flows from investing activities: Proceeds from the disposal of property, plant and equipment — — 0.1 — 0.1 Purchases of property, plant and equipment — (22.0 ) (2.9 ) — (24.9 ) Net cash used in investing activities — (22.0 ) (2.8 ) — (24.8 ) Cash flows from financing activities: Short-term borrowings, net — — (0.8 ) — (0.8 ) Asset securitization borrowings — — 150.0 — 150.0 Asset securitization payments — — — — — Long-term debt payments — (0.1 ) (0.1 ) — (0.2 ) Borrowings from credit facility 583.0 — — — 583.0 Payments on credit facility (497.5 ) — — — (497.5 ) Proceeds from employee stock purchases 0.7 — — — 0.7 Repurchases of common stock (75.0 ) — — — (75.0 ) Repurchases of common stock to satisfy employee withholding tax obligations (13.3 ) — — — (13.3 ) Intercompany debt (29.3 ) 7.6 21.7 — — Intercompany financing activity (291.0 ) 320.0 (29.0 ) — — Cash dividends paid (18.5 ) — — — (18.5 ) Net cash provided by financing activities (340.9 ) 327.5 141.8 — 128.4 Increase in cash and cash equivalents 0.3 (3.1 ) (1.2 ) — (4.0 ) Effect of exchange rates on cash and cash equivalents — — 2.6 — 2.6 Cash and cash equivalents, beginning of period 1.2 17.1 31.9 — 50.2 Cash and cash equivalents, end of period $ 1.5 $ 14.0 $ 33.3 $ — $ 48.8 Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2016 (Amounts in millions) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities $ 59.0 $ (163.1 ) $ 2.5 $ — $ (101.6 ) Cash flows from investing activities: Proceeds from the disposal of property, plant and equipment — — — — — Purchases of property, plant and equipment — (20.9 ) (2.9 ) — (23.8 ) Net cash used in investing activities — (20.9 ) (2.9 ) — (23.8 ) Cash flows from financing activities: Short-term borrowings, net — — (0.4 ) — (0.4 ) Asset securitization borrowings — — — — — Asset securitization payments — — (20.0 ) — (20.0 ) Long-term debt payments — (0.2 ) (0.1 ) — (0.3 ) Borrowings from credit facility 770.5 — — — 770.5 Payments on credit facility (392.0 ) — — — (392.0 ) Proceeds from employee stock purchases 0.6 — — — 0.6 Repurchases of common stock (200.0 ) — — — (200.0 ) Repurchases of common stock to satisfy employee withholding tax obligations (16.8 ) — — — (16.8 ) Intercompany financing activity (8.6 ) (2.9 ) 11.5 — — Intercompany investments (196.1 ) 194.5 1.6 — — Cash dividends paid (16.1 ) — — — (16.1 ) Net cash provided by financing activities (58.5 ) 191.4 (7.4 ) — 125.5 Increase in cash and cash equivalents 0.5 7.4 (7.8 ) — 0.1 Effect of exchange rates on cash and cash equivalents — — 1.6 — 1.6 Cash and cash equivalents, beginning of period 0.5 7.8 30.6 — 38.9 Cash and cash equivalents, end of period $ 1.0 $ 15.2 $ 24.4 $ — $ 40.6 |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Balance Sheet as of March 31, 2017 , the accompanying unaudited Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 , the accompanying unaudited Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016 , and the accompanying unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 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, 2016 . 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 quarter is comprised of approximately 13 weeks but the number of days per quarter may vary year-over-year. For convenience, throughout these financial statements, the 13 weeks comprising each quarterly period are denoted by the last day of the respective calendar quarter. The first quarter of 2017 included the benefit of five more days, or 6%, this year than in the first quarter last year. This balances out on a full-year basis with the fourth quarter having 6% fewer days than a year ago. |
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 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) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of inventories | The components of inventories are as follows (in millions): As of March 31, 2017 As of December 31, 2016 Finished goods $ 381.6 $ 287.2 Work in process 5.9 5.1 Raw materials and parts 192.4 183.4 Subtotal 579.9 475.7 Excess of current cost over last-in, first-out cost (57.1 ) (57.2 ) Total inventories, net $ 522.8 $ 418.5 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the first three months of 2017, in total and by segment, are summarized in the table below (in millions): Balance at December 31, 2016 Acquisitions / (Dispositions) Other (1) Balance at March 31, 2017 Residential Heating & Cooling $ 26.1 $ — $ — $ 26.1 Commercial Heating & Cooling 60.1 — 0.2 60.3 Refrigeration 108.9 — 2.3 111.2 Total Goodwill $ 195.1 $ — $ 2.5 $ 197.6 (1) Other consists of changes in foreign currency translation rates. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amounts related to cash flow hedges | We recorded the following amounts in AOCL related to our cash flow hedges (in millions): As of March 31, 2017 As of December 31, 2016 Unrealized gains on unsettled contracts $ (12.3 ) $ (8.9 ) Income tax expense 4.5 3.3 Gains included in AOCL, net of tax (1) $ (7.8 ) $ (5.6 ) (1) Assuming commodity and foreign currency prices remain constant, we expect to reclassify $7.3 million of derivative gains into earnings within the next 12 months. |
Outstanding contracts designated and not designated as cash flow hedges | We had the following outstanding commodity futures contracts not designated as cash flow hedges (in millions of pounds): As of March 31, 2017 As of December 31, 2016 Copper 2.2 2.4 Aluminum 2.4 2.6 We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions): As of March 31, 2017 As of December 31, 2016 Notional Amounts (in local currency): Chinese Yuan 13.0 10.5 Mexican Peso 59.5 64.5 Euro 43.0 46.9 British Pound 0.6 1.3 Indian Rupee 488.5 584.6 We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions of pounds): As of March 31, 2017 As of December 31, 2016 Copper 26.0 30.4 We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions): As of March 31, 2017 As of December 31, 2016 Notional Amounts (in local currency): Mexican Peso 232.0 310.1 Canadian Dollar — 24.9 |
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 March 31, 2017 As of December 31, 2016 As of March 31, 2017 As of December 31, 2016 Current Assets: Other Assets Commodity futures contracts $ 11.0 $ 8.7 $ 1.2 $ 0.7 Foreign currency forward contracts 0.6 0.5 0.1 0.2 Non-Current Assets: Other Assets, net Commodity futures contracts 0.9 1.9 0.1 0.2 Total Assets $ 12.5 $ 11.1 $ 1.4 $ 1.1 Current Liabilities: Accrued Expenses Commodity futures contracts $ — $ — $ — $ — Foreign currency forward contracts — 0.8 2.0 3.2 Non-Current Liabilities: Other Liabilities Commodity futures contracts — — — — Foreign currency forward contracts — — — — Total Liabilities $ — $ 0.8 $ 2.0 $ 3.2 (1) All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 15 for more information. |
Effect of derivative instruments on Consolidated Statements of Operations | Derivatives Designated as Cash Flow Hedges For the Three Months Ended March 31, 2017 2016 Amount of (Gain)/Loss reclassified from AOCL into Income (effective portion) (1) $ (3.0 ) $ 4.8 Amount of Loss recognized in Net income (ineffective portion) (2) $ 1.1 $ 0.1 Derivatives Not Designated as Hedging Instruments For the Three Months Ended March 31, 2017 2016 Amount of (Gain)/Loss Recognized in Net Income: Commodity futures contracts (2) $ (0.8 ) $ — Foreign currency forward contracts (2) (0.7 ) 0.3 $ (1.5 ) $ 0.3 (1) The (gain)/loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations. (2) The (gain)/loss was recorded in Losses and other expenses, net in the accompanying Consolidated Statements of Operations. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of total liabilities for estimated warranty are included in the accompanying Consolidated Balance Sheets | 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 March 31, 2017 As of December 31, 2016 Accrued expenses $ 30.8 $ 30.0 Other liabilities 71.8 71.1 Total warranty liability $ 102.6 $ 101.1 |
Summary of changes in the total warranty liabilities | The changes in product warranty liabilities related to continuing operations for the three months ended March 31, 2017 were as follows (in millions): Total warranty liability as of December 31, 2016 $ 101.1 Warranty claims paid (5.2 ) Changes resulting from issuance of new warranties 8.2 Changes in estimates associated with pre-existing liabilities (1.7 ) Changes in foreign currency translation rates and other 0.2 Total warranty liability as of March 31, 2017 $ 102.6 |
Lines of Credit and Financing28
Lines of Credit and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of outstanding debt obligations | The following table summarizes our outstanding debt obligations and their classification in the accompanying Consolidated Balance Sheets (in millions): As of March 31, 2017 As of December 31, 2016 Short-Term Debt: Asset Securitization Program $ 200.0 $ 50.0 Foreign obligations 1.6 2.4 Total short-term debt $ 201.6 $ 52.4 Current maturities of long-term debt: Capital lease obligations $ 0.7 $ 0.8 Domestic credit facility 7.5 — Senior unsecured notes 200.0 200.0 Debt issuance costs (0.6 ) (0.7 ) Total current maturities of long-term debt $ 207.6 $ 200.1 Long-Term Debt: Capital lease obligations $ 14.9 $ 15.0 Domestic credit facility 334.0 256.0 Senior unsecured notes 350.0 350.0 Debt issuance costs (5.0 ) (5.3 ) Total long-term debt $ 693.9 $ 615.7 Total debt $ 1,103.1 $ 868.2 |
Eligible amounts available and beneficial interests sold | The eligible amounts available and beneficial interests sold were as follows (in millions): As of March 31, 2017 As of December 31, 2016 Eligible amount available under the ASP on qualified accounts receivable $ 200.0 $ 250.0 Beneficial interest sold 200.0 50.0 Remaining amount available $ — $ 200.0 |
Summary of weighted average borrowing rate facility | Our weighted average borrowing rate on the facility was as follows: As of March 31, 2017 As of December 31, 2016 Weighted average borrowing rate 2.23 % 2.00 % |
Schedule of required ratios under the domestic credit facility | The required ratios under our Domestic 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 Post-retirement B29
Pension and Post-retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 2017 2016 Pension Benefits Other Benefits Service cost $ 1.3 $ 1.1 $ — $ — Interest cost 3.2 3.7 — — Expected return on plan assets (5.4 ) (5.1 ) — — Amortization of prior service cost 0.1 0.1 (0.6 ) (0.8 ) Recognized actuarial loss 2.1 2.1 0.3 0.4 Settlements and curtailments 0.3 — — — Net periodic benefit cost (1) $ 1.6 $ 1.9 $ (0.3 ) $ (0.4 ) For the Three Months Ended March 31, 2017 2016 2017 2016 Pension Benefits Other Benefits Service cost $ 1.3 $ 1.1 $ — $ — Interest cost 3.2 3.7 — — Expected return on plan assets (5.4 ) (5.1 ) — — Amortization of prior service cost 0.1 0.1 (0.6 ) (0.8 ) Recognized actuarial loss 2.1 2.1 0.3 0.4 Settlements and curtailments 0.3 — — — Net periodic benefit cost (1) $ 1.6 $ 1.9 $ (0.3 ) $ (0.4 ) (1) All net periodic benefit cost for the three months ended March 31, 2017 and 2016 related to continuing operations. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 Stock-based compensation expense (1) $ 4.9 $ 6.3 (1) All expense was recorded in our Corporate and Other business segment. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Reclassification out of accumulated other comprehensive income | The following table provides information on items not reclassified in their entirety from AOCL to Net income in the accompanying Consolidated Statements of Operations (in millions): For the Three Months Ended March 31, Affected Line Item(s) in the Consolidated Statements of Operations 2017 2016 (Losses)/Gains on cash flow hedges: Commodity futures contracts $ 3.0 $ (4.8 ) Cost of goods sold Income tax benefit (1.0 ) 1.7 Provision for income taxes Net of tax $ 2.0 $ (3.1 ) Defined Benefit Plan items: Pension and post-retirement benefit costs $ (1.9 ) $ (1.8 ) Cost of goods sold; Selling, general and administrative expenses Income tax benefit 0.6 0.6 Provision for income taxes Net of tax $ (1.3 ) $ (1.2 ) Total reclassifications from AOCL $ 0.7 $ (4.3 ) |
Changes in AOCI by component (net of tax) | The following table provides information on changes in AOCL , by component (net of tax), for the three months ended March 31, 2017 (in millions): (Losses) Gains on Cash Flow Hedges Unrealized Gains (Losses) on Available-for-Sale Securities Defined Benefit Pension Plan Items Foreign Currency Translation Adjustments Total AOCL Balance as of December 31, 2016 $ 5.6 $ 2.3 $ (130.0 ) $ (73.0 ) $ (195.1 ) Other comprehensive (loss) income before reclassifications 4.2 0.8 (1.6 ) 15.9 19.3 Amounts reclassified from AOCL (2.0 ) — 1.3 — (0.7 ) Net other comprehensive (loss) income 2.2 0.8 (0.3 ) 15.9 18.6 Balance as of March 31,2017 $ 7.8 $ 3.1 $ (130.3 ) $ (57.1 ) $ (176.5 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring Charges [Abstract] | |
Information regarding restructuring charges | Information regarding the restructuring charges for all ongoing activities is presented in the following table (in millions): Charges Incurred in 2017 Charges Incurred to Date Total Charges Expected to be Incurred Severance and related (gains) expense $ — $ 9.3 $ 9.3 Asset write-offs and accelerated depreciation 0.1 2.5 2.5 Equipment moves — — — Lease termination — 0.2 0.2 Other — 3.7 4.1 Total restructuring charges $ 0.1 $ 15.7 $ 16.1 |
Information regarding restructuring charges by segment | While restructuring charges are excluded from our calculation of segment profit (loss), the table below presents the restructuring charges associated with each segment (in millions): Charges Incurred in 2017 Charges Incurred to Date Total Charges Expected to be Incurred Residential Heating & Cooling $ — $ 0.9 $ 0.9 Commercial Heating & Cooling — 1.1 1.1 Refrigeration 0.1 12.0 12.0 Corporate & Other — 1.7 2.1 Total restructuring charges $ 0.1 $ 15.7 $ 16.1 The following table describes each 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; Residential New Construction United States 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; Food Preservation; Non-Food/Industrial United States Canada Europe Asia Pacific South America |
Details activity within the restructuring reserves | The table below details the activity in 2017 within the restructuring accruals (in millions): Balance as of Included in Cash Non-Cash Utilization and Other Balance as of March 31, 2017 Severance and related expense $ — $ — $ — $ — $ — Asset write-offs and accelerated depreciation — 0.1 (0.1 ) — — Equipment moves — — — — — Lease termination — — — — Other — — — — — Total restructuring accruals $ — $ 0.1 $ (0.1 ) $ — $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 Income from continuing operations were as follows (in millions, except per share data): For the Three Months Ended March 31, 2017 2016 Net income $ 43.5 $ 24.9 Add: Loss from discontinued operations — — Income from continuing operations $ 43.5 $ 24.9 Weighted-average shares outstanding – basic 42.8 44.0 Add: Potential effect of dilutive securities attributable to stock-based payments 0.7 0.7 Weighted-average shares outstanding – diluted 43.5 44.7 Earnings per share – Basic: Income from continuing operations $ 1.02 $ 0.57 Loss from discontinued operations — — Net income $ 1.02 $ 0.57 Earnings per share – Diluted: Income from continuing operations $ 1.00 $ 0.56 Loss from discontinued operations — — Net income $ 1.00 $ 0.56 |
Stock appreciation rights were outstanding, but not included in the diluted loss per share calculation | The following stock appreciation rights and restricted stock units 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 March 31, 2017 2016 Weighted-average number of shares 0.2 0.3 Price range per share $ 156.94 $124.97 - $131.94 |
Reportable Business Segments (T
Reportable Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Summary of segment description | While restructuring charges are excluded from our calculation of segment profit (loss), the table below presents the restructuring charges associated with each segment (in millions): Charges Incurred in 2017 Charges Incurred to Date Total Charges Expected to be Incurred Residential Heating & Cooling $ — $ 0.9 $ 0.9 Commercial Heating & Cooling — 1.1 1.1 Refrigeration 0.1 12.0 12.0 Corporate & Other — 1.7 2.1 Total restructuring charges $ 0.1 $ 15.7 $ 16.1 The following table describes each 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; Residential New Construction United States 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; Food Preservation; Non-Food/Industrial United States Canada Europe Asia Pacific South America |
Net sales and segment profit (loss) 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 Operating income, are shown below (in millions): For the Three Months Ended March 31, 2017 2016 Net sales Residential Heating & Cooling $ 419.8 $ 377.3 Commercial Heating & Cooling 195.5 170.3 Refrigeration 178.1 167.6 $ 793.4 $ 715.2 Segment profit (loss) (1) Residential Heating & Cooling $ 42.5 $ 38.3 Commercial Heating & Cooling 19.1 14.2 Refrigeration 14.1 9.0 Corporate and other (11.0 ) (14.8 ) Total segment profit 64.7 46.7 Reconciliation to Operating income: Special product quality adjustments — (0.4 ) Items in Losses and other expenses, net that are excluded from segment profit (loss) (1) 3.8 3.6 Restructuring charges (gains) 0.1 (0.2 ) Operating income $ 60.8 $ 43.7 (1) The Company defines segment profit and loss as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding: • Special product quality adjustments; • The following items in Losses (gains) and other expenses, net: ◦ Net change in unrealized losses (gains) on unsettled futures contracts, ◦ Special legal contingency charges, ◦ Asbestos-related litigation, ◦ Contractor tax payments, ◦ Environmental liabilities, ◦ Acquisition costs, ◦ Other items, net; and • Restructuring charges (gains). |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the fair values of an investment in marketable equity securities, classified as Level 1 and related to publicly traded stock of a non-U.S. company, recorded in Other assets, net in the accompanying Consolidated Balance Sheets (in millions): As of March 31, 2017 As of December 31, 2016 Investment in marketable equity securities $ 5.2 $ 4.4 |
Other fair value measurements | The following table presents their fair value (in millions): As of March 31, 2017 As of December 31, 2016 Senior unsecured notes $ 505.6 $ 499.3 |
Condensed Consolidating Finan36
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2017 (Amounts in millions) Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 1.5 $ 14.0 $ 33.3 $ — $ 48.8 Accounts and notes receivable, net — 45.4 468.0 — 513.4 Inventories, net — 406.8 127.3 (11.3 ) 522.8 Other assets 16.1 50.9 89.4 (55.0 ) 101.4 Total current assets 17.6 517.1 718.0 (66.3 ) 1,186.4 Property, plant and equipment, net — 238.9 131.4 (4.7 ) 365.6 Goodwill — 134.9 62.7 — 197.6 Investment in subsidiaries 961.7 427.3 (0.6 ) (1,388.4 ) — Deferred income taxes 8.1 109.3 31.3 (14.7 ) 134.0 Other assets, net 2.4 41.2 24.9 (1.5 ) 67.0 Intercompany receivables (payables), net (62.1 ) 62.4 72.9 (73.2 ) — Total assets $ 927.7 $ 1,531.1 $ 1,040.6 $ (1,548.8 ) $ 1,950.6 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 201.6 $ — $ 201.6 Current maturities of long-term debt 206.9 0.4 0.3 — 207.6 Accounts payable 18.4 270.8 111.8 — 401.0 Accrued expenses 11.0 163.4 50.4 — 224.8 Income taxes payable 12.3 5.5 64.9 (80.2 ) 2.5 Total current liabilities 248.6 440.1 429.0 (80.2 ) 1,037.5 Long-term debt 679.2 14.4 0.3 — 693.9 Post-retirement benefits, other than pensions — 2.4 — — 2.4 Pensions — 76.4 11.9 — 88.3 Other liabilities 0.9 120.2 10.9 (2.5 ) 129.5 Total liabilities 928.7 653.5 452.1 (82.7 ) 1,951.6 Commitments and contingencies Total stockholders' equity (1.0 ) 877.6 588.5 (1,466.1 ) (1.0 ) Total liabilities and stockholders' equity $ 927.7 $ 1,531.1 $ 1,040.6 $ (1,548.8 ) $ 1,950.6 Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2016 (Amounts in millions) Parent Guarantor Non- Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 1.2 $ 17.1 $ 31.9 $ — $ 50.2 Accounts and notes receivable, net — 30.6 439.2 — 469.8 Inventories, net — 314.7 108.9 (5.1 ) 418.5 Other assets 12.8 48.8 67.5 (61.7 ) 67.4 Total current assets 14.0 411.2 647.5 (66.8 ) 1,005.9 Property, plant and equipment, net — 237.6 123.8 — 361.4 Goodwill — 134.9 60.2 — 195.1 Investment in subsidiaries 1,166.9 524.7 (0.5 ) (1,691.1 ) — Deferred income taxes 6.8 113.5 31.1 (14.7 ) 136.7 Other assets, net 3.6 40.0 19.0 (1.4 ) 61.2 Intercompany (payables) receivables, net (382.4 ) 375.2 80.4 (73.2 ) — Total assets $ 808.9 $ 1,837.1 $ 961.5 $ (1,847.2 ) $ 1,760.3 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 52.4 $ — $ 52.4 Current maturities of long-term debt 199.3 0.4 0.4 — 200.1 Accounts payable 18.5 248.5 94.2 — 361.2 Accrued expenses 6.3 206.3 53.3 — 265.9 Income taxes (receivable) payable (54.0 ) 89.8 52.5 (79.3 ) 9.0 Total current liabilities 170.1 545.0 252.8 (79.3 ) 888.6 Long-term debt 600.9 14.5 0.3 — 615.7 Post-retirement benefits, other than pensions — 2.8 — — 2.8 Pensions — 75.5 12.0 — 87.5 Other liabilities — 119.1 11.1 (2.5 ) 127.7 Total liabilities 771.0 756.9 276.2 (81.8 ) 1,722.3 Commitments and contingencies Total stockholders' equity 37.9 1,080.2 685.3 (1,765.4 ) 38.0 Total liabilities and stockholders' equity $ 808.9 $ 1,837.1 $ 961.5 $ (1,847.2 ) $ 1,760.3 |
Condensed Consolidating Statements of Operations and Comprehensive Income | Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2017 (Amounts in millions) Parent Guarantor Non-Guarantor Eliminations Consolidated Net Sales $ — $ 686.3 $ 258.8 $ (151.7 ) $ 793.4 Cost of goods sold — 513.3 217.7 (148.5 ) 582.5 Gross profit — 173.0 41.1 (3.2 ) 210.9 Operating expenses: Selling, general and administrative expenses — 130.5 22.1 (0.2 ) 152.4 Losses (gains) and other expenses, net 0.6 2.0 0.6 (0.1 ) 3.1 Restructuring charges — — 0.1 — 0.1 Income from equity method investments (48.6 ) (12.7 ) (4.9 ) 60.7 (5.5 ) Operating income 48.0 53.2 23.2 (63.6 ) 60.8 Interest expense, net 7.2 (0.8 ) 1.0 — 7.4 Income from continuing operations before income taxes 40.8 54.0 22.2 (63.6 ) 53.4 Provision for income taxes (2.7 ) 7.1 6.3 (0.8 ) 9.9 Income from continuing operations 43.5 46.9 15.9 (62.8 ) 43.5 Loss from discontinued operations — — — — — Net income $ 43.5 $ 46.9 $ 15.9 $ (62.8 ) $ 43.5 Other comprehensive income (loss), net of tax (71.2 ) (29.4 ) 10.8 108.4 18.6 Comprehensive income $ (27.7 ) $ 17.5 $ 26.7 $ 45.6 $ 62.1 Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2016 (Amounts in millions) Parent Guarantor Non- Eliminations Consolidated Net Sales $ — $ 613.8 $ 143.8 $ (42.4 ) $ 715.2 Cost of goods sold — 460.7 111.3 (40.4 ) 531.6 Gross profit — 153.1 32.5 (2.0 ) 183.6 Operating expenses: Selling, general and administrative expenses — 118.9 21.5 — 140.4 Losses and other expenses, net (0.6 ) 2.5 2.4 — 4.3 Restructuring gains — 0.1 (0.3 ) — (0.2 ) Income from equity method investments (28.1 ) — (4.0 ) 27.5 (4.6 ) Operating income 28.7 31.6 12.9 (29.5 ) 43.7 Interest expense, net 5.3 (0.5 ) 1.0 — 5.8 Income from continuing operations before income taxes 23.4 32.1 11.9 (29.5 ) 37.9 Provision for income taxes (1.5 ) 11.9 3.5 (0.9 ) 13.0 Income from continuing operations 24.9 20.2 8.4 (28.6 ) 24.9 Loss from discontinued operations — — — — — Net income $ 24.9 $ 20.2 $ 8.4 $ (28.6 ) $ 24.9 Other comprehensive loss, net of tax 4.6 2.1 6.3 1.0 14.0 Comprehensive income (loss) $ 29.5 $ 22.3 $ 14.7 $ (27.6 ) $ 38.9 |
Condensed Consolidating Statements of Cash Flows | Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2017 (Amounts in millions) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities $ 341.2 $ (308.6 ) $ (140.2 ) $ — $ (107.6 ) Cash flows from investing activities: Proceeds from the disposal of property, plant and equipment — — 0.1 — 0.1 Purchases of property, plant and equipment — (22.0 ) (2.9 ) — (24.9 ) Net cash used in investing activities — (22.0 ) (2.8 ) — (24.8 ) Cash flows from financing activities: Short-term borrowings, net — — (0.8 ) — (0.8 ) Asset securitization borrowings — — 150.0 — 150.0 Asset securitization payments — — — — — Long-term debt payments — (0.1 ) (0.1 ) — (0.2 ) Borrowings from credit facility 583.0 — — — 583.0 Payments on credit facility (497.5 ) — — — (497.5 ) Proceeds from employee stock purchases 0.7 — — — 0.7 Repurchases of common stock (75.0 ) — — — (75.0 ) Repurchases of common stock to satisfy employee withholding tax obligations (13.3 ) — — — (13.3 ) Intercompany debt (29.3 ) 7.6 21.7 — — Intercompany financing activity (291.0 ) 320.0 (29.0 ) — — Cash dividends paid (18.5 ) — — — (18.5 ) Net cash provided by financing activities (340.9 ) 327.5 141.8 — 128.4 Increase in cash and cash equivalents 0.3 (3.1 ) (1.2 ) — (4.0 ) Effect of exchange rates on cash and cash equivalents — — 2.6 — 2.6 Cash and cash equivalents, beginning of period 1.2 17.1 31.9 — 50.2 Cash and cash equivalents, end of period $ 1.5 $ 14.0 $ 33.3 $ — $ 48.8 Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2016 (Amounts in millions) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities $ 59.0 $ (163.1 ) $ 2.5 $ — $ (101.6 ) Cash flows from investing activities: Proceeds from the disposal of property, plant and equipment — — — — — Purchases of property, plant and equipment — (20.9 ) (2.9 ) — (23.8 ) Net cash used in investing activities — (20.9 ) (2.9 ) — (23.8 ) Cash flows from financing activities: Short-term borrowings, net — — (0.4 ) — (0.4 ) Asset securitization borrowings — — — — — Asset securitization payments — — (20.0 ) — (20.0 ) Long-term debt payments — (0.2 ) (0.1 ) — (0.3 ) Borrowings from credit facility 770.5 — — — 770.5 Payments on credit facility (392.0 ) — — — (392.0 ) Proceeds from employee stock purchases 0.6 — — — 0.6 Repurchases of common stock (200.0 ) — — — (200.0 ) Repurchases of common stock to satisfy employee withholding tax obligations (16.8 ) — — — (16.8 ) Intercompany financing activity (8.6 ) (2.9 ) 11.5 — — Intercompany investments (196.1 ) 194.5 1.6 — — Cash dividends paid (16.1 ) — — — (16.1 ) Net cash provided by financing activities (58.5 ) 191.4 (7.4 ) — 125.5 Increase in cash and cash equivalents 0.5 7.4 (7.8 ) — 0.1 Effect of exchange rates on cash and cash equivalents — — 1.6 — 1.6 Cash and cash equivalents, beginning of period 0.5 7.8 30.6 — 38.9 Cash and cash equivalents, end of period $ 1.0 $ 15.2 $ 24.4 $ — $ 40.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Components of inventories | ||
Finished goods | $ 381.6 | $ 287.2 |
Work in process | 5.9 | 5.1 |
Raw materials and parts | 192.4 | 183.4 |
Subtotal | 579.9 | 475.7 |
Excess of current cost over last-in, first-out cost | (57.1) | (57.2) |
Total inventories, net | $ 522.8 | $ 418.5 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 195.1 |
Acquisitions / (Dispositions) | 0 |
Other | 2.5 |
Goodwill, Ending Balance | 197.6 |
Residential Heating & Cooling [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 26.1 |
Acquisitions / (Dispositions) | 0 |
Other | 0 |
Goodwill, Ending Balance | 26.1 |
Commercial Heating & Cooling [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 60.1 |
Acquisitions / (Dispositions) | 0 |
Other | 0.2 |
Goodwill, Ending Balance | 60.3 |
Refrigeration [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 108.9 |
Acquisitions / (Dispositions) | 0 |
Other | 2.3 |
Goodwill, Ending Balance | $ 111.2 |
Derivatives (AOCL Related to Ca
Derivatives (AOCL Related to Cash Flow Hedges) (Details) - Cash Flow Hedge [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gains on unsettled contracts | $ (12.3) | $ (8.9) |
Income tax expense | 4.5 | 3.3 |
Losses included in AOCL, net of tax | (7.8) | $ (5.6) |
Cash flow hedge derivative losses expected to be reclassified into earnings within the next 12 months | $ 7.3 |
Derivatives (Outstanding Contra
Derivatives (Outstanding Contracts Designated as Cash Flow Hedges) (Details) - Designated as Hedging Instrument [Member] lb in Millions, MXN in Millions, CAD in Millions | Mar. 31, 2017CADlb | Mar. 31, 2017MXNlb | Dec. 31, 2016CADlb | Dec. 31, 2016MXNlb |
Commodity Futures Contracts [Member] | ||||
Derivative [Line Items] | ||||
Derivative, nonmonetary notional amount (in lbs) | lb | 26 | 26 | 30.4 | 30.4 |
Foreign Exchange Forward [Member] | Mexican Peso [Member] | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | MXN | MXN 232 | MXN 310.1 | ||
Foreign Exchange Forward [Member] | Canadian Dollar [Member] | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | CAD | CAD 0 | CAD 24.9 |
Derivatives (Outstanding Cont41
Derivatives (Outstanding Contracts Not Designated as Cash Flow Hedges) (Details) - Not Designated as Hedging Instrument [Member] € in Millions, ₨ in Millions, lb in Millions, MXN in Millions, CAD in Millions, $ in Millions | Mar. 31, 2017EUR (€)lb | Mar. 31, 2017USD ($)lb | Mar. 31, 2017CADlb | Mar. 31, 2017MXNlb | Mar. 31, 2017INR (₨)lb | Dec. 31, 2016EUR (€)lb | Dec. 31, 2016USD ($)lb | Dec. 31, 2016CADlb | Dec. 31, 2016MXNlb | Dec. 31, 2016INR (₨)lb |
Foreign Exchange Forward [Member] | Mexican Peso [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | MXN | MXN 59.5 | MXN 64.5 | ||||||||
Foreign Exchange Forward [Member] | Indian Rupee [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | ₨ | ₨ 488.5 | ₨ 584.6 | ||||||||
Foreign Exchange Forward [Member] | Euro [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | € | € 43 | € 46.9 | ||||||||
Foreign Exchange Forward [Member] | China, Yuan Renminbi | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | $ | $ 13 | $ 10.5 | ||||||||
Foreign Exchange Forward [Member] | United Kingdom, Pounds | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | CAD | CAD 0.6 | CAD 1.3 | ||||||||
Copper Commodity Contract [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, nonmonetary notional amount (in lbs) | 2.2 | 2.2 | 2.2 | 2.2 | 2.2 | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 |
Aluminum | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, nonmonetary notional amount (in lbs) | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 | 2.6 | 2.6 | 2.6 | 2.6 | 2.6 |
Derivatives (Fair Value of Deri
Derivatives (Fair Value of Derivative Instruments) (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | $ 12.5 | $ 11.1 |
Total Liabilities | 0 | 0.8 |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | 11 | 8.7 |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Non-Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | 0.9 | 1.9 |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | 0 | 0 |
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Non-Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | 0 | 0 |
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | 0.6 | 0.5 |
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | 0 | 0.8 |
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Non-Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | 0 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | 1.4 | 1.1 |
Total Liabilities | 2 | 3.2 |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | 1.2 | 0.7 |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Non-Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | 0.1 | 0.2 |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Non-Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | 0.1 | 0.2 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | 2 | 3.2 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Non-Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liabilities | $ 0 | $ 0 |
Derivatives (Derivative Instrum
Derivatives (Derivative Instruments Classified as Level 2) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss reclassified from AOCL into Income (effective portion) | $ (3) | $ 4.8 |
Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | Other Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss recognized in Net income (ineffective portion) | 1.1 | 0.1 |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss (Gain) Recognized in Net Income | (1.5) | 0.3 |
Not Designated as Hedging Instrument [Member] | Other Expense [Member] | Commodity Futures Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss (Gain) Recognized in Net Income | (0.8) | 0 |
Not Designated as Hedging Instrument [Member] | Other Expense [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss (Gain) Recognized in Net Income | $ (0.7) | $ 0.3 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 2,400,000 |
Income Tax Examination, Penalties and Interest Expense | 100,000 |
Current Income Tax Expense (Benefit) | 7,400,000 |
Unrecognized tax benefits | $ 2,300,000 |
Commitments and Contingencies45
Commitments and Contingencies (Liabilities for Estimated Product Warranty Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Total liabilities for estimated warranty | ||
Accrued expenses | $ 30.8 | $ 30 |
Other liabilities | 71.8 | 71.1 |
Total warranty liability | 102.6 | $ 101.1 |
Minimum [Member] | ||
Product Liability Contingency, Loss Exposure Not Accrued, Best Estimate | $ 0.9 |
Commitments and Contingencies46
Commitments and Contingencies (Changes in Product Warranty Liabilities) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Changes in the total warranty liabilities | |
Total warranty liability, beginning balance | $ 101.1 |
Warranty claims paid | (5.2) |
Changes resulting from issuance of new warranties | 8.2 |
Changes in estimates associated with pre-existing liabilities | (1.7) |
Changes in foreign currency translation rates and other | 0.2 |
Total warranty liability, ending balance | 102.6 |
Maximum [Member] | |
Product Liability Contingency, Loss Exposure Not Accrued, Best Estimate | $ 9.1 |
Commitments and Contingencies47
Commitments and Contingencies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2016RUB | |
Product Liability Contingency [Line Items] | |||||
Expense for asbestos-related litigation | $ 1,700,000 | $ 800,000 | |||
Russia | |||||
Product Liability Contingency [Line Items] | |||||
Annual sales | $ 4,000,000 | ||||
Unfavorable Regulatory Action [Member] | |||||
Product Liability Contingency [Line Items] | |||||
Alleged unauthorized payment | $ 475 | RUB 30,000 | |||
Value of shipment | $ 68,500 | RUB 62,000 | |||
Minimum [Member] | |||||
Product Liability Contingency [Line Items] | |||||
Probable outstanding liability for quality issue, higher range | 900,000 | ||||
Maximum [Member] | |||||
Product Liability Contingency [Line Items] | |||||
Probable outstanding liability for quality issue, higher range | $ 9,100,000 |
Lines of Credit and Financing48
Lines of Credit and Financing Arrangements (Outstanding Debt Obligations) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Short-Term Debt: | ||
Total short-term debt | $ 201.6 | $ 52.4 |
Current maturities of long-term debt: | ||
Capital lease obligations | 0.7 | 0.8 |
Total current maturities of long-term debt | 207.6 | 200.1 |
Long-Term Debt: | ||
Capital lease obligations | 14.9 | 15 |
Debt issuance costs | (5) | (5.3) |
Total long-term debt | 693.9 | 615.7 |
Total debt | 1,103.1 | 868.2 |
Domestic Credit Facility [Member] | ||
Current maturities of long-term debt: | ||
Domestic credit facility and senior unsecured notes | 7.5 | 0 |
Debt issuance costs | (0.6) | (0.7) |
Long-Term Debt: | ||
Domestic credit facility and senior unsecured notes | 334 | 256 |
Senior Unsecured Notes [Member] | ||
Current maturities of long-term debt: | ||
Domestic credit facility and senior unsecured notes | 200 | 200 |
Long-Term Debt: | ||
Domestic credit facility and senior unsecured notes | 350 | 350 |
Asset Securitization Program [Member] | ||
Short-Term Debt: | ||
Total short-term debt | 200 | 50 |
Foreign Obligations [Member] | ||
Short-Term Debt: | ||
Total short-term debt | $ 1.6 | $ 2.4 |
Lines of Credit and Financing49
Lines of Credit and Financing Arrangements (Foreign Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | |||
Foreign obligations | $ 201.6 | $ 52.4 | |
Foreign Obligations [Member] | |||
Short-term Debt [Line Items] | |||
Foreign obligations | 1.6 | $ 2.4 | |
Proceeds on facilities | 0.3 | $ 1.2 | |
Repayments on facilities | $ 1.1 | $ 1.6 |
Lines of Credit and Financing50
Lines of Credit and Financing Arrangements (Asset Securitization Program) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Jul. 05, 2016 | |
Line of Credit Facility [Line Items] | |||
Maximum securitization as percentage of net pool balance | 100.00% | ||
Program fee percentage | 0.65% | ||
Average floating commercial paper rate (as a percent) | 1.70% | 1.66% | |
Unused fee | 102.00% | ||
Fixed rate of agreement (as a percent) | 0.33% | ||
Unused fee charged on incremental available amounts (as a percent) | $ 0.0005 | ||
Senior Unsecured Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Minimum principal amount accelerated | 75,000,000 | ||
Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Securitization amount | $ 200,000,000 | ||
Unused fee charge on incremental amount | $ 200,000,000 | ||
Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Securitization amount | $ 325,000,000 |
Lines of Credit and Financing51
Lines of Credit and Financing Arrangements (Eligible Amounts Available and Beneficial Interest Sold) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Eligible amounts available and beneficial interests sold | ||
Eligible amount available under the ASP on qualified accounts receivable | $ 200 | $ 250 |
Beneficial interest sold | 200 | 50 |
Remaining amount available | $ 0 | $ 200 |
Lines of Credit and Financing52
Lines of Credit and Financing Arrangements (Domestic Credit Facility) (Details) - USD ($) | Nov. 01, 2016 | Mar. 31, 2017 | Aug. 30, 2016 | Nov. 13, 2014 |
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 650,000,000 | |||
Domestic Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 900,000,000 | 950,000,000 | ||
Letter of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 | |||
Subfacility for Swingline Loans [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 65,000,000 | |||
Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Minimum principal amount accelerated | 75,000,000 | |||
Medium-term Notes [Member] | Domestic Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Face amount of debt | 220,000,000 | $ 250,000,000 | ||
Periodic payments | 7,500,000 | |||
Debt Instrument, Periodic Payment | $ 30,000,000 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding borrowings | 341,500,000 | |||
Committed standby letters of credit | 4,400,000 | |||
Available for future borrowings | 524,100,000 | |||
Revolving Credit Facility [Member] | Domestic Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum increase in borrowings | $ 350,000,000 |
Lines of Credit and Financing53
Lines of Credit and Financing Arrangements (Weighted Average Borrowing Rate) (Details) | Mar. 31, 2017 | Dec. 31, 2016 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Weighted average borrowing rate | 2.23% | 2.00% |
Lines of Credit and Financing54
Lines of Credit and Financing Arrangements (Credit Facility Ratios) (Details) - Revolving Credit Facility [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than | 3.5 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Cash Flow to Net Interest Expense Ratio no less than | 3 |
Lines of Credit and Financing55
Lines of Credit and Financing Arrangements (Senior Unsecured Notes) (Details) - Senior Unsecured Notes [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2016 | May 31, 2010 | |
Debt Instrument [Line Items] | ||||
Senior unsecured notes | $ 350,000,000 | $ 200,000,000 | ||
Fixed interest rate for senior unsecured notes (as a percent) | 3.00% | 4.90% | ||
Maturity date of senior unsecured notes | Nov. 15, 2023 | May 15, 2017 | ||
Minimum principal amount accelerated | $ 75,000,000 | |||
Notice period | 30 days |
Pension and Post-retirement B56
Pension and Post-retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 1.3 | $ 1.1 |
Interest cost | 3.2 | 3.7 |
Expected return on plan assets | (5.4) | (5.1) |
Amortization of prior service cost | 0.1 | 0.1 |
Recognized actuarial loss | 2.1 | 2.1 |
Settlements and curtailments | 0.3 | 0 |
Net periodic benefit cost | 1.6 | 1.9 |
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | (0.6) | (0.8) |
Recognized actuarial loss | 0.3 | 0.4 |
Settlements and curtailments | 0 | 0 |
Net periodic benefit cost | $ (0.3) | $ (0.4) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 4.9 | $ 6.3 |
Stock Repurchases (Details)
Stock Repurchases (Details) - USD ($) shares in Millions | Feb. 09, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Stockholders' Equity Note [Abstract] | ||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | $ 550,000,000 | ||
Stock repurchase program, remaining authorized amount | $ 571,000,000 | |||
Accelerated share repurchases, initial price to be paid | $ 75,000,000 | |||
Subsequent Event [Line Items] | ||||
Accelerated share repurchases, number of shares | 0.4 | |||
Accelerated share repurchases, percentage of shares to be repurchased | 85.00% | |||
Shares repurchased from employees who surrendered shares to satisfy minimum tax withholding obligations | 0.1 | |||
Shares repurchased from employees who surrendered shares to satisfy minimum tax withholding obligations, value | $ 13,300,000 | $ 16,800,000 |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification out of AOCL) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold; Selling, general and administrative expenses | $ (582.5) | $ (531.6) |
Income tax benefit | (9.9) | (13) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | 0.7 | (4.3) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | (Losses)/Gains on Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax benefit | (1) | 1.7 |
Net of tax | 2 | (3.1) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | (Losses)/Gains on Cash Flow Hedges [Member] | Commodity Futures Contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold; Selling, general and administrative expenses | 3 | (4.8) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Defined Benefit Plan Items [Member[ | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold; Selling, general and administrative expenses | (1.9) | (1.8) |
Income tax benefit | 0.6 | 0.6 |
Net of tax | $ (1.3) | $ (1.2) |
Comprehensive Income (Changes i
Comprehensive Income (Changes in AOCL) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of beginning of period | $ (195.1) |
Other comprehensive (loss) income before reclassifications | 19.3 |
Amounts reclassified from AOCL | (0.7) |
Net other comprehensive (loss) income | 18.6 |
Balance as of end of period | (176.5) |
Gains (Losses) on Cash Flow Hedges [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of beginning of period | 5.6 |
Other comprehensive (loss) income before reclassifications | 4.2 |
Amounts reclassified from AOCL | (2) |
Net other comprehensive (loss) income | 2.2 |
Balance as of end of period | 7.8 |
Unrealized Gains on Available-for-Sale Securities [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of beginning of period | 2.3 |
Other comprehensive (loss) income before reclassifications | 0.8 |
Amounts reclassified from AOCL | 0 |
Net other comprehensive (loss) income | 0.8 |
Balance as of end of period | 3.1 |
Defined Benefit Pension Plan Items [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of beginning of period | (130) |
Other comprehensive (loss) income before reclassifications | (1.6) |
Amounts reclassified from AOCL | 1.3 |
Net other comprehensive (loss) income | (0.3) |
Balance as of end of period | (130.3) |
Foreign Currency Translation Adjustments [Member] | |
Changes in AOCI by component (net of tax) [Roll Forward] | |
Balance as of beginning of period | (73) |
Other comprehensive (loss) income before reclassifications | 15.9 |
Amounts reclassified from AOCL | 0 |
Net other comprehensive (loss) income | 15.9 |
Balance as of end of period | $ (57.1) |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Information regarding restructuring charges | ||
Charges Incurred in 2017 | $ 0.1 | |
Charges Incurred to Date | 15.7 | |
Total Charges Expected to be Incurred | 16.1 | |
Details activity within the restructuring reserves | ||
Beginning Balance | 0 | |
Included in Earnings | (0.1) | $ 0.2 |
Cash Utilization | (0.1) | |
Non-Cash Utilization and Other | 0 | |
Ending Balance | 0 | |
Residential Heating & Cooling [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0 | |
Charges Incurred to Date | 0.9 | |
Total Charges Expected to be Incurred | 0.9 | |
Commercial Heating & Cooling [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0 | |
Charges Incurred to Date | 1.1 | |
Total Charges Expected to be Incurred | 1.1 | |
Refrigeration [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0.1 | |
Charges Incurred to Date | 12 | |
Total Charges Expected to be Incurred | 12 | |
Corporate & Other [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0 | |
Charges Incurred to Date | 1.7 | |
Total Charges Expected to be Incurred | 2.1 | |
Severance and Related Expense [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0 | |
Charges Incurred to Date | 9.3 | |
Total Charges Expected to be Incurred | 9.3 | |
Details activity within the restructuring reserves | ||
Beginning Balance | 0 | |
Included in Earnings | 0 | |
Cash Utilization | 0 | |
Non-Cash Utilization and Other | 0 | |
Ending Balance | 0 | |
Asset Write-offs and Accelerated Depreciation [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0.1 | |
Charges Incurred to Date | 2.5 | |
Total Charges Expected to be Incurred | 2.5 | |
Details activity within the restructuring reserves | ||
Beginning Balance | 0 | |
Included in Earnings | (0.1) | |
Cash Utilization | (0.1) | |
Non-Cash Utilization and Other | 0 | |
Ending Balance | 0 | |
Equipment Moves [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0 | |
Charges Incurred to Date | 0 | |
Total Charges Expected to be Incurred | 0 | |
Details activity within the restructuring reserves | ||
Beginning Balance | 0 | |
Included in Earnings | 0 | |
Cash Utilization | 0 | |
Non-Cash Utilization and Other | 0 | |
Ending Balance | 0 | |
Lease Termination [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0 | |
Charges Incurred to Date | 0.2 | |
Total Charges Expected to be Incurred | 0.2 | |
Details activity within the restructuring reserves | ||
Beginning Balance | 0 | |
Included in Earnings | 0 | |
Cash Utilization | 0 | |
Non-Cash Utilization and Other | ||
Ending Balance | 0 | |
Other [Member] | ||
Information regarding restructuring charges | ||
Charges Incurred in 2017 | 0 | |
Charges Incurred to Date | 3.7 | |
Total Charges Expected to be Incurred | 4.1 | |
Details activity within the restructuring reserves | ||
Beginning Balance | 0 | |
Included in Earnings | 0 | |
Cash Utilization | 0 | |
Non-Cash Utilization and Other | 0 | |
Ending Balance | $ 0 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income | $ 43.5 | $ 24.9 |
Add: Loss from discontinued operations | 0 | 0 |
Income from continuing operations | $ 43.5 | $ 24.9 |
Weighted-average shares outstanding – basic | 42.8 | 44 |
Add: Potential effect of dilutive securities attributable to stock-based payments | 0.7 | 0.7 |
Weighted-average shares outstanding – diluted | 43.5 | 44.7 |
Earnings per share – Basic: | ||
Income from continuing operations (in dollars per share) | $ 1.02 | $ 0.57 |
Loss from discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | 1.02 | 0.57 |
Earnings per share – Diluted: | ||
Income from continuing operations (in dollars per share) | 1 | 0.56 |
Loss from discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | $ 1 | $ 0.56 |
Earnings Per Share (Excluded fr
Earnings Per Share (Excluded from Diluted Earnings Per Share Calculation) (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average number of shares | 0.2 | 0.3 |
Price range per share (in dollars per share) | $ 156.94 | $ 124.97 |
Maximum [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Price range per share (in dollars per share) | $ 156.94 | $ 131.94 |
Reportable Business Segments (S
Reportable Business Segments (Segment Description) (Details) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of reportable business segments | 3 |
Residential Heating & Cooling [Member] | |
Segment Reporting Information [Line Items] | |
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] | |
Segment Reporting Information [Line Items] | |
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] | |
Segment Reporting Information [Line Items] | |
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 65
Reportable Business Segments (Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | ||
Net sales | $ 793.4 | $ 715.2 |
Segment profit (loss) | ||
Total segment profit | 64.7 | 46.7 |
Reconciliation to Operating income: | ||
Special product quality adjustments | 0 | 0.4 |
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) | 3.8 | 3.6 |
Restructuring charges (gains) | 0.1 | (0.2) |
Operating income | 60.8 | 43.7 |
Residential Heating & Cooling [Member] | ||
Net sales | ||
Net sales | 419.8 | 377.3 |
Segment profit (loss) | ||
Total segment profit | 42.5 | 38.3 |
Commercial Heating & Cooling [Member] | ||
Net sales | ||
Net sales | 195.5 | 170.3 |
Segment profit (loss) | ||
Total segment profit | 19.1 | 14.2 |
Refrigeration [Member] | ||
Net sales | ||
Net sales | 178.1 | 167.6 |
Segment profit (loss) | ||
Total segment profit | 14.1 | 9 |
Corporate & Other [Member] | ||
Segment profit (loss) | ||
Total segment profit | $ 11 | $ 14.8 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Carried at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Level 1 [Member] | ||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Investment in marketable equity securities | $ 5.2 | $ 4.4 |
Fair Value Measurements (Other
Fair Value Measurements (Other Fair Value Disclosures) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Level 2 [Member] | Senior Unsecured Notes [Member] | ||
Other Fair Value Measurements | ||
Senior unsecured notes | $ 505.6 | $ 499.3 |
Condensed Consolidating Finan68
Condensed Consolidating Financial Statements (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Subsidiaries, ownership percentage | 100.00% |
Condensed Consolidating Finan69
Condensed Consolidating Financial Statements (Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||||
Cash and cash equivalents | $ 48.8 | $ 50.2 | $ 40.6 | $ 38.9 |
Accounts and notes receivable, net | 513.4 | 469.8 | ||
Inventories, net | 522.8 | 418.5 | ||
Other assets | 101.4 | 67.4 | ||
Total current assets | 1,186.4 | 1,005.9 | ||
Property, plant and equipment, net | 365.6 | 361.4 | ||
Goodwill | 197.6 | 195.1 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 134 | 136.7 | ||
Other assets, net | 67 | 61.2 | ||
Intercompany receivables (payables), net | 0 | 0 | ||
Total assets | 1,950.6 | 1,760.3 | ||
Current Liabilities: | ||||
Short-term debt | 201.6 | 52.4 | ||
Current maturities of long-term debt | 207.6 | 200.1 | ||
Accounts payable | 401 | 361.2 | ||
Accrued expenses | 224.8 | 265.9 | ||
Income taxes payable | 2.5 | 9 | ||
Total current liabilities | 1,037.5 | 888.6 | ||
Long-term debt | 693.9 | 615.7 | ||
Post-retirement benefits, other than pensions | 2.4 | 2.8 | ||
Pensions | 88.3 | 87.5 | ||
Other liabilities | 129.5 | 127.7 | ||
Total liabilities | 1,951.6 | 1,722.3 | ||
Commitments and contingencies | ||||
Total stockholders' equity | (1) | 38 | ||
Total liabilities and stockholders' equity | 1,950.6 | 1,760.3 | ||
Eliminations [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | (11.3) | (5.1) | ||
Other assets | (55) | (61.7) | ||
Total current assets | (66.3) | (66.8) | ||
Property, plant and equipment, net | (4.7) | 0 | ||
Goodwill | 0 | 0 | ||
Investment in subsidiaries | (1,388.4) | (1,691.1) | ||
Deferred income taxes | (14.7) | (14.7) | ||
Other assets, net | (1.5) | (1.4) | ||
Intercompany receivables (payables), net | (73.2) | (73.2) | ||
Total assets | (1,548.8) | (1,847.2) | ||
Current Liabilities: | ||||
Short-term debt | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Income taxes payable | (80.2) | (79.3) | ||
Total current liabilities | (80.2) | (79.3) | ||
Long-term debt | 0 | 0 | ||
Post-retirement benefits, other than pensions | 0 | 0 | ||
Pensions | 0 | 0 | ||
Other liabilities | (2.5) | (2.5) | ||
Total liabilities | (82.7) | (81.8) | ||
Commitments and contingencies | ||||
Total stockholders' equity | (1,466.1) | (1,765.4) | ||
Total liabilities and stockholders' equity | (1,548.8) | (1,847.2) | ||
Parent [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 1.5 | 1.2 | 1 | 0.5 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other assets | 16.1 | 12.8 | ||
Total current assets | 17.6 | 14 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in subsidiaries | 961.7 | 1,166.9 | ||
Deferred income taxes | 8.1 | 6.8 | ||
Other assets, net | 2.4 | 3.6 | ||
Intercompany receivables (payables), net | (62.1) | (382.4) | ||
Total assets | 927.7 | 808.9 | ||
Current Liabilities: | ||||
Short-term debt | 0 | 0 | ||
Current maturities of long-term debt | 206.9 | 199.3 | ||
Accounts payable | 18.4 | 18.5 | ||
Accrued expenses | 11 | 6.3 | ||
Income taxes payable | 12.3 | (54) | ||
Total current liabilities | 248.6 | 170.1 | ||
Long-term debt | 679.2 | 600.9 | ||
Post-retirement benefits, other than pensions | 0 | 0 | ||
Pensions | 0 | 0 | ||
Other liabilities | 0.9 | 0 | ||
Total liabilities | 928.7 | 771 | ||
Commitments and contingencies | ||||
Total stockholders' equity | (1) | 37.9 | ||
Total liabilities and stockholders' equity | 927.7 | 808.9 | ||
Guarantor Subsidiaries [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 14 | 17.1 | 15.2 | 7.8 |
Accounts and notes receivable, net | 45.4 | 30.6 | ||
Inventories, net | 406.8 | 314.7 | ||
Other assets | 50.9 | 48.8 | ||
Total current assets | 517.1 | 411.2 | ||
Property, plant and equipment, net | 238.9 | 237.6 | ||
Goodwill | 134.9 | 134.9 | ||
Investment in subsidiaries | 427.3 | 524.7 | ||
Deferred income taxes | 109.3 | 113.5 | ||
Other assets, net | 41.2 | 40 | ||
Intercompany receivables (payables), net | 62.4 | 375.2 | ||
Total assets | 1,531.1 | 1,837.1 | ||
Current Liabilities: | ||||
Short-term debt | 0 | 0 | ||
Current maturities of long-term debt | 0.4 | 0.4 | ||
Accounts payable | 270.8 | 248.5 | ||
Accrued expenses | 163.4 | 206.3 | ||
Income taxes payable | 5.5 | 89.8 | ||
Total current liabilities | 440.1 | 545 | ||
Long-term debt | 14.4 | 14.5 | ||
Post-retirement benefits, other than pensions | 2.4 | 2.8 | ||
Pensions | 76.4 | 75.5 | ||
Other liabilities | 120.2 | 119.1 | ||
Total liabilities | 653.5 | 756.9 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 877.6 | 1,080.2 | ||
Total liabilities and stockholders' equity | 1,531.1 | 1,837.1 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 33.3 | 31.9 | $ 24.4 | $ 30.6 |
Accounts and notes receivable, net | 468 | 439.2 | ||
Inventories, net | 127.3 | 108.9 | ||
Other assets | 89.4 | 67.5 | ||
Total current assets | 718 | 647.5 | ||
Property, plant and equipment, net | 131.4 | 123.8 | ||
Goodwill | 62.7 | 60.2 | ||
Investment in subsidiaries | (0.6) | (0.5) | ||
Deferred income taxes | 31.3 | 31.1 | ||
Other assets, net | 24.9 | 19 | ||
Intercompany receivables (payables), net | 72.9 | 80.4 | ||
Total assets | 1,040.6 | 961.5 | ||
Current Liabilities: | ||||
Short-term debt | 201.6 | 52.4 | ||
Current maturities of long-term debt | 0.3 | 0.4 | ||
Accounts payable | 111.8 | 94.2 | ||
Accrued expenses | 50.4 | 53.3 | ||
Income taxes payable | 64.9 | 52.5 | ||
Total current liabilities | 429 | 252.8 | ||
Long-term debt | 0.3 | 0.3 | ||
Post-retirement benefits, other than pensions | 0 | 0 | ||
Pensions | 11.9 | 12 | ||
Other liabilities | 10.9 | 11.1 | ||
Total liabilities | 452.1 | 276.2 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 588.5 | 685.3 | ||
Total liabilities and stockholders' equity | $ 1,040.6 | $ 961.5 |
Condensed Consolidating Finan70
Condensed Consolidating Financial Statements (Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Consolidating Statements of Operations | ||
Net sales | $ 793.4 | $ 715.2 |
Cost of goods sold | 582.5 | 531.6 |
Gross profit | 210.9 | 183.6 |
Operating Expenses: | ||
Selling, general and administrative expenses | 152.4 | 140.4 |
Losses and other expenses, net | 3.1 | 4.3 |
Restructuring charges (gains) | (0.1) | 0.2 |
Income from equity method investments | (5.5) | (4.6) |
Operating income | 60.8 | 43.7 |
Interest expense, net | 7.4 | 5.8 |
Income from continuing operations before income taxes | 53.4 | 37.9 |
Provision for income taxes | 9.9 | 13 |
Income from continuing operations | 43.5 | 24.9 |
Loss from discontinued operations | 0 | 0 |
Net income | 43.5 | 24.9 |
Other comprehensive income (loss), net of tax | 18.6 | 14 |
Comprehensive income | 62.1 | 38.9 |
Eliminations [Member] | ||
Condensed Consolidating Statements of Operations | ||
Net sales | (151.7) | (42.4) |
Cost of goods sold | (148.5) | (40.4) |
Gross profit | (3.2) | (2) |
Operating Expenses: | ||
Selling, general and administrative expenses | (0.2) | 0 |
Losses and other expenses, net | (0.1) | 0 |
Restructuring charges (gains) | 0 | 0 |
Income from equity method investments | 60.7 | 27.5 |
Operating income | (63.6) | (29.5) |
Interest expense, net | 0 | 0 |
Income from continuing operations before income taxes | (63.6) | (29.5) |
Provision for income taxes | (0.8) | (0.9) |
Income from continuing operations | (62.8) | (28.6) |
Loss from discontinued operations | 0 | 0 |
Net income | (62.8) | (28.6) |
Other comprehensive income (loss), net of tax | 108.4 | 1 |
Comprehensive income | 45.6 | (27.6) |
Parent [Member] | ||
Condensed Consolidating Statements of Operations | ||
Net sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Gross profit | 0 | 0 |
Operating Expenses: | ||
Selling, general and administrative expenses | 0 | 0 |
Losses and other expenses, net | 0.6 | (0.6) |
Restructuring charges (gains) | 0 | 0 |
Income from equity method investments | (48.6) | (28.1) |
Operating income | 48 | 28.7 |
Interest expense, net | 7.2 | 5.3 |
Income from continuing operations before income taxes | 40.8 | 23.4 |
Provision for income taxes | (2.7) | (1.5) |
Income from continuing operations | 43.5 | 24.9 |
Loss from discontinued operations | 0 | 0 |
Net income | 43.5 | 24.9 |
Other comprehensive income (loss), net of tax | (71.2) | 4.6 |
Comprehensive income | (27.7) | 29.5 |
Guarantor Subsidiaries [Member] | ||
Condensed Consolidating Statements of Operations | ||
Net sales | 686.3 | 613.8 |
Cost of goods sold | 513.3 | 460.7 |
Gross profit | 173 | 153.1 |
Operating Expenses: | ||
Selling, general and administrative expenses | 130.5 | 118.9 |
Losses and other expenses, net | 2 | 2.5 |
Restructuring charges (gains) | 0 | (0.1) |
Income from equity method investments | (12.7) | 0 |
Operating income | 53.2 | 31.6 |
Interest expense, net | (0.8) | (0.5) |
Income from continuing operations before income taxes | 54 | 32.1 |
Provision for income taxes | 7.1 | 11.9 |
Income from continuing operations | 46.9 | 20.2 |
Loss from discontinued operations | 0 | 0 |
Net income | 46.9 | 20.2 |
Other comprehensive income (loss), net of tax | (29.4) | 2.1 |
Comprehensive income | 17.5 | 22.3 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Consolidating Statements of Operations | ||
Net sales | 258.8 | 143.8 |
Cost of goods sold | 217.7 | 111.3 |
Gross profit | 41.1 | 32.5 |
Operating Expenses: | ||
Selling, general and administrative expenses | 22.1 | 21.5 |
Losses and other expenses, net | 0.6 | 2.4 |
Restructuring charges (gains) | (0.1) | 0.3 |
Income from equity method investments | (4.9) | (4) |
Operating income | 23.2 | 12.9 |
Interest expense, net | 1 | 1 |
Income from continuing operations before income taxes | 22.2 | 11.9 |
Provision for income taxes | 6.3 | 3.5 |
Income from continuing operations | 15.9 | 8.4 |
Loss from discontinued operations | 0 | 0 |
Net income | 15.9 | 8.4 |
Other comprehensive income (loss), net of tax | 10.8 | 6.3 |
Comprehensive income | $ 26.7 | $ 14.7 |
Condensed Consolidating Finan71
Condensed Consolidating Financial Statements (Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from operating activities | $ (107.6) | $ (101.6) |
Proceeds from Sale of Property, Plant, and Equipment | (0.1) | 0 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (24.9) | (23.8) |
Net cash used in investing activities | (24.8) | (23.8) |
Cash flows from financing activities: | ||
Short-term borrowings, net | (0.8) | (0.4) |
Asset securitization borrowings | 150 | 0 |
Asset securitization payments | 0 | (20) |
Long-term debt payments | (0.2) | (0.3) |
Borrowings from credit facility | 583 | 770.5 |
Payments on credit facility | (497.5) | (392) |
Proceeds from employee stock purchases | 0.7 | 0.6 |
Repurchases of common stock | (75) | (200) |
Payments Related to Tax Withholding for Share-based Compensation | 13.3 | 16.8 |
Intercompany debt | 0 | |
Intercompany financing activity | 0 | 0 |
Intercompany investments | 0 | |
Cash dividends paid | (18.5) | (16.1) |
Net cash provided by financing activities | 128.4 | 125.5 |
(Decrease) increase in cash and cash equivalents | (4) | 0.1 |
Effect of exchange rates on cash and cash equivalents | 2.6 | 1.6 |
Cash and cash equivalents, beginning of period | 50.2 | 38.9 |
Cash and cash equivalents, end of period | 48.8 | 40.6 |
Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from operating activities | 0 | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | 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 credit facility | 0 | 0 |
Payments on credit facility | 0 | 0 |
Proceeds from employee stock purchases | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 |
Intercompany debt | 0 | |
Intercompany financing activity | 0 | 0 |
Intercompany investments | 0 | |
Cash dividends paid | 0 | 0 |
Net cash provided by financing activities | 0 | 0 |
(Decrease) increase 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 |
Parent [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from operating activities | 341.2 | 59 |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | 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 credit facility | 583 | 770.5 |
Payments on credit facility | (497.5) | (392) |
Proceeds from employee stock purchases | 0.7 | 0.6 |
Repurchases of common stock | (75) | (200) |
Payments Related to Tax Withholding for Share-based Compensation | 13.3 | 16.8 |
Intercompany debt | (29.3) | |
Intercompany financing activity | (291) | (8.6) |
Intercompany investments | (196.1) | |
Cash dividends paid | (18.5) | (16.1) |
Net cash provided by financing activities | (340.9) | (58.5) |
(Decrease) increase in cash and cash equivalents | 0.3 | 0.5 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 1.2 | 0.5 |
Cash and cash equivalents, end of period | 1.5 | 1 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from operating activities | (308.6) | (163.1) |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (22) | (20.9) |
Net cash used in investing activities | (22) | (20.9) |
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 | (0.1) | (0.2) |
Borrowings from credit facility | 0 | 0 |
Payments on credit facility | 0 | 0 |
Proceeds from employee stock purchases | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 |
Intercompany debt | 7.6 | |
Intercompany financing activity | 320 | (2.9) |
Intercompany investments | 194.5 | |
Cash dividends paid | 0 | 0 |
Net cash provided by financing activities | 327.5 | 191.4 |
(Decrease) increase in cash and cash equivalents | (3.1) | 7.4 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 17.1 | 7.8 |
Cash and cash equivalents, end of period | 14 | 15.2 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from operating activities | (140.2) | 2.5 |
Proceeds from Sale of Property, Plant, and Equipment | (0.1) | 0 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (2.9) | (2.9) |
Net cash used in investing activities | (2.8) | (2.9) |
Cash flows from financing activities: | ||
Short-term borrowings, net | (0.8) | (0.4) |
Asset securitization borrowings | 150 | 0 |
Asset securitization payments | 0 | (20) |
Long-term debt payments | (0.1) | (0.1) |
Borrowings from credit facility | 0 | 0 |
Payments on credit facility | 0 | 0 |
Proceeds from employee stock purchases | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 |
Intercompany debt | 21.7 | |
Intercompany financing activity | (29) | 11.5 |
Intercompany investments | 1.6 | |
Cash dividends paid | 0 | 0 |
Net cash provided by financing activities | 141.8 | (7.4) |
(Decrease) increase in cash and cash equivalents | (1.2) | (7.8) |
Effect of exchange rates on cash and cash equivalents | 2.6 | 1.6 |
Cash and cash equivalents, beginning of period | 31.9 | 30.6 |
Cash and cash equivalents, end of period | $ 33.3 | $ 24.4 |