10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

_________________________________________________

FORM 10-Q

 _________________________________________________

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED September 30, 2015

Commission file number 001-15149

 _________________________________________________

LENNOX INTERNATIONAL INC.

Incorporated pursuant to the laws of the State of Delaware

_________________________________________________ 

Internal Revenue Service Employer Identification No. 42-0991521

2140 LAKE PARK BLVD., RICHARDSON, TEXAS, 75080

(972-497-5000)

_________________________________________________ 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  [X]    No  [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  [X]    No  [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	[X]	Accelerated Filer	[ ]
Non-Accelerated Filer	[ ]	Smaller Reporting Company	[ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  [ ]    No  [X]

As of October 15, 2015, the number of shares outstanding of the registrant’s common stock, par value $.01 per share, was 45,055,155.

LENNOX INTERNATIONAL INC.

FORM 10-Q

For the three and nine months ended September 30, 2015

INDEX

		Page
Part I	Financial Information
	Item 1. Financial Statements
	Consolidated Balance Sheets - September 30, 2015 (Unaudited) and December 31, 2014	1
	Consolidated Statements of Operations (Unaudited) - Three and Nine Months Ended September 30, 2015 and 2014	2
	Consolidated Statements of Comprehensive Income (Unaudited) - Three and Nine Months Ended September 30, 2015 and 2014	3
	Consolidated Statements of Cash Flows (Unaudited) - Nine Months Ended September 30, 2015 and 2014	4
	Notes to Consolidated Financial Statements (Unaudited)	5
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	28
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	37
	Item 4. Controls and Procedures	37
Part II	Other Information
	Item 1. Legal Proceedings	38
	Item 1A. Risk Factors	39
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	39
	Item 6. Exhibits	40

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Part I - Financial Information

Item 1. Financial Statements

LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Balance Sheets
(Amounts in millions, except shares and par values)	As of September 30, 2015			As of December 31, 2014
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	35.1		$	37.5
Accounts and notes receivable, net of allowances of $7.3 and $7.9 in 2015 and 2014, respectively	537.7			421.4
Inventories, net	488.3			463.3
Deferred income taxes, net	31.9			32.5
Other assets	58.9			59.3
Total current assets	1,151.9			1,014.0
Property, plant and equipment, net of accumulated depreciation of $677.9 and $654.1 in 2015 and 2014, respectively	345.3			358.6
Goodwill	199.8			209.4
Deferred income taxes	97.9			97.5
Other assets, net	86.6			84.8
Total assets	$	1,881.5		$	1,764.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term debt	$	226.3		$	226.6
Current maturities of long-term debt	23.7			24.0
Accounts payable	337.7			324.3
Accrued expenses	251.9			239.0
Income taxes payable	13.8			13.4
Total current liabilities	853.4			827.3
Long-term debt	668.0			675.0
Post-retirement benefits, other than pensions	2.9			4.5
Pensions	134.2			129.9
Other liabilities	125.5			118.6
Total liabilities	1,784.0			1,755.3
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares issued or outstanding	—			—
Common stock, $.01 par value, 200,000,000 shares authorized, 87,170,197 shares issued	0.9			0.9
Additional paid-in capital	857.3			824.9
Retained earnings	1,151.5			1,022.1
Accumulated other comprehensive loss	(209.8		)	(153.5		)
Treasury stock, at cost, 42,120,067 shares and 42,535,126 shares in 2015 and 2014, respectively	(1,702.9		)	(1,686.0		)
Noncontrolling interests	0.5			0.6
Total stockholders’ equity	97.5			9.0
Total liabilities and stockholders' equity	$	1,881.5		$	1,764.3

The accompanying notes are an integral part of these consolidated financial statements.

1

LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited)
(Amounts in millions, except per share data)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Net sales	$	955.0		$	898.4		$	2,633.3		$	2,554.6
Cost of goods sold	681.6			651.3			1,913.5			1,876.7
Gross profit	273.4			247.1			719.8			677.9
Operating Expenses:
Selling, general and administrative expenses	143.8			140.9			430.0			425.5
Losses (gains) and other expenses, net	6.0			2.1			14.9			3.5
Restructuring charges	(0.4		)	1.0			1.8			1.3
Income from equity method investments	(3.0		)	(3.5		)	(11.8		)	(12.0		)
Operational income from continuing operations	127.0			106.6			284.9			259.6
Interest expense, net	5.7			4.0			17.9			11.0
Other expense (income), net	(0.7		)	—			(0.7		)	—
Income from continuing operations before income taxes	122.0			102.6			267.7			248.6
Provision for income taxes	41.7			35.1			91.9			86.6
Income from continuing operations	80.3			67.5			175.8			162.0
Discontinued Operations:
Loss from discontinued operations before income taxes	—			(0.2		)	(0.9		)	(1.3		)
Benefit from income taxes	—			(0.1		)	(0.4		)	(0.5		)
Loss from discontinued operations	—			(0.1		)	(0.5		)	(0.8		)
Net income	$	80.3		$	67.4		$	175.3		$	161.2
Earnings per share – Basic:
Income from continuing operations	$	1.78		$	1.40		$	3.92		$	3.33
Loss from discontinued operations	—			—			(0.01		)	(0.02		)
Net income	$	1.78		$	1.40		$	3.91		$	3.31
Earnings per share – Diluted:
Income from continuing operations	$	1.76		$	1.38		$	3.86		$	3.27
Loss from discontinued operations	—			—			(0.01		)	(0.01		)
Net income	$	1.76		$	1.38		$	3.85		$	3.26
Weighted Average Number of Shares Outstanding - Basic	45.0			48.3			44.9			48.7
Weighted Average Number of Shares Outstanding - Diluted	45.6			49.0			45.6			49.5
Cash dividends declared per share	$	0.36		$	0.30		$	1.02		$	0.84

The accompanying notes are an integral part of these consolidated financial statements.

2

LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Unaudited)
(Amounts in millions)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Net income	$	80.3		$	67.4		$	175.3		$	161.2
Other comprehensive income (loss):
Foreign currency translation adjustments	(28.6		)	(26.5		)	(56.1		)	(17.6		)
Reclassification of foreign currency translation adjustments into earnings	—			—			—			—
Net change in pension and post-retirement liabilities	(1.0		)	(0.5		)	(4.4		)	(2.8		)
Reclassification of pension and post-retirement benefit losses into earnings	2.0			1.3			6.2			4.0
Change in fair value of available-for-sale marketable equity securities	1.4			1.0			1.8			2.1
Net change in fair value of cash flow hedges	(10.2		)	(2.8		)	(14.6		)	(6.8		)
Reclassification of cash flow hedge losses into earnings	3.2			1.0			9.4			4.9
Other comprehensive income (loss) before income taxes	(33.2		)	(26.5		)	(57.7		)	(16.2		)
Income tax (expense) benefit	2.3			0.5			1.4			0.4
Other comprehensive income (loss), net of tax	(30.9		)	(26.0		)	(56.3		)	(15.8		)
Comprehensive income	$	49.4		$	41.4		$	119.0		$	145.4

The accompanying notes are an integral part of these consolidated financial statements.

3

LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited)
(Amounts in millions)	For the Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities:
Net income	$	175.3		$	161.2
Net loss from discontinued operations	0.5			0.8
Adjustments to reconcile net income to net cash used in operating activities:
Income from equity method investments	(11.8		)	(12.0		)
Dividends from affiliates	7.4			6.1
Restructuring expenses, net of cash paid	(0.2		)	(0.1		)
Provision for bad debts	2.1			2.8
Unrealized losses on derivative contracts	1.3			0.1
Stock-based compensation expense	18.5			17.3
Depreciation and amortization	46.6			45.2
Deferred income taxes	(0.2		)	1.4
Other items, net	0.3			0.3
Changes in assets and liabilities, net of effects of divestitures:
Accounts and notes receivable	(135.9		)	(104.0		)
Inventories	(41.0		)	(127.6		)
Other current assets	(2.8		)	(6.2		)
Accounts payable	23.4			51.0
Accrued expenses	15.1			18.2
Income taxes payable and receivable	(0.9		)	(21.1		)
Other	9.7			(9.1		)
Net cash used in discontinued operations	(0.5		)	(0.8		)
Net cash provided by operating activities	106.9			23.5
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.2
Purchases of property, plant and equipment	(47.0		)	(59.9		)
Net cash used in investing activities	(47.0		)	(59.7		)
Cash flows from financing activities:
Short-term borrowings, net	0.8			3.4
Asset securitization borrowings	40.0			60.0
Asset securitization payments	(40.0		)	—
Long-term debt payments	(23.5		)	(1.7		)
Borrowings from credit facility	1,401.0			1,483.0
Payments on credit facility	(1,385.0		)	(1,351.0		)
Proceeds from employee stock purchases	1.8			1.5
Repurchases of common stock	—			(100.3		)
Repurchases of common stock to satisfy employee withholding tax obligations	(23.5		)	(12.3		)
Excess tax benefits related to share-based payments	18.6			5.3
Cash dividends paid	(43.1		)	(38.2		)
Net cash (used in) provided by financing activities	(52.9		)	49.7
Increase (decrease) in cash and cash equivalents	7.0			13.5
Effect of exchange rates on cash and cash equivalents	(9.4		)	(3.4		)
Cash and cash equivalents, beginning of period	37.5			38.0
Cash and cash equivalents, end of period	$	35.1		$	48.1
Supplemental disclosures of cash flow information:
Interest paid	$	15.9		$	9.5
Income taxes paid (net of refunds)	$	73.4		$	100.4

The accompanying notes are an integral part of these consolidated financial statements.

4

LENNOX INTERNATIONAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. General:

References in this Quarterly Report on Form 10-Q to "we," "our," "us," "LII," or the "Company" refer to Lennox International Inc. and its subsidiaries, unless the context requires otherwise.

Basis of Presentation

The accompanying unaudited Consolidated Balance Sheet as of September 30, 2015, the accompanying unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2015 and 2014, the accompanying unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014, and the accompanying unaudited Consolidated Statements of Cash Flows for the nine months ended September 30,2015 and 2014 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, 2014. 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 13 weeks. For convenience, throughout these financial statements, the 13 weeks comprising each quarterly period are denoted by the last day of the respective calendar quarter.

Use of Estimates

The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation, among others. These estimates and assumptions are based on our best estimates and judgment.

We evaluate these estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates and assumptions to be reasonable under the circumstances and will adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency and commodity markets combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods.

Reclassifications

Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation.

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2. Inventories:

The components of inventories are as follows (in millions):

	As of September 30, 2015			As of December 31, 2014
Finished goods	$	353.5		$	338.2
Work in process	8.9			8.1
Raw materials and parts	188.8			182.6
Subtotal	551.2			528.9
Excess of current cost over last-in, first-out cost	(62.9		)	(65.6		)
Total inventories, net	$	488.3		$	463.3

3. Goodwill:

The changes in the carrying amount of goodwill for the first nine months of 2015, in total and by segment, are summarized in the table below (in millions):

	Balance at December 31, 2014		Acquisitions / (Dispositions)		Other (1)			September 30, 2015
Residential Heating & Cooling	$	26.1	$	—	$	—		$	26.1
Commercial Heating & Cooling	62.3		—		(1.2		)	61.1
Refrigeration	121.0		—		(8.4		)	112.6
Total Goodwill	$	209.4	$	—	$	(9.6	)	$	199.8

⁽¹⁾ Other consists of changes in foreign currency translation rates.

We performed our annual goodwill impairment test in the fourth quarter of 2014 and did not record any goodwill impairments. 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.

4. 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. Our forward contracts are primarily not designated as hedges, but on occasion we have entered into forward contracts that are designated as cash flow hedges. By entering into forward contracts, we lock in exchange rates that would otherwise cause losses should the U.S. dollar appreciate and gains should the U.S. dollar depreciate.

Cash Flow Hedges

We have commodity futures contracts and foreign exchange forward contracts designated as cash flow hedges that are scheduled to mature through February 2017. 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

6

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 September 30, 2015			As of December 31, 2014
Unrealized losses on unsettled futures contracts	$	12.3		$	7.2
Income tax benefit	(4.5		)	(2.6		)
Losses included in AOCL, net of tax (1)	$	7.8		$	4.6

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $6.8 million of derivative losses 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 September 30, 2015	As of December 31, 2014
Copper	29.0	29.4

We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions):

	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Mexican Peso	250.9	—

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 September 30, 2015	As of December 31, 2014
Copper	3.3	2.9
Aluminum	2.5	2.2

We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions):

	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Brazilian Real	—	8.7
Mexican Peso	—	229.7
United States Dollar	7.1	4.5
Euro	6.0	3.6
Polish Zloty	29.9	30.6
Russian Ruble	94.4	80.8

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):

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	Fair Values of Derivative Instruments (1)
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	As of September 30, 2015		As of December 31, 2014		As of September 30, 2015		As of December 31, 2014
Current Assets:
Other Assets
Commodity futures contracts	$	—	$	—	$	—	$	—
Foreign currency forward contracts	—		—		0.1		0.3
Non-Current Assets:
Other Assets, net
Commodity futures contracts	—		—		—		—
Total Assets	$	—	$	—	$	0.1	$	0.3
Current Liabilities:
Accrued Expenses
Commodity futures contracts	$	10.4	$	6.7	$	1.4	$	0.7
Foreign currency forward contracts	0.4		—		0.1		—
Non-Current Liabilities:
Other Liabilities
Commodity futures contracts	1.5		0.5		0.3		0.1
Foreign currency forward contracts	0.1		—		—		—
Total Liabilities	$	12.4	$	7.2	$	1.8	$	0.8

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 16 for more information.

Derivatives Designated as Cash Flow Hedges	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Amount of Loss reclassified from AOCL into Income (Effective Portion) (1)	$	3.2	$	1.0	$	9.4	$	4.9
Amount of Loss (Gain) recognized in Net income (Ineffective Portion) (2)	$	—	$	—	$	—	$	0.1

Derivatives Not Designated as Hedging Instruments	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2015		2014			2015		2014
Amount of Loss (Gain) Recognized in Net Income:
Commodity futures contracts (2)	$	1.4	$	0.3		$	2.2	$	0.6
Foreign currency forward contracts (2)	—		(0.2		)	0.2		(0.1		)
	$	1.4	$	0.1		$	2.4	$	0.5

⁽¹⁾ The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations.

⁽²⁾ The loss (gain) was recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statements of Operations.

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5. Income Taxes:

As of September 30, 2015, we had approximately $1.6 million in total gross unrecognized tax benefits. Of this amount, $1.2 million (net of federal benefit on state issues), if recognized, would be recorded through the Consolidated Statement of Operations. As of September 30, 2015, we had approximately $0.3 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 2015 and 2014 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 2009.

Since January 1, 2015, numerous states, including Alabama, Connecticut, New Hampshire, North Dakota, Tennessee and Texas, have enacted legislation effective for tax years beginning on or after January 1, 2015, including changes to rates, apportionment methodologies and unitary reporting requirements. The impact of these changes is immaterial.

6. 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 September 30, 2015		As of December 31, 2014
Accrued expenses	$	25.6	$	27.3
Other liabilities	66.1		59.9
Total warranty liability	$	91.7	$	87.2

The changes in product warranty liabilities related to continuing operations for the nine months ended September 30,2015 were as follows (in millions):

Total warranty liability as of December 31, 2014	$	87.2
Warranty claims paid	(19.7		)
Changes resulting from issuance of new warranties	27.4
Changes in estimates associated with pre-existing liabilities	(1.6		)
Changes in foreign currency translation rates and other	(1.6		)
Total warranty liability as of September 30, 2015	$	91.7

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 outstanding liability for a certain supplier quality issue within a range of $0.7 million and $4 million, with all amounts in that range equally likely. In the prior quarter, we accrued a $1.7 million liability related to this supplier quality issue as well as a receivable from the supplier of $2.3 million. In the third quarter of 2015, we recorded a $1.2 million expense to reduce this receivable from the supplier based on the nature and timing of warranty claims. The supplier has previously reimbursed the Company for costs associated with this supplier quality issue and we expect that the supplier will continue to do so.

Litigation

We are involved in a number of claims and lawsuits incident to the operation of our businesses. Insurance coverages are

9

maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known. Costs related to such matters were not material to the periods presented.

Some of these claims and lawsuits allege 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 is subject to policy limits. As a result, we may have greater financial exposure for future settlements and judgments. For the nine months ended September 30, 2015, and 2014, expense for asbestos-related litigation was $1.0 million, and $1.0 million, net of insurance recoveries, respectively.

We are the defendant in an attempted class action lawsuit alleging evaporator coils in our residential air conditioning products are susceptible to a type of corrosion that can result in coil leaks.  We dispute the allegations in the lawsuit.  We have reached tentative settlement terms, preliminarily approved by the court, and recorded a liability of $2.4 million in Accrued expenses on the Consolidated Balance Sheet. Any additional liability resulting from the proposed settlement is not currently reasonably estimable, but we do not expect the proposed settlement to have a material adverse effect on our financial condition or results of operations.

A lawsuit related to a vendor-supplied product quality issue settled for a lower amount than expected; accordingly, the Company reversed the $1.2 million excess portion of the loss contingency reserve in the second quarter of 2015. The Company also discovered it underpaid contractor taxes at one of its non-U.S. subsidiaries; accordingly, the Company has recorded a loss contingency charge in the amount of $2.4 million for the nine months ended September 30, 2015. These items were recorded in "Losses (gains) and other expenses, net" on the Consolidated Statements of Operations.

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.

7. 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 September 30, 2015		As of December 31, 2014
Short-Term Debt:
Asset Securitization Program	$	220.0	$	220.0
Foreign obligations	6.3		6.6
Total short-term debt	$	226.3	$	226.6
Current maturities of long-term debt:
Capital lease obligations	$	1.2	$	1.5
Domestic credit facility	22.5		22.5
Total current maturities of long-term debt	$	23.7	$	24.0
Long-Term Debt:
Capital lease obligations	$	15.0	$	15.5
Domestic credit facility	453.0		459.5
Senior unsecured notes	200.0		200.0
Total long-term debt	$	668.0	$	675.0
Total debt	$	918.0	$	925.6

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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 $6.3 million and $6.6 million of foreign obligations as of September 30, 2015 and December 31, 2014, respectively, that were primarily borrowings under non-committed facilities. Proceeds on these facilities were $63.6 million and $73.1 million during the nine months ended September 30, 2015 and 2014, respectively. Repayments on the facilities were $61.7 million and $65.6 million and during the nine months ended September 30, 2015 and 2014, 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 participating financial institutions for cash. The ASP is subject to annual renewal and contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. Our continued involvement with the transferred assets includes servicing, collection and administration of the transferred beneficial interests. The accounts receivable securitized under the ASP are high-quality domestic customer accounts that have not aged significantly. The receivables represented by the retained interest that we service are exposed to risk of loss for any uncollectible amounts in the pool of receivables sold under the ASP. The fair values assigned to the retained and transferred interests are based on the sold accounts receivable carrying value given the short term to maturity and low credit risk. The sale of the beneficial interests in our trade accounts receivable are reflected as short-term borrowings in the accompanying Consolidated Balance Sheets and proceeds received are included in cash flows from financing activities in the accompanying Consolidated Statements of Cash Flows.

The ASP provides for a maximum securitization amount ranging from $180.0 million to $220.0 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 September 30, 2015		As of December 31, 2014
Eligible amount available under the ASP on qualified accounts receivable	$	220.0	$	220.0
Beneficial interest sold	220.0		220.0
Remaining amount available	$	—	$	—

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 the average LIBOR rate or floating commercial paper rate determined by the purchaser of the beneficial interest, plus a program fee of 0.60%. The average rate for September 30, 2015 and December 31, 2014 was 0.82% and 0.79% respectively. The unused fee is based on 101% of the maximum available amount less the beneficial interest sold and is calculated at a 0.30% fixed rate throughout the term of the agreement. In addition, a 0.05% unused fee is charged on incremental available amounts above $180 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 certain cross-default provisions with our Fifth 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 September 30, 2015, we were in compliance with all covenant requirements.

Long-Term Debt

Domestic Credit Facility

On November 13, 2014, we replaced our $650 million Domestic Revolving Credit Facility with a $950 million Domestic Credit Facility, which consisted of a $650 million revolving credit facility and a $300 million term loan and matures in November 2019 (the "Maturity Date"). Under our Domestic Credit Facility, we had outstanding borrowings of $475.5 million, of which $277.5 million was the term loan balance, as well as $4.4 million committed to standby letters of credit as of September 30, 2015. Subject

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to covenant limitations, $447.6 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. We paid $22.5 million in principal payments in June 2015 for the term loan, which represents the required principal payments for the remainder of 2015. The revolving credit facility allows up to $150 million of letters of credit to be issued and also includes a subfacility for swingline loans of up to $65 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 million as long as existing or new lenders agree to provide such additional commitments.

Our weighted average borrowing rate on the facility was as follows:

	As of September 30, 2015		As of December 31, 2014
Weighted average borrowing rate	1.69	%	1.88	%

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, the Lake Park Renewal (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 September 30, 2015, we were in compliance with all covenant requirements.

Senior Unsecured Notes

We issued $200.0 million of senior unsecured notes in May 2010 through a public offering. Interest is paid semiannually on May 15 and November 15 at a fixed interest rate of 4.90% per annum. These notes mature on May 15, 2017. The notes are guaranteed, on a senior unsecured basis, by each of our domestic subsidiaries that guarantee payment by us of any indebtedness under our Domestic Credit Facility. The indenture governing the notes contains covenants that, among other things, limit our ability and the ability of the subsidiary guarantors to: create or incur certain liens; enter into certain sale and leaseback transactions; enter into certain mergers, consolidations and transfers of substantially all of our assets; and transfer certain properties. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75.0 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date. As of September 30, 2015, we were in compliance with all covenant requirements.

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8. Pension and Post-retirement Benefit Plans:

The components of net periodic benefit cost were as follows (in millions):

	For the Three Months Ended September 30,
	2015			2014			2015			2014
	Pension Benefits						Other Benefits
Service cost	$	1.2		$	1.1		$	—		$	—
Interest cost	4.3			4.4			0.1			0.1
Expected return on plan assets	(5.3		)	(5.7		)	—			—
Amortization of prior service cost	—			0.1			(0.8		)	(0.8		)
Recognized actuarial loss	2.4			1.6			0.4			0.4
Settlements and curtailments	—			—			—			—
Net periodic benefit cost (1)	$	2.6		$	1.5		$	(0.3	)	$	(0.3	)

	For the Nine Months Ended September 30,
	2015			2014			2015			2014
	Pension Benefits						Other Benefits
Service cost	$	3.6		$	3.2		$	—		$	—
Interest cost	12.9			13.3			0.2			0.1
Expected return on plan assets	(16.0		)	(17.0		)	—			—
Amortization of prior service cost	—			0.2			(2.4		)	(2.2		)
Recognized actuarial loss	7.2			4.9			1.2			1.1
Settlements and curtailments	0.4			—			—			—
Net periodic benefit cost (1)	$	8.1		$	4.6		$	(1.0	)	$	(1.0	)

⁽¹⁾ All net periodic benefit cost for the three and nine months ended September 30, 2015 and 2014 related to continuing operations.

9. 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 September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Stock-based compensation expense (1)	$	7.7	$	6.6	$	18.5	$	17.3

⁽¹⁾ All expense was recorded in our Corporate and other business segment.

10. Stock Repurchases:

Our Board of Directors has authorized a total of $1.4 billion towards the repurchase of shares of our common stock (collectively referred to as the "Share Repurchase Plans"). The Share Repurchase Plans authorize open market repurchase transactions and do not have an expiration date. There were no additional share repurchase authorizations in the first nine months of 2015. As of September 30, 2015, $396.0 million of shares may yet be repurchased under the Share Repurchase Plans.

We also repurchased 0.2 million shares for $23.5 million for the nine months ended September 30, 2015 from employees who surrendered their shares to satisfy minimum tax withholding obligations upon the exercise of long-term incentive awards.

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11. 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 September 30,						For the Nine Months Ended September 30,						Affected Line Item(s) in the Consolidated Statements of Operations
	2015			2014			2015			2014
(Losses)/Gains on cash flow hedges:
Commodity futures contracts	$	(3.2	)	$	(1.0	)	$	(9.4	)	$	(4.9	)	Cost of goods sold
Income tax benefit	1.2			0.4			3.2			1.8			Provision for income taxes
Net of tax	$	(2.0	)	$	(0.6	)	$	(6.2	)	$	(3.1	)
Defined Benefit Plan items:
Pension and post-retirement benefit costs	$	(2.0	)	$	(1.3	)	$	(6.1	)	$	(4.0	)	Cost of goods sold; Selling, general and administrative expenses
Income tax benefit	0.7			0.5			2.2			1.5			Provision for income taxes
Net of tax	$	(1.3	)	$	(0.8	)	$	(3.9	)	$	(2.5	)
Total reclassifications from AOCL	$	(3.3	)	$	(1.4	)	$	(10.1	)	$	(5.6	)

The following table provides information on changes in AOCL, by component (net of tax), for the nine months ended September 30,2015 (in millions):

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains on Available-for-Sale Securities		Defined Benefit Pension Plan Items			Foreign Currency Translation Adjustments			Total AOCL
AOCL as of December 31, 2014	$	(4.6	)	$	3.2	$	(149.4	)	$	(2.7	)	$	(153.5	)
Other comprehensive (loss) income before reclassifications	(9.4		)	1.8		(2.7		)	(56.1		)	(66.4		)
Amounts reclassified from AOCL	6.2			—		3.9			—			10.1
Net other comprehensive (loss) income	(3.2		)	1.8		1.2			(56.1		)	(56.3		)
AOCL as of September 30, 2015	$	(7.8	)	$	5.0	$	(148.2	)	$	(58.8	)	$	(209.8	)

12. 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 15.

Restructuring Activities in 2015

Information regarding the restructuring charges for all ongoing activities are presented in the following table (in millions):

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	Charges Incurred in 2015		Charges Incurred to Date		Total Charges Expected to be Incurred
Severance and related expense	$	1.2	$	8.1	$	8.1
Asset write-offs and accelerated depreciation	0.2		2.0		2.0
Equipment moves	—		—		—
Lease termination	—		—		—
Other	0.4		2.3		2.3
Total restructuring charges	$	1.8	$	12.4	$	12.4

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 2015			Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	(0.1	)	$	1.4	$	1.4
Commercial Heating & Cooling	—			0.9		0.9
Refrigeration	1.9			10.1		10.1
Corporate & Other	—			—		—
Total restructuring charges	$	1.8		$	12.4	$	12.4

Restructuring accruals are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The table below details the activity in 2015 within the restructuring accruals (in millions):

	Balance as of December 31, 2014		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of September 30, 2015
Severance and related expense	$	1.5	$	1.2	$	(1.7	)	$	(0.2	)	$	0.8
Asset write-offs and accelerated depreciation	—		0.2		(0.1		)	(0.1		)	—
Equipment moves	0.1		—								0.1
Lease termination	—		—								—
Other	—		0.4		(0.2		)	(0.2		)	—
Total restructuring accruals	$	1.6	$	1.8	$	(2.0	)	$	(0.5	)	$	0.9

13. Discontinued Operations:

On March 22, 2013, we sold our Service Experts business to a majority-owned entity of American Capital, Ltd. (the "Buyer") in an all-cash transaction for net proceeds of $10.4 million, excluding transaction costs. We also entered into a two-year equipment and parts supply agreement with the Buyer. In April 2012, we sold our Hearth business to Comvest Investment Partners IV in an all-cash transaction for net proceeds of $10.1 million, excluding the transaction costs and cash transferred with the business.

There were no assets and liabilities related to the Service Experts or Hearth businesses included in the accompanying Consolidated Balance Sheets as of September 30, 2015 or December 31, 2014, except for insurance casualty loss reserves which we retained after the respective transactions. The gains and losses on the sale of these businesses and their operating results for all periods are presented in Discontinued Operations in the accompanying Consolidated Statements of Operations. The following table provides a summary of net trade sales, pre-tax operating income (loss) and other supplemental information related to discontinued operations (in millions):

	Service Experts
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015			2014
Net trade sales (1)	$	—	$	—	$	—		$	—
Pre-tax operating income (loss) (1)	—		—		(0.9		)	1.1
Gain (loss) on sale of business	—		—		—			—

⁽¹⁾ Excludes eliminations of intercompany sales and any associated profit

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	Hearth
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2015		2014			2015		2014
Net trade sales (1)	$	—	$	—		$	—	$	—
Pre-tax operating income (loss) (1)	—		(0.2		)	—		(2.4		)
Gain (loss) on sale of business	—		—			—		—

⁽¹⁾ Excludes eliminations of intercompany sales and any associated profit

14. Earnings Per Share:

Basic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share are computed by dividing net income by the sum of the weighted-average number of shares and the number of equivalent shares assumed outstanding, if dilutive, under our stock-based compensation plans.

The computations of basic and diluted earnings per share for Net income were as follows (in millions, except per share data):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015			2014
Net income	$	80.3	$	67.4	$	175.3		$	161.2
Add: Loss from discontinued operations	—		0.1		0.5			0.8
Income from continuing operations	$	80.3	$	67.5	$	175.8		$	162.0
Weighted-average shares outstanding – basic	45.0		48.3		44.9			48.7
Add: Potential effect of dilutive securities attributable to stock-based payments	0.6		0.7		0.7			0.8
Weighted-average shares outstanding – diluted	45.6		49.0		45.6			49.5
Earnings per share – Basic:
Income from continuing operations	$	1.78	$	1.40	$	3.92		$	3.33
Loss from discontinued operations	—		—		(0.01		)	(0.02		)
Net income	$	1.78	$	1.40	$	3.91		$	3.31
Earnings per share – Diluted:
Income from continuing operations	$	1.76	$	1.38	$	3.86		$	3.27
Loss from discontinued operations	—		—		(0.01		)	(0.01		)
Net income	$	1.76	$	1.38	$	3.85		$	3.26

The following stock appreciation rights were outstanding but not included in the diluted earnings per share calculation because the assumed exercise of such rights would have been anti-dilutive (in millions, except for per share data):

	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2015		2014	2015		2014
Weighted-average number of shares	—		0.3	0.2		0.3
Price range per share	$	—	$81.11 - $81.14	$	92.64	$81.11 - $81.14

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15. 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 below details the items excluded.

Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Corporate costs also include the long-term share-based incentive awards provided to employees throughout LII. We recorded these share-based awards as corporate costs because they are determined at the discretion of the Board of Directors and based on the historical practice of doing so for internal reporting purposes.

As they arise, transactions between segments are recorded on an arm’s-length basis using the relevant market prices. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations for the periods presented.

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Segment Data

Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Income from continuing operations before income taxes, are shown below (in millions):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Net sales
Residential Heating & Cooling	$	517.9		$	462.6		$	1,435.6		$	1,332.5
Commercial Heating & Cooling	246.8			241.6			660.3			655.6
Refrigeration	190.3			194.2			537.4			566.5
	$	955.0		$	898.4		$	2,633.3		$	2,554.6
Segment profit (loss) (1)
Residential Heating & Cooling	$	90.1		$	69.4		$	221.3		$	178.8
Commercial Heating & Cooling	44.8			42.2			95.5			91.3
Refrigeration	20.3			16.5			37.5			42.3
Corporate and other	(24.0		)	(17.5		)	(57.4		)	(47.8		)
Subtotal that includes segment profit and eliminations	131.2			110.6			296.9			264.6
Reconciliation to Income from continuing operations before income taxes:
Special product quality adjustments	0.7			0.2			(0.6		)	(0.1		)
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (1)	3.9			1.8			10.8			2.8
Restructuring charges	(0.4		)	1.0			1.8			1.3
Interest expense, net	5.7			4.0			17.9			11.0
Special inventory write down	—			1.0			—			1.0
Other expense (income), net	(0.7		)	—			(0.7		)	—
Income from continuing operations before income taxes	$	122.0		$	102.6		$	267.7		$	248.6

⁽¹⁾ The Company defines segment profit and loss as a segment's income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding:

• Special product quality adjustments;

• The following items in Losses (gains) and other expenses, net:

◦ Net change in unrealized gains and/or losses on unsettled futures contracts,

◦ Special legal contingency charges,

◦ Asbestos-related litigation,

◦ Contractor tax payments,

◦ Environmental liabilities, and

◦ Other items, net;

• Restructuring charges;

• Goodwill, long-lived asset, and equity method investment impairments;

• Interest expense, net;

• Special inventory write down; and

• Other expense, net.

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, 2014.

16. Fair Value Measurements:

Fair Value Hierarchy

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The methodologies used to determine the fair value of our financial assets and liabilities at September 30, 2015 were the same as those used at December 31, 2014.

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 September 30, 2015		As of December 31, 2014
Investment in marketable equity securities	$	7.1	$	5.3

Other Fair Value Disclosures

The carrying amounts of Cash and cash equivalents, Accounts and notes receivable, net, Accounts payable, Other current liabilities, and Short-term debt approximate fair value due to the short maturities of these instruments. The carrying amount of our Domestic 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 September 30, 2015		As of December 31, 2014
Senior unsecured notes	$	210.3	$	210.6

17. Condensed Consolidating Financial Statements:

The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) and are not secured by our other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned, all guarantees are full and unconditional, and all guarantees are joint and several. As a result of the guarantee arrangements, we are required to present the following condensed consolidating financial statements.

The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed consolidating financial statements of the Company, its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014 are shown on the following pages.

19

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.3		$	12.5	$	21.3		$	—		$	35.1
Accounts and notes receivable, net	—			42.1		495.6			—			537.7
Inventories, net	—			376.1		119.6			(7.4		)	488.3
Deferred income taxes, net	3.3			27.4		6.3			(5.1		)	31.9
Other assets	3.3			48.7		65.7			(58.8		)	58.9
Total current assets	7.9			506.8		708.5			(71.3		)	1,151.9
Property, plant and equipment, net	—			268.3		77.0			—			345.3
Goodwill	—			140.4		59.4			—			199.8
Investment in subsidiaries	1,111.9			394.7		(0.6		)	(1,506.0		)	—
Deferred income taxes	2.4			91.4		13.7			(9.6		)	97.9
Other assets, net	4.5			59.8		23.8			(1.5		)	86.6
Intercompany receivables (payables), net	(360.7		)	357.6		3.1			—			—
Total assets	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.3		$	—		$	226.3
Current maturities of long-term debt	22.5			0.9		0.3			—			23.7
Accounts payable	16.2			255.9		65.6			—			337.7
Accrued expenses	15.7			181.8		54.4			—			251.9
Income taxes payable	(41.3		)	94.8		27.2			(66.9		)	13.8
Total current liabilities	13.1			533.4		373.8			(66.9		)	853.4
Long-term debt	653.0			14.8		0.2			—			668.0
Post-retirement benefits, other than pensions	—			2.9		—			—			2.9
Pensions	—			123.4		10.8			—			134.2
Other liabilities	2.4			125.6		10.4			(12.9		)	125.5
Total liabilities	668.5			800.1		395.2			(79.8		)	1,784.0
Commitments and contingencies
Total stockholders' equity	97.5			1,018.9		489.7			(1,508.6		)	97.5
Total liabilities and stockholders' equity	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5

20

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of December 31, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.0		$	11.5	$	25.0		$	—		$	37.5
Accounts and notes receivable, net	—			12.3		409.1			—			421.4
Inventories, net	—			350.6		119.7			(7.0		)	463.3
Deferred income taxes, net	2.8			27.3		7.4			(5.0		)	32.5
Other assets	3.6			45.7		67.2			(57.2		)	59.3
Total current assets	7.4			447.4		628.4			(69.2		)	1,014.0
Property, plant and equipment, net	—			269.0		89.6			—			358.6
Goodwill	—			140.4		69.0			—			209.4
Investment in subsidiaries	978.1			263.5		(0.6		)	(1,241.0		)	—
Deferred income taxes	0.5			90.8		15.8			(9.6		)	97.5
Other assets, net	5.2			61.0		20.1			(1.5		)	84.8
Intercompany receivables (payables), net	(280.4		)	302.4		(22.0		)	—			—
Total assets	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.6		$	—		$	226.6
Current maturities of long-term debt	22.5			1.2		0.3			—			24.0
Accounts payable	13.4			237.8		73.1			—			324.3
Accrued expenses	9.0			175.5		54.5			—			239.0
Income taxes payable	(3.7		)	34.7		47.5			(65.1		)	13.4
Total current liabilities	41.2			449.2		402.0			(65.1		)	827.3
Long-term debt	659.5			15.3		0.2			—			675.0
Post-retirement benefits, other than pensions	—			4.5		—			—			4.5
Pensions	—			117.6		12.3			—			129.9
Other liabilities	1.1			118.7		11.7			(12.9		)	118.6
Total liabilities	701.8			705.3		426.2			(78.0		)	1,755.3
Commitments and contingencies
Total stockholders' equity	9.0			869.2		374.1			(1,243.3		)	9.0
Total liabilities and stockholders' equity	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3

21

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	827.9		$	185.2		$	(58.1	)	$	955.0
Cost of goods sold	—			589.9			150.2			(58.5		)	681.6
Gross profit	—			238.0			35.0			0.4			273.4
Operating expenses:
Selling, general and administrative expenses	—			124.0			19.8			—			143.8
Losses (gains) and other expenses, net	0.6			2.7			2.7			—			6.0
Restructuring charges	—			(0.2		)	(0.2		)	—			(0.4		)
Income from equity method investments	(84.2		)	(2.7		)	(2.1		)	86.0			(3.0		)
Operational income from continuing operations	83.6			114.2			14.8			(85.6		)	127.0
Interest expense, net	5.4			(0.4		)	0.7			—			5.7
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	78.2			114.6			14.8			(85.6		)	122.0
Provision for income taxes	(2.1		)	39.0			4.6			0.2			41.7
Income from continuing operations	80.3			75.6			10.2			(85.8		)	80.3
Loss from discontinued operations	—			—			—						—
Net income	$	80.3		$	75.6		$	10.2		$	(85.8	)	$	80.3
Other comprehensive income (loss), net of tax	(4.3		)	(8.6		)	(16.2		)	(1.8		)	(30.9		)
Comprehensive income	$	76.0		$	67.0		$	(6.0	)	$	(87.6	)	$	49.4

22

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,268.6		$	520.7		$	(156.0	)	$	2,633.3
Cost of goods sold	—			1,650.7			418.2			(155.4		)	1,913.5
Gross profit	—			617.9			102.5			(0.6		)	719.8
Operating expenses:
Selling, general and administrative expenses	—			362.0			68.0			—			430.0
Losses (gains) and other expenses, net	1.1			7.7			6.2			(0.1		)	14.9
Restructuring charges	—			(0.5		)	2.3			—			1.8
Income from equity method investments	(187.2		)	(0.3		)	(9.3		)	185.0			(11.8		)
Operational income from continuing operations	186.1			249.0			35.3			(185.5		)	284.9
Interest expense, net	17.1			(1.5		)	2.3			—			17.9
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	169.0			250.5			33.7			(185.5		)	267.7
Provision for income taxes	(6.3		)	87.2			11.2			(0.2		)	91.9
Income from continuing operations	175.3			163.3			22.5			(185.3		)	175.8
Loss from discontinued operations	—			—			(0.5		)	—			(0.5		)
Net income	$	175.3		$	163.3		$	22.0		$	(185.3	)	$	175.3
Other comprehensive income (loss), net of tax	(2.9		)	(13.8		)	(36.4		)	(3.2		)	(56.3		)
Comprehensive income	$	172.4		$	149.5		$	(14.4	)	$	(188.5	)	$	119.0

23

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	736.2		$	213.5		$	(51.3	)	$	898.4
Cost of goods sold	—			538.8			164.5			(52.0		)	651.3
Gross profit	—			197.4			49.0			0.7			247.1
Operating expenses:
Selling, general and administrative expenses	—			127.4			13.5			—			140.9
Losses (gains) and other expenses, net	(0.1		)	1.2			1.0			—			2.1
Restructuring charges	—			(0.1		)	1.1			—			1.0
Income from equity method investments	(69.7		)	(6.4		)	(2.7		)	75.3			(3.5		)
Operational income from continuing operations	69.8			75.3			36.1			(74.6		)	106.6
Interest expense, net	3.6			(0.7		)	1.1			—			4.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	66.2			76.0			35.0			(74.6		)	102.6
Provision for income taxes	(1.2		)	24.1			11.9			0.3			35.1
Income from continuing operations	67.4			51.9			23.1			(74.9		)	67.5
Loss from discontinued operations	—			—			(0.1		)	—			(0.1		)
Net income	$	67.4		$	51.9		$	23.0		$	(74.9	)	$	67.4
Other comprehensive income, net of tax	(1.1		)	(6.7		)	(17.2		)	(1.0		)	(26.0		)
Comprehensive income	$	66.3		$	45.2		$	5.8		$	(75.9	)	$	41.4

24

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,089.0		$	606.5		$	(140.9	)	$	2,554.6
Cost of goods sold	—			1,555.1			460.9			(139.3		)	1,876.7
Gross profit	—			533.9			145.6			(1.6		)	677.9
Operating expenses:
Selling, general and administrative expenses	—			362.9			62.6			—			425.5
Losses and other expenses, net	(0.3		)	2.3			1.5						3.5
Restructuring charges	—			—			1.3			—			1.3
Income from equity method investments	(167.6		)	(21.0		)	(9.8		)	186.4			(12.0		)
Operational income from continuing operations	167.9			189.7			90.0			(188.0		)	259.6
Interest expense, net	10.1			(2.2		)	3.1			—			11.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	157.8			191.9			86.9			(188.0		)	248.6
Provision for income taxes	(3.4		)	60.0			30.5			(0.5		)	86.6
Income from continuing operations	161.2			131.9			56.4			(187.5		)	162.0
Loss from discontinued operations	—			—			(0.8		)	—			(0.8		)
Net income	$	161.2		$	131.9		$	55.6		$	(187.5	)	$	161.2
Other comprehensive income (loss), net of tax	(1.1		)	(1.8		)	(11.8		)	(1.1		)	(15.8		)
Comprehensive income	$	160.1		$	130.1		$	43.8		$	(188.6	)	$	145.4

25

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(27.3	)	$	138.2		$	(4.0	)	$	—	$	106.9
Cash flows from investing activities:
Purchases of property, plant and equipment	—			(40.3		)	(6.7		)	—		(47.0		)
Net cash used in investing activities	—			(40.3		)	(6.7		)	—		(47.0		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			0.8			—		0.8
Asset securitization borrowings	—			—			40.0			—		40.0
Asset securitization payments	—			—			(40.0		)	—		(40.0		)
Long-term debt payments	(22.5		)	(0.8		)	(0.2		)	—		(23.5		)
Borrowings from credit facility	1,401.0			—			—			—		1,401.0
Payments on credit facility	(1,385.0		)	—			—			—		(1,385.0		)
Proceeds from employee stock purchases	1.8			—			—			—		1.8
Repurchases of common stock	—			—			—			—		—
Repurchases of common stock to satisfy employee withholding tax obligations	(23.5		)	—			—			—		(23.5		)
Excess tax benefits related to share-based payments	18.6			—			—			—		18.6
Intercompany financing activity	(37.7		)	10.2			27.5			—		—
Intercompany investments	118.0			(106.3		)	(11.7		)	—		—
Cash dividends paid	(43.1		)	—			—			—		(43.1		)
Net cash provided by financing activities	27.6			(96.9		)	16.4			—		(52.9		)
Increase in cash and cash equivalents	0.3			1.0			5.7			—		7.0
Effect of exchange rates on cash and cash equivalents	—			—			(9.4		)	—		(9.4		)
Cash and cash equivalents, beginning of period	1.0			11.5			25.0			—		37.5
Cash and cash equivalents, end of period	$	1.3		$	12.5		$	21.3		$	—	$	35.1

26

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	13.4		$	72.1		$	(62.0	)	$	—	$	23.5
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.2			—			—		0.2
Purchases of property, plant and equipment	—			(45.5		)	(14.4		)	—		(59.9		)
Net cash used in investing activities	—			(45.3		)	(14.4		)	—		(59.7		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			3.4			—		3.4
Asset securitization borrowings	—			—			60.0			—		60.0
Asset securitization payments	—			—			—			—		—
Long-term debt payments	—			(1.4		)	(0.3		)	—		(1.7		)
Borrowings from credit facility	1,483.0			—			—			—		1,483.0
Payments on credit facility	(1,351.0		)	—			—			—		(1,351.0		)
Proceeds from employee stock purchases	1.5			—			—			—		1.5
Repurchases of common stock	(100.3		)	—			—			—		(100.3		)
Repurchases of common stock to satisfy employee withholding tax obligations	(12.3		)	—			—			—		(12.3		)
Excess tax benefits related to share-based payments	5.3			—			—			—		5.3
Intercompany debt	(12.5		)	(0.8		)	13.3			—		—
Intercompany financing activity	11.5			(17.0		)	5.5			—		—
Intercompany investments	—			(3.0		)	3.0			—		—
Cash dividends paid	(38.2		)	—			—			—		(38.2		)
Net cash used in financing activities	(13.0		)	(22.2		)	84.9			—		49.7
Decrease in cash and cash equivalents	0.4			4.6			8.5			—		13.5
Effect of exchange rates on cash and cash equivalents	—			—			(3.4		)	—		(3.4		)
Cash and cash equivalents, beginning of period	1.1			10.5			26.4			—		38.0
Cash and cash equivalents, end of period	$	1.5		$	15.1		$	31.5		$	—	$	48.1

27

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on information currently available to management as well as management’s assumptions and beliefs. All statements, other than statements of historical fact, included in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements identified by the words “may,” “will,” “should,” “plan,” “predict,” “anticipate,” “believe,” “intend,” “estimate” and “expect” and similar expressions. Such statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions; however, such statements are subject to certain risks and uncertainties. In addition to the specific uncertainties discussed elsewhere in this Quarterly Report on Form 10-Q, the risk factors set forth in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, and those set forth in Part II, “Item 1A. Risk Factors” of this report, if any, may affect our performance and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those in the forward-looking statements. We disclaim any intention or obligation to update or review any forward-looking statements or information, whether as a result of new information, future events or otherwise except as required by law.

Business Overview

We operate in three reportable business segments of the heating, ventilation, air conditioning and refrigeration (“HVACR”) industry. Our reportable segments are Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. For additional information regarding our reportable segments, see Note 15 in the Notes to the Consolidated Financial Statements.

Our fiscal year ends on December 31 and our interim fiscal quarters are each comprised of 13 weeks. For convenience, throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations, the 13-week periods comprising each fiscal quarter are denoted by the last day of the calendar quarter.

We sell our products and services through a combination of direct sales, distributors and company-owned parts and supplies stores.The demand for our products and services is seasonal and significantly impacted by the weather. Warmer than normal summer temperatures generate demand for replacement air conditioning and refrigeration products and services, and colder than normal winter temperatures have a similar effect on heating products and services. Conversely, cooler than normal summers and warmer than normal winters depress the demand for HVACR products and services. In addition to weather, demand for our products and services is influenced by national and regional economic and demographic factors, such as interest rates, the availability of financing, regional population and employment trends, new construction, general economic conditions and consumer spending habits and confidence. A substantial portion of the sales in each of our business segments is attributable to replacement business, with the balance comprised of new construction business.

The principal elements of cost of goods sold are components, raw materials, factory overhead, labor, estimated warranty costs, and freight and distribution costs. The principal raw materials used in our manufacturing processes are steel, copper and aluminum. In recent years, pricing volatility for these commodities and related components have impacted us and the HVACR industry in general. We seek to mitigate the impact of higher commodity prices through a combination of price increases, commodity contracts, improved production efficiency and cost reduction initiatives. We also partially mitigate volatility in the prices of these commodities by entering into futures contracts and fixed forward contracts.

Financial Overview

In the third quarter of 2015, the Residential Heating & Cooling segment continued to lead our overall operational performance with a 12% increase in net sales and a $21 million increase in segment profit compared to the third quarter of 2014. The primary growth drivers for this segment were increases in both price and mix as well as volume gains. Our Commercial Heating & Cooling segment also performed well in the third quarter of 2015 with a 2% increase in net sales and $3 million in increased segment profit compared to the third quarter of 2014. This segment's profits were up largely due to volume increases and material cost savings partially offset by unfavorable mix and unfavorable foreign currency exchange rates. Sales in our Refrigeration segment decreased by 2% while segment profit increased $4 million compared to the third quarter of 2014. Higher sales volume, higher productivity, and lower material costs were partially offset by lower mix and unfavorable foreign currency exchange rates.

28

On a consolidated basis, our product profit margins improved quarter over quarter primarily due to lower material costs and higher productivity. We continue to manage our cost structure by utilizing a combination of commodity hedging and controllable product cost management initiatives.

Financial Highlights

• Net sales increased $57 million, or 6%, to $955 million in the third quarter of 2015 compared to $898 million in the third quarter of 2014.

• Operational income from continuing operations in the third quarter of 2015 increased $20 million to $127 million from $107 million in the third quarter of 2014.

• Net income for the third quarter of 2015 increased $13 million to $80 million from $67 million in the third quarter of 2014.

• Diluted earnings per share from continuing operations were $1.76 per share in the third quarter of 2015 compared to $1.38 per share in the third quarter of 2014.

• During the third quarter of 2015, we returned $16 million to shareholders through dividend payments.

• Cash provided by operating activities was $107 million in the first nine months of 2015 compared to $24 million in the first nine months of 2014.

Third Quarter of 2015 Compared to Third Quarter of 2014 - Consolidated Results

The following table provides a summary of our financial results, including information presented as a percentage of net sales:

	For the Three Months Ended September 30,
	Dollars (in millions)						Percent Change Fav/(Unfav)		Percent of Sales
	2015			2014					2015		2014
Net sales	$	955.0		$	898.4		6.3	%	100.0	%	100.0	%
Cost of goods sold	681.6			651.3			(4.7	)	71.4		72.5
Gross profit	273.4			247.1			10.6		28.6		27.5
Selling, general and administrative expenses	143.8			140.9			(2.1	)	15.1		15.7
Losses (gains) and other expenses, net	6.0			2.1			185.7		0.6		0.2
Restructuring charges	(0.4		)	1.0			140.0		—		0.1
Income from equity method investments	(3.0		)	(3.5		)	(14.3	)	(0.3	)	(0.4	)
Operational income from continuing operations	$	127.0		$	106.6		19.1	%	13.3	%	11.9	%

Net Sales

Net sales increased 6% in the third quarter of 2015 compared to the third quarter of 2014, primarily from 9% higher sales volumes and 2% favorable price and mix. The Residential Heating & Cooling, Commercial Heating & Cooling and Refrigeration segments all delivered higher volume and pricing by capturing additional replacement and new construction business. These increases were partially offset by a 5% unfavorable impact from foreign currency exchanges rates.

Gross Profit

Gross profit margin in the third quarter of 2015 increased 110 basis points ("bps") to 28.6% compared to the third quarter of 2014. Our profit margin increased 190 bps from lower material costs, 40 bps from price, and 30 bps from foreign currency translation. Offsetting this increase were decreases of 130 bps for unfavorable mix and 20 bps investments in distribution and other growth initiatives with the balance from other cost changes.

Selling, General and Administrative Expenses

SG&A was $144 million in the third quarter of 2015 compared to $141 million in the third quarter of 2014, and as a percentage of net sales declined 60 bps to 15.1%. SG&A expenses have increased at a slower pace than the increase in net sales.

Losses (gains) and Other Expenses, Net

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Losses (gains) and other expenses, net for the third quarter of 2015 and 2014 included the following (in millions):

	For the Three Months Ended September 30,
	2015		2014
Realized losses on settled future contracts	$	0.6	$	0.1
Foreign currency exchange losses (gains)	1.4		0.1
Gain on disposal of fixed assets	0.1		0.1
Net change in unrealized losses (gains) on unsettled futures contracts	0.8		0.2
Special legal contingency charges	1.3		0.5
Asbestos-related litigation	0.4		0.4
Contractor tax payments	0.8		—
Environmental liabilities	0.3		0.7
Other items, net	0.3		—
Losses (gains) and other expenses, net	$	6.0	$	2.1

The net change in unrealized losses (gains) on unsettled futures contracts was due to lower commodity prices relative to the unsettled futures contract prices. For more information on our futures contracts, see Note 4 in the Notes to the Consolidated Financial Statements. Foreign currency exchange losses increased in the third quarter of 2015 primarily due to the Australian and Canadian dollar exchange rates. Contractor tax payments relate to a charge for underpaid contractor taxes at one of our non-U.S. subsidiaries. For more information on special legal contingency charges, asbestos-related litigation and contractor tax payments, see Note 6 in the Notes to the Consolidated Financial Statements.

Restructuring Charges

There was a minimal benefit from restructuring charges in the third quarter of 2015 while $1.0 million of restructuring charges were incurred in the third quarter of 2014. The benefit in the current quarter is due to actual restructuring charges being less than planned restructuring charges. For additional information on our restructuring activities, refer to Note 12 in the Notes to the Consolidated Financial Statements.

Income from Equity Method Investments

We participate in two joint ventures that are engaged in the manufacture and sale of compressors, unit coolers and condensing units. We exert significant influence over these affiliates based upon our ownerships, but do not control them due to venture partner participation. Accordingly, these joint ventures have been accounted for under the equity method and their financial position and results of operations are not consolidated. Income from equity method investments of $3 million in the third quarter of 2015 decreased slightly from the third quarter of 2014.

Interest Expense, net

Interest expense, net of $6 million in the third quarter of 2015 increased from $4 million in the third quarter of 2014 due primarily to an increase in our average borrowings.

Income Taxes

The Provision for income taxes was $42 million in the third quarter of 2015 compared to $35 million in the third quarter of 2014. The effective tax rate was 34.2% for the third quarter of 2015 and the third quarter of 2014. Our effective tax rates differ from the statutory federal rate of 35% for certain items, including tax credits, state and local taxes, non-deductible expenses, foreign taxes at rates other than 35% and other permanent tax differences.

Third Quarter of 2015 Compared to Third Quarter of 2014 - Results by Segment

Residential Heating & Cooling

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The following table presents our ResidentialHeating & Cooling segment's net sales and profit for the third quarter of 2015 and 2014 (dollars in millions):

	For the Three Months Ended September 30,
	2015			2014			Difference		% Change
Net sales	$	517.9		$	462.6		$	55.3	12.0	%
Profit	$	90.1		$	69.4		$	20.7	29.8	%
% of net sales	17.4		%	15.0		%

Net sales increased by 12% in the third quarter of 2015 compared to the third quarter of 2014. Volume increased by 10% due to industry growth and market share gains, and favorable price and mix increased net sales by 3%, with a 1% decrease from unfavorable foreign currency exchange rates.

Segment profit for the third quarter of 2015 increased $21 million due to $13 million in higher sales volumes, $10 million in material cost savings, $5 million from favorable price and mix, and $2 million from favorable factory productivity and other product costs. Partially offsetting these increases was $3 million of unfavorable foreign currency exchange rates, $3 million of higher SG&A expenses due to increased wages and higher information technology investments, $2 million from investments in distribution, and $1 million in higher warranty expenses.

Commercial Heating & Cooling

The following table presents our Commercial Heating & Cooling segment's net sales and profit for the third quarter of 2015 and 2014 (dollars in millions):

	For the Three Months Ended September 30,
	2015			2014			Difference		% Change
Net sales	$	246.8		$	241.6		$	5.2	2.2	%
Profit	$	44.8		$	42.2		$	2.6	6.2	%
% of net sales	18.2		%	17.5		%

Net sales increased 2% in the third quarter of 2015 compared to the third quarter of 2014. Sales volume increased by 7% primarily due to high single digit growth in North American service and mid single digit growth in North American equipment. Price and mix combined had a favorable 1% impact compared to the third quarter of 2014 and unfavorable foreign currency exchange rates had a negative 6% impact.

Segment profit in the third quarter of 2015 increased $3 million compared to the third quarter of 2014, primarily due to $5 million in higher sales volumes and $3 million from material cost savings, $1 million from price, $1 million from lower warranty expense and $1 million from lower other product costs. Partially offsetting these increases was $5 million in unfavorable mix, $2 million of unfavorable foreign currency exchange rates net of specific price increases, and $1 million of higher SG&A expenses.

Refrigeration

The following table presents our Refrigeration segment's net sales and profit for the third quarter of 2015 and 2014 (dollars in millions):

	For the Three Months Ended September 30,
	2015			2014			Difference			% Change
Net sales	$	190.3		$	194.2		$	(3.9	)	(2.0	)%
Profit	$	20.3		$	16.5		$	3.8		23.0	%
% of net sales	10.7		%	8.5		%

Net sales decreased 2% in the third quarter of 2015 compared to the third quarter of 2014 primarily due to an 10% unfavorable impact from foreign currency exchange rates. These decreases were partially offset by 7% volume growth led by our North

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American supermarket businesses and by 1% from combined price and mix.

Segment profit for the third quarter of 2015 increased $4 million compared to the third quarter of 2014. Higher sales volumes of $1 million, $4 million from lower material costs, $3 million of lower SG&A expenses from the results of North America and Australia restructuring activities, and $2 million from factory productivity and other product costs. These increases were partially offset by $5 million of unfavorable mix, predominantly in the North American supermarket business and $1 million from unfavorable foreign currency exchanges rates.

Corporate and Other

Corporate and other expenses increased $6 million to $24 million in the third quarter of 2015 from $18 million in the third quarter of 2014 due primarily to incentive compensation expense, general wage inflation and higher health care costs.

Year-to-Date through September 30, 2015 Compared to Year-to-Date through September 30, 2014 - Consolidated Results

The following table provides a summary of our financial results, including information presented as a percentage of net sales:

	For the Nine Months Ended September 30,
	Dollars (in millions)						Percent Change Fav/(Unfav)		Percent of Sales
	2015			2014					2015		2014
Net sales	$	2,633.3		$	2,554.6		3.1	%	100.0	%	100.0	%
Cost of goods sold	1,913.5			1,876.7			2.0		72.7		73.5
Gross profit	719.8			677.9			6.2		27.3		26.5
Selling, general and administrative expenses	430.0			425.5			1.1		16.3		16.7
Losses and other expenses, net	14.9			3.5			325.7		0.6		0.1
Restructuring charges	1.8			1.3			38.5		0.1		0.1
Income from equity method investments	(11.8		)	(12.0		)	(1.7	)	(0.4	)	(0.5	)
Operational income from continuing operations	$	284.9		$	259.6		9.7		10.8	%	10.2	%

Net Sales

Net sales increased 3% in the first nine months of 2015 compared to the first nine months of 2014, with sales volumes up 5% and price and mix up 2%. The volume increases were driven by our Residential Heating & Cooling, Commercial Heating & Cooling and Refrigeration segments all capturing additional replacement and new construction business. Partially offsetting these increases was a 4% decrease from unfavorable foreign currency exchange rates.

Gross Profit

Gross profit margins in the first nine months of 2015 increased 80 bps to 27% compared to the first nine months of 2014. Improvements of 210 bps from material cost savings were offset by 70 bps from unfavorable price and mix, 30 bps for investments in distribution and other growth initiatives, 20 bps from lower refrigerant pricing on our Australia wholesale business when compared to the prior year quarter with the balance attributable to increased other product costs.

Selling, General and Administrative Expenses

SG&A was $430 million for the first nine months of 2015 compared to $426 million for the first nine months of 2014, and as a percentage of net sales, declined 40 bps from 16.7% to 16.3%. SG&A expenses have increased at a slower pace than the increase in net sales.

Losses and Other Expenses, Net

Losses and other expenses, net for the first nine months of 2015 and 2014 included the following (in millions):

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	For the Nine Months Ended September 30,
	2015		2014
Realized losses on settled future contracts	$	1.3	$	0.6
Foreign currency exchange losses (gains)	2.7		0.1
Gain on disposal of fixed assets	0.1		—
Net change in unrealized losses (gains) on unsettled futures contracts	0.9		0.1
Special legal contingency charges	5.5		0.7
Asbestos-related litigation	1.0		1.0
Environmental liabilities	0.7		0.7
Contractor tax payments	2.4		—
Other items, net	0.3		0.3
Losses (gains) and other expenses, net (pre-tax)	$	14.9	$	3.5

Foreign currency exchange losses increased in thethird quarter of 2015 primarily due to the Australian and Canadian dollar exchange rates. Special legal contingency charges increased for our estimate of costs expected to be incurred for an attempted class action lawsuit. Contractor tax payments relate to a charge for underpaid contractor taxes at one of our non-U.S. subsidiaries. For more information on special legal contingency charges, asbestos-related litigation and contractor tax payments, see Note 6 in the Notes to the Consolidated Financial Statements.

Restructuring Charges

Restructuring charges increased to $2 million in the first nine months of 2015 as compared to $1 million in the first nine months of 2014. The increase was primarily due to the restructuring of our Australian operations in the Refrigeration segment. For additional information on our restructuring activities, refer to Note 12 in the Notes to the Consolidated Financial Statements.

Income from Equity Method Investments

We participate in two joint ventures that are engaged in the manufacture and sale of compressors, unit coolers and condensing units. We exert significant influence over these affiliates based upon our ownerships, but do not control them due to venture partner participation. Accordingly, these joint ventures have been accounted for under the equity method and their financial position and results of operations are not consolidated. Income from equity method investments of $12 million in the first nine months of 2015 was relatively flat as compared to the first nine months of 2014.

Interest Expense, net

Interest expense, net of $18 million in the first nine months of 2015 increased from $11 million in the first nine months of 2014 due to an increase in our average net borrowings and an increase in our weighted average borrowing rates over the comparable periods.

Income Taxes

The Provision for income taxes was $92 million in the first nine months of 2015 compared to $87 million in the first nine months of 2014. The effective tax rate was 34.3% for the first nine months of 2015 compared to 34.8% for the first nine months of 2014. Our effective tax rates differ from the statutory federal rate of 35% for certain items, including tax credits, state and local taxes, non-deductible expenses, foreign taxes at rates other than 35% and other permanent tax differences.

Year-to-Date through September 30, 2015 Compared to Year-to-Date through September 30, 2014 - Results by Segment

Residential Heating & Cooling

The following table presents our ResidentialHeating & Cooling segment's net sales and profit for the first nine months of 2015 and 2014 (dollars in millions):

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	For the Nine Months Ended September 30,
	2015			2014			Difference		% Change
Net sales	$	1,435.6		$	1,332.5		$	103.1	7.7	%
Profit	$	221.3		$	178.8		$	42.5	23.8	%
% of net sales	15.4		%	13.4		%

Net sales increased by 8% in the first nine months of 2015 compared to the first nine months of 2014. Sales volumes increased net sales by 6% due to industry growth and market share gains and the benefits of favorable price and mix contributed 3%. Changes in foreign currency exchange rates unfavorably impacted net sales by 1%.

Segment profit for the first nine months of 2015 increased $43 million due to $34 million from material cost savings, $20 million from higher sales volume, and $14 million from favorable price and mix. Partially offsetting these increases was $8 million of unfavorable foreign exchange rates, $7 million in distribution expenses related to continued investment in distribution expansion, and $10 million of SG&A inflation.

Commercial Heating & Cooling

The following table presents our Commercial Heating & Cooling segment's net sales and profit for the first nine months of 2015 and 2014 (dollars in millions):

	For the Nine Months Ended September 30,
	2015			2014			Difference		% Change
Net sales	$	660.3		$	655.6		$	4.7	0.7	%
Profit	$	95.5		$	91.3		$	4.2	4.6	%
% of net sales	14.5		%	13.9		%

Commercial Heating & Cooling net sales increased by 1% in the first nine months of 2015 compared to the first nine months of 2014. Sales volumes increased net sales by 5% and changes in foreign currency exchange rates unfavorably impacted net sales by 4%.

Segment profit in the first nine months of 2015 increased $4 million compared to the first nine months of 2014. The benefits of $11 million from incremental volume, $10 million from material cost savings, $1 million lower warranty and other product costs, and $1 million from price were partially offset by $9 million in unfavorable mix, $4 million for information technology, distribution investments and start-up costs to enter the VRF market, $2M for unfavorable foreign exchange rates and $4 million of higher SG&A expenses.

Refrigeration

The following table presents our Refrigeration segment's net sales and profit for the first nine months of 2015 and 2014 (dollars in millions):

	For the Nine Months Ended September 30,
	2015			2014			Difference			% Change
Net sales	$	537.4		$	566.5		$	(29.1	)	(5.1	)%
Profit	$	37.5		$	42.3		$	(4.8	)	(11.3	)%
% of net sales	7.0		%	7.5		%

Refrigeration net sales declined 5% in the first nine months of 2015 compared to the first nine months of 2014 primarily due to an 8% impact from unfavorable foreign exchange rates and a 2% impact from the Australian carbon levy repeal that was effective July 1, 2014. These decreases were partially offset by 5% volume growth, led by our North America supermarket businesses.

Segment profit for the first nine    months of 2015 decreased $5 million compared to the first nine months of 2014 primarily due to $12 million from unfavorable mix predominantly in the North American supermarket business, $9 million lower profitability

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in our Australia refrigerant business, $1 million of costs related to investments for future growth, and $4 million from unfavorable foreign currency exchange rates. Partially offsetting these decreases were $10 million from material cost savings, $2 million from higher sales volumes, $1 million from lower SG&A due to North American and Australia restructuring activities, and $8 million from factory productivity and other product costs.

Corporate and Other

Corporate and other expenses increased $10 million to $58 million in the first nine months of 2015 from $48 million in the first nine months of 2014 due primarily to higher incentive compensation, general wage inflation, health care costs and currency losses.

Liquidity and Capital Resources

Our working capital and capital expenditure requirements are generally met through internally generated funds, bank lines of credit and an asset securitization arrangement. Working capital needs are generally greater in the first and second quarters due to the seasonal nature of our business cycle.

Statement of Cash Flows

The following table summarizes our cash flow activity for the nine months ended September 30,2015 and 2014 (in millions):

	For the Nine Months Ended September 30,
	2015			2014
Net cash provided by operating activities	$	106.9		$	23.5
Net cash used in investing activities	(47.0		)	(59.7		)
Net cash (used in) provided by financing activities	(52.9		)	49.7

Net Cash Provided by Operating Activities - Net cash provided by operating activities increased approximately $83 million in the first nine months of 2015 compared to $24 million in the first nine months of 2014. This increase was primarily attributable to the seasonal decrease in working capital requirements in 2015 being smaller than the decrease in 2014.

Net Cash Used in Investing Activities - Capital expenditures were $47 million and $60 million in the first nine months of 2015 and 2014, respectively. Capital expenditures in 2015 were primarily related to investments in systems and software to support the overall enterprise and continued investments in our distribution network.

Net Cash (Used in) Provided by Financing Activities - Net cash used in financing activities increased to $53 million in the first nine months of 2015 primarily due to an increase in payments on borrowings and partially offset by decreases in stock repurchases. Net borrowings were higher in 2015 to support the increased stock repurchases and dividend payments. Final settlement of the $450 million Accelerated Share Repurchase Plan (ASR) executed in the fourth quarter of 2014 is expected in the fourth quarter of 2015.

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Debt Position

The following table details our lines of credit and financing arrangements as of September 30, 2015 (in millions):

	Outstanding Borrowings
Short-term debt:
Foreign obligations	$	6.3
Asset Securitization Program (1)	220.0
Total short-term debt	$	226.3
Current maturities of long-term debt:
Capital lease obligations	1.2
Domestic credit facility (2)	22.5
Total current maturities of long-term debt	$	23.7
Long-term debt:
Capital lease obligations	15.0
Domestic credit facility (2)	453.0
Senior unsecured notes	200.0
Total long-term debt	668.0
Total debt	$	918.0

⁽¹⁾ The maximum securitization amount ranges from $180.0 million to $220.0 million, depending on the period. The maximum capacity of the ASP is the lesser of the maximum securitization amount or 100% of the net pool balance less reserves, as defined under the ASP.

⁽²⁾ The available future borrowings on our domestic credit facility are $447.6 million after being reduced by the outstanding borrowings and $4.4 million in outstanding standby letters of credit. We also had $40.8 million in outstanding standby letters of credit outside of the domestic credit facility as of September 30, 2015.

Financial Leverage

We periodically review our capital structure to ensure the appropriate levels of leverage and liquidity. We may access the capital markets, as necessary, based on business needs and to take advantage of favorable interest rate environments or other market conditions. We also evaluate our debt-to-capital and debt-to-EBITDA ratios to determine, among other considerations, the appropriate targets for capital expenditures and share repurchases under our share repurchase programs. Our debt-to-total-capital ratio decreased to 90.4% at September 30, 2015 from 99.0% at December 31, 2014.

As of September 30, 2015, our senior credit ratings were Baa3 with a negative outlook, and BBB with a stable outlook, by Moody's Investors Service, Inc. ("Moody's") and Standard & Poor's Rating Group ("S&P"), respectively. The security ratings are not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. Our goal is to maintain investment grade ratings from Moody's and S&P to ensure the capital markets remain available to us.

Liquidity

We believe our cash and cash equivalents of $35 million, future cash generated from operations and available future borrowings are sufficient to fund operations, planned capital expenditures, future contractual obligations, share repurchases, anticipated dividends and other needs in the foreseeable future. Included in our cash and cash equivalents of $35 million as of September 30, 2015 was $21.3 million of cash held in foreign locations. Our cash held in foreign locations is used for investing and operating activities in those locations, and we currently do not have the need or intent to repatriate those funds to the United States. If we were to repatriate foreign earnings, we would be required to accrue and pay taxes in the United States, less foreign tax credits, for the amounts that were repatriated.

Our expected capital expenditures for 2015 are $80 million. We also continue to increase shareholder value through dividend payments and our share repurchase programs, with the completion of our $450 million accelerated share repurchase program in 2015 and a target of between $55 million and $60 million of dividend payments in 2015.

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Off Balance Sheet Arrangements

In addition to the credit facilities, promissory notes and leasing commitments described above, we also lease real estate and machinery and equipment pursuant to operating leases that are not capitalized on the balance sheet, including high-turnover equipment such as autos and service vehicles and short-lived equipment such as personal computers. Our operating lease commitments have not materially changed since December 31, 2014.

Commitments, Contingencies and Guarantees

For information regarding our commitments, contingencies and guarantees, see Note 6 in the Notes to the Consolidated Financial Statements.

Recent Accounting Pronouncements

On May 28, 2014, the Financial Accounting Standard Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to separately present an extraordinary item on its statement of operations, net of tax, after income from continuing operations or to disclose income taxes and net income per share data applicable to an extraordinary item. However, ASU No. 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU No. 2015-01 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, although early adoption is permitted. We do not expect the adoption of this standard to materially impact our consolidated financial statements, absent any material transactions in future periods that would have qualified for extraordinary item presentation under the prior guidance.

In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, or ASU 2015-02, which amends the criteria for determining which entities are considered variable interest entities (“VIEs”), amends the criteria for determining if a service provider possesses a variable interest in a VIE and ends the deferral granted to investment companies for application of the VIE consolidation model. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015 and early adoption is permitted. We do not expect the adoption of this standard to materially impact our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015, and early adoption is permitted. We do not expect the adoption of this standard to materially impact our consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

For quantitative and qualitative disclosures about market risk affecting LII, see "Quantitative and Qualitative Disclosures About Market Risk" in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Our exposure to market risk has not changed materially since December 31, 2014.

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Item 4. Controls and Procedures

Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, we carried out an evaluation, under the supervision and with the participation of our current management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 2015, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes during the quarter ended September 30, 2015 in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II - Other Information

Item 1. Legal Proceedings

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. It is management's opinion that none of these claims or lawsuits will have a material adverse effect, individually or in the aggregate, on our financial position, results of operations or cash flows.

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Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, which could materially affect our business, financial condition or results of operations. There have been no material changes to our risk factors from those disclosed in our 2014 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In the third quarter of 2015, we purchased shares of our common stock as follows:

	Total Number of Shares Purchased (1)	Average Price Paid per Share (including fees)		Total Number of Shares Purchased As Part of Publicly Announced Plans	Approximate Dollar Value of Shares that may yet be Purchased under our Share Repurchase Plans (in millions) (2)
July 1 through July 31	11,599	$	115.94	—	$	396.0
August 1 through August 30	1,891	120.96		—	396.0
September 1 through September 30	579	122.43		—	396.0
	14,069			—

⁽¹⁾ We repurchased 14,069 shares of common stock in July, August and September 2015 surrendered to LII to satisfy employee tax-withholding obligations in connection with the exercise of long-term incentive awards.

⁽²⁾ After consideration of total payment of $450 million or Accelerated Share Repurchase Plan (ASR) executed in the fourth quarter of 2014. Final settlement is expected in the fourth quarter of 2015.

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Item 6. Exhibits

3.1	Restated Certificate of Incorporation of Lennox International Inc. (“LII”) (filed as Exhibit 3.1 to LII’s Registration Statement on Form S-1 (Registration Statement No. 333-75725) filed on April 6, 1999 and incorporated herein by reference).
3.2	Amended and Restated Bylaws of LII (filed as Exhibit 3.1 to LII’s Current Report on Form 8-K filed on December 16, 2013 and incorporated herein by reference).
4.1	Specimen Stock Certificate for the Common Stock, par value $.01 per share, of LII (filed as Exhibit 4.1 to LII’s Amendment to Registration Statement on Form S-1/A (Registration No. 333-75725) filed on June 16, 1999 and incorporated herein by reference).
4.2	Indenture, dated as of May 3, 2010, between LII and U.S. Bank National Association, as trustee (filed as Exhibit 4.3 to LII’s Post-Effective Amendment No. 1 to Registration Statement on S-3 (Registration No. 333-155796) filed on May 3, 2010, and incorporated herein by reference).
4.3	Form of First Supplemental Indenture among LII, the guarantors party thereto and U.S. Bank National Association, as trustee (filed as Exhibit 4.11 to LII’s Post-Effective Amendment No. 1 to Registration Statement on S-3 (Registration No. 333-155796) filed on May 3, 2010, and incorporated herein by reference).
4.4	Second Supplemental Indenture dated as of March 28, 2011, among Heatcraft Inc., a Mississippi corporation, Heatcraft Refrigeration Products LLC, a Delaware limited liability company and Advanced Distributor Products LLC, a Delaware limited liability company (the “Guarantors”), LII, and each other existing Guarantor under the Indenture dated as of May 3, 2010, and U.S. Bank National Association as Trustee (filed as Exhibit 4.4 to LII’s Quarterly Report on Form 10-Q filed on April 26, 2011, and incorporated herein by reference).
4.5	Fourth Supplemental Indenture, dated as of December 10, 2013 among Lennox National Account Services LLC, LGL Australia (US) Inc., Lennox International Inc., each other existing Guarantor under the Indenture, dated as of May 3, 2010, as subsequently supplemented, and U.S. Bank National Association (filed as Exhibit 4.5 to LII's Annual Report on Form 10-K filed on February 13, 2014 and incorporated herein by reference).
4.6	Form of 4.900% Note due 2017 (filed as Exhibit 4.3 to LII’s Current Report on Form 8-K filed on May 6, 2010 and incorporated herein by reference).
31.1	Certification of the principal executive officer (filed herewith).
31.2	Certification of the principal financial officer (filed herewith).
32.1	Certification of the principal executive officer and the principal financial officer pursuant to 18 U.S.C. Section 1350 (furnished herewith).

Exhibit No. (101).INS XBRL Instance Document

Exhibit No. (101).SCH XBRL Taxonomy Extension Schema Document

Exhibit No. (101).CAL XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit No. (101).LAB XBRL Taxonomy Extension Label Linkbase Document

Exhibit No. (101).PRE XBRL Taxonomy Extension Presentation Linkbase Document

Exhibit No. (101).DEF XBRL Taxonomy Extension Definition Linkbase Document

40

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

LENNOX INTERNATIONAL INC.

By: /s/ Joseph W. Reitmeier

Joseph W. Reitmeier

Chief Financial Officer

(on behalf of registrant and as principal financial officer)

Date: October 19, 2015            

41

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Todd M. Bluedorn, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lennox International Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 19, 2015

/s/ Todd M. Bluedorn

Todd M. Bluedorn

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Joseph W. Reitmeier, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lennox International Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 19, 2015

/s/ Joseph W. Reitmeier

Joseph W. Reitmeier

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lennox International Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, Todd M. Bluedorn, Chief Executive Officer of the Company, and Joseph W. Reitmeier, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to his or her knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Todd M. Bluedorn

Todd M. Bluedorn

Chief Executive Officer

October 19, 2015

/s/ Joseph W. Reitmeier

Joseph W. Reitmeier

Chief Financial Officer

October 19, 2015

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the report.

XML

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Components of inventories
Finished goods	$ 353.5	$ 338.2
Work in process	8.9	8.1
Raw materials and repair parts	188.8	182.6
Gross inventories	551.2	528.9
Excess of current cost over last-in, first-out cost	(62.9)	(65.6)
Total inventories, net	$ 488.3	$ 463.3

XML

Lines of Credit and Financing Arrangements (Details Textual 1)	1 Months Ended	9 Months Ended
	Jun. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2014	Nov. 30, 2014 USD ($)	Nov. 13, 2014 USD ($)	Nov. 12, 2014 USD ($)
Line of Credit Facility [Line Items]
Maximum securitization as percentage of net pool balance		100.00%
Program fee		0.60%
Average floating commercial paper rate		0.82%	0.79%
Unused fee		101.00%
Fixed rate of agreement		0.30%
Unused fee charged on incremental available amounts		$ 0.0005
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Borrowings under Domestic Revolving Credit Facility		475,500,000
Committed standby letters of credit		4,400,000
Available for future borrowings		447,600,000
Maximum [Member]
Line of Credit Facility [Line Items]
Maximum securitization, amount		220,000,000
Minimum [Member]
Line of Credit Facility [Line Items]
Maximum securitization, amount		180,000,000		$ 180,000,000
Domestic Credit Facility [Member]
Line of Credit Facility [Line Items]
Domestic Revolving Credit Facility					$ 950,000,000
Domestic Credit Facility [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum increase in borrowings under Domestic Revolving Credit Facility		$ 350,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Domestic Revolving Credit Facility					650,000,000	$ 650,000,000
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Indebtedness to adjusted EBITDA ratio		3.5
Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Cash flow to net interest expense ratio		3.0
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Domestic Revolving Credit Facility		$ 150,000,000
Subfacility for Swingline Loans [Member]
Line of Credit Facility [Line Items]
Domestic Revolving Credit Facility		65,000,000
Medium-term Notes [Member] | Domestic Credit Facility [Member]
Line of Credit Facility [Line Items]
Face amount of debt		278,000,000			$ 300,000,000
Periodic payments	$ 22,500,000	$ 7,500,000

XML

Commitments and Contingencies (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Total liabilities for estimated warranty
Accrued expenses	$ 25.6	$ 27.3
Other liabilities	66.1	59.9
Total liabilities for estimated warranty	$ 91.7	$ 87.2

XML

Fair Value Measurements (Details 1) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Quoted Prices in Active Markets for Similar Instruments (Level 2) | Senior unsecured notes [Member]
Other Fair Value Measurements
Senior unsecured notes	$ 210.3	$ 210.6

XML

Lines of Credit and Financing Arrangements (Details Textual 2) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Line of Credit [Member]
Line of Credit Facility [Line Items]
Minimum amount of principal or interest due on indebtedness or receivable securitization	$ 75.0

XML

Income Taxes (Details Textual) $ in Millions	Sep. 30, 2015 USD ($)
Income Tax Disclosure [Abstract]
Total gross unrecognized tax benefits	$ 1.6
Amount of unrecognized tax benefits that would be recorded through consolidated statement of operation	1.2
Interest and penalties in income tax expenses	$ 0.3

XML

Restructuring Charges (Tables)

9 Months Ended

Sep. 30, 2015

Restructuring Charges [Abstract]

Information regarding restructuring charges

Information regarding the restructuring charges for all ongoing activities are presented in the following table (in millions):

	Charges Incurred in 2015		Charges Incurred to Date		Total Charges Expected to be Incurred
Severance and related expense	$	1.2	$	8.1	$	8.1
Asset write-offs and accelerated depreciation	0.2		2.0		2.0
Equipment moves	—		—		—
Lease termination	—		—		—
Other	0.4		2.3		2.3
Total restructuring charges	$	1.8	$	12.4	$	12.4

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 2015			Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	(0.1	)	$	1.4	$	1.4
Commercial Heating & Cooling	—			0.9		0.9
Refrigeration	1.9			10.1		10.1
Corporate & Other	—			—		—
Total restructuring charges	$	1.8		$	12.4	$	12.4

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 2015 within the restructuring accruals (in millions):

	Balance as of December 31, 2014		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of September 30, 2015
Severance and related expense	$	1.5	$	1.2	$	(1.7	)	$	(0.2	)	$	0.8
Asset write-offs and accelerated depreciation	—		0.2		(0.1		)	(0.1		)	—
Equipment moves	0.1		—								0.1
Lease termination	—		—								—
Other	—		0.4		(0.2		)	(0.2		)	—
Total restructuring accruals	$	1.6	$	1.8	$	(2.0	)	$	(0.5	)	$	0.9

XML

Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Financial Statements, Captions [Line Items]
Revenue, Net	$ 955.0	$ 898.4	$ 2,633.3	$ 2,554.6
Condensed Consolidating Statements of Cash Flows
Cash flows from operating activities			106.9	23.5
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment			0.0	0.2
Purchases of property, plant and equipment			(47.0)	(59.9)
Net cash used in investing activities			(47.0)	(59.7)
Cash flows from financing activities:
Short-term borrowings, net			0.8	3.4
Asset securitization borrowings			40.0	60.0
Asset securitization payments			(40.0)	0.0
Long-term debt payments			(23.5)	(1.7)
Borrowings from credit facility			1,401.0	1,483.0
Payments on credit facility			(1,385.0)	(1,351.0)
Proceeds from employee stock purchases			1.8	1.5
Repurchases of common stock			0.0	(100.3)
Repurchases of common stock to satisfy employee withholding tax obligations			(23.5)	(12.3)
Excess tax benefits related to share-based payments			18.6	5.3
Intercompany debt				0.0
Intercompany financing activity				0.0
Cash dividends paid			(43.1)	(38.2)
Net cash provided by financing activities			(52.9)	49.7
Increase in cash and cash equivalents			7.0	13.5
Effect of exchange rates on cash and cash equivalents			(9.4)	(3.4)
Cash and cash equivalents, beginning of period			37.5	38.0
Cash and cash equivalents, end of period	35.1	48.1	35.1	48.1
Parent [Member]
Condensed Financial Statements, Captions [Line Items]
Revenue, Net	0.0	0.0	0.0	0.0
Condensed Consolidating Statements of Cash Flows
Cash flows from operating activities			(27.3)	13.4
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment				0.0
Purchases of property, plant and equipment			0.0	0.0
Net cash used in investing activities			0.0	0.0
Cash flows from financing activities:
Short-term borrowings, net			0.0	0.0
Asset securitization borrowings			0.0	0.0
Asset securitization payments			0.0	0.0
Long-term debt payments			(22.5)	0.0
Borrowings from credit facility			1,401.0	1,483.0
Payments on credit facility			(1,385.0)	(1,351.0)
Proceeds from employee stock purchases			1.8	1.5
Repurchases of common stock			0.0	(100.3)
Repurchases of common stock to satisfy employee withholding tax obligations			(23.5)	(12.3)
Excess tax benefits related to share-based payments			18.6	5.3
Intercompany debt				(12.5)
Intercompany financing activity			(37.7)	11.5
Intercompany investments			118.0
Cash dividends paid			(43.1)	(38.2)
Net cash provided by financing activities			27.6	(13.0)
Increase in cash and cash equivalents			0.3	0.4
Effect of exchange rates on cash and cash equivalents			0.0	0.0
Cash and cash equivalents, beginning of period			1.0	1.1
Cash and cash equivalents, end of period	1.3	1.5	1.3	1.5
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenue, Net	827.9	736.2	2,268.6	2,089.0
Condensed Consolidating Statements of Cash Flows
Cash flows from operating activities			138.2	72.1
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment				0.2
Purchases of property, plant and equipment			(40.3)	(45.5)
Net cash used in investing activities			(40.3)	(45.3)
Cash flows from financing activities:
Short-term borrowings, net			0.0	0.0
Asset securitization borrowings			0.0	0.0
Asset securitization payments			0.0	0.0
Long-term debt payments			(0.8)	(1.4)
Borrowings from credit facility			0.0	0.0
Payments on credit facility			0.0	0.0
Proceeds from employee stock purchases			0.0	0.0
Repurchases of common stock			0.0	0.0
Repurchases of common stock to satisfy employee withholding tax obligations			0.0	0.0
Excess tax benefits related to share-based payments			0.0	0.0
Intercompany debt				(0.8)
Intercompany financing activity			10.2	(17.0)
Intercompany investments				(3.0)
Intercompany investments			(106.3)
Cash dividends paid			0.0	0.0
Net cash provided by financing activities			(96.9)	(22.2)
Increase in cash and cash equivalents			1.0	4.6
Effect of exchange rates on cash and cash equivalents			0.0	0.0
Cash and cash equivalents, beginning of period			11.5	10.5
Cash and cash equivalents, end of period	12.5	15.1	12.5	15.1
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenue, Net	185.2	213.5	520.7	606.5
Condensed Consolidating Statements of Cash Flows
Cash flows from operating activities			(4.0)	(62.0)
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment				0.0
Purchases of property, plant and equipment			(6.7)	(14.4)
Net cash used in investing activities			(6.7)	(14.4)
Cash flows from financing activities:
Short-term borrowings, net			0.8	3.4
Asset securitization borrowings			40.0	60.0
Asset securitization payments			(40.0)	0.0
Long-term debt payments			(0.2)	(0.3)
Borrowings from credit facility			0.0	0.0
Payments on credit facility			0.0	0.0
Proceeds from employee stock purchases			0.0	0.0
Repurchases of common stock			0.0	0.0
Repurchases of common stock to satisfy employee withholding tax obligations			0.0	0.0
Excess tax benefits related to share-based payments			0.0	0.0
Intercompany debt				13.3
Intercompany financing activity			27.5	5.5
Intercompany investments				3.0
Intercompany investments			(11.7)
Cash dividends paid			0.0	0.0
Net cash provided by financing activities			16.4	84.9
Increase in cash and cash equivalents			5.7	8.5
Effect of exchange rates on cash and cash equivalents			(9.4)	(3.4)
Cash and cash equivalents, beginning of period			25.0	26.4
Cash and cash equivalents, end of period	21.3	31.5	21.3	31.5
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Revenue, Net	(58.1)	(51.3)	(156.0)	(140.9)
Condensed Consolidating Statements of Cash Flows
Cash flows from operating activities			0.0	0.0
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment				0.0
Purchases of property, plant and equipment			0.0	0.0
Net cash used in investing activities			0.0	0.0
Cash flows from financing activities:
Short-term borrowings, net			0.0	0.0
Asset securitization borrowings			0.0	0.0
Asset securitization payments			0.0	0.0
Long-term debt payments			0.0	0.0
Borrowings from credit facility			0.0	0.0
Payments on credit facility			0.0	0.0
Proceeds from employee stock purchases			0.0	0.0
Repurchases of common stock			0.0	0.0
Repurchases of common stock to satisfy employee withholding tax obligations			0.0	0.0
Excess tax benefits related to share-based payments			0.0	0.0
Intercompany debt				0.0
Intercompany financing activity				0.0
Cash dividends paid			0.0	0.0
Net cash provided by financing activities			0.0	0.0
Increase in cash and cash equivalents			0.0	0.0
Effect of exchange rates on cash and cash equivalents			0.0	0.0
Cash and cash equivalents, beginning of period			0.0	0.0
Cash and cash equivalents, end of period	$ 0.0	$ 0.0	$ 0.0	$ 0.0

XML

Pension and Post-retirement Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Pension Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 1.2	$ 1.1	$ 3.6	$ 3.2
Interest cost	4.3	4.4	12.9	13.3
Expected return on plan assets	(5.3)	(5.7)	(16.0)	(17.0)
Amortization of prior service cost	0.0	0.1	0.0	0.2
Recognized actuarial loss	2.4	1.6	7.2	4.9
Settlements and curtailments	0.0	0.0	0.4	0.0
Net periodic benefit cost	2.6	1.5	8.1	4.6
Other Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	0.0	0.0	0.0	0.0
Interest cost	0.1	0.1	0.2	0.1
Expected return on plan assets	0.0	0.0	0.0	0.0
Amortization of prior service cost	(0.8)	(0.8)	(2.4)	(2.2)
Recognized actuarial loss	0.4	0.4	1.2	1.1
Settlements and curtailments	0.0	0.0	0.0	0.0
Net periodic benefit cost	$ (0.3)	$ (0.3)	$ (1.0)	$ (1.0)

XML

Condensed Consolidating Financial Statements (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 35.1	$ 37.5	$ 48.1	$ 38.0
Accounts and notes receivable, net	537.7	421.4
Inventories, net	488.3	463.3
Deferred income taxes, net	31.9	32.5
Other assets	58.9	59.3
Total current assets	1,151.9	1,014.0
Property, plant and equipment, net	345.3	358.6
Goodwill	199.8	209.4
Investments in subsidiaries	0.0	0.0
Deferred income taxes	97.9	97.5
Other assets, net	86.6	84.8
Intercompany receivables (payables)	0.0	0.0
Total assets	1,881.5	1,764.3
Current Liabilities:
Short-term debt	226.3	226.6
Current maturities of long-term debt	23.7	24.0
Accounts payable	337.7	324.3
Accrued expenses	251.9	239.0
Income taxes payable	13.8	13.4
Total current liabilities	853.4	827.3
Long-term debt	668.0	675.0
Post-retirement benefits, other than pensions	2.9	4.5
Pensions	134.2	129.9
Other liabilities	125.5	118.6
Total liabilities	$ 1,784.0	$ 1,755.3
Commitments and contingencies
Total stockholders’ equity	$ 97.5	$ 9.0
Total liabilities and stockholders' equity	1,881.5	1,764.3
Parent [Member]
Current Assets:
Cash and cash equivalents	1.3	1.0	1.5	1.1
Accounts and notes receivable, net	0.0	0.0
Inventories, net	0.0	0.0
Deferred income taxes, net	3.3	2.8
Other assets	3.3	3.6
Total current assets	7.9	7.4
Property, plant and equipment, net	0.0	0.0
Goodwill	0.0	0.0
Investments in subsidiaries	1,111.9	978.1
Deferred income taxes	2.4	0.5
Other assets, net	4.5	5.2
Intercompany receivables (payables)	(360.7)	(280.4)
Total assets	766.0	710.8
Current Liabilities:
Short-term debt	0.0	0.0
Current maturities of long-term debt	22.5	22.5
Accounts payable	16.2	13.4
Accrued expenses	15.7	9.0
Income taxes payable	(41.3)	(3.7)
Total current liabilities	13.1	41.2
Long-term debt	653.0	659.5
Post-retirement benefits, other than pensions	0.0	0.0
Pensions	0.0	0.0
Other liabilities	2.4	1.1
Total liabilities	668.5	$ 701.8
Commitments and contingencies
Total stockholders’ equity	97.5	$ 9.0
Total liabilities and stockholders' equity	766.0	710.8
Guarantor Subsidiaries [Member]
Current Assets:
Cash and cash equivalents	12.5	11.5	15.1	10.5
Accounts and notes receivable, net	42.1	12.3
Inventories, net	376.1	350.6
Deferred income taxes, net	27.4	27.3
Other assets	48.7	45.7
Total current assets	506.8	447.4
Property, plant and equipment, net	268.3	269.0
Goodwill	140.4	140.4
Investments in subsidiaries	394.7	263.5
Deferred income taxes	91.4	90.8
Other assets, net	59.8	61.0
Intercompany receivables (payables)	357.6	302.4
Total assets	1,819.0	1,574.5
Current Liabilities:
Short-term debt	0.0	0.0
Current maturities of long-term debt	0.9	1.2
Accounts payable	255.9	237.8
Accrued expenses	181.8	175.5
Income taxes payable	94.8	34.7
Total current liabilities	533.4	449.2
Long-term debt	14.8	15.3
Post-retirement benefits, other than pensions	2.9	4.5
Pensions	123.4	117.6
Other liabilities	125.6	118.7
Total liabilities	800.1	$ 705.3
Commitments and contingencies
Total stockholders’ equity	1,018.9	$ 869.2
Total liabilities and stockholders' equity	1,819.0	1,574.5
Non-Guarantor Subsidiaries [Member]
Current Assets:
Cash and cash equivalents	21.3	25.0	31.5	26.4
Accounts and notes receivable, net	495.6	409.1
Inventories, net	119.6	119.7
Deferred income taxes, net	6.3	7.4
Other assets	65.7	67.2
Total current assets	708.5	628.4
Property, plant and equipment, net	77.0	89.6
Goodwill	59.4	69.0
Investments in subsidiaries	(0.6)	(0.6)
Deferred income taxes	13.7	15.8
Other assets, net	23.8	20.1
Intercompany receivables (payables)	3.1	(22.0)
Total assets	884.9	800.3
Current Liabilities:
Short-term debt	226.3	226.6
Current maturities of long-term debt	0.3	0.3
Accounts payable	65.6	73.1
Accrued expenses	54.4	54.5
Income taxes payable	27.2	47.5
Total current liabilities	373.8	402.0
Long-term debt	0.2	0.2
Post-retirement benefits, other than pensions	0.0	0.0
Pensions	10.8	12.3
Other liabilities	10.4	11.7
Total liabilities	395.2	$ 426.2
Commitments and contingencies
Total stockholders’ equity	489.7	$ 374.1
Total liabilities and stockholders' equity	884.9	800.3
Eliminations [Member]
Current Assets:
Cash and cash equivalents	0.0	0.0	$ 0.0	$ 0.0
Accounts and notes receivable, net	0.0	0.0
Inventories, net	(7.4)	(7.0)
Deferred income taxes, net	(5.1)	(5.0)
Other assets	(58.8)	(57.2)
Total current assets	(71.3)	(69.2)
Property, plant and equipment, net	0.0	0.0
Goodwill	0.0	0.0
Investments in subsidiaries	(1,506.0)	(1,241.0)
Deferred income taxes	(9.6)	(9.6)
Other assets, net	(1.5)	(1.5)
Intercompany receivables (payables)	0.0	0.0
Total assets	(1,588.4)	(1,321.3)
Current Liabilities:
Short-term debt	0.0	0.0
Current maturities of long-term debt	0.0	0.0
Accounts payable	0.0	0.0
Accrued expenses	0.0	0.0
Income taxes payable	(66.9)	(65.1)
Total current liabilities	(66.9)	(65.1)
Long-term debt	0.0	0.0
Post-retirement benefits, other than pensions	0.0	0.0
Pensions	0.0	0.0
Other liabilities	(12.9)	(12.9)
Total liabilities	(79.8)	$ (78.0)
Commitments and contingencies
Total stockholders’ equity	(1,508.6)	$ (1,243.3)
Total liabilities and stockholders' equity	$ (1,588.4)	$ (1,321.3)

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Inventories (Tables)

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Components of inventories

The components of inventories are as follows (in millions):

	As of September 30, 2015			As of December 31, 2014
Finished goods	$	353.5		$	338.2
Work in process	8.9			8.1
Raw materials and parts	188.8			182.6
Subtotal	551.2			528.9
Excess of current cost over last-in, first-out cost	(62.9		)	(65.6		)
Total inventories, net	$	488.3		$	463.3

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Lines of Credit and Financing Arrangements (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Short-Term Debt:
Short-term Debt	$ 226.3	$ 226.6
Current maturities of long-term debt:
Capital lease obligations	1.2	1.5
Total current maturities of long-term debt	23.7	24.0
Long-Term Debt:
Capital lease obligations	15.0	15.5
Total long-term debt	668.0	675.0
Total debt	918.0	925.6
Domestic revolving credit facility [Member]
Current maturities of long-term debt:
Domestic credit facility	22.5	22.5
Long-Term Debt:
Long-term debt	453.0	459.5
Senior unsecured notes [Member]
Long-Term Debt:
Long-term debt	200.0	200.0
Asset Securitization [Member]
Short-Term Debt:
Short-term Debt	220.0	220.0
Foreign obligations [Member]
Short-Term Debt:
Short-term Debt	$ 6.3	$ 6.6

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Derivatives (Details 1) lb in Millions, MXN in Millions	Sep. 30, 2015 MXN lb	Dec. 31, 2014 MXN lb
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Copper [Member]
Derivative [Line Items]
Derivative, nonmonetary notional amount	29.0	29.4
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Mexico, Pesos
Derivative [Line Items]
Derivative, notional amount | MXN	MXN 250.9	MXN 0.0
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Copper [Member]
Derivative [Line Items]
Derivative, nonmonetary notional amount	3.3	2.9
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Aluminum [Member]
Derivative [Line Items]
Derivative, nonmonetary notional amount	2.5	2.2
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Mexico, Pesos
Derivative [Line Items]
Derivative, notional amount | MXN	MXN 0.0	MXN 229.7

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30, 2015		As of December 31, 2014
Investment in marketable equity securities	$	7.1	$	5.3

Other Fair Value Measurements

The following table presents their fair value (in millions):

	As of September 30, 2015		As of December 31, 2014
Senior unsecured notes	$	210.3	$	210.6

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Lines of Credit and Financing Arrangements (Details 3)	Sep. 30, 2015	Dec. 31, 2014
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Weighted average borrowing rate	1.69%	1.88%

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Reportable Business Segments (Details)	9 Months Ended
	Sep. 30, 2015 Segment
Segment Reporting Information [Line Items]
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

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Comprehensive Income (Details 1) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Changes in AOCI by component (net of tax) [Roll Forward]
Balance as of December 31, 2014	$ (153.5)
Other comprehensive income (loss) before reclassifications	(66.4)
Amounts reclassified from AOCL	10.1
Net other comprehensive income (loss)	(56.3)
Balance as of September 30, 2015	(209.8)
Gains / (Losses) on Cash Flow Hedges [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Balance as of December 31, 2014	(4.6)
Other comprehensive income (loss) before reclassifications	(9.4)
Amounts reclassified from AOCL	6.2
Net other comprehensive income (loss)	(3.2)
Balance as of September 30, 2015	(7.8)
Unrealized Gains on Available-for-Sale Securities [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Balance as of December 31, 2014	3.2
Other comprehensive income (loss) before reclassifications	1.8
Amounts reclassified from AOCL	0.0
Net other comprehensive income (loss)	1.8
Balance as of September 30, 2015	5.0
Defined Benefit Pension Plan Items [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Balance as of December 31, 2014	(149.4)
Other comprehensive income (loss) before reclassifications	(2.7)
Amounts reclassified from AOCL	3.9
Net other comprehensive income (loss)	1.2
Balance as of September 30, 2015	(148.2)
Foreign Currency Translation Adjustments [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Balance as of December 31, 2014	(2.7)
Other comprehensive income (loss) before reclassifications	(56.1)
Amounts reclassified from AOCL	0.0
Net other comprehensive income (loss)	(56.1)
Balance as of September 30, 2015	$ (58.8)

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Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Loss Contingencies [Line Items]
Probable outstanding liability for quality issue, lower range		$ 0.7
Probable outstanding liability for quality issue, higher range		4.0
Product liability accrual				$ 1.7
Receivable from the supplier				$ 2.3
Product liability expense	$ 1.2
Expense fo asbestos-related litigation		1.0	$ 1.0
Loss contingency charge	2.4
Damages from Product Defects [Member]
Loss Contingencies [Line Items]
Loss contingency accrual	$ 2.4	$ 2.4

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Goodwill

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill:

The changes in the carrying amount of goodwill for the first nine months of 2015, in total and by segment, are summarized in the table below (in millions):

	Balance at December 31, 2014		Acquisitions / (Dispositions)		Other (1)			September 30, 2015
Residential Heating & Cooling	$	26.1	$	—	$	—		$	26.1
Commercial Heating & Cooling	62.3		—		(1.2		)	61.1
Refrigeration	121.0		—		(8.4		)	112.6
Total Goodwill	$	209.4	$	—	$	(9.6	)	$	199.8

⁽¹⁾ Other consists of changes in foreign currency translation rates.

We performed our annual goodwill impairment test in the fourth quarter of 2014 and did not record any goodwill impairments. 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.

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Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Information regarding restructuring charges
Charges Incurred in 2015			$ 1.8
Charges Incurred to Date	$ 12.4		12.4
Total Charges Expected to be Incurred	12.4		12.4
Details activity within the restructuring reserves
Beginning balance			1.6
Restructuring charges	(0.4)	$ 1.0	1.8	$ 1.3
Cash Utilization			(2.0)
Non-Cash Utilization and Other			(0.5)
Ending balance	0.9		0.9
Residential Heating & Cooling [Member]
Information regarding restructuring charges
Charges Incurred in 2015			(0.1)
Charges Incurred to Date	1.4		1.4
Total Charges Expected to be Incurred	1.4		1.4
Commercial Heating & Cooling [Member]
Information regarding restructuring charges
Charges Incurred in 2015			0.0
Charges Incurred to Date	0.9		0.9
Total Charges Expected to be Incurred	0.9		0.9
Refrigeration [Member]
Information regarding restructuring charges
Charges Incurred in 2015			1.9
Charges Incurred to Date	10.1		10.1
Total Charges Expected to be Incurred	10.1		10.1
Corporate & other [Member]
Information regarding restructuring charges
Charges Incurred in 2015			0.0
Charges Incurred to Date	0.0		0.0
Total Charges Expected to be Incurred	0.0		0.0
Employee Severance [Member]
Information regarding restructuring charges
Charges Incurred in 2015			1.2
Charges Incurred to Date	8.1		8.1
Total Charges Expected to be Incurred	8.1		8.1
Details activity within the restructuring reserves
Beginning balance			1.5
Restructuring charges			1.2
Cash Utilization			(1.7)
Non-Cash Utilization and Other			(0.2)
Ending balance	0.8		0.8
Reduced Depreciation [Member]
Information regarding restructuring charges
Charges Incurred in 2015			0.2
Charges Incurred to Date	2.0		2.0
Total Charges Expected to be Incurred	2.0		2.0
Details activity within the restructuring reserves
Beginning balance			0.0
Restructuring charges			0.2
Cash Utilization			(0.1)
Non-Cash Utilization and Other			(0.1)
Ending balance	0.0		0.0
Machinery and Equipment [Member]
Information regarding restructuring charges
Charges Incurred in 2015			0.0
Charges Incurred to Date	0.0		0.0
Total Charges Expected to be Incurred	0.0		0.0
Details activity within the restructuring reserves
Beginning balance			0.1
Restructuring charges			$ 0.0
Cash Utilization
Non-Cash Utilization and Other
Ending balance	0.1		$ 0.1
Contract Termination [Member]
Information regarding restructuring charges
Charges Incurred in 2015			0.0
Charges Incurred to Date	0.0		0.0
Total Charges Expected to be Incurred	0.0		0.0
Details activity within the restructuring reserves
Beginning balance			0.0
Restructuring charges			$ 0.0
Cash Utilization
Non-Cash Utilization and Other
Ending balance	0.0		$ 0.0
Other Restructuring [Member]
Information regarding restructuring charges
Charges Incurred in 2015			0.4
Charges Incurred to Date	2.3		2.3
Total Charges Expected to be Incurred	2.3		2.3
Details activity within the restructuring reserves
Beginning balance			0.0
Restructuring charges			0.4
Cash Utilization			(0.2)
Non-Cash Utilization and Other			(0.2)
Ending balance	$ 0.0		$ 0.0

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Derivatives (Details 2) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] € in Millions, RUB in Millions, PLN in Millions, MXN in Millions, BRL in Millions, $ in Millions	Sep. 30, 2015 USD ($)	Sep. 30, 2015 RUB	Sep. 30, 2015 MXN	Sep. 30, 2015 EUR (€)	Sep. 30, 2015 PLN	Sep. 30, 2015 BRL	Dec. 31, 2014 USD ($)	Dec. 31, 2014 RUB	Dec. 31, 2014 MXN	Dec. 31, 2014 EUR (€)	Dec. 31, 2014 PLN	Dec. 31, 2014 BRL
Brazil, Brazil Real
Derivative [Line Items]
Derivative, notional amount | BRL						BRL 0.0						BRL 8.7
Mexico, Pesos
Derivative [Line Items]
Derivative, notional amount | MXN			MXN 0.0						MXN 229.7
United States of America, Dollars
Derivative [Line Items]
Derivative, notional amount	$ 7.1						$ 4.5
Euro Member Countries, Euro
Derivative [Line Items]
Derivative, notional amount | €				€ 6.0						€ 3.6
Poland, Zlotych
Derivative [Line Items]
Derivative, notional amount | PLN					PLN 29.9						PLN 30.6
Russia, Rubles
Derivative [Line Items]
Derivative, notional amount | RUB		RUB 94.4						RUB 80.8

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Lines of Credit and Financing Arrangements (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Outstanding debt obligations

The following table summarizes our outstanding debt obligations and their classification in the accompanying Consolidated Balance Sheets (in millions):

	As of September 30, 2015		As of December 31, 2014
Short-Term Debt:
Asset Securitization Program	$	220.0	$	220.0
Foreign obligations	6.3		6.6
Total short-term debt	$	226.3	$	226.6
Current maturities of long-term debt:
Capital lease obligations	$	1.2	$	1.5
Domestic credit facility	22.5		22.5
Total current maturities of long-term debt	$	23.7	$	24.0
Long-Term Debt:
Capital lease obligations	$	15.0	$	15.5
Domestic credit facility	453.0		459.5
Senior unsecured notes	200.0		200.0
Total long-term debt	$	668.0	$	675.0
Total debt	$	918.0	$	925.6

Eligible amounts available and beneficial interests sold

The eligible amounts available and beneficial interests sold were as follows (in millions):

	As of September 30, 2015		As of December 31, 2014
Eligible amount available under the ASP on qualified accounts receivable	$	220.0	$	220.0
Beneficial interest sold	220.0		220.0
Remaining amount available	$	—	$	—

Summary of weighted average borrowing rate facility

Our weighted average borrowing rate on the facility was as follows:

	As of September 30, 2015		As of December 31, 2014
Weighted average borrowing rate	1.69	%	1.88	%

Financial Covenants, Leverage and Interest Coverage

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

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30, 2015		As of December 31, 2014
Accrued expenses	$	25.6	$	27.3
Other liabilities	66.1		59.9
Total warranty liability	$	91.7	$	87.2

Summary of changes in the total warranty liabilities

The changes in product warranty liabilities related to continuing operations for the nine months ended September 30,2015 were as follows (in millions):

Total warranty liability as of December 31, 2014	$	87.2
Warranty claims paid	(19.7		)
Changes resulting from issuance of new warranties	27.4
Changes in estimates associated with pre-existing liabilities	(1.6		)
Changes in foreign currency translation rates and other	(1.6		)
Total warranty liability as of September 30, 2015	$	91.7

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Lines of Credit and Financing Arrangements (Details Textual 3) - Senior Notes [Member] - USD ($)	9 Months Ended
	Sep. 30, 2015	May. 31, 2010
Debt Instrument [Line Items]
Senior unsecured notes		$ 200,000,000
Fixed interest rate for senior unsecured notes	4.90%
Maturity date of senior unsecured notes	May 15, 2017
Minimum principal amount accelerated	$ 75,000,000.0
Notice Date	30 days

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Derivatives (Details 3) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	$ 0.0	$ 0.0
Derivative Liability, Fair Value	12.4	7.2
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	0.0	0.0
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Assets Non Current [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	0.0	0.0
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	10.4	6.7
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Liabilities Non Current [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	1.5	0.5
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	0.0	0.0
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	0.4	0.0
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Liabilities Non Current [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	0.1	0.0
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	0.1	0.3
Derivative Liability, Fair Value	1.8	0.8
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	0.0	0.0
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Assets Non Current [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	0.0	0.0
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	1.4	0.7
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Other Liabilities Non Current [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	0.3	0.1
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	0.1	0.3
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	0.1	0.0
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Liabilities Non Current [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value	$ 0.0	$ 0.0

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Pension and Post-retirement Benefit Plans Pension and Post-retirement Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of net periodic benefit cost

The components of net periodic benefit cost were as follows (in millions):

	For the Three Months Ended September 30,
	2015			2014			2015			2014
	Pension Benefits						Other Benefits
Service cost	$	1.2		$	1.1		$	—		$	—
Interest cost	4.3			4.4			0.1			0.1
Expected return on plan assets	(5.3		)	(5.7		)	—			—
Amortization of prior service cost	—			0.1			(0.8		)	(0.8		)
Recognized actuarial loss	2.4			1.6			0.4			0.4
Settlements and curtailments	—			—			—			—
Net periodic benefit cost (1)	$	2.6		$	1.5		$	(0.3	)	$	(0.3	)

	For the Nine Months Ended September 30,
	2015			2014			2015			2014
	Pension Benefits						Other Benefits
Service cost	$	3.6		$	3.2		$	—		$	—
Interest cost	12.9			13.3			0.2			0.1
Expected return on plan assets	(16.0		)	(17.0		)	—			—
Amortization of prior service cost	—			0.2			(2.4		)	(2.2		)
Recognized actuarial loss	7.2			4.9			1.2			1.1
Settlements and curtailments	0.4			—			—			—
Net periodic benefit cost (1)	$	8.1		$	4.6		$	(1.0	)	$	(1.0	)

⁽¹⁾ All net periodic benefit cost for the three and nine months ended September 30, 2015 and 2014 related to continuing operations.

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock -based compensation expense in operations

Stock-based compensation expense related to continuing operations is included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations as follows (in millions):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Stock-based compensation expense (1)	$	7.7	$	6.6	$	18.5	$	17.3

⁽¹⁾ All expense was recorded in our Corporate and other business segment.

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Inventories

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories:

The components of inventories are as follows (in millions):

	As of September 30, 2015			As of December 31, 2014
Finished goods	$	353.5		$	338.2
Work in process	8.9			8.1
Raw materials and parts	188.8			182.6
Subtotal	551.2			528.9
Excess of current cost over last-in, first-out cost	(62.9		)	(65.6		)
Total inventories, net	$	488.3		$	463.3

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Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30,						For the Nine Months Ended September 30,						Affected Line Item(s) in the Consolidated Statements of Operations
	2015			2014			2015			2014
(Losses)/Gains on cash flow hedges:
Commodity futures contracts	$	(3.2	)	$	(1.0	)	$	(9.4	)	$	(4.9	)	Cost of goods sold
Income tax benefit	1.2			0.4			3.2			1.8			Provision for income taxes
Net of tax	$	(2.0	)	$	(0.6	)	$	(6.2	)	$	(3.1	)
Defined Benefit Plan items:
Pension and post-retirement benefit costs	$	(2.0	)	$	(1.3	)	$	(6.1	)	$	(4.0	)	Cost of goods sold; Selling, general and administrative expenses
Income tax benefit	0.7			0.5			2.2			1.5			Provision for income taxes
Net of tax	$	(1.3	)	$	(0.8	)	$	(3.9	)	$	(2.5	)
Total reclassifications from AOCL	$	(3.3	)	$	(1.4	)	$	(10.1	)	$	(5.6	)

Changes in AOCI by component (net of tax)

The following table provides information on changes in AOCL, by component (net of tax), for the nine months ended September 30,2015 (in millions):

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains on Available-for-Sale Securities		Defined Benefit Pension Plan Items			Foreign Currency Translation Adjustments			Total AOCL
AOCL as of December 31, 2014	$	(4.6	)	$	3.2	$	(149.4	)	$	(2.7	)	$	(153.5	)
Other comprehensive (loss) income before reclassifications	(9.4		)	1.8		(2.7		)	(56.1		)	(66.4		)
Amounts reclassified from AOCL	6.2			—		3.9			—			10.1
Net other comprehensive (loss) income	(3.2		)	1.8		1.2			(56.1		)	(56.3		)
AOCL as of September 30, 2015	$	(7.8	)	$	5.0	$	(148.2	)	$	(58.8	)	$	(209.8	)

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Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 209.4
Acquisitions/(Dispositions)	0.0
Other	(9.6)
Goodwill, Ending Balance	199.8
Residential Heating & Cooling [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance	26.1
Acquisitions/(Dispositions)	0.0
Other	0.0
Goodwill, Ending Balance	26.1
Commercial Heating & Cooling [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance	62.3
Acquisitions/(Dispositions)	0.0
Other	(1.2)
Goodwill, Ending Balance	61.1
Refrigeration [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance	121.0
Acquisitions/(Dispositions)	0.0
Other	(8.4)
Goodwill, Ending Balance	$ 112.6

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Lines of Credit and Financing Arrangements (Details Textual) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Short-term Debt [Line Items]
Short-term Debt	$ 226.3		$ 226.6
Foreign obligations [Member]
Short-term Debt [Line Items]
Short-term Debt	6.3		$ 6.6
Proceeds from Short-term Debt	63.6	$ 73.1
Repayments of Short-term Debt	$ 61.7	$ 65.6

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Condensed Consolidating Financial Statements (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidating Statements of Operations
Net sales	$ 955.0	$ 898.4	$ 2,633.3	$ 2,554.6
Cost of goods sold	681.6	651.3	1,913.5	1,876.7
Gross profit	273.4	247.1	719.8	677.9
Operating Expenses:
Selling, general and administrative expenses	143.8	140.9	430.0	425.5
Losses (gains) and other expenses, net	6.0	2.1	14.9	3.5
Restructuring charges	(0.4)	1.0	1.8	1.3
Income from equity method investments	(3.0)	(3.5)	(11.8)	(12.0)
Operational income from continuing operations	127.0	106.6	284.9	259.6
Interest expense, net	5.7	4.0	17.9	11.0
Other expense (income), net	(0.7)	0.0	(0.7)	0.0
Income from continuing operations before income taxes	122.0	102.6	267.7	248.6
Provision for income taxes	41.7	35.1	91.9	86.6
Income from continuing operations	80.3	67.5	175.8	162.0
Net loss from discontinued operations	0.0	0.1	0.5	0.8
Net income	80.3	67.4	175.3	161.2
Other comprehensive (loss) income	(30.9)	(26.0)	(56.3)	(15.8)
Comprehensive income	49.4	41.4	119.0	145.4
Parent [Member]
Condensed Consolidating Statements of Operations
Net sales	0.0	0.0	0.0	0.0
Cost of goods sold	0.0	0.0	0.0	0.0
Gross profit	0.0	0.0	0.0	0.0
Operating Expenses:
Selling, general and administrative expenses	0.0	0.0	0.0	0.0
Losses (gains) and other expenses, net	0.6	(0.1)	1.1	(0.3)
Restructuring charges	0.0	0.0	0.0	0.0
Income from equity method investments	(84.2)	(69.7)	(187.2)	(167.6)
Operational income from continuing operations	83.6	69.8	186.1	167.9
Interest expense, net	5.4	3.6	17.1	10.1
Other expense (income), net	0.0	0.0	0.0	0.0
Income from continuing operations before income taxes	78.2	66.2	169.0	157.8
Provision for income taxes	(2.1)	(1.2)	(6.3)	(3.4)
Income from continuing operations	80.3	67.4	175.3	161.2
Net loss from discontinued operations	0.0	0.0	0.0	0.0
Net income	80.3	67.4	175.3	161.2
Other comprehensive (loss) income	(4.3)	(1.1)	(2.9)	(1.1)
Comprehensive income	76.0	66.3	172.4	160.1
Guarantor Subsidiaries [Member]
Condensed Consolidating Statements of Operations
Net sales	827.9	736.2	2,268.6	2,089.0
Cost of goods sold	589.9	538.8	1,650.7	1,555.1
Gross profit	238.0	197.4	617.9	533.9
Operating Expenses:
Selling, general and administrative expenses	124.0	127.4	362.0	362.9
Losses (gains) and other expenses, net	2.7	1.2	7.7	2.3
Restructuring charges	(0.2)	(0.1)	(0.5)	0.0
Income from equity method investments	(2.7)	(6.4)	(0.3)	(21.0)
Operational income from continuing operations	114.2	75.3	249.0	189.7
Interest expense, net	(0.4)	(0.7)	(1.5)	(2.2)
Other expense (income), net	0.0	0.0	0.0	0.0
Income from continuing operations before income taxes	114.6	76.0	250.5	191.9
Provision for income taxes	39.0	24.1	87.2	60.0
Income from continuing operations	75.6	51.9	163.3	131.9
Net loss from discontinued operations	0.0	0.0	0.0	0.0
Net income	75.6	51.9	163.3	131.9
Other comprehensive (loss) income	(8.6)	(6.7)	(13.8)	(1.8)
Comprehensive income	67.0	45.2	149.5	130.1
Non-Guarantor Subsidiaries [Member]
Condensed Consolidating Statements of Operations
Net sales	185.2	213.5	520.7	606.5
Cost of goods sold	150.2	164.5	418.2	460.9
Gross profit	35.0	49.0	102.5	145.6
Operating Expenses:
Selling, general and administrative expenses	19.8	13.5	68.0	62.6
Losses (gains) and other expenses, net	2.7	1.0	6.2	1.5
Restructuring charges	(0.2)	1.1	2.3	1.3
Income from equity method investments	(2.1)	(2.7)	(9.3)	(9.8)
Operational income from continuing operations	14.8	36.1	35.3	90.0
Interest expense, net	0.7	1.1	2.3	3.1
Other expense (income), net	(0.7)	0.0	(0.7)	0.0
Income from continuing operations before income taxes	14.8	35.0	33.7	86.9
Provision for income taxes	4.6	11.9	11.2	30.5
Income from continuing operations	10.2	23.1	22.5	56.4
Net loss from discontinued operations	0.0	0.1	0.5	0.8
Net income	10.2	23.0	22.0	55.6
Other comprehensive (loss) income	(16.2)	(17.2)	(36.4)	(11.8)
Comprehensive income	(6.0)	5.8	(14.4)	43.8
Eliminations [Member]
Condensed Consolidating Statements of Operations
Net sales	(58.1)	(51.3)	(156.0)	(140.9)
Cost of goods sold	(58.5)	(52.0)	(155.4)	(139.3)
Gross profit	0.4	0.7	(0.6)	(1.6)
Operating Expenses:
Selling, general and administrative expenses	0.0	0.0	0.0	$ 0.0
Losses (gains) and other expenses, net	0.0	0.0	(0.1)
Restructuring charges	0.0	0.0	0.0	$ 0.0
Income from equity method investments	86.0	75.3	185.0	186.4
Operational income from continuing operations	(85.6)	(74.6)	(185.5)	(188.0)
Interest expense, net	0.0	0.0	0.0	0.0
Other expense (income), net	0.0	0.0	0.0	0.0
Income from continuing operations before income taxes	(85.6)	(74.6)	(185.5)	(188.0)
Provision for income taxes	0.2	0.3	(0.2)	(0.5)
Income from continuing operations	$ (85.8)	(74.9)	(185.3)	(187.5)
Net loss from discontinued operations		0.0	0.0	0.0
Net income	$ (85.8)	(74.9)	(185.3)	(187.5)
Other comprehensive (loss) income	(1.8)	(1.0)	(3.2)	(1.1)
Comprehensive income	$ (87.6)	$ (75.9)	$ (188.5)	$ (188.6)

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Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 35.1	$ 37.5
Accounts and notes receivable, net of allowances of $7.3 and $7.9 in 2015 and 2014, respectively	537.7	421.4
Inventories, net	488.3	463.3
Deferred income taxes, net	31.9	32.5
Other assets	58.9	59.3
Total current assets	1,151.9	1,014.0
Property, plant and equipment, net of accumulated depreciation of $677.9 and $654.1 in 2015 and 2014, respectively	345.3	358.6
Goodwill	199.8	209.4
Deferred income taxes	97.9	97.5
Other assets, net	86.6	84.8
Total assets	1,881.5	1,764.3
Current Liabilities:
Short-term debt	226.3	226.6
Current maturities of long-term debt	23.7	24.0
Accounts payable	337.7	324.3
Accrued expenses	251.9	239.0
Income taxes payable	13.8	13.4
Total current liabilities	853.4	827.3
Long-term debt	668.0	675.0
Post-retirement benefits, other than pensions	2.9	4.5
Pensions	134.2	129.9
Other liabilities	125.5	118.6
Total liabilities	$ 1,784.0	$ 1,755.3
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares issued or outstanding	$ 0.0	$ 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	857.3	824.9
Retained earnings	1,151.5	1,022.1
Accumulated other comprehensive loss	(209.8)	(153.5)
Treasury stock, at cost, 42,120,067 shares and 42,535,126 shares in 2015 and 2014, respectively	(1,702.9)	(1,686.0)
Noncontrolling interests	0.5	0.6
Total stockholders’ equity	97.5	9.0
Total liabilities and stockholders' equity	$ 1,881.5	$ 1,764.3

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Derivatives (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cost of Goods Sold [Member]
Amount of Loss or (Gain) Reclassified from AOCI into Income (Effective Portion):
Effective portion	$ 3.2	$ 1.0	$ 9.4	$ 4.9
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Expense [Member]
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion):
Ineffective portion	0.0	0.0	0.0	0.1
Not Designated as Hedging Instrument [Member]
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion):
Amount of loss (gain) recognized in net income	1.4	0.1	2.4	0.5
Not Designated as Hedging Instrument [Member] | Other Expense [Member] | Commodity Futures Contracts [Member]
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion):
Amount of loss (gain) recognized in net income	1.4	0.3	2.2	0.6
Not Designated as Hedging Instrument [Member] | Other Expense [Member] | Foreign Currency Forward Contracts [Member]
Amount of (Gain) or Loss Recognized in Income on Derivatives (Ineffective Portion):
Amount of loss (gain) recognized in net income	$ 0.0	$ (0.2)	$ 0.2	$ (0.1)

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 175.3	$ 161.2
Net loss from discontinued operations	0.5	0.8
Adjustments to reconcile net income to net cash used in operating activities:
Income from equity method investments	(11.8)	(12.0)
Dividends from affiliates	7.4	6.1
Restructuring expenses, net of cash paid	(0.2)	(0.1)
Provision for bad debts	2.1	2.8
Unrealized losses on derivative contracts	1.3	0.1
Stock-based compensation expense	18.5	17.3
Depreciation and amortization	46.6	45.2
Deferred income taxes	(0.2)	1.4
Other items, net	0.3	0.3
Changes in assets and liabilities, net of effects of divestitures:
Accounts and notes receivable	(135.9)	(104.0)
Inventories	(41.0)	(127.6)
Other current assets	(2.8)	(6.2)
Accounts payable	23.4	51.0
Accrued expenses	15.1	18.2
Income taxes payable and receivable	(0.9)	(21.1)
Other	9.7	(9.1)
Net cash used in discontinued operations	(0.5)	(0.8)
Net cash used in operating activities	106.9	23.5
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.0	0.2
Purchases of property, plant and equipment	(47.0)	(59.9)
Net cash used in investing activities	(47.0)	(59.7)
Cash flows from financing activities:
Short-term borrowings, net	0.8	3.4
Asset securitization borrowings	40.0	60.0
Asset securitization payments	(40.0)	0.0
Long-term debt payments	(23.5)	(1.7)
Borrowings from credit facility	1,401.0	1,483.0
Payments on credit facility	(1,385.0)	(1,351.0)
Proceeds from employee stock purchases	1.8	1.5
Repurchases of common stock	0.0	(100.3)
Repurchases of common stock to satisfy employee withholding tax obligations	(23.5)	(12.3)
Excess tax benefits related to share-based payments	18.6	5.3
Cash dividends paid	(43.1)	(38.2)
Net cash (used in) provided by financing activities	(52.9)	49.7
Increase (decrease) in cash and cash equivalents	7.0	13.5
Effect of exchange rates on cash and cash equivalents	(9.4)	(3.4)
Cash and cash equivalents, beginning of period	37.5	38.0
Cash and cash equivalents, end of period	35.1	48.1
Supplemental disclosures of cash flow information:
Interest paid	15.9	9.5
Income taxes paid (net of refunds)	$ 73.4	$ 100.4

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Stock Repurchases (Details) - USD ($) shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Stockholders' Equity Note [Abstract]
Stock repurchase program, authorized amount	$ 1,400.0
Stock repurchase program, remaining authorized amount	$ 396.0
Shares repurchased from employees who surrendered shares to satisfy minimum tax withholding obligations	0.2
Shares repurchased from employees who surrendered shares to satisfy minimum tax withholding obligations, value	$ 23.5	$ 12.3

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Computations of basic and diluted loss per share for Loss from Continuing Operations

The computations of basic and diluted earnings per share for Net income were as follows (in millions, except per share data):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015			2014
Net income	$	80.3	$	67.4	$	175.3		$	161.2
Add: Loss from discontinued operations	—		0.1		0.5			0.8
Income from continuing operations	$	80.3	$	67.5	$	175.8		$	162.0
Weighted-average shares outstanding – basic	45.0		48.3		44.9			48.7
Add: Potential effect of dilutive securities attributable to stock-based payments	0.6		0.7		0.7			0.8
Weighted-average shares outstanding – diluted	45.6		49.0		45.6			49.5
Earnings per share – Basic:
Income from continuing operations	$	1.78	$	1.40	$	3.92		$	3.33
Loss from discontinued operations	—		—		(0.01		)	(0.02		)
Net income	$	1.78	$	1.40	$	3.91		$	3.31
Earnings per share – Diluted:
Income from continuing operations	$	1.76	$	1.38	$	3.86		$	3.27
Loss from discontinued operations	—		—		(0.01		)	(0.01		)
Net income	$	1.76	$	1.38	$	3.85		$	3.26

Stock appreciation rights were outstanding, but not included in the diluted loss per share calculation

The following stock appreciation rights were outstanding but not included in the diluted earnings per share calculation because the assumed exercise of such rights would have been anti-dilutive (in millions, except for per share data):

	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2015		2014	2015		2014
Weighted-average number of shares	—		0.3	0.2		0.3
Price range per share	$	—	$81.11 - $81.14	$	92.64	$81.11 - $81.14

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income	$ 80.3	$ 67.4	$ 175.3	$ 161.2
Add: Loss from discontinued operations	0.0	0.1	0.5	0.8
Income from continuing operations	$ 80.3	$ 67.5	$ 175.8	$ 162.0
Weighted-average shares outstanding - basic	45.0	48.3	44.9	48.7
Effect of diluted securities attributable to stock-based payments	0.6	0.7	0.7	0.8
Weighted-average shares outstanding - diluted	45.6	49.0	45.6	49.5
Earnings per share:
Income from continuing operations, Basic (in dollars per share)	$ 1.78	$ 1.40	$ 3.92	$ 3.33
Loss from discontinued operations, Basic (in dollars per share)	0.00	0.00	(0.01)	(0.02)
Net income (in dollars per share)	1.78	1.40	3.91	3.31
Income from continuing operations, Diluted (in dollars per share)	1.76	1.38	3.86	3.27
Loss from discontinued operations, Diluted (in dollars per share)	0.00	0.00	(0.01)	(0.01)
Net income (in dollars per share)	$ 1.76	$ 1.38	$ 3.85	$ 3.26

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

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 September 30, 2015 were the same as those used at December 31, 2014.

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 September 30, 2015		As of December 31, 2014
Investment in marketable equity securities	$	7.1	$	5.3

Other Fair Value Disclosures

The carrying amounts of Cash and cash equivalents, Accounts and notes receivable, net, Accounts payable, Other current liabilities, and Short-term debt approximate fair value due to the short maturities of these instruments. The carrying amount of our Domestic 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 September 30, 2015		As of December 31, 2014
Senior unsecured notes	$	210.3	$	210.6

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Reportable Business Segments (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting, Measurement Disclosures [Abstract]

Net sales, segment profit (loss) by business segment and reconciliation of segment profit (loss) to Income from Continuing Operations before Income Taxes

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 2015			Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	(0.1	)	$	1.4	$	1.4
Commercial Heating & Cooling	—			0.9		0.9
Refrigeration	1.9			10.1		10.1
Corporate & Other	—			—		—
Total restructuring charges	$	1.8		$	12.4	$	12.4

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

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Income from continuing operations before income taxes, are shown below (in millions):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Net sales
Residential Heating & Cooling	$	517.9		$	462.6		$	1,435.6		$	1,332.5
Commercial Heating & Cooling	246.8			241.6			660.3			655.6
Refrigeration	190.3			194.2			537.4			566.5
	$	955.0		$	898.4		$	2,633.3		$	2,554.6
Segment profit (loss) (1)
Residential Heating & Cooling	$	90.1		$	69.4		$	221.3		$	178.8
Commercial Heating & Cooling	44.8			42.2			95.5			91.3
Refrigeration	20.3			16.5			37.5			42.3
Corporate and other	(24.0		)	(17.5		)	(57.4		)	(47.8		)
Subtotal that includes segment profit and eliminations	131.2			110.6			296.9			264.6
Reconciliation to Income from continuing operations before income taxes:
Special product quality adjustments	0.7			0.2			(0.6		)	(0.1		)
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (1)	3.9			1.8			10.8			2.8
Restructuring charges	(0.4		)	1.0			1.8			1.3
Interest expense, net	5.7			4.0			17.9			11.0
Special inventory write down	—			1.0			—			1.0
Other expense (income), net	(0.7		)	—			(0.7		)	—
Income from continuing operations before income taxes	$	122.0		$	102.6		$	267.7		$	248.6

⁽¹⁾ The Company defines segment profit and loss as a segment's income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding:

• Special product quality adjustments;

• The following items in Losses (gains) and other expenses, net:

◦ Net change in unrealized gains and/or losses on unsettled futures contracts,

◦ Special legal contingency charges,

◦ Asbestos-related litigation,

◦ Contractor tax payments,

◦ Environmental liabilities, and

◦ Other items, net;

• Restructuring charges;

• Goodwill, long-lived asset, and equity method investment impairments;

• Interest expense, net;

• Special inventory write down; and

• Other expense, net.

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General (Policies)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited Consolidated Balance Sheet as of September 30, 2015, the accompanying unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2015 and 2014, the accompanying unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014, and the accompanying unaudited Consolidated Statements of Cash Flows for the nine months ended September 30,2015 and 2014 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, 2014. 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 13 weeks. For convenience, throughout these financial statements, the 13 weeks comprising each quarterly period are denoted by the last day of the respective calendar quarter.

Use of Estimates

Use of Estimates

The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation, among others. These estimates and assumptions are based on our best estimates and judgment.

We evaluate these estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates and assumptions to be reasonable under the circumstances and will adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency and commodity markets combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates 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.

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Reportable Business Segments (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Sales
Net Sales	$ 955.0	$ 898.4	$ 2,633.3	$ 2,554.6
Segment Profit (Loss)
Subtotal that includes segment profit and eliminations	131.2	110.6	296.9	264.6
Reconciliation to income from continuing operations before income taxes:
Special product quality adjustment	0.7	0.2	(0.6)	(0.1)
Items in (Gains) losses and other expenses, net that are excluded from segment profit	3.9	1.8	10.8	2.8
Restructuring charges	(0.4)	1.0	1.8	1.3
Interest expense, net	5.7	4.0	17.9	11.0
Special inventory write down	0.0	1.0	0.0	1.0
Other expense (income), net	(0.7)	0.0	(0.7)	0.0
Income from continuing operations before income taxes	122.0	102.6	267.7	248.6
Residential Heating & Cooling [Member]
Net Sales
Net Sales	517.9	462.6	1,435.6	1,332.5
Segment Profit (Loss)
Subtotal that includes segment profit and eliminations	90.1	69.4	221.3	178.8
Commercial Heating & Cooling [Member]
Net Sales
Net Sales	246.8	241.6	660.3	655.6
Segment Profit (Loss)
Subtotal that includes segment profit and eliminations	44.8	42.2	95.5	91.3
Refrigeration [Member]
Net Sales
Net Sales	190.3	194.2	537.4	566.5
Segment Profit (Loss)
Subtotal that includes segment profit and eliminations	20.3	16.5	37.5	42.3
Corporate & other [Member]
Segment Profit (Loss)
Subtotal that includes segment profit and eliminations	$ (24.0)	$ (17.5)	$ (57.4)	$ (47.8)

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General

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

General:

References in this Quarterly Report on Form 10-Q to "we," "our," "us," "LII," or the "Company" refer to Lennox International Inc. and its subsidiaries, unless the context requires otherwise.

Basis of Presentation

The accompanying unaudited Consolidated Balance Sheet as of September 30, 2015, the accompanying unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2015 and 2014, the accompanying unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014, and the accompanying unaudited Consolidated Statements of Cash Flows for the nine months ended September 30,2015 and 2014 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, 2014. 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 13 weeks. For convenience, throughout these financial statements, the 13 weeks comprising each quarterly period are denoted by the last day of the respective calendar quarter.

Use of Estimates

The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation, among others. These estimates and assumptions are based on our best estimates and judgment.

We evaluate these estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates and assumptions to be reasonable under the circumstances and will adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency and commodity markets combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods.

Reclassifications

Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation.

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowances, accounts and notes receivable	$ 7.3	$ 7.9
Accumulated depreciation	$ 677.9	$ 654.1
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	42,120,067	42,535,126

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Comprehensive Income (Notes)

9 Months Ended

Sep. 30, 2015

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 September 30,						For the Nine Months Ended September 30,						Affected Line Item(s) in the Consolidated Statements of Operations
	2015			2014			2015			2014
(Losses)/Gains on cash flow hedges:
Commodity futures contracts	$	(3.2	)	$	(1.0	)	$	(9.4	)	$	(4.9	)	Cost of goods sold
Income tax benefit	1.2			0.4			3.2			1.8			Provision for income taxes
Net of tax	$	(2.0	)	$	(0.6	)	$	(6.2	)	$	(3.1	)
Defined Benefit Plan items:
Pension and post-retirement benefit costs	$	(2.0	)	$	(1.3	)	$	(6.1	)	$	(4.0	)	Cost of goods sold; Selling, general and administrative expenses
Income tax benefit	0.7			0.5			2.2			1.5			Provision for income taxes
Net of tax	$	(1.3	)	$	(0.8	)	$	(3.9	)	$	(2.5	)
Total reclassifications from AOCL	$	(3.3	)	$	(1.4	)	$	(10.1	)	$	(5.6	)

The following table provides information on changes in AOCL, by component (net of tax), for the nine months ended September 30,2015 (in millions):

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains on Available-for-Sale Securities		Defined Benefit Pension Plan Items			Foreign Currency Translation Adjustments			Total AOCL
AOCL as of December 31, 2014	$	(4.6	)	$	3.2	$	(149.4	)	$	(2.7	)	$	(153.5	)
Other comprehensive (loss) income before reclassifications	(9.4		)	1.8		(2.7		)	(56.1		)	(66.4		)
Amounts reclassified from AOCL	6.2			—		3.9			—			10.1
Net other comprehensive (loss) income	(3.2		)	1.8		1.2			(56.1		)	(56.3		)
AOCL as of September 30, 2015	$	(7.8	)	$	5.0	$	(148.2	)	$	(58.8	)	$	(209.8	)

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 19, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	LENNOX INTERNATIONAL INC
Entity Central Index Key	0001069202
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
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		45,055,155

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Restructuring Charges

9 Months Ended

Sep. 30, 2015

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 15.

Restructuring Activities in 2015

Information regarding the restructuring charges for all ongoing activities are presented in the following table (in millions):

	Charges Incurred in 2015		Charges Incurred to Date		Total Charges Expected to be Incurred
Severance and related expense	$	1.2	$	8.1	$	8.1
Asset write-offs and accelerated depreciation	0.2		2.0		2.0
Equipment moves	—		—		—
Lease termination	—		—		—
Other	0.4		2.3		2.3
Total restructuring charges	$	1.8	$	12.4	$	12.4

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 2015			Charges Incurred to Date		Total Charges Expected to be Incurred
Residential Heating & Cooling	$	(0.1	)	$	1.4	$	1.4
Commercial Heating & Cooling	—			0.9		0.9
Refrigeration	1.9			10.1		10.1
Corporate & Other	—			—		—
Total restructuring charges	$	1.8		$	12.4	$	12.4

Restructuring accruals are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The table below details the activity in 2015 within the restructuring accruals (in millions):

	Balance as of December 31, 2014		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of September 30, 2015
Severance and related expense	$	1.5	$	1.2	$	(1.7	)	$	(0.2	)	$	0.8
Asset write-offs and accelerated depreciation	—		0.2		(0.1		)	(0.1		)	—
Equipment moves	0.1		—								0.1
Lease termination	—		—								—
Other	—		0.4		(0.2		)	(0.2		)	—
Total restructuring accruals	$	1.6	$	1.8	$	(2.0	)	$	(0.5	)	$	0.9

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Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net sales	$ 955.0	$ 898.4	$ 2,633.3	$ 2,554.6
Cost of goods sold	681.6	651.3	1,913.5	1,876.7
Gross profit	273.4	247.1	719.8	677.9
Operating Expenses:
Selling, general and administrative expenses	143.8	140.9	430.0	425.5
Losses (gains) and other expenses, net	6.0	2.1	14.9	3.5
Restructuring charges	(0.4)	1.0	1.8	1.3
Income from equity method investments	(3.0)	(3.5)	(11.8)	(12.0)
Operational income from continuing operations	127.0	106.6	284.9	259.6
Interest expense, net	5.7	4.0	17.9	11.0
Other expense (income), net	(0.7)	0.0	(0.7)	0.0
Income from continuing operations before income taxes	122.0	102.6	267.7	248.6
Provision for income taxes	41.7	35.1	91.9	86.6
Income from continuing operations	80.3	67.5	175.8	162.0
Discontinued Operations:
Loss from discontinued operations before income taxes	0.0	(0.2)	(0.9)	(1.3)
Benefit from income taxes	0.0	(0.1)	(0.4)	(0.5)
Loss from discontinued operations	0.0	(0.1)	(0.5)	(0.8)
Net income	$ 80.3	$ 67.4	$ 175.3	$ 161.2
Earnings per share – Basic:
Income from continuing operations (in dollars per share)	$ 1.78	$ 1.40	$ 3.92	$ 3.33
Loss from discontinued operations (in dollars per share)	0.00	0.00	(0.01)	(0.02)
Net income (in dollars per share)	1.78	1.40	3.91	3.31
Earnings per share – Diluted:
Income from continuing operations (in dollars per share)	1.76	1.38	3.86	3.27
Loss from discontinued operations (in dollars per share)	0.00	0.00	(0.01)	(0.01)
Net income (in dollars per share)	$ 1.76	$ 1.38	$ 3.85	$ 3.26
Average shares outstanding:
Weighted Average Number of Shares Outstanding - Basic	45.0	48.3	44.9	48.7
Weighted Average Number of Shares Outstanding - Diluted	45.6	49.0	45.6	49.5
Cash dividends declared per share	$ 0.36	$ 0.30	$ 1.02	$ 0.84

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

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 September 30, 2015		As of December 31, 2014
Accrued expenses	$	25.6	$	27.3
Other liabilities	66.1		59.9
Total warranty liability	$	91.7	$	87.2

The changes in product warranty liabilities related to continuing operations for the nine months ended September 30,2015 were as follows (in millions):

Total warranty liability as of December 31, 2014	$	87.2
Warranty claims paid	(19.7		)
Changes resulting from issuance of new warranties	27.4
Changes in estimates associated with pre-existing liabilities	(1.6		)
Changes in foreign currency translation rates and other	(1.6		)
Total warranty liability as of September 30, 2015	$	91.7

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 outstanding liability for a certain supplier quality issue within a range of $0.7 million and $4 million, with all amounts in that range equally likely. In the prior quarter, we accrued a $1.7 million liability related to this supplier quality issue as well as a receivable from the supplier of $2.3 million. In the third quarter of 2015, we recorded a $1.2 million expense to reduce this receivable from the supplier based on the nature and timing of warranty claims. The supplier has previously reimbursed the Company for costs associated with this supplier quality issue and we expect that the supplier will continue to do so.

Litigation

We are involved in a number of claims and lawsuits incident to the operation of our businesses. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known. Costs related to such matters were not material to the periods presented.

Some of these claims and lawsuits allege 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 is subject to policy limits. As a result, we may have greater financial exposure for future settlements and judgments. For the nine months ended September 30, 2015, and 2014, expense for asbestos-related litigation was $1.0 million, and $1.0 million, net of insurance recoveries, respectively.

We are the defendant in an attempted class action lawsuit alleging evaporator coils in our residential air conditioning products are susceptible to a type of corrosion that can result in coil leaks.  We dispute the allegations in the lawsuit.  We have reached tentative settlement terms, preliminarily approved by the court, and recorded a liability of $2.4 million in Accrued expenses on the Consolidated Balance Sheet. Any additional liability resulting from the proposed settlement is not currently reasonably estimable, but we do not expect the proposed settlement to have a material adverse effect on our financial condition or results of operations.

A lawsuit related to a vendor-supplied product quality issue settled for a lower amount than expected; accordingly, the Company reversed the $1.2 million excess portion of the loss contingency reserve in the second quarter of 2015. The Company also discovered it underpaid contractor taxes at one of its non-U.S. subsidiaries; accordingly, the Company has recorded a loss contingency charge in the amount of $2.4 million for the nine months ended September 30, 2015. These items were recorded in "Losses (gains) and other expenses, net" on the Consolidated Statements of Operations.

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.

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes:

As of September 30, 2015, we had approximately $1.6 million in total gross unrecognized tax benefits. Of this amount, $1.2 million (net of federal benefit on state issues), if recognized, would be recorded through the Consolidated Statement of Operations. As of September 30, 2015, we had approximately $0.3 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 2015 and 2014 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 2009.

Since January 1, 2015, numerous states, including Alabama, Connecticut, New Hampshire, North Dakota, Tennessee and Texas, have enacted legislation effective for tax years beginning on or after January 1, 2015, including changes to rates, apportionment methodologies and unitary reporting requirements. The impact of these changes is immaterial.

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Condensed Consolidating Financial Statements

3 Months Ended

Sep. 30, 2014

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements:

The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) and are not secured by our other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned, all guarantees are full and unconditional, and all guarantees are joint and several. As a result of the guarantee arrangements, we are required to present the following condensed consolidating financial statements.

The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed consolidating financial statements of the Company, its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014 are shown on the following pages.

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.3		$	12.5	$	21.3		$	—		$	35.1
Accounts and notes receivable, net	—			42.1		495.6			—			537.7
Inventories, net	—			376.1		119.6			(7.4		)	488.3
Deferred income taxes, net	3.3			27.4		6.3			(5.1		)	31.9
Other assets	3.3			48.7		65.7			(58.8		)	58.9
Total current assets	7.9			506.8		708.5			(71.3		)	1,151.9
Property, plant and equipment, net	—			268.3		77.0			—			345.3
Goodwill	—			140.4		59.4			—			199.8
Investment in subsidiaries	1,111.9			394.7		(0.6		)	(1,506.0		)	—
Deferred income taxes	2.4			91.4		13.7			(9.6		)	97.9
Other assets, net	4.5			59.8		23.8			(1.5		)	86.6
Intercompany receivables (payables), net	(360.7		)	357.6		3.1			—			—
Total assets	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.3		$	—		$	226.3
Current maturities of long-term debt	22.5			0.9		0.3			—			23.7
Accounts payable	16.2			255.9		65.6			—			337.7
Accrued expenses	15.7			181.8		54.4			—			251.9
Income taxes payable	(41.3		)	94.8		27.2			(66.9		)	13.8
Total current liabilities	13.1			533.4		373.8			(66.9		)	853.4
Long-term debt	653.0			14.8		0.2			—			668.0
Post-retirement benefits, other than pensions	—			2.9		—			—			2.9
Pensions	—			123.4		10.8			—			134.2
Other liabilities	2.4			125.6		10.4			(12.9		)	125.5
Total liabilities	668.5			800.1		395.2			(79.8		)	1,784.0
Commitments and contingencies
Total stockholders' equity	97.5			1,018.9		489.7			(1,508.6		)	97.5
Total liabilities and stockholders' equity	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of December 31, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.0		$	11.5	$	25.0		$	—		$	37.5
Accounts and notes receivable, net	—			12.3		409.1			—			421.4
Inventories, net	—			350.6		119.7			(7.0		)	463.3
Deferred income taxes, net	2.8			27.3		7.4			(5.0		)	32.5
Other assets	3.6			45.7		67.2			(57.2		)	59.3
Total current assets	7.4			447.4		628.4			(69.2		)	1,014.0
Property, plant and equipment, net	—			269.0		89.6			—			358.6
Goodwill	—			140.4		69.0			—			209.4
Investment in subsidiaries	978.1			263.5		(0.6		)	(1,241.0		)	—
Deferred income taxes	0.5			90.8		15.8			(9.6		)	97.5
Other assets, net	5.2			61.0		20.1			(1.5		)	84.8
Intercompany receivables (payables), net	(280.4		)	302.4		(22.0		)	—			—
Total assets	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.6		$	—		$	226.6
Current maturities of long-term debt	22.5			1.2		0.3			—			24.0
Accounts payable	13.4			237.8		73.1			—			324.3
Accrued expenses	9.0			175.5		54.5			—			239.0
Income taxes payable	(3.7		)	34.7		47.5			(65.1		)	13.4
Total current liabilities	41.2			449.2		402.0			(65.1		)	827.3
Long-term debt	659.5			15.3		0.2			—			675.0
Post-retirement benefits, other than pensions	—			4.5		—			—			4.5
Pensions	—			117.6		12.3			—			129.9
Other liabilities	1.1			118.7		11.7			(12.9		)	118.6
Total liabilities	701.8			705.3		426.2			(78.0		)	1,755.3
Commitments and contingencies
Total stockholders' equity	9.0			869.2		374.1			(1,243.3		)	9.0
Total liabilities and stockholders' equity	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	827.9		$	185.2		$	(58.1	)	$	955.0
Cost of goods sold	—			589.9			150.2			(58.5		)	681.6
Gross profit	—			238.0			35.0			0.4			273.4
Operating expenses:
Selling, general and administrative expenses	—			124.0			19.8			—			143.8
Losses (gains) and other expenses, net	0.6			2.7			2.7			—			6.0
Restructuring charges	—			(0.2		)	(0.2		)	—			(0.4		)
Income from equity method investments	(84.2		)	(2.7		)	(2.1		)	86.0			(3.0		)
Operational income from continuing operations	83.6			114.2			14.8			(85.6		)	127.0
Interest expense, net	5.4			(0.4		)	0.7			—			5.7
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	78.2			114.6			14.8			(85.6		)	122.0
Provision for income taxes	(2.1		)	39.0			4.6			0.2			41.7
Income from continuing operations	80.3			75.6			10.2			(85.8		)	80.3
Loss from discontinued operations	—			—			—						—
Net income	$	80.3		$	75.6		$	10.2		$	(85.8	)	$	80.3
Other comprehensive income (loss), net of tax	(4.3		)	(8.6		)	(16.2		)	(1.8		)	(30.9		)
Comprehensive income	$	76.0		$	67.0		$	(6.0	)	$	(87.6	)	$	49.4

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,268.6		$	520.7		$	(156.0	)	$	2,633.3
Cost of goods sold	—			1,650.7			418.2			(155.4		)	1,913.5
Gross profit	—			617.9			102.5			(0.6		)	719.8
Operating expenses:
Selling, general and administrative expenses	—			362.0			68.0			—			430.0
Losses (gains) and other expenses, net	1.1			7.7			6.2			(0.1		)	14.9
Restructuring charges	—			(0.5		)	2.3			—			1.8
Income from equity method investments	(187.2		)	(0.3		)	(9.3		)	185.0			(11.8		)
Operational income from continuing operations	186.1			249.0			35.3			(185.5		)	284.9
Interest expense, net	17.1			(1.5		)	2.3			—			17.9
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	169.0			250.5			33.7			(185.5		)	267.7
Provision for income taxes	(6.3		)	87.2			11.2			(0.2		)	91.9
Income from continuing operations	175.3			163.3			22.5			(185.3		)	175.8
Loss from discontinued operations	—			—			(0.5		)	—			(0.5		)
Net income	$	175.3		$	163.3		$	22.0		$	(185.3	)	$	175.3
Other comprehensive income (loss), net of tax	(2.9		)	(13.8		)	(36.4		)	(3.2		)	(56.3		)
Comprehensive income	$	172.4		$	149.5		$	(14.4	)	$	(188.5	)	$	119.0

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	736.2		$	213.5		$	(51.3	)	$	898.4
Cost of goods sold	—			538.8			164.5			(52.0		)	651.3
Gross profit	—			197.4			49.0			0.7			247.1
Operating expenses:
Selling, general and administrative expenses	—			127.4			13.5			—			140.9
Losses (gains) and other expenses, net	(0.1		)	1.2			1.0			—			2.1
Restructuring charges	—			(0.1		)	1.1			—			1.0
Income from equity method investments	(69.7		)	(6.4		)	(2.7		)	75.3			(3.5		)
Operational income from continuing operations	69.8			75.3			36.1			(74.6		)	106.6
Interest expense, net	3.6			(0.7		)	1.1			—			4.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	66.2			76.0			35.0			(74.6		)	102.6
Provision for income taxes	(1.2		)	24.1			11.9			0.3			35.1
Income from continuing operations	67.4			51.9			23.1			(74.9		)	67.5
Loss from discontinued operations	—			—			(0.1		)	—			(0.1		)
Net income	$	67.4		$	51.9		$	23.0		$	(74.9	)	$	67.4
Other comprehensive income, net of tax	(1.1		)	(6.7		)	(17.2		)	(1.0		)	(26.0		)
Comprehensive income	$	66.3		$	45.2		$	5.8		$	(75.9	)	$	41.4

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,089.0		$	606.5		$	(140.9	)	$	2,554.6
Cost of goods sold	—			1,555.1			460.9			(139.3		)	1,876.7
Gross profit	—			533.9			145.6			(1.6		)	677.9
Operating expenses:
Selling, general and administrative expenses	—			362.9			62.6			—			425.5
Losses and other expenses, net	(0.3		)	2.3			1.5						3.5
Restructuring charges	—			—			1.3			—			1.3
Income from equity method investments	(167.6		)	(21.0		)	(9.8		)	186.4			(12.0		)
Operational income from continuing operations	167.9			189.7			90.0			(188.0		)	259.6
Interest expense, net	10.1			(2.2		)	3.1			—			11.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	157.8			191.9			86.9			(188.0		)	248.6
Provision for income taxes	(3.4		)	60.0			30.5			(0.5		)	86.6
Income from continuing operations	161.2			131.9			56.4			(187.5		)	162.0
Loss from discontinued operations	—			—			(0.8		)	—			(0.8		)
Net income	$	161.2		$	131.9		$	55.6		$	(187.5	)	$	161.2
Other comprehensive income (loss), net of tax	(1.1		)	(1.8		)	(11.8		)	(1.1		)	(15.8		)
Comprehensive income	$	160.1		$	130.1		$	43.8		$	(188.6	)	$	145.4

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(27.3	)	$	138.2		$	(4.0	)	$	—	$	106.9
Cash flows from investing activities:
Purchases of property, plant and equipment	—			(40.3		)	(6.7		)	—		(47.0		)
Net cash used in investing activities	—			(40.3		)	(6.7		)	—		(47.0		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			0.8			—		0.8
Asset securitization borrowings	—			—			40.0			—		40.0
Asset securitization payments	—			—			(40.0		)	—		(40.0		)
Long-term debt payments	(22.5		)	(0.8		)	(0.2		)	—		(23.5		)
Borrowings from credit facility	1,401.0			—			—			—		1,401.0
Payments on credit facility	(1,385.0		)	—			—			—		(1,385.0		)
Proceeds from employee stock purchases	1.8			—			—			—		1.8
Repurchases of common stock	—			—			—			—		—
Repurchases of common stock to satisfy employee withholding tax obligations	(23.5		)	—			—			—		(23.5		)
Excess tax benefits related to share-based payments	18.6			—			—			—		18.6
Intercompany financing activity	(37.7		)	10.2			27.5			—		—
Intercompany investments	118.0			(106.3		)	(11.7		)	—		—
Cash dividends paid	(43.1		)	—			—			—		(43.1		)
Net cash provided by financing activities	27.6			(96.9		)	16.4			—		(52.9		)
Increase in cash and cash equivalents	0.3			1.0			5.7			—		7.0
Effect of exchange rates on cash and cash equivalents	—			—			(9.4		)	—		(9.4		)
Cash and cash equivalents, beginning of period	1.0			11.5			25.0			—		37.5
Cash and cash equivalents, end of period	$	1.3		$	12.5		$	21.3		$	—	$	35.1

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	13.4		$	72.1		$	(62.0	)	$	—	$	23.5
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.2			—			—		0.2
Purchases of property, plant and equipment	—			(45.5		)	(14.4		)	—		(59.9		)
Net cash used in investing activities	—			(45.3		)	(14.4		)	—		(59.7		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			3.4			—		3.4
Asset securitization borrowings	—			—			60.0			—		60.0
Asset securitization payments	—			—			—			—		—
Long-term debt payments	—			(1.4		)	(0.3		)	—		(1.7		)
Borrowings from credit facility	1,483.0			—			—			—		1,483.0
Payments on credit facility	(1,351.0		)	—			—			—		(1,351.0		)
Proceeds from employee stock purchases	1.5			—			—			—		1.5
Repurchases of common stock	(100.3		)	—			—			—		(100.3		)
Repurchases of common stock to satisfy employee withholding tax obligations	(12.3		)	—			—			—		(12.3		)
Excess tax benefits related to share-based payments	5.3			—			—			—		5.3
Intercompany debt	(12.5		)	(0.8		)	13.3			—		—
Intercompany financing activity	11.5			(17.0		)	5.5			—		—
Intercompany investments	—			(3.0		)	3.0			—		—
Cash dividends paid	(38.2		)	—			—			—		(38.2		)
Net cash used in financing activities	(13.0		)	(22.2		)	84.9			—		49.7
Decrease in cash and cash equivalents	0.4			4.6			8.5			—		13.5
Effect of exchange rates on cash and cash equivalents	—			—			(3.4		)	—		(3.4		)
Cash and cash equivalents, beginning of period	1.1			10.5			26.4			—		38.0
Cash and cash equivalents, end of period	$	1.5		$	15.1		$	31.5		$	—	$	48.1

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Discontinued Operations

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations:

On March 22, 2013, we sold our Service Experts business to a majority-owned entity of American Capital, Ltd. (the "Buyer") in an all-cash transaction for net proceeds of $10.4 million, excluding transaction costs. We also entered into a two-year equipment and parts supply agreement with the Buyer. In April 2012, we sold our Hearth business to Comvest Investment Partners IV in an all-cash transaction for net proceeds of $10.1 million, excluding the transaction costs and cash transferred with the business.

There were no assets and liabilities related to the Service Experts or Hearth businesses included in the accompanying Consolidated Balance Sheets as of September 30, 2015 or December 31, 2014, except for insurance casualty loss reserves which we retained after the respective transactions. The gains and losses on the sale of these businesses and their operating results for all periods are presented in Discontinued Operations in the accompanying Consolidated Statements of Operations. The following table provides a summary of net trade sales, pre-tax operating income (loss) and other supplemental information related to discontinued operations (in millions):

	Service Experts
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015			2014
Net trade sales (1)	$	—	$	—	$	—		$	—
Pre-tax operating income (loss) (1)	—		—		(0.9		)	1.1
Gain (loss) on sale of business	—		—		—			—

⁽¹⁾ Excludes eliminations of intercompany sales and any associated profit

	Hearth
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2015		2014			2015		2014
Net trade sales (1)	$	—	$	—		$	—	$	—
Pre-tax operating income (loss) (1)	—		(0.2		)	—		(2.4		)
Gain (loss) on sale of business	—		—			—		—

⁽¹⁾ Excludes eliminations of intercompany sales and any associated profit

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

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 September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Stock-based compensation expense (1)	$	7.7	$	6.6	$	18.5	$	17.3

⁽¹⁾ All expense was recorded in our Corporate and other business segment.

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Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold	$ (681.6)	$ (651.3)	$ (1,913.5)	$ (1,876.7)
Income tax expense	(41.7)	(35.1)	(91.9)	(86.6)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications from AOCI	(3.3)	(1.4)	(10.1)	(5.6)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains/(Losses) on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	1.2	0.4	3.2	1.8
Total reclassifications from AOCI	(2.0)	(0.6)	(6.2)	(3.1)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold	(2.0)	(1.3)	(6.1)	(4.0)
Income tax expense	0.7	0.5	2.2	1.5
Total reclassifications from AOCI	(1.3)	(0.8)	(3.9)	(2.5)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Commodity derivative contracts [Member] | Gains/(Losses) on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold	$ (3.2)	$ (1.0)	$ (9.4)	$ (4.9)

XML

Lines of Credit and Financing Arrangements

9 Months Ended

Sep. 30, 2015

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 September 30, 2015		As of December 31, 2014
Short-Term Debt:
Asset Securitization Program	$	220.0	$	220.0
Foreign obligations	6.3		6.6
Total short-term debt	$	226.3	$	226.6
Current maturities of long-term debt:
Capital lease obligations	$	1.2	$	1.5
Domestic credit facility	22.5		22.5
Total current maturities of long-term debt	$	23.7	$	24.0
Long-Term Debt:
Capital lease obligations	$	15.0	$	15.5
Domestic credit facility	453.0		459.5
Senior unsecured notes	200.0		200.0
Total long-term debt	$	668.0	$	675.0
Total debt	$	918.0	$	925.6

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 $6.3 million and $6.6 million of foreign obligations as of September 30, 2015 and December 31, 2014, respectively, that were primarily borrowings under non-committed facilities. Proceeds on these facilities were $63.6 million and $73.1 million during the nine months ended September 30, 2015 and 2014, respectively. Repayments on the facilities were $61.7 million and $65.6 million and during the nine months ended September 30, 2015 and 2014, 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 participating financial institutions for cash. The ASP is subject to annual renewal and contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. Our continued involvement with the transferred assets includes servicing, collection and administration of the transferred beneficial interests. The accounts receivable securitized under the ASP are high-quality domestic customer accounts that have not aged significantly. The receivables represented by the retained interest that we service are exposed to risk of loss for any uncollectible amounts in the pool of receivables sold under the ASP. The fair values assigned to the retained and transferred interests are based on the sold accounts receivable carrying value given the short term to maturity and low credit risk. The sale of the beneficial interests in our trade accounts receivable are reflected as short-term borrowings in the accompanying Consolidated Balance Sheets and proceeds received are included in cash flows from financing activities in the accompanying Consolidated Statements of Cash Flows.

The ASP provides for a maximum securitization amount ranging from $180.0 million to $220.0 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 September 30, 2015		As of December 31, 2014
Eligible amount available under the ASP on qualified accounts receivable	$	220.0	$	220.0
Beneficial interest sold	220.0		220.0
Remaining amount available	$	—	$	—

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 the average LIBOR rate or floating commercial paper rate determined by the purchaser of the beneficial interest, plus a program fee of 0.60%. The average rate for September 30, 2015 and December 31, 2014 was 0.82% and 0.79% respectively. The unused fee is based on 101% of the maximum available amount less the beneficial interest sold and is calculated at a 0.30% fixed rate throughout the term of the agreement. In addition, a 0.05% unused fee is charged on incremental available amounts above $180 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 certain cross-default provisions with our Fifth 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 September 30, 2015, we were in compliance with all covenant requirements.

Long-Term Debt

Domestic Credit Facility

On November 13, 2014, we replaced our $650 million Domestic Revolving Credit Facility with a $950 million Domestic Credit Facility, which consisted of a $650 million revolving credit facility and a $300 million term loan and matures in November 2019 (the "Maturity Date"). Under our Domestic Credit Facility, we had outstanding borrowings of $475.5 million, of which $277.5 million was the term loan balance, as well as $4.4 million committed to standby letters of credit as of September 30, 2015. Subject to covenant limitations, $447.6 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. We paid $22.5 million in principal payments in June 2015 for the term loan, which represents the required principal payments for the remainder of 2015. The revolving credit facility allows up to $150 million of letters of credit to be issued and also includes a subfacility for swingline loans of up to $65 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 million as long as existing or new lenders agree to provide such additional commitments.

Our weighted average borrowing rate on the facility was as follows:

	As of September 30, 2015		As of December 31, 2014
Weighted average borrowing rate	1.69	%	1.88	%

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, the Lake Park Renewal (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 September 30, 2015, we were in compliance with all covenant requirements.

Senior Unsecured Notes

We issued $200.0 million of senior unsecured notes in May 2010 through a public offering. Interest is paid semiannually on May 15 and November 15 at a fixed interest rate of 4.90% per annum. These notes mature on May 15, 2017. The notes are guaranteed, on a senior unsecured basis, by each of our domestic subsidiaries that guarantee payment by us of any indebtedness under our Domestic Credit Facility. The indenture governing the notes contains covenants that, among other things, limit our ability and the ability of the subsidiary guarantors to: create or incur certain liens; enter into certain sale and leaseback transactions; enter into certain mergers, consolidations and transfers of substantially all of our assets; and transfer certain properties. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75.0 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date. As of September 30, 2015, we were in compliance with all covenant requirements.

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Pension and Post-retirement Benefit Plans

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Post-retirement Benefit Plans

Pension and Post-retirement Benefit Plans:

The components of net periodic benefit cost were as follows (in millions):

	For the Three Months Ended September 30,
	2015			2014			2015			2014
	Pension Benefits						Other Benefits
Service cost	$	1.2		$	1.1		$	—		$	—
Interest cost	4.3			4.4			0.1			0.1
Expected return on plan assets	(5.3		)	(5.7		)	—			—
Amortization of prior service cost	—			0.1			(0.8		)	(0.8		)
Recognized actuarial loss	2.4			1.6			0.4			0.4
Settlements and curtailments	—			—			—			—
Net periodic benefit cost (1)	$	2.6		$	1.5		$	(0.3	)	$	(0.3	)

	For the Nine Months Ended September 30,
	2015			2014			2015			2014
	Pension Benefits						Other Benefits
Service cost	$	3.6		$	3.2		$	—		$	—
Interest cost	12.9			13.3			0.2			0.1
Expected return on plan assets	(16.0		)	(17.0		)	—			—
Amortization of prior service cost	—			0.2			(2.4		)	(2.2		)
Recognized actuarial loss	7.2			4.9			1.2			1.1
Settlements and curtailments	0.4			—			—			—
Net periodic benefit cost (1)	$	8.1		$	4.6		$	(1.0	)	$	(1.0	)

⁽¹⁾ All net periodic benefit cost for the three and nine months ended September 30, 2015 and 2014 related to continuing operations.

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Stock Repurchases

9 Months Ended

Sep. 30, 2015

Stockholders' Equity Note [Abstract]

Stock Repurchases

Stock Repurchases:

Our Board of Directors has authorized a total of $1.4 billion towards the repurchase of shares of our common stock (collectively referred to as the "Share Repurchase Plans"). The Share Repurchase Plans authorize open market repurchase transactions and do not have an expiration date. There were no additional share repurchase authorizations in the first nine months of 2015. As of September 30, 2015, $396.0 million of shares may yet be repurchased under the Share Repurchase Plans.

We also repurchased 0.2 million shares for $23.5 million for the nine months ended September 30, 2015 from employees who surrendered their shares to satisfy minimum tax withholding obligations upon the exercise of long-term incentive awards.

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Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Service Experts [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net trade sales	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Pre-tax operating income (loss)	0.0	0.0	(0.9)	1.1
Gain (loss) on sale of business	0.0	0.0	0.0	0.0
Hearth [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net trade sales	0.0	0.0	0.0	0.0
Pre-tax operating income (loss)	0.0	(0.2)	0.0	(2.4)
Gain (loss) on sale of business	$ 0.0	$ 0.0	$ 0.0	$ 0.0

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Earnings Per Share (Details 1) - $ / shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.0	0.3	0.2	0.3
Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	$ 0.00	$ 81.11	$ 92.64	$ 81.11
Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	$ 0.00	$ 81.14	$ 92.64	$ 81.14

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Discontinued Operations (Details Textual) - USD ($) $ in Millions		1 Months Ended
	Mar. 22, 2013	Apr. 30, 2012
Hearth [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses		$ 10.1
Service Experts [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses	$ 10.4

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Summary of net trade sales, pre-tax operating income (loss) and other supplemental information related to discontinued operations

The following table provides a summary of net trade sales, pre-tax operating income (loss) and other supplemental information related to discontinued operations (in millions):

	Service Experts
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015			2014
Net trade sales (1)	$	—	$	—	$	—		$	—
Pre-tax operating income (loss) (1)	—		—		(0.9		)	1.1
Gain (loss) on sale of business	—		—		—			—

⁽¹⁾ Excludes eliminations of intercompany sales and any associated profit

	Hearth
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2015		2014			2015		2014
Net trade sales (1)	$	—	$	—		$	—	$	—
Pre-tax operating income (loss) (1)	—		(0.2		)	—		(2.4		)
Gain (loss) on sale of business	—		—			—		—

⁽¹⁾ Excludes eliminations of intercompany sales and any associated profit

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Lines of Credit and Financing Arrangements (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Eligible amounts available and beneficial interests sold
Eligible amount available under the ASP on qualified accounts receivable	$ 220.0	$ 220.0
Beneficial Interests Sold under Asset Securitization	220.0	220.0
Remaining amount available	$ 0.0	$ 0.0

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Reportable Business Segments

9 Months Ended

Sep. 30, 2015

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 below details the items excluded.

Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Corporate costs also include the long-term share-based incentive awards provided to employees throughout LII. We recorded these share-based awards as corporate costs because they are determined at the discretion of the Board of Directors and based on the historical practice of doing so for internal reporting purposes.

As they arise, transactions between segments are recorded on an arm’s-length basis using the relevant market prices. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations for the periods presented.

Segment Data

Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Income from continuing operations before income taxes, are shown below (in millions):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Net sales
Residential Heating & Cooling	$	517.9		$	462.6		$	1,435.6		$	1,332.5
Commercial Heating & Cooling	246.8			241.6			660.3			655.6
Refrigeration	190.3			194.2			537.4			566.5
	$	955.0		$	898.4		$	2,633.3		$	2,554.6
Segment profit (loss) (1)
Residential Heating & Cooling	$	90.1		$	69.4		$	221.3		$	178.8
Commercial Heating & Cooling	44.8			42.2			95.5			91.3
Refrigeration	20.3			16.5			37.5			42.3
Corporate and other	(24.0		)	(17.5		)	(57.4		)	(47.8		)
Subtotal that includes segment profit and eliminations	131.2			110.6			296.9			264.6
Reconciliation to Income from continuing operations before income taxes:
Special product quality adjustments	0.7			0.2			(0.6		)	(0.1		)
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (1)	3.9			1.8			10.8			2.8
Restructuring charges	(0.4		)	1.0			1.8			1.3
Interest expense, net	5.7			4.0			17.9			11.0
Special inventory write down	—			1.0			—			1.0
Other expense (income), net	(0.7		)	—			(0.7		)	—
Income from continuing operations before income taxes	$	122.0		$	102.6		$	267.7		$	248.6

⁽¹⁾ The Company defines segment profit and loss as a segment's income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding:

• Special product quality adjustments;

• The following items in Losses (gains) and other expenses, net:

◦ Net change in unrealized gains and/or losses on unsettled futures contracts,

◦ Special legal contingency charges,

◦ Asbestos-related litigation,

◦ Contractor tax payments,

◦ Environmental liabilities, and

◦ Other items, net;

• Restructuring charges;

• Goodwill, long-lived asset, and equity method investment impairments;

• Interest expense, net;

• Special inventory write down; and

• Other expense, net.

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, 2014.

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Goodwill (Tables)

9 Months Ended

Sep. 30, 2015

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 nine months of 2015, in total and by segment, are summarized in the table below (in millions):

	Balance at December 31, 2014		Acquisitions / (Dispositions)		Other (1)			September 30, 2015
Residential Heating & Cooling	$	26.1	$	—	$	—		$	26.1
Commercial Heating & Cooling	62.3		—		(1.2		)	61.1
Refrigeration	121.0		—		(8.4		)	112.6
Total Goodwill	$	209.4	$	—	$	(9.6	)	$	199.8

⁽¹⁾ Other consists of changes in foreign currency translation rates.

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Commitments and Contingencies (Details 3) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Changes in the total warranty liabilities
Total warranty liability, Beginning Balance	$ 87.2
Warranty claims paid	(19.7)
Changes resulting from issuance of new warranties	27.4
Change in estimates associated with pre-existing liabilities	(1.6)
Changes in foreign currency translation rates and other	(1.6)
Total warranty liability, Ending Balance	$ 91.7

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Derivatives (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized losses on unsettled futures contracts	$ 12.3	$ 7.2
Income tax benefit	(4.5)	(2.6)
Losses included in AOCI, net of tax	7.8	$ 4.6
Cash flow hedge derivative losses expected to be reclassified into earnings within the next 12 months	$ 6.8

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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 80.3	$ 67.4	$ 175.3	$ 161.2
Other comprehensive income (loss):
Foreign currency translation adjustments	(28.6)	(26.5)	(56.1)	(17.6)
Reclassification of foreign currency translation adjustments into earnings	0.0	0.0	0.0	0.0
Net change in pension and post-retirement liabilities	(1.0)	(0.5)	(4.4)	(2.8)
Reclassification of pension and post-retirement benefit losses into earnings	2.0	1.3	6.2	4.0
Change in fair value of available-for-sale marketable equity securities	1.4	1.0	1.8	2.1
Net change in fair value of cash flow hedges	(10.2)	(2.8)	(14.6)	(6.8)
Reclassification of cash flow hedge losses into earnings	3.2	1.0	9.4	4.9
Other comprehensive income (loss) before income taxes	(33.2)	(26.5)	(57.7)	(16.2)
Income tax (expense) benefit	2.3	0.5	1.4	0.4
Other comprehensive income (loss), net of tax	(30.9)	(26.0)	(56.3)	(15.8)
Comprehensive income	$ 49.4	$ 41.4	$ 119.0	$ 145.4

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Derivatives

9 Months Ended

Sep. 30, 2015

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. Our forward contracts are primarily not designated as hedges, but on occasion we have entered into forward contracts that are designated as cash flow hedges. By entering into forward contracts, we lock in exchange rates that would otherwise cause losses should the U.S. dollar appreciate and gains should the U.S. dollar depreciate.

Cash Flow Hedges

We have commodity futures contracts and foreign exchange forward contracts designated as cash flow hedges that are scheduled to mature through February 2017. 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 September 30, 2015			As of December 31, 2014
Unrealized losses on unsettled futures contracts	$	12.3		$	7.2
Income tax benefit	(4.5		)	(2.6		)
Losses included in AOCL, net of tax (1)	$	7.8		$	4.6

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $6.8 million of derivative losses 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 September 30, 2015	As of December 31, 2014
Copper	29.0	29.4

We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions):

	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Mexican Peso	250.9	—

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 September 30, 2015	As of December 31, 2014
Copper	3.3	2.9
Aluminum	2.5	2.2

We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions):

	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Brazilian Real	—	8.7
Mexican Peso	—	229.7
United States Dollar	7.1	4.5
Euro	6.0	3.6
Polish Zloty	29.9	30.6
Russian Ruble	94.4	80.8

Information about the Locations and Amounts of Derivative Instruments

The following tables provide the locations and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations (in millions):

	Fair Values of Derivative Instruments (1)
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	As of September 30, 2015		As of December 31, 2014		As of September 30, 2015		As of December 31, 2014
Current Assets:
Other Assets
Commodity futures contracts	$	—	$	—	$	—	$	—
Foreign currency forward contracts	—		—		0.1		0.3
Non-Current Assets:
Other Assets, net
Commodity futures contracts	—		—		—		—
Total Assets	$	—	$	—	$	0.1	$	0.3
Current Liabilities:
Accrued Expenses
Commodity futures contracts	$	10.4	$	6.7	$	1.4	$	0.7
Foreign currency forward contracts	0.4		—		0.1		—
Non-Current Liabilities:
Other Liabilities
Commodity futures contracts	1.5		0.5		0.3		0.1
Foreign currency forward contracts	0.1		—		—		—
Total Liabilities	$	12.4	$	7.2	$	1.8	$	0.8

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 16 for more information.

Derivatives Designated as Cash Flow Hedges	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Amount of Loss reclassified from AOCL into Income (Effective Portion) (1)	$	3.2	$	1.0	$	9.4	$	4.9
Amount of Loss (Gain) recognized in Net income (Ineffective Portion) (2)	$	—	$	—	$	—	$	0.1

Derivatives Not Designated as Hedging Instruments	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2015		2014			2015		2014
Amount of Loss (Gain) Recognized in Net Income:
Commodity futures contracts (2)	$	1.4	$	0.3		$	2.2	$	0.6
Foreign currency forward contracts (2)	—		(0.2		)	0.2		(0.1		)
	$	1.4	$	0.1		$	2.4	$	0.5

⁽¹⁾ The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations.

⁽²⁾ The loss (gain) was recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statements of Operations.

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Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 7.7	$ 6.6	$ 18.5	$ 17.3

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Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Investment in marketable equity securities	$ 7.1	$ 5.3

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30, 2015			As of December 31, 2014
Unrealized losses on unsettled futures contracts	$	12.3		$	7.2
Income tax benefit	(4.5		)	(2.6		)
Losses included in AOCL, net of tax (1)	$	7.8		$	4.6

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $6.8 million of derivative losses into earnings within the next 12 months.

Outstanding commodity futures contracts designated as cash flow hedges

We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions of pounds):

	As of September 30, 2015	As of December 31, 2014
Copper	29.0	29.4

We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions):

	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Mexican Peso	250.9	—

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 September 30, 2015	As of December 31, 2014
Copper	3.3	2.9
Aluminum	2.5	2.2

We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions):

	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Brazilian Real	—	8.7
Mexican Peso	—	229.7
United States Dollar	7.1	4.5
Euro	6.0	3.6
Polish Zloty	29.9	30.6
Russian Ruble	94.4	80.8

Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations

The following tables provide the locations and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations (in millions):

	Fair Values of Derivative Instruments (1)
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	As of September 30, 2015		As of December 31, 2014		As of September 30, 2015		As of December 31, 2014
Current Assets:
Other Assets
Commodity futures contracts	$	—	$	—	$	—	$	—
Foreign currency forward contracts	—		—		0.1		0.3
Non-Current Assets:
Other Assets, net
Commodity futures contracts	—		—		—		—
Total Assets	$	—	$	—	$	0.1	$	0.3
Current Liabilities:
Accrued Expenses
Commodity futures contracts	$	10.4	$	6.7	$	1.4	$	0.7
Foreign currency forward contracts	0.4		—		0.1		—
Non-Current Liabilities:
Other Liabilities
Commodity futures contracts	1.5		0.5		0.3		0.1
Foreign currency forward contracts	0.1		—		—		—
Total Liabilities	$	12.4	$	7.2	$	1.8	$	0.8

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 16 for more information.

Effect of Derivative Instruments on Consolidated Statements of Operations

Derivatives Designated as Cash Flow Hedges	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Amount of Loss reclassified from AOCL into Income (Effective Portion) (1)	$	3.2	$	1.0	$	9.4	$	4.9
Amount of Loss (Gain) recognized in Net income (Ineffective Portion) (2)	$	—	$	—	$	—	$	0.1

Derivatives Not Designated as Hedging Instruments	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2015		2014			2015		2014
Amount of Loss (Gain) Recognized in Net Income:
Commodity futures contracts (2)	$	1.4	$	0.3		$	2.2	$	0.6
Foreign currency forward contracts (2)	—		(0.2		)	0.2		(0.1		)
	$	1.4	$	0.1		$	2.4	$	0.5

⁽¹⁾ The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations.

⁽²⁾ The loss (gain) was recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statements of Operations.

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Condensed Consolidating Financial Statements (Details Textual)	9 Months Ended
	Sep. 30, 2015
Condensed Financial Statements, Captions [Line Items]
Other Parent Company Disclosures	1

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Condensed Consolidating Financial Statements (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2014

Dec. 31, 2014

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.3		$	12.5	$	21.3		$	—		$	35.1
Accounts and notes receivable, net	—			42.1		495.6			—			537.7
Inventories, net	—			376.1		119.6			(7.4		)	488.3
Deferred income taxes, net	3.3			27.4		6.3			(5.1		)	31.9
Other assets	3.3			48.7		65.7			(58.8		)	58.9
Total current assets	7.9			506.8		708.5			(71.3		)	1,151.9
Property, plant and equipment, net	—			268.3		77.0			—			345.3
Goodwill	—			140.4		59.4			—			199.8
Investment in subsidiaries	1,111.9			394.7		(0.6		)	(1,506.0		)	—
Deferred income taxes	2.4			91.4		13.7			(9.6		)	97.9
Other assets, net	4.5			59.8		23.8			(1.5		)	86.6
Intercompany receivables (payables), net	(360.7		)	357.6		3.1			—			—
Total assets	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.3		$	—		$	226.3
Current maturities of long-term debt	22.5			0.9		0.3			—			23.7
Accounts payable	16.2			255.9		65.6			—			337.7
Accrued expenses	15.7			181.8		54.4			—			251.9
Income taxes payable	(41.3		)	94.8		27.2			(66.9		)	13.8
Total current liabilities	13.1			533.4		373.8			(66.9		)	853.4
Long-term debt	653.0			14.8		0.2			—			668.0
Post-retirement benefits, other than pensions	—			2.9		—			—			2.9
Pensions	—			123.4		10.8			—			134.2
Other liabilities	2.4			125.6		10.4			(12.9		)	125.5
Total liabilities	668.5			800.1		395.2			(79.8		)	1,784.0
Commitments and contingencies
Total stockholders' equity	97.5			1,018.9		489.7			(1,508.6		)	97.5
Total liabilities and stockholders' equity	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of December 31, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.0		$	11.5	$	25.0		$	—		$	37.5
Accounts and notes receivable, net	—			12.3		409.1			—			421.4
Inventories, net	—			350.6		119.7			(7.0		)	463.3
Deferred income taxes, net	2.8			27.3		7.4			(5.0		)	32.5
Other assets	3.6			45.7		67.2			(57.2		)	59.3
Total current assets	7.4			447.4		628.4			(69.2		)	1,014.0
Property, plant and equipment, net	—			269.0		89.6			—			358.6
Goodwill	—			140.4		69.0			—			209.4
Investment in subsidiaries	978.1			263.5		(0.6		)	(1,241.0		)	—
Deferred income taxes	0.5			90.8		15.8			(9.6		)	97.5
Other assets, net	5.2			61.0		20.1			(1.5		)	84.8
Intercompany receivables (payables), net	(280.4		)	302.4		(22.0		)	—			—
Total assets	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.6		$	—		$	226.6
Current maturities of long-term debt	22.5			1.2		0.3			—			24.0
Accounts payable	13.4			237.8		73.1			—			324.3
Accrued expenses	9.0			175.5		54.5			—			239.0
Income taxes payable	(3.7		)	34.7		47.5			(65.1		)	13.4
Total current liabilities	41.2			449.2		402.0			(65.1		)	827.3
Long-term debt	659.5			15.3		0.2			—			675.0
Post-retirement benefits, other than pensions	—			4.5		—			—			4.5
Pensions	—			117.6		12.3			—			129.9
Other liabilities	1.1			118.7		11.7			(12.9		)	118.6
Total liabilities	701.8			705.3		426.2			(78.0		)	1,755.3
Commitments and contingencies
Total stockholders' equity	9.0			869.2		374.1			(1,243.3		)	9.0
Total liabilities and stockholders' equity	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	827.9		$	185.2		$	(58.1	)	$	955.0
Cost of goods sold	—			589.9			150.2			(58.5		)	681.6
Gross profit	—			238.0			35.0			0.4			273.4
Operating expenses:
Selling, general and administrative expenses	—			124.0			19.8			—			143.8
Losses (gains) and other expenses, net	0.6			2.7			2.7			—			6.0
Restructuring charges	—			(0.2		)	(0.2		)	—			(0.4		)
Income from equity method investments	(84.2		)	(2.7		)	(2.1		)	86.0			(3.0		)
Operational income from continuing operations	83.6			114.2			14.8			(85.6		)	127.0
Interest expense, net	5.4			(0.4		)	0.7			—			5.7
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	78.2			114.6			14.8			(85.6		)	122.0
Provision for income taxes	(2.1		)	39.0			4.6			0.2			41.7
Income from continuing operations	80.3			75.6			10.2			(85.8		)	80.3
Loss from discontinued operations	—			—			—						—
Net income	$	80.3		$	75.6		$	10.2		$	(85.8	)	$	80.3
Other comprehensive income (loss), net of tax	(4.3		)	(8.6		)	(16.2		)	(1.8		)	(30.9		)
Comprehensive income	$	76.0		$	67.0		$	(6.0	)	$	(87.6	)	$	49.4

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,268.6		$	520.7		$	(156.0	)	$	2,633.3
Cost of goods sold	—			1,650.7			418.2			(155.4		)	1,913.5
Gross profit	—			617.9			102.5			(0.6		)	719.8
Operating expenses:
Selling, general and administrative expenses	—			362.0			68.0			—			430.0
Losses (gains) and other expenses, net	1.1			7.7			6.2			(0.1		)	14.9
Restructuring charges	—			(0.5		)	2.3			—			1.8
Income from equity method investments	(187.2		)	(0.3		)	(9.3		)	185.0			(11.8		)
Operational income from continuing operations	186.1			249.0			35.3			(185.5		)	284.9
Interest expense, net	17.1			(1.5		)	2.3			—			17.9
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	169.0			250.5			33.7			(185.5		)	267.7
Provision for income taxes	(6.3		)	87.2			11.2			(0.2		)	91.9
Income from continuing operations	175.3			163.3			22.5			(185.3		)	175.8
Loss from discontinued operations	—			—			(0.5		)	—			(0.5		)
Net income	$	175.3		$	163.3		$	22.0		$	(185.3	)	$	175.3
Other comprehensive income (loss), net of tax	(2.9		)	(13.8		)	(36.4		)	(3.2		)	(56.3		)
Comprehensive income	$	172.4		$	149.5		$	(14.4	)	$	(188.5	)	$	119.0

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	736.2		$	213.5		$	(51.3	)	$	898.4
Cost of goods sold	—			538.8			164.5			(52.0		)	651.3
Gross profit	—			197.4			49.0			0.7			247.1
Operating expenses:
Selling, general and administrative expenses	—			127.4			13.5			—			140.9
Losses (gains) and other expenses, net	(0.1		)	1.2			1.0			—			2.1
Restructuring charges	—			(0.1		)	1.1			—			1.0
Income from equity method investments	(69.7		)	(6.4		)	(2.7		)	75.3			(3.5		)
Operational income from continuing operations	69.8			75.3			36.1			(74.6		)	106.6
Interest expense, net	3.6			(0.7		)	1.1			—			4.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	66.2			76.0			35.0			(74.6		)	102.6
Provision for income taxes	(1.2		)	24.1			11.9			0.3			35.1
Income from continuing operations	67.4			51.9			23.1			(74.9		)	67.5
Loss from discontinued operations	—			—			(0.1		)	—			(0.1		)
Net income	$	67.4		$	51.9		$	23.0		$	(74.9	)	$	67.4
Other comprehensive income, net of tax	(1.1		)	(6.7		)	(17.2		)	(1.0		)	(26.0		)
Comprehensive income	$	66.3		$	45.2		$	5.8		$	(75.9	)	$	41.4

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,089.0		$	606.5		$	(140.9	)	$	2,554.6
Cost of goods sold	—			1,555.1			460.9			(139.3		)	1,876.7
Gross profit	—			533.9			145.6			(1.6		)	677.9
Operating expenses:
Selling, general and administrative expenses	—			362.9			62.6			—			425.5
Losses and other expenses, net	(0.3		)	2.3			1.5						3.5
Restructuring charges	—			—			1.3			—			1.3
Income from equity method investments	(167.6		)	(21.0		)	(9.8		)	186.4			(12.0		)
Operational income from continuing operations	167.9			189.7			90.0			(188.0		)	259.6
Interest expense, net	10.1			(2.2		)	3.1			—			11.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	157.8			191.9			86.9			(188.0		)	248.6
Provision for income taxes	(3.4		)	60.0			30.5			(0.5		)	86.6
Income from continuing operations	161.2			131.9			56.4			(187.5		)	162.0
Loss from discontinued operations	—			—			(0.8		)	—			(0.8		)
Net income	$	161.2		$	131.9		$	55.6		$	(187.5	)	$	161.2
Other comprehensive income (loss), net of tax	(1.1		)	(1.8		)	(11.8		)	(1.1		)	(15.8		)
Comprehensive income	$	160.1		$	130.1		$	43.8		$	(188.6	)	$	145.4

Condensed Consolidating Statements of Cash Flows

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(27.3	)	$	138.2		$	(4.0	)	$	—	$	106.9
Cash flows from investing activities:
Purchases of property, plant and equipment	—			(40.3		)	(6.7		)	—		(47.0		)
Net cash used in investing activities	—			(40.3		)	(6.7		)	—		(47.0		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			0.8			—		0.8
Asset securitization borrowings	—			—			40.0			—		40.0
Asset securitization payments	—			—			(40.0		)	—		(40.0		)
Long-term debt payments	(22.5		)	(0.8		)	(0.2		)	—		(23.5		)
Borrowings from credit facility	1,401.0			—			—			—		1,401.0
Payments on credit facility	(1,385.0		)	—			—			—		(1,385.0		)
Proceeds from employee stock purchases	1.8			—			—			—		1.8
Repurchases of common stock	—			—			—			—		—
Repurchases of common stock to satisfy employee withholding tax obligations	(23.5		)	—			—			—		(23.5		)
Excess tax benefits related to share-based payments	18.6			—			—			—		18.6
Intercompany financing activity	(37.7		)	10.2			27.5			—		—
Intercompany investments	118.0			(106.3		)	(11.7		)	—		—
Cash dividends paid	(43.1		)	—			—			—		(43.1		)
Net cash provided by financing activities	27.6			(96.9		)	16.4			—		(52.9		)
Increase in cash and cash equivalents	0.3			1.0			5.7			—		7.0
Effect of exchange rates on cash and cash equivalents	—			—			(9.4		)	—		(9.4		)
Cash and cash equivalents, beginning of period	1.0			11.5			25.0			—		37.5
Cash and cash equivalents, end of period	$	1.3		$	12.5		$	21.3		$	—	$	35.1

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	13.4		$	72.1		$	(62.0	)	$	—	$	23.5
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.2			—			—		0.2
Purchases of property, plant and equipment	—			(45.5		)	(14.4		)	—		(59.9		)
Net cash used in investing activities	—			(45.3		)	(14.4		)	—		(59.7		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			3.4			—		3.4
Asset securitization borrowings	—			—			60.0			—		60.0
Asset securitization payments	—			—			—			—		—
Long-term debt payments	—			(1.4		)	(0.3		)	—		(1.7		)
Borrowings from credit facility	1,483.0			—			—			—		1,483.0
Payments on credit facility	(1,351.0		)	—			—			—		(1,351.0		)
Proceeds from employee stock purchases	1.5			—			—			—		1.5
Repurchases of common stock	(100.3		)	—			—			—		(100.3		)
Repurchases of common stock to satisfy employee withholding tax obligations	(12.3		)	—			—			—		(12.3		)
Excess tax benefits related to share-based payments	5.3			—			—			—		5.3
Intercompany debt	(12.5		)	(0.8		)	13.3			—		—
Intercompany financing activity	11.5			(17.0		)	5.5			—		—
Intercompany investments	—			(3.0		)	3.0			—		—
Cash dividends paid	(38.2		)	—			—			—		(38.2		)
Net cash used in financing activities	(13.0		)	(22.2		)	84.9			—		49.7
Decrease in cash and cash equivalents	0.4			4.6			8.5			—		13.5
Effect of exchange rates on cash and cash equivalents	—			—			(3.4		)	—		(3.4		)
Cash and cash equivalents, beginning of period	1.1			10.5			26.4			—		38.0
Cash and cash equivalents, end of period	$	1.5		$	15.1		$	31.5		$	—	$	48.1

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Earnings Per Share

9 Months Ended

Sep. 30, 2015

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 Net income were as follows (in millions, except per share data):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015			2014
Net income	$	80.3	$	67.4	$	175.3		$	161.2
Add: Loss from discontinued operations	—		0.1		0.5			0.8
Income from continuing operations	$	80.3	$	67.5	$	175.8		$	162.0
Weighted-average shares outstanding – basic	45.0		48.3		44.9			48.7
Add: Potential effect of dilutive securities attributable to stock-based payments	0.6		0.7		0.7			0.8
Weighted-average shares outstanding – diluted	45.6		49.0		45.6			49.5
Earnings per share – Basic:
Income from continuing operations	$	1.78	$	1.40	$	3.92		$	3.33
Loss from discontinued operations	—		—		(0.01		)	(0.02		)
Net income	$	1.78	$	1.40	$	3.91		$	3.31
Earnings per share – Diluted:
Income from continuing operations	$	1.76	$	1.38	$	3.86		$	3.27
Loss from discontinued operations	—		—		(0.01		)	(0.01		)
Net income	$	1.76	$	1.38	$	3.85		$	3.26

The following stock appreciation rights were outstanding but not included in the diluted earnings per share calculation because the assumed exercise of such rights would have been anti-dilutive (in millions, except for per share data):

	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2015		2014	2015		2014
Weighted-average number of shares	—		0.3	0.2		0.3
Price range per share	$	—	$81.11 - $81.14	$	92.64	$81.11 - $81.14