Condensed Consolidating Financial Statements (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
|---|
| Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
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| Condensed Consolidating Balance Sheets |
Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of September 30, 2018 | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | Parent | | Guarantor
Subsidiaries | | Non-Guarantor
Subsidiaries | | Eliminations | | Consolidated | ASSETS | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 1.4 |
| | $ | 24.0 |
| | $ | 20.7 |
| | $ | — |
| | $ | 46.1 |
| Accounts and notes receivable, net | — |
| | 54.7 |
| | 526.2 |
| | — |
| | 580.9 |
| Inventories, net | — |
| | 403.4 |
| | 102.8 |
| | (4.7 | ) | | 501.5 |
| Other assets | 3.3 |
| | 35.2 |
| | 54.0 |
| | (33.8 | ) | | 58.7 |
| Total current assets | 4.7 |
| | 517.3 |
| | 703.7 |
| | (38.5 | ) | | 1,187.2 |
| Property, plant and equipment, net | — |
| | 262.3 |
| | 115.9 |
| | (3.8 | ) | | 374.4 |
| Goodwill | — |
| | 166.1 |
| | 20.8 |
| | — |
| | 186.9 |
| Investment in subsidiaries | 1,785.7 |
| | 337.5 |
| | (0.5 | ) | | (2,122.7 | ) | | — |
| Deferred income taxes | 6.6 |
| | 75.5 |
| | 25.5 |
| | (12.2 | ) | | 95.4 |
| Other assets, net | 1.5 |
| | 49.8 |
| | 17.0 |
| | (1.4 | ) | | 66.9 |
| Intercompany (payables) receivables, net | (1,140.1 | ) | | 1,113.4 |
| | 129.5 |
| | (102.8 | ) | | — |
| Total assets | $ | 658.4 |
| | $ | 2,521.9 |
| | $ | 1,011.9 |
| | $ | (2,281.4 | ) | | $ | 1,910.8 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | Current liabilities: | | | | | | | | | | Short-term debt | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Current maturities of long-term debt | 21.9 |
| | 0.1 |
| | 0.3 |
| | — |
| | 22.3 |
| Accounts payable | 25.8 |
| | 242.9 |
| | 102.9 |
| | — |
| | 371.6 |
| Accrued expenses | 10.1 |
| | 240.8 |
| | 41.6 |
| | — |
| | 292.5 |
| Income taxes (receivable) payable | (25.1 | ) | | 31.4 |
| | 48.6 |
| | (50.8 | ) | | 4.1 |
| Total current liabilities | 32.7 |
| | 515.2 |
| | 193.4 |
| | (50.8 | ) | | 690.5 |
| Long-term debt | 714.7 |
| | 11.6 |
| | 377.3 |
| | — |
| | 1,103.6 |
| Post-retirement benefits, other than pensions | — |
| | 2.5 |
| | — |
| | — |
| | 2.5 |
| Pensions | — |
| | 61.8 |
| | 8.9 |
| | — |
| | 70.7 |
| Other liabilities | (2.2 | ) | | 124.4 |
| | 8.1 |
| | — |
| | 130.3 |
| Total liabilities | 745.2 |
| | 715.5 |
| | 587.7 |
| | (50.8 | ) | | 1,997.6 |
| Commitments and contingencies |
| |
| |
| |
| |
| Total stockholders' (deficit) equity | (86.8 | ) | | 1,806.4 |
| | 424.2 |
| | (2,230.6 | ) | | (86.8 | ) | Total liabilities and stockholders' (deficit) equity | $ | 658.4 |
| | $ | 2,521.9 |
| | $ | 1,011.9 |
| | $ | (2,281.4 | ) | | $ | 1,910.8 |
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Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2017 | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | Parent | | Guarantor
Subsidiaries | | Non-
Guarantor
Subsidiaries | | Eliminations | | Consolidated | ASSETS | Current Assets: | | | | | | | | | | Cash and cash equivalents | $ | 1.6 |
| | $ | 28.0 |
| | $ | 38.6 |
| | $ | — |
| | $ | 68.2 |
| Accounts and notes receivable, net | — |
| | 35.3 |
| | 471.2 |
| | — |
| | 506.5 |
| Inventories, net | — |
| | 355.7 |
| | 131.9 |
| | (3.4 | ) | | 484.2 |
| Other assets | 16.2 |
| | 23.1 |
| | 67.5 |
| | (28.4 | ) | | 78.4 |
| Total current assets | 17.8 |
| | 442.1 |
| | 709.2 |
| | (31.8 | ) | | 1,137.3 |
| Property, plant and equipment, net | — |
| | 257.6 |
| | 144.4 |
| | (4.2 | ) | | 397.8 |
| Goodwill | — |
| | 134.9 |
| | 65.6 |
| | — |
| | 200.5 |
| Investment in subsidiaries | 1,257.7 |
| | 365.8 |
| | (0.6 | ) | | (1,622.9 | ) | | — |
| Deferred income taxes | 3.9 |
| | 69.1 |
| | 33.6 |
| | (12.2 | ) | | 94.4 |
| Other assets, net | 2.1 |
| | 41.3 |
| | 19.6 |
| | (1.5 | ) | | 61.5 |
| Intercompany (payables) receivables, net | (559.3 | ) | | 554.7 |
| | 107.4 |
| | (102.8 | ) | | — |
| Total assets | $ | 722.2 |
| | $ | 1,865.5 |
| | $ | 1,079.2 |
| | $ | (1,775.4 | ) | | $ | 1,891.5 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | Current liabilities: | | | | | | | | | | Short-term debt | $ | — |
| | $ | — |
| | $ | 0.9 |
| | $ | — |
| | $ | 0.9 |
| Current maturities of long-term debt | 29.4 |
| | 2.9 |
| | 0.3 |
| | — |
| | 32.6 |
| Accounts payable | 21.3 |
| | 228.0 |
| | 99.3 |
| | — |
| | 348.6 |
| Accrued expenses | 3.1 |
| | 209.4 |
| | 57.8 |
| | — |
| | 270.3 |
| Income taxes (receivable) payable | (64.5 | ) | | 56.5 |
| | 60.9 |
| | (50.8 | ) | | 2.1 |
| Total current liabilities | (10.7 | ) | | 496.8 |
| | 219.2 |
| | (50.8 | ) | | 654.5 |
| Long-term debt | 682.8 |
| | 11.7 |
| | 276.0 |
| | — |
| | 970.5 |
| Post-retirement benefits, other than pensions | — |
| | 2.6 |
| | — |
| | — |
| | 2.6 |
| Pensions | — |
| | 74.7 |
| | 9.8 |
| | — |
| | 84.5 |
| Other liabilities | — |
| | 120.6 |
| | 8.7 |
| | — |
| | 129.3 |
| Total liabilities | 672.1 |
| | 706.4 |
| | 513.7 |
| | (50.8 | ) | | 1,841.4 |
| Commitments and contingencies |
| |
| |
| |
| |
| Total stockholders' equity | 50.1 |
| | 1,159.1 |
| | 565.5 |
| | (1,724.6 | ) | | 50.1 |
| Total liabilities and stockholders' equity | $ | 722.2 |
| | $ | 1,865.5 |
| | $ | 1,079.2 |
| | $ | (1,775.4 | ) | | $ | 1,891.5 |
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| 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 September 30, 2018 | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | Parent | | Guarantor
Subsidiaries | | Non-Guarantor
Subsidiaries | | Eliminations | | Consolidated | Net Sales | $ | — |
| | $ | 930.5 |
| | $ | 283.6 |
| | $ | (183.9 | ) | | $ | 1,030.2 |
| Cost of goods sold | — |
| | 660.5 |
| | 252.1 |
| | (184.3 | ) | | 728.3 |
| Gross profit | — |
| | 270.0 |
| | 31.5 |
| | 0.4 |
| | 301.9 |
| Operating expenses: | | | | | | | | | | Selling, general and administrative expenses | — |
| | 138.4 |
| | 11.3 |
| | (0.3 | ) | | 149.4 |
| Losses (gains) and other expenses, net | 0.2 |
| | 1.9 |
| | 0.6 |
| | — |
| | 2.7 |
| Restructuring charges | — |
| | — |
| | 0.5 |
| | — |
| | 0.5 |
| Loss (gain), net on sale of businesses and related property | — |
| | 40.1 |
| | (33.9 | ) | | — |
| | 6.2 |
| Loss from natural disaster, net of insurance recoveries | — |
| | (1.7 | ) | | 2.0 |
| | — |
| | 0.3 |
| Income from equity method investments | (109.7 | ) | | (45.7 | ) | | (1.6 | ) | | 154.6 |
| | (2.4 | ) | Operating income | 109.5 |
| | 137.0 |
| | 52.6 |
| | (153.9 | ) | | 145.2 |
| Interest expense, net | 2.0 |
| | 5.0 |
| | 3.3 |
| | — |
| | 10.3 |
| Other expense, net | — |
| | 0.7 |
| | 0.4 |
| | — |
| | 1.1 |
| Income (loss) from continuing operations before income taxes | 107.5 |
| | 131.3 |
| | 48.9 |
| | (153.9 | ) | | 133.8 |
| Provision for income tax (benefit) expense | (0.5 | ) | | 13.3 |
| | 12.9 |
| | 0.1 |
| | 25.8 |
| Income (loss) from continuing operations | 108.0 |
| | 118.0 |
| | 36.0 |
| | (154.0 | ) | | 108.0 |
| Loss from discontinued operations, net of tax | — |
| | — |
| | — |
| | — |
| | — |
| Net income (loss) | $ | 108.0 |
| | $ | 118.0 |
| | $ | 36.0 |
| | $ | (154.0 | ) | | $ | 108.0 |
| Other comprehensive (loss) income, net of tax | (2.5 | ) | | 1.2 |
| | 6.7 |
| | — |
| | 5.4 |
| Comprehensive income (loss) | $ | 105.5 |
| | $ | 119.2 |
| | $ | 42.7 |
| | $ | (154.0 | ) | | $ | 113.4 |
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Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended September 30, 2017 | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | Parent | | Guarantor
Subsidiaries | | Non-
Guarantor
Subsidiaries | | Eliminations | | Consolidated | Net Sales | $ | — |
| | $ | 905.6 |
| | $ | 300.0 |
| | $ | (153.3 | ) | | $ | 1,052.3 |
| Cost of goods sold | — |
| | 644.8 |
| | 249.0 |
| | (155.2 | ) | | 738.6 |
| Gross profit | — |
| | 260.8 |
| | 51.0 |
| | 1.9 |
| | 313.7 |
| Operating expenses: | | | | | | | | | | Selling, general and administrative expenses | — |
| | 140.7 |
| | 18.8 |
| | (0.8 | ) | | 158.7 |
| Losses (gains) and other expenses, net | 0.2 |
| | 1.9 |
| | 0.9 |
| | — |
| | 3.0 |
| Restructuring charges | — |
| | 1.2 |
| | 0.7 |
| | — |
| | 1.9 |
| Income from equity method investments | (108.2 | ) | | (21.7 | ) | | (3.5 | ) | | 128.9 |
| | (4.5 | ) | Operating income | 108.0 |
| | 138.7 |
| | 34.1 |
| | (126.2 | ) | | 154.6 |
| Interest expense, net | 6.2 |
| | (0.6 | ) | | 2.0 |
| | — |
| | 7.6 |
| Other expense, net | — |
| | — |
| | 0.2 |
| | (0.2 | ) | | — |
| Income from continuing operations before income taxes | 101.8 |
| | 139.3 |
| | 31.9 |
| | (126.0 | ) | | 147.0 |
| Provision for income tax (benefit) expense | (1.7 | ) | | 30.5 |
| | 13.5 |
| | 0.7 |
| | 43.0 |
| Income from continuing operations | 103.5 |
| | 108.8 |
| | 18.4 |
| | (126.7 | ) | | 104.0 |
| Loss from discontinued operations, net of tax | — |
| | — |
| | (0.5 | ) | | — |
| | (0.5 | ) | Net income | $ | 103.5 |
| | $ | 108.8 |
| | $ | 17.9 |
| | $ | (126.7 | ) | | $ | 103.5 |
| Other comprehensive income (loss), net of tax | 0.4 |
| | 2.1 |
| | 6.9 |
| | — |
| | 9.4 |
| Comprehensive income (loss) | $ | 103.9 |
| | $ | 110.9 |
| | $ | 24.8 |
| | $ | (126.7 | ) | | $ | 112.9 |
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| Condensed Consolidating Statements of Cash Flows |
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2018 | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries |
| | Eliminations | | Consolidated | Cash flows from operating activities | $ | 57.2 |
| | $ | 362.5 |
| | $ | (188.4 | ) | | $ | — |
| | $ | 231.3 |
| Cash flows from investing activities: | | | | | | | | | | Proceeds from the disposal of property, plant and equipment | — |
| | — |
| | 0.1 |
| | — |
| | 0.1 |
| Purchases of property, plant and equipment | — |
| | (46.1 | ) | | (14.8 | ) | | — |
| | (60.9 | ) | Net proceeds from sale of businesses and related property | — |
| | 4.0 |
| | 111.9 |
| | — |
| | 115.9 |
| Insurance recoveries received for property damage incurred from natural disaster | — |
| | 4.2 |
| | — |
| | — |
| | 4.2 |
| Net cash (used in) provided by investing activities | — |
| | (37.9 | ) | | 97.2 |
| | — |
| | 59.3 |
| Cash flows from financing activities: | | | | | | | | | | Short-term borrowings, net | — |
| | — |
| | (1.5 | ) | | — |
| | (1.5 | ) | Asset securitization borrowings | — |
| | — |
| | 155.0 |
| | — |
| | 155.0 |
| Asset securitization payments | — |
| | — |
| | (53.7 | ) | | — |
| | (53.7 | ) | Long-term debt payments | (30.0 | ) | | (2.8 | ) | | (0.1 | ) | | — |
| | (32.9 | ) | Long-term borrowings | — |
| | — |
| | — |
| | — |
| | — |
| Borrowings from credit facility | 1,820.0 |
| | — |
| | — |
| | — |
| | 1,820.0 |
| Payments on credit facility | (1,766.5 | ) | | — |
| | — |
| | — |
| | (1,766.5 | ) | Proceeds from employee stock purchases | 2.5 |
| | — |
| | — |
| | — |
| | 2.5 |
| Repurchases of common stock | (350.2 | ) | | — |
| | — |
| | — |
| | (350.2 | ) | Repurchases of common stock to satisfy employee withholding tax obligations | (21.1 | ) | | — |
| | — |
| | — |
| | (21.1 | ) | Intercompany debt | (29.8 | ) | | 83.3 |
| | (53.5 | ) | | — |
| | — |
| Intercompany financing activity | 385.9 |
| | (406.3 | ) | | 20.4 |
| | — |
| | — |
| Cash dividends paid | (68.2 | ) | | — |
| | — |
| | — |
| | (68.2 | ) | Net cash (used in) provided by financing activities | (57.4 | ) | | (325.8 | ) | | 66.6 |
| | — |
| | (316.6 | ) | Decrease in cash and cash equivalents | (0.2 | ) | | (1.2 | ) | | (24.6 | ) | | — |
| | (26.0 | ) | Effect of exchange rates on cash and cash equivalents | — |
| | (2.8 | ) | | 6.7 |
| | — |
| | 3.9 |
| Cash and cash equivalents, beginning of period | 1.6 |
| | 28.0 |
| | 38.6 |
| | — |
| | 68.2 |
| Cash and cash equivalents, end of period | $ | 1.4 |
| | $ | 24.0 |
| | $ | 20.7 |
| | $ | — |
| | $ | 46.1 |
|
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2017 | | | | | | | | | | | | | | | | | | | | | (Amounts in millions) | Parent | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Cash flows from operating activities | $ | 411.6 |
| | $ | (2.4 | ) | | $ | (279.6 | ) | | $ | (0.6 | ) | | $ | 129.0 |
| Cash flows from investing activities: | | | | | | | | | | Proceeds from the disposal of property, plant and equipment | — |
| | 0.1 |
| | — |
| | 0.1 |
| | 0.2 |
| Purchases of property, plant and equipment | — |
| | (48.3 | ) | | (12.2 | ) | | — |
| | (60.5 | ) | Net cash (used in) provided by investing activities | — |
| | (48.2 | ) | | (12.2 | ) | | 0.1 |
| | (60.3 | ) | Cash flows from financing activities: |
| |
| |
| |
| |
| Short-term borrowings, net | — |
| | — |
| | (1.4 | ) | | — |
| | (1.4 | ) | Asset securitization borrowings | — |
| | — |
| | 275.0 |
| | — |
| | 275.0 |
| Asset securitization payments | — |
| | — |
| | — |
| | — |
| | — |
| Long-term debt payments | (200.0 | ) | | (0.2 | ) | | (0.1 | ) | | (0.5 | ) | | (200.8 | ) | Long-term borrowings | — |
| | 0.1 |
| | (0.1 | ) | | — |
| | — |
| Borrowings from credit facility | 1,883.0 |
| | (0.2 | ) | | (0.2 | ) | | 0.4 |
| | 1,883.0 |
| Payments on credit facility | (1,701.0 | ) | | — |
| | — |
| | — |
| | (1,701.0 | ) | Proceeds from employee stock purchases | 2.3 |
| | — |
| | — |
| | — |
| | 2.3 |
| Repurchases of common stock | (250.0 | ) | | — |
| | — |
| | — |
| | (250.0 | ) | Repurchases of common stock to satisfy employee withholding tax obligations | (16.0 | ) | | — |
| | — |
| | — |
| | (16.0 | ) | Intercompany debt | 102.8 |
| | (34.8 | ) | | (68.0 | ) | | — |
| | — |
| Intercompany financing activity | (174.3 | ) | | 91.0 |
| | 82.7 |
| | 0.6 |
| | — |
| Cash dividends paid | (58.4 | ) | | — |
| | — |
| | — |
| | (58.4 | ) | Net cash (used in) provided by financing activities | (411.6 | ) | | 55.9 |
| | 287.9 |
| | 0.5 |
| | (67.3 | ) | Increase (decrease) in cash and cash equivalents | — |
| | 5.3 |
| | (3.9 | ) | | — |
| | 1.4 |
| Effect of exchange rates on cash and cash equivalents | — |
| | — |
| | 9.1 |
| | — |
| | 9.1 |
| Cash and cash equivalents, beginning of period | 1.2 |
| | 17.1 |
| | 31.9 |
| | — |
| | 50.2 |
| Cash and cash equivalents, end of period | $ | 1.2 |
| | $ | 22.4 |
| | $ | 37.1 |
| | $ | — |
| | $ | 60.7 |
|
|