10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

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

For the fiscal year ended December 31, 2017

Commission File Number 001-15149

LENNOX INTERNATIONAL INC.

(Exact name of Registrant as specified in its charter)

Delaware	42-0991521
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

2140 Lake Park Blvd. Richardson, Texas 75080

(Address of principal executive offices, including zip code)

(Registrant's telephone number, including area code): (972) 497-5000

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $.01 par value per share	New York Stock Exchange

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by checkmark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [X] No [ ]

Indicate by checkmark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.

Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 last 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer (see definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act).

Large Accelerated Filer	[X]	Accelerated Filer	[ ]
Non-Accelerated Filer	[ ]	Smaller Reporting Company	[ ]
		Emerging growth company	[ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

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 June 30, 2017, the aggregate market value of the common stock held by non-affiliates of the registrant was approximately $7.7 billion based on the closing price of the registrant's common stock on the New York Stock Exchange. As of February 9, 2018, there were 41,176,787 shares of the registrant's common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's 2018 Definitive Proxy Statement to be filed with the Securities and Exchange Commission in connection with the registrant's 2018 Annual Meeting of Stockholders to be held on May 16, 2018 are incorporated by reference into Part III of this report.

LENNOX INTERNATIONAL INC.

FORM 10-K

For the Fiscal Year Ended December 31, 2017

INDEX

		Page
PART I
ITEM 1.	Business	1
ITEM 1A.	Risk Factors	8
ITEM 1B.	Unresolved Staff Comments	12
ITEM 2.	Properties	13
ITEM 3.	Legal Proceedings	14
ITEM 4.	Mine Safety Disclosures	14
PART II
ITEM 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	14
ITEM 6.	Selected Financial Data	16
ITEM 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 7A.	Quantitative and Qualitative Disclosures about Market Risk	31
ITEM 8.	Financial Statements and Supplementary Data	33
ITEM 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	91
ITEM 9A.	Controls and Procedures	91
ITEM 9B.	Other Information	91
PART III
ITEM 10.	Directors, Executive Officers and Corporate Governance	91
ITEM 11.	Executive Compensation	91
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	91
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence	92
ITEM 14.	Principal Accounting Fees and Services	92
PART IV
ITEM 15.	Exhibits and Financial Statement Schedules	92
	SIGNATURES	93
	SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES	95
	INDEX TO EXHIBITS	96

PART I

Item 1. Business

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

The Company

We are a leading global provider of climate control solutions. We design, manufacture and market a broad range of products for the heating, ventilation, air conditioning and refrigeration (“HVACR”) markets. We have leveraged our expertise to become an industry leader known for innovation, quality and reliability. Our products and services are sold through multiple distribution channels under various brand names. The Company was founded in 1895, in Marshalltown, Iowa, by Dave Lennox, the owner of a machine repair business for railroads. He designed and patented a riveted steel coal-fired furnace, which led to numerous advancements in heating, cooling and climate control solutions.

Shown in the table below are our three business segments, the key products, services and well-known product and brand names within each segment and net sales in 2017 by segment. Segment financial data for 2017, 2016 and 2015, including financial information about foreign and domestic operations, is included in Note 18 of the Notes to our Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data” and is incorporated herein by reference.

Segment	Products & Services	Product and Brand Names	2017 Net Sales (in millions)
Residential Heating & Cooling	Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies	Lennox, Dave Lennox Signature, Armstrong Air, Ducane, Aire-Flo, Air-Ease, Concord, Magic-Pak, ADP Advanced Distributor Products, iComfort and Lennox PartsPlus	$	2,140.4
Commercial Heating & Cooling	Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products	Lennox, Allied Commercial, Magic-Pak, Raider, Landmark, Prodigy, Strategos, Energence, Lennox VRF and Lennox National Account Services	973.8
Refrigeration	Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems	Heatcraft Worldwide Refrigeration, Bohn, Larkin, Climate Control, Chandler Refrigeration, Kysor/Warren, Friga-Bohn, HK Refrigeration, Hyfra, Kirby and Interlink	725.4
		Total	$	3,839.6

Products and Services

Residential Heating & Cooling

Heating & Cooling Products. We manufacture and market a broad range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America. These products are available in a variety of designs and efficiency levels and at a range of price points, and are intended to provide a complete line of home comfort systems. We believe that by maintaining a broad product line marketed under multiple brand names, we can address different market segments and penetrate multiple distribution channels.

The “Lennox” and “Aire-Flo” brands are sold directly to a network of approximately 7,000 independent installing dealers, making us one of the largest wholesale distributors of residential heating and air conditioning products in North America. The Allied Air Enterprise brands (“Armstrong Air,” “Air-Ease,” “Concord,” “Ducane,” and “Magic-Pak”) include a full line of heating and air conditioning products and are sold through independent distributors in North America.

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We are continuing to grow our network of 230 Lennox PartsPlus stores across the United States and Canada. These stores provide an easy access solution for contractors and independent dealers to obtain universal service and replacement parts, supplies, convenience items, tools, Lennox equipment and OEM parts. 

Our Advanced Distributor Products (“ADP”) operation builds evaporator coils and air handlers under the “ADP Advanced Distributor Products” brand and also builds evaporator coils under the “Lennox” brand and Allied Air Enterprise brands. ADP sells its own ADP branded evaporator coils to over 400 HVAC wholesale distributors across North America.

Commercial Heating & Cooling

North America. In North America, we manufacture and sell unitary heating and cooling equipment used in light commercial applications, such as low-rise office buildings, restaurants, retail centers, churches and schools. Our product offerings for these applications include rooftop units ranging from 2 to 50 tons of cooling capacity and split system/air handler combinations, which range from 1.5 to 20 tons of cooling capacity. These products are distributed primarily through commercial contractors and directly to national account customers. In 2014, we launched Lennox-branded variable refrigerant flow ("VRF") commercial products through Lennox company-owned distribution. We believe the success of our products is attributable to their efficiency, design flexibility, total cost of ownership, low life-cycle cost, ease of service and advanced control technology.

National Account Services. National Account Service ("NAS") provides installation, service and preventive maintenance for commercial HVAC national account customers in the United States and Canada.

Europe. In Europe, we manufacture and sell unitary products, which range from 2 to 70 tons of cooling capacity, and applied systems with up to 200 tons of cooling capacity. Our European products consist of small package units, rooftop units, chillers, air handlers and fan coils that serve medium-rise commercial buildings, shopping malls, other retail and entertainment buildings, institutional applications and other field-engineered applications. We manufacture heating and cooling products in several locations in Europe and market these products through both direct and indirect distribution channels in Europe, Russia, Turkey and the Middle East.

Refrigeration

We manufacture and market equipment for the global commercial refrigeration markets under the Heatcraft Worldwide Refrigeration name.  We sell these products to distributors, installing contractors, engineering design firms, original equipment manufacturers and end-users. Our global manufacturing, distribution, sales and marketing footprint serves customers in over 115 countries worldwide.

North America.  Our commercial refrigeration products for the North American market include condensing units, unit coolers, fluid coolers, air-cooled condensers, air handlers, display cases and refrigeration rack systems.  These products preserve food and other perishables in supermarkets, convenience stores, restaurants, warehouses and distribution centers.  In addition, our products are used to cool a wide variety of industrial processes, including data centers, machine tooling, and other critical cooling applications. We routinely provide application engineering for consulting engineers, contractors, store planners, end customers and others to support the sale of commercial refrigeration products. In addition to providing complete refrigeration systems and display cases, we also provide turnkey installations for our supermarket customers in Mexico.

International.  In international markets, we manufacture and market refrigeration products including condensing units, unit coolers, air-cooled condensers, fluid coolers, compressor racks and industrial process chillers.  We have manufacturing locations in Germany, France, Brazil and China.  In Australia and New Zealand, we are the leading wholesale distribution business serving the HVACR industry with more than 60 locations serving our customers, which also includes the sale of refrigerant. In addition, we own a 50% common stock interest in a joint venture in Mexico that produces unit coolers, air-cooled condensers, condensing units, compressors and compressorized racks of the same design and quality as those manufactured by our U.S. business.  This joint venture product line is complemented with imports from the U.S., which are sold through the joint venture's distribution network.

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Business Strategy

Our business strategy is to sustain and expand our premium market position as well as offer a full spectrum of products to meet our customers' needs. We plan to expand our market position through organic growth and acquisitions while maintaining our focus on cost reductions to drive margin expansion and support growth in target business segments. This strategy is supported by the following five strategic priorities:

Innovative Product and System Solutions. In all of our markets, we are building on our heritage of innovation by developing residential, commercial and refrigeration products that give families and business owners more precise control over more aspects of their indoor environments, while significantly lowering their energy costs.

Manufacturing and Sourcing Excellence. We maintain our commitment to manufacturing and sourcing excellence by driving low-cost assembly through rationalization of our facilities and product lines, maximizing factory efficiencies, and leveraging our purchasing power and sourcing initiatives to expand the use of lower-cost components that meet our high-quality requirements.

Distribution Excellence. By investing resources in expanding our distribution network, we are making products available to our customers in a timely, cost-efficient manner. Additionally, we provide enhanced dealer support through the use of technology, training, advertising and merchandising.

Geographic Expansion. We are growing our business by extending our successful business model and product knowledge to capitalize on additional domestic and international market opportunities.

Expense Reduction. Through our cost management initiatives, we are optimizing operating, manufacturing and administrative costs.

Marketing and Distribution

We utilize multiple channels of distribution and offer different brands at various price points in order to better penetrate the HVACR markets. Our products and services are sold through a combination of direct sales, distributors and company-owned parts and supplies stores. Dedicated sales forces and manufacturers' representatives are deployed across our business segments and brands in a manner designed to maximize our ability to service each distribution channel. To optimize enterprise-wide effectiveness, we have active cross-functional and cross-organizational teams coordinating approaches to pricing, product design, distribution and national account customers.

The North American residential heating and cooling market provides an example of the competitive strength of our marketing and distribution strategy. We use three distinct distribution approaches in this market: the company-owned distribution system, the independent distribution system and direct sales to end-users. We distribute our “Lennox” and “Aire-Flo” brands in a company-owned process directly to independent dealers that install these heating and cooling products. We distribute our “Armstrong Air,” “Ducane,” “Air-Ease,” “Concord,” “Magic-Pak” and “ADP Advanced Distributor Products” brands through the traditional independent distribution process pursuant to which we sell our products to distributors who, in turn, sell the products to installing contractors. We also sell our products directly to customers through our Lennox PartsPlus stores.

Manufacturing

We operate manufacturing facilities worldwide and utilize the best available manufacturing techniques based on the needs of our businesses, including the use of lean manufacturing and principles of Six Sigma, a disciplined, data-driven approach and methodology for improving quality. We use numerous metrics to track and manage annual efficiency improvements. Some facilities are impacted by seasonal production demand, and we manufacture both heating and cooling products in those facilities to balance production and maintain a relatively stable labor force. We may also hire temporary employees to meet changes in demand.

Strategic Sourcing

We rely on various suppliers to furnish the raw materials and components used in the manufacturing of our products. To maximize our buying effectiveness in the marketplace, we have a central strategic sourcing group that consolidates purchases of certain materials, components and indirect items across business segments. The goal of the strategic sourcing group is to develop global strategies for a given component group, concentrate purchases with three to five suppliers and develop long-term relationships with these vendors. By developing these strategies and relationships, we seek to leverage our material needs to reduce costs and improve financial and operating performance. Our strategic sourcing group also works with selected suppliers to reduce costs

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and improve quality and delivery performance by employing lean manufacturing and Six Sigma.

Compressors, motors and controls constitute our most significant component purchases, while steel, copper and aluminum account for the bulk of our raw material purchases. We own equity interests in joint ventures that manufacture compressors. These joint ventures provide us with compressors for our residential and commercial heating and cooling and refrigeration businesses.

Research and Development and Technology

Research and development is a key pillar of our growth strategy.  We operate a global engineering and technology organization that focuses on new technology invention, product development, product quality improvements and process enhancements, including our development of next-generation control systems as well as heating and cooling products that include some of the most efficient products in their respective categories.  We leverage intellectual property and innovative designs across our businesses.  We also leverage product development cycle time improvements and product data management systems to commercialize new products to market more rapidly.  We use advanced, commercially available computer-aided design, computer-aided manufacturing, computational fluid dynamics and other sophisticated design tools to streamline the design and manufacturing processes. We use complex computer simulations and analyses in the conceptual design phase before functional prototypes are created.  We also operate a full line of prototype machine equipment and advanced laboratories certified by applicable industry associations. 

Seasonality

Our sales and related segment profit tend to be seasonally higher in the second and third quarters of the year because summer is the peak season for sales of air conditioning equipment and services in the U.S. and Canada. For the same reason, our working capital needs are generally greater in the first and second quarters, and we generally have higher operating cash inflows in the third and fourth quarters.

Our markets are driven by seasonal weather patterns. HVAC products and services are sold year round, but the volume and mix of product sales and service change significantly by season. The industry generally ships roughly twice as many units during June as it does in December. Overall, cooling equipment represents a substantial portion of the annual HVAC market. Between the heating season (roughly November through February) and cooling season (roughly May through August) are periods commonly referred to as "shoulder seasons" when the distribution channel transitions its buying patterns from one season to the next. These seasonal fluctuations in mix and volume drive our sales and related segment profit, resulting in somewhat higher sales in the second and third quarters due to the higher volume in the cooling season relative to the heating season.

Patents and Trademarks

We hold numerous patents that relate to the design and use of our products. We consider these patents important, but no single patent is material to the overall conduct of our business. We proactively obtain patents to further our strategic intellectual property objectives. We own or license several trademarks and service marks we consider important in the marketing of our products and services, and we protect our marks through national registrations and common law rights.

Competition

Substantially all markets in which we participate are competitive. The most significant competitive factors we face are product reliability, product performance, service and price, with the relative importance of these factors varying among our businesses. The following are some of the companies we view as significant competitors in each of our three business segments, with relevant brand names, when different from the company name, shown in parentheses. The marks below may be the registered or unregistered trademarks or trade names of their respective owners.

• Residential Heating & Cooling - United Technologies Corp. (Carrier, Bryant, Tempstar, Comfortmaker, Heil, Arcoaire, KeepRite, Day & Night); Ingersoll-Rand plc (Trane, American Standard); Paloma Industries, Inc. (Rheem, Ruud); Johnson Controls, Inc. (York); Daikin Industries, Ltd. (Goodman, Amana); and Melrose Industries PLC (Maytag, Westinghouse, Frigidaire, Tappan, Philco, Kelvinator, Gibson, Broan, NuTone).

• Commercial Heating & Cooling - United Technologies Corp. (Carrier, ICP Commercial); Ingersoll-Rand plc (Trane); Paloma Industries, Inc. (Rheem, Ruud); Johnson Controls, Inc. (York); Daikin Industries, Ltd. (Goodman, McQuay); Melrose Industries PLC (Mammoth); and AAON, Inc.

• Refrigeration - Hussmann Corporation; Paloma Industries, Inc. (Rheem Manufacturing Company (Heat Transfer Products

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Group)); Emerson Electric Co. (Copeland); United Technologies Corp. (Carrier); GEA Group (Kuba, Searle, Goedhart); Alfa Laval; Guntner GmbH; and Panasonic Corp. (Sanyo).

Employees

As of December 31, 2017, we employed approximately 11,450 employees. Approximately 5,200 of these employees were salaried and 6,250 were hourly. The number of hourly workers we employ may vary in order to match our labor needs during periods of fluctuating demand. Approximately 3,100 employees, including international locations, are represented by unions. We believe we have good relationships with our employees and with the unions representing our employees. We currently do not anticipate any material adverse consequences resulting from negotiations to renew any collective bargaining agreements.

Environmental Regulation

Our operations are subject to evolving and often increasingly stringent international, federal, state and local laws and regulations concerning the environment. Environmental laws that affect or could affect our domestic operations include, among others, the National Appliance Energy Conservation Act of 1987, as amended (“NAECA”), the Energy Policy Act, the Energy Policy and Conservation Act, the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act, the National Environmental Policy Act, the Toxic Substances Control Act, any regulations promulgated under these acts and various other international, federal, state and local laws and regulations governing environmental matters. We believe we are in substantial compliance with such existing environmental laws and regulations.

Energy Efficiency. The U.S. Department of Energy has numerous active energy conservation rulemakings that impact residential and commercial heating, air conditioning and refrigeration equipment.  We are actively involved in U.S. Department of Energy and Congressional activities related to energy efficiency.  We are prepared to have compliant products in place in advance of the effectiveness of all such regulations being considered by the U.S. Department of Energy.

Refrigerants. The use of hydrochlorofluorocarbons ("HCFCs”) and hydroflurocarbons ("HFCs") as refrigerants for air conditioning and refrigeration equipment is common practice in the HVACR industry and is regulated. We believe we have complied with applicable rules and regulations in various countries governing the use of HCFCs and HFCs.  The U.S. Congress and the Environmental Protection Agency are considering steps to phase down the future use of HFCs in HVACR products and an international accord was adopted in October 2016 which would significantly phase-down the use of HFCs when ratified. We are an active participant in the ongoing international and domestic dialogue on this subject and are well positioned to react in a timely manner to changes in the regulatory landscape.  In addition, we are taking proactive steps to implement responsible use principles and guidelines with respect to limiting refrigerants from escaping into the atmosphere throughout the life span of our HVACR equipment. 

Remediation Activity. In addition to affecting our ongoing operations, applicable environmental laws can impose obligations to remediate hazardous substances at our properties, at properties formerly owned or operated by us and at facilities to which we have sent or send waste for treatment or disposal. We are aware of contamination at some of our facilities; however, based on facts presently known, we do not believe that any future remediation costs at such facilities will be material to our results of operations. For more information, see Note 10 in the Notes to our Consolidated Financial Statements.

In the past, we have received notices that we are a potentially responsible party along with other potentially responsible parties in Superfund proceedings under the Comprehensive Environmental Response, Compensation and Liability Act for cleanup of hazardous substances at certain sites to which the potentially responsible parties are alleged to have sent waste. Based on the facts presently known, we do not believe environmental cleanup costs associated with any Superfund sites about which we have received notice that we are a potentially responsible party will be material.

European WEEE and RoHS Compliance. In the European marketplace, electrical and electronic equipment is required to comply with the Directive on Waste Electrical and Electronic Equipment (“WEEE”) and the Directive on Restriction of Use of Certain Hazardous Substances (“RoHS”). WEEE aims to prevent waste by encouraging reuse and recycling and RoHS restricts the use of six hazardous substances in electrical and electronic products. All HVACR products and certain components of such products “put on the market” in the EU (whether or not manufactured in the EU) are potentially subject to WEEE and RoHS. Because all HVACR manufacturers selling within or from the EU are subject to the standards promulgated under WEEE and RoHS, we believe that neither WEEE nor RoHS uniquely impacts us as compared to such other manufacturers. Similar directives are being introduced in other parts of the world, including the U.S. For example, California, China and Japan have all adopted standards possessing similar intent as RoHS. We are actively monitoring the development of such directives and believe we are well positioned to comply with such directives in the required time frames.

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Available Information

Our web site address is www.lennoxinternational.com. We make available, free of charge through our web site, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon as reasonably possible after such material is electronically filed with, or furnished to, the Securities and Exchange Commission. The information on our web site is not a part of, or incorporated by reference into, this annual report on Form 10-K.

You can also read and copy any document that we file, including this Annual Report on Form 10-K, at the Securities and Exchange Commission's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Call the Securities and Exchange Commission at 1-800-SEC-0330 for information on the operation of the Public Reference Room. In addition, the Securities and Exchange Commission maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers, including Lennox International, that file electronically with the Securities and Exchange Commission.

Executive Officers of the Company

Our executive officers, their present positions and their ages are as follows as of February 4, 2018:

Name	Age	Position
Todd M. Bluedorn	54	Chairman of the Board and Chief Executive Officer
Joseph W. Reitmeier	53	Executive Vice President, Chief Financial Officer
Douglas L. Young	55	Executive Vice President, President and Chief Operating Officer, Residential Heating & Cooling
Terry L. Johnston	60	Executive Vice President, President and Chief Operating Officer, North America Commercial Heating & Cooling
Gary S Bedard	53	Executive Vice President, President and Chief Operating Officer, Worldwide Refrigeration
Prakash Bedapudi	51	Executive Vice President, Chief Technology Officer
Daniel M. Sessa	53	Executive Vice President, Chief Human Resources Officer
John D. Torres	59	Executive Vice President, Chief Legal Officer and Secretary
Chris A Kosel	50	Vice President, Chief Accounting Officer and Controller

Todd M. Bluedorn was appointed Chief Executive Officer and was elected to our Board of Directors in April 2007. Mr. Bluedorn was elected Chairman of the Board of Directors in May 2012. Prior to joining Lennox International, Mr. Bluedorn served in numerous senior management positions for United Technologies since 1995, including President, Americas - Otis Elevator Company; President, North America - Commercial Heating, Ventilation and Air Conditioning for Carrier Corporation; and President, Hamilton Sundstrand Industrial. He began his professional career with McKinsey & Company in 1992. A graduate of the United States Military Academy at West Point with a bachelor of science in electrical engineering, Mr. Bluedorn served in the United States Army as a combat engineer officer and United States Army Ranger from 1985 to 1990. He received his MBA from Harvard University School of Business in 1992. Mr. Bluedorn also serves on the Board of Directors of Eaton Corporation, a diversified industrial manufacturer, on the Board of Directors of Texas Instruments Incorporated, a global designer and manufacturer of semiconductors, and on the Board of Trustees of Washington University in St. Louis. Mr. Bluedorn possesses considerable industry knowledge and executive leadership experience. Mr. Bluedorn’s extensive knowledge of our Company and its business, combined with his drive for excellence and innovation, position him well to serve as CEO and a director of our Company.

Joseph W. Reitmeier was appointed Executive Vice President, Chief Financial Officer in July 2012. He had served as Vice President of Finance for the LII’s Commercial Heating & Cooling segment since 2007 and as Director of Internal Audit from 2005 to 2007. Before joining the company, he held financial leadership roles at Cummins Inc. and PolyOne Corporation. He is a

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director of Watts Water Technologies, Inc., a global provider of plumbing, heating and water quality solutions for residential, industrial, municipal and commercial settings. Mr. Reitmeier holds a bachelor’s degree in accounting from the University of Akron and an MBA from Case Western Reserve University. He is also a Certified Public Accountant.

Douglas L. Young was appointed Executive Vice President, President and Chief Operating Officer of LII's Residential Heating & Cooling segment in October 2006. Mr. Young had previously served as Vice President and General Manager of North American Residential Products since 2003 and as Vice President and General Manager of Lennox North American Residential Sales, Marketing, and Distribution from 1999 to 2003. Prior to his career with LII, Mr. Young was employed in the Appliances division of GE, where he held various management positions before serving as General Manager of Marketing for GE Appliance division's retail group from 1997 to 1999 and as General Manager of Strategic Initiatives in 1999. He holds a BSBA from Creighton University and a master’s of science in management from Purdue University. Mr. Young serves on the Board of Directors of Beacon Roofing Supply, a general building material distributor and is on the Board of Directors of AHRI (the Air-Conditioning, Heating, and Refrigeration Institute), the trade association for the HVACR and water heating equipment industries.

Terry L. Johnston was appointed Executive Vice President, President and Chief Operating Officer of LII's North America Commercial Heating & Cooling business in January 2013. Since May 2007, he had served as Vice President and General Manager, North America Commercial. He had previously served as Vice President, Marketing and Product Management, LII Worldwide Heating & Cooling and as Vice President, Marketing and Product Management for Lennox Industries. Before joining LII in 2001, Mr. Johnston worked for 20 years at GE in a variety of product management and sales and marketing roles. He is on the Board of Directors of CSW Industrials, Inc., a diversified industrial growth company with businesses in industrial products, sealants and adhesives and specialty chemicals segments. He holds a bachelor of science in marketing from the University of Arkansas.

Gary S. Bedard was appointed Executive Vice President, President and Chief Operating Officer of LII's Worldwide Refrigeration business in October 2017. Since 2005, Mr. Bedard served as Vice President and General Manager, LII Residential Heating and Cooling. He has also held the positions of Vice President, Residential Product Management, LII Worldwide Heating and Cooling, Director of Brand and Product Management, and District Manager for Lennox Industries’ New York District. Prior to joining LII in 1998, Mr. Bedard spent eight years at York International in product management and sales leadership roles for commercial applied and unitary systems as well as residential systems. Mr. Bedard has a bachelor’s degree in engineering management from the United States Military Academy at West Point. 

Prakash Bedapudi was appointed Executive Vice President, Chief Technology Officer in July 2008. He had previously served as Vice President, Global Engineering and Program Management for Trane Inc. Commercial Systems from 2006 through 2008, and as Vice President, Engineering and Technology for Trane's Residential Systems division from 2003 through 2006. Prior to his career at Trane, Mr. Bedapudi served in senior engineering leadership positions for GE Transportation Systems, a division of General Electric Company, and for Cummins Engine Company. He holds a bachelor of science in mechanical/automotive engineering from Karnataka University, India and a master's of science in mechanical/aeronautical engineering from the University of Cincinnati.

Daniel M. Sessa was appointed Executive Vice President, Chief Human Resources Officer in June 2007. He had previously served in numerous senior human resources and legal leadership positions for United Technologies Corporation since 1996, including Vice President, Human Resources for Otis Elevator Company - Americas from 2005 to 2007, Director, Employee Benefits and Human Resources Systems for United Technologies Corporation from 2004 to 2005, and Director, Human Resources for Pratt & Whitney from 2002 to 2004. He holds a bachelor of arts in law and society from the State University of New York at Binghamton and a juris doctor from the Hofstra University School of Law.

John D. Torres was appointed Executive Vice President , Chief Legal Officer and Secretary in December 2008. He had previously served as Senior Vice President, General Counsel and Secretary for Freescale Semiconductor, a semiconductor manufacturer that was originally part of Motorola. He joined Motorola's legal department as Senior Counsel in 1996 and was appointed Vice President, General Counsel of the company's semiconductor business in 2001. Prior to joining Motorola, Mr. Torres served 13 years in private practice in Phoenix, specializing in commercial law. He holds a bachelor of arts from Notre Dame and a juris doctor from the University of Chicago.

Chris A. Kosel was appointed Vice President, Chief Accounting Officer and Controller in May 2017. He had previously served as Vice President, Business Analysis and Planning for the Company since 2016. He also had served as Vice President, Finance and Controller / Director, Finance for the Company’s North America Commercial Business from 2015 - 2016 and Director, Financial Planning and Analysis for the Company’s Residential Business Unit from 2014 to 2015. Prior to 2014 he had served as Director, Finance for the Company’s Parts Plus Business and Director of the Company’s Financial Shared Services function. Prior to joining Lennox, he worked for Ernst & Young. He holds a bachelor's degree in accounting from Texas A&M University. He is also a Certified Public Accountant.

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Item 1A. Risk Factors

Forward-Looking Statements

This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act that are based on information currently available to management as well as management's assumptions and beliefs as of the date hereof. All statements, other than statements of historical fact, included in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the words “may,” “will,” “should,” “plan,” “predict,” “anticipate,” “believe,” “intend,” “estimate” and “expect” and similar expressions. Statements that are not historical should also be considered forward-looking statements. Such statements reflect our current views with respect to future events. Readers are cautioned not to place undue reliance on these forward-looking statements. We believe these statements are based on reasonable assumptions; however, such statements are inherently subject to risks and uncertainties, including but not limited to the specific uncertainties discussed elsewhere in this Annual Report on Form 10-K and the risk factors set forth in Item 1A. Risk Factors in this Annual Report on Form 10-K. These risks and uncertainties 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 unless required by law.

Risk Factors

The following risk factors and other information included in this Annual Report on Form 10-K should be carefully considered. We believe these are the principal material risks currently facing our business; however, additional risks and uncertainties not presently known to us or that we presently deem less significant may also impair our business operations. If any of the following risks or those disclosed in our other SEC filings actually occurs, our business, financial condition or results of operations could be materially adversely affected.

We May Not be Able to Compete Favorably in the Competitive HVACR Business.

Substantially all of the markets in which we operate are competitive. The most significant competitive factors we face are product reliability, product performance, reputation of our company and brands, service and price, with the relative importance of these factors varying among our product lines. Other factors that affect competition in the HVACR market include the development and application of new technologies, an increasing emphasis on the development of more efficient HVACR products and new product introductions. We may not be able to adapt to market changes as quickly or effectively as our current and future competitors. Also, the establishment of manufacturing operations in low-cost countries could provide cost advantages to existing and emerging competitors. Some of our competitors may have greater financial resources than we have, allowing them to invest in more extensive research and development and/or marketing activity and making them better able to withstand adverse HVACR market conditions. Current and future competitive pressures may cause us to reduce our prices or lose market share, or could negatively affect our cash flow, all of which could have an adverse effect on our results of operations.

Our Financial Performance Is Affected by the Conditions of the U.S. Construction Industry.

Our business is affected by the performance of the U.S. construction industry. Our sales in the residential and commercial new construction markets correlate to the number of new homes and buildings that are built, which in turn is influenced by cyclical factors such as interest rates, inflation, availability of financing, consumer spending habits and confidence, employment rates and other macroeconomic factors over which we have no control. Although the industry has improved for the last several years, our sales may not continue to improve or such improvement may be limited or lower than expected.

Cooler than Normal Summers and Warmer than Normal Winters May Depress Our Sales.

Demand for our products and for our services is seasonal and strongly affected by the weather. Cooler than normal summers depress our sales of replacement air conditioning and refrigeration products and services. Similarly, warmer than normal winters have the same effect on our heating products and services.

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Changes in Legislation or Government Regulations or Policies Can Have a Significant Impact on Our Results of Operations.

The sales, gross margins and profitability for each of our segments could be directly impacted by changes in legislation, trade agreements or government regulations, such as the changes to taxes, tariffs and trade agreements. Changes in environmental and energy efficiency standards and regulations, such as the recent amendments to the Montreal Protocol to phase down the use of hydrofluorocarbons, may particularly have a significant impact on the types of products that we are allowed to develop and sell, and the types of products that are developed and sold by our competitors. Our inability or delay in developing or marketing products that match customer demand and that meet applicable efficiency and environmental standards may negatively impact our results. The demand for our products and services could also be affected by the size and availability of tax incentives for purchasers of our products and services. Future legislation or regulations, including environmental matters, product certification, product liability, tariffs, duties, taxes, tax incentives and other matters, may impact the results of each of our operating segments and our consolidated results.

Global General Business, Economic and Market Conditions Could Adversely Affect Our Financial Performance and Limit our Access to the Capital Markets.

Future disruptions in U.S. or global financial and credit markets or increases in the costs of capital might have an adverse impact on our business.  The tightening, unavailability or increased costs of credit adversely affects the ability of our customers to obtain financing for significant purchases and operations, which could result in a decrease in sales of our products and services and may impact the ability of our customers to make payments to us. Similarly, tightening of credit may adversely affect our supplier base and increase the potential for one or more of our suppliers to experience financial distress or bankruptcy. Our business may also be adversely affected by future decreases in the general level of economic activity and increases in borrowing costs, which may cause our customers to cancel, decrease or delay their purchases of our products and services. 

If financial markets were to deteriorate, or costs of capital were to increase significantly due to a lowering of our credit ratings, prevailing industry conditions, the volatility of the capital markets or other factors, we may be unable to obtain new financing on acceptable terms, or at all. A deterioration in our financial performance could also limit our future ability to access amounts currently available under our domestic credit facility.  In addition, availability under our asset securitization agreement may be adversely impacted by credit quality and performance of our customer accounts receivable. The availability under our asset securitization agreement is based on the amount of accounts receivable that meet the eligibility criteria of the asset securitization agreement.  If receivable losses increase or credit quality deteriorates, the amount of eligible receivables could decline and, in turn, lower the availability under the asset securitization.

We cannot predict the likelihood, duration or severity of any future disruption in financial markets or any adverse economic conditions in the U.S. and other countries.

Our International Operations Subject Us to Risks Including Foreign Currency Fluctuations, Regulations and Other Risks.

We earn revenue, pay expenses, own assets and incur liabilities in countries using currencies other than the U.S. dollar. Our consolidated financial statements are presented in U.S. dollars and we translate revenue, income, expenses, assets and liabilities into U.S. dollars at exchange rates in effect during or at the end of each reporting period. Therefore, increases or decreases in the value of the U.S. dollar relative to other currencies may affect our net operating revenues, operating income and the value of balance sheet items denominated in foreign currencies. Because of the geographic diversity of our operations, weaknesses in some currencies might be offset by strengths in others over time. However, we cannot assure that fluctuations in foreign currency exchange rates, particularly the strengthening of the U.S. dollar against major currencies, would not materially affect our financial results.

In addition to the currency exchange risks inherent in operating in foreign countries, our international sales and operations, including purchases of raw materials from international suppliers, are subject to risks associated with local government laws, regulations and policies (including those related to tariffs and trade barriers, investments, taxation, exchange controls, employment regulations and changes in laws and regulations). Our international sales and operations are also sensitive to changes in foreign national priorities, including government budgets, as well as to geopolitical and economic instability. International transactions may involve increased financial and legal risks due to differing legal systems and customs in foreign countries, as well as compliance with anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. The ability to manage these risks could be difficult and may limit our operations and make the manufacture and sale of our products internationally more difficult, which could negatively affect our business and results of operations.

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Conflicts, wars, natural disasters or terrorist acts could also cause significant damage or disruption to our operations, employees, facilities, systems, suppliers, distributors, resellers or customers in the United States and internationally for extended periods of time and could also affect demand for our products.

Net sales outside of the United States comprised 18.5% of our net sales in 2017.

Our Ability to Meet Customer Demand may be Limited by Our Single-Location Production Facilities, Reliance on Certain Key Suppliers and Unanticipated Significant Shifts in Customer Demand.

We manufacture many of our products at single-location production facilities, and we rely on certain suppliers who also may concentrate production in single locations. Any significant interruptions in production at one or more of our facilities, or at a facility of one of our suppliers, could negatively impact our ability to deliver our products to our customers. Further, even with all of our facilities running at full production, we could potentially be unable to fully meet demand during an unanticipated period of exceptionally high demand. Our inability to meet our customers' demand for our products could have a material adverse impact on our business, financial condition and results of operations.

Price Volatility for Commodities and Components We Purchase or Significant Supply Interruptions Could Have an Adverse Effect on Our Cash Flow or Results of Operations.

We depend on raw materials, such as steel, copper and aluminum, and components purchased from third parties to manufacture our products. We generally concentrate purchases for a given raw material or component with a small number of suppliers. If a supplier is unable or unwilling to meet our supply requirements, including suffering any disruptions at its facilities or in its supply chain, we could experience supply interruptions or cost increases, either of which could have an adverse effect on our results of operations. Similarly, suppliers of components that we purchase for use in our products may be affected by rising material costs and pass these increased costs on to us. Although we regularly pre-purchase a portion of our raw materials at fixed prices each year to hedge against price increases, an increase in raw materials prices not covered by our fixed price arrangements could significantly increase our cost of goods sold and negatively impact our margins if we are unable to effectively pass such price increases on to our customers. Alternatively, if we increase our prices in response to increases in the prices or quantities of raw materials or components or if we encounter significant supply interruptions, our competitive position could be adversely affected, which may result in depressed sales and profitability.

In addition, we use derivatives to hedge price risk associated with forecasted purchases of certain raw materials.  Our hedged prices could result in paying higher or lower prices for commodities as compared to the market prices for those commodities when purchased. 

We May Incur Substantial Costs as a Result of Claims Which Could Have an Adverse Effect on Our Results of Operations.

The development, manufacture, sale and use of our products involve warranty, intellectual property infringement, product liability claim and other risks. In some cases, we may incur liability claims for the installation and service of our products. Our product liability insurance policies have limits that, if exceeded, may result in substantial costs that would have an adverse effect on our results of operations. In addition, warranty claims are not covered by our product liability insurance and certain product liability claims may also not be covered by our product liability insurance.

For some of our HVAC products, we provide warranty terms ranging from one to 20 years to customers for certain components such as compressors or heat exchangers. For certain limited products, we provided lifetime warranties for heat exchangers. Warranties of such extended lengths pose a risk to us as actual future costs may exceed our current estimates of those costs. Warranty expense is recorded on the date that revenue is recognized and requires significant assumptions about what costs will be incurred in the future. We may be required to record material adjustments to accruals and expense in the future if actual costs for these warranties are different from our assumptions.

If We Cannot Successfully Execute our Business Strategy, Our Results of Operations Could be Adversely Impacted

Our future success depends on our continued investment in research and new product development as well as our ability to commercialize new HVACR technological advances in domestic and global markets. If we are unable to continue to timely and successfully develop and market new products, achieve technological advances or extend our business model and technological advances into international markets, our business and results of operations could be adversely impacted.

We are engaged in various manufacturing rationalization actions designed to achieve our strategic priorities of manufacturing sourcing and distribution excellence and of lowering our cost structure. For example, we are continuing to reorganize our North

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American distribution network in order to better serve our customers' needs by deploying parts and equipment inventory closer to them and are expanding our sourcing activities outside of the U.S. We also continue to rationalize and reorganize various support and administrative functions in order to reduce ongoing selling and administrative expenses. If we cannot successfully implement such distribution and restructuring strategies or other cost savings plans, we may not achieve our expected cost savings in the time anticipated, or at all. In such case, our results of operations and profitability may be negatively impacted, making us less competitive and potentially causing us to lose market share.

We May Not be Able to Successfully Integrate and Operate Businesses that We May Acquire nor Realize the Anticipated Benefits of Strategic Relationships We May Form.

From time to time, we may seek to complement or expand our businesses through strategic acquisitions, joint ventures and strategic relationships. The success of these transactions will depend, in part, on our ability to timely identify those relationships, negotiate and close the transactions and then integrate, manage and operate those businesses profitably. If we are unable to successfully do those things, we may not realize the anticipated benefits associated with such transactions, which could adversely affect our business and results of operations.

Because a Significant Percentage of Our Workforce is Unionized in Certain Manufacturing Facilities, We Face Risks of Work Stoppages and Other Labor Relations Problems.

As of February 6, 2018, approximately 27% of our workforce, including international locations, was unionized. The results of future negotiations with these unions and the effects of any production interruptions or labor stoppages could have an adverse effect on our results of operations.

We are Subject to Litigation and Tax, Environmental and Other Regulations that Could Have an Adverse Effect on Our Results of Operations.

We are involved in various claims and lawsuits incidental to our business, including those involving product liability, labor relations, alleged exposure to asbestos-containing materials and environmental matters, some of which claim significant damages. Estimates related to our claims and lawsuits, including estimates for asbestos-related claims and related insurance recoveries, involve numerous uncertainties. Given the inherent uncertainty of litigation and estimates, we cannot be certain that existing claims or litigation or any future adverse legal developments will not have a material adverse impact on our financial condition. In addition, we are subject to extensive and changing federal, state and local laws and regulations designed to protect the environment. These laws and regulations could impose liability for remediation costs and civil or criminal penalties in cases of non-compliance. Compliance with environmental laws increases our costs of doing business. Because these laws are subject to frequent change, we are unable to predict the future costs resulting from environmental compliance.

Any Future Determination that a Significant Impairment of the Value of Our Goodwill Intangible Asset Occurred Could Have a Material Adverse Effect on Our Results of Operations.

As of December 31, 2017, we had goodwill of $200.5 million on our Consolidated Balance Sheet. Any future determination that an impairment of the value of goodwill occurred would require a write-down of the impaired portion of goodwill to fair value and would reduce our assets and stockholders' equity and could have a material adverse effect on our results of operations.

Volatility in Capital Markets Could Necessitate Increased Cash Contributions by Us to Our Pension Plans to Maintain Required Levels of Funding.

Volatility in the capital markets may have a significant impact on the funding status of our defined benefit pension plans. If the performance of the capital markets depresses the value of our defined benefit pension plan assets or increases the liabilities, we would be required to make additional contributions to the pension plans. The amount of contributions we may be required to make to our pension plans in the future is uncertain and could be significant, which may have a material impact on our results of operations.

Security Breaches and Other Disruptions or Misuse of Information Systems We Rely Upon Could Affect Our Ability to Conduct Our Business Effectively.

Our information systems and those of our business partners are important to our business activities. We also outsource various information systems, including data management, to third party service providers. Despite our security measures as well as those of our business partners and third-party service providers, the information systems we rely upon may be vulnerable to interruption or damage from computer hackings, computer viruses, worms or other destructive or disruptive software, process breakdowns,

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denial of service attacks, malicious social engineering or other malicious activities, or any combination thereof. These information systems have been, and will likely continue to be, subject to attack. While we have implemented controls and taken other preventative actions to strengthen these systems against future attacks, we can give no assurance that these controls and preventative actions will be effective. Any breach of data security could result in a disruption of our services or improper disclosure of personal data or confidential information, which could harm our reputation, require us to expend resources to remedy such a security breach or defend against further attacks or subject us to liability under laws that protect personal data, resulting in increased operating costs or loss of revenue.

Our Results of Operations May Suffer if We Cannot Continue to License or Enforce the Intellectual Property Rights on Which Our Businesses Depend or if Third Parties Assert That We Violate Their Intellectual Property Rights.

We rely upon patent, copyright, trademark and trade secret laws and agreements to establish and maintain intellectual property rights in the products we sell. Our intellectual property rights could be challenged, invalidated, infringed, circumvented, or be insufficient to permit us to take advantage of current market trends or to otherwise provide competitive advantages. Further, the laws of certain countries do not protect proprietary rights to the same extent as the laws of the United States.

Third parties may also claim that we are infringing upon their intellectual property rights. If we do not license infringed intellectual property or if we are required to substitute similar technology from another source, our operations could be adversely affected. Even if we believe that intellectual property claims are without merit, they can be time consuming, require significant resources and be costly to defend. Claims of intellectual property infringement also might require us to redesign affected products, pay costly damage awards, or face injunction prohibiting us from manufacturing, importing, marketing or selling certain of our products. Even if we have agreements to indemnify us, indemnifying parties may be unable or unwilling to do so.

Item 1B. Unresolved Staff Comments

None.

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Item 2. Properties

The following chart lists our principal domestic and international manufacturing, distribution and office facilities as of December 31, 2017 and indicates the business segment that uses such facilities, the approximate size of such facilities and whether such facilities are owned or leased. Also included in the chart are large warehouses that hold significant inventory balances.

Location	Segment	Type or Use of Facility	Approx. Sq. Ft. (In thousands)	Owned/Leased
Marshalltown, IA	Residential Heating & Cooling	Manufacturing & Distribution	1,300	Owned & Leased
Orangeburg, SC	Residential Heating & Cooling	Manufacturing & Distribution	750	Owned & Leased
Saltillo, Mexico	Residential Heating & Cooling	Manufacturing & Distribution	638	Owned
Grenada, MS	Residential Heating & Cooling	Manufacturing & Distribution	395	Leased
Romeoville, IL	Residential Heating & Cooling	Distribution	312	Leased
Columbus, OH	Residential Heating & Cooling	Distribution	279	Leased
McDonough, GA	Residential Heating & Cooling	Distribution	254	Leased
Concord, NC	Residential Heating & Cooling	Distribution	123	Leased
Harahan, LA	Residential Heating & Cooling	Distribution	83	Leased
Denver, CO	Residential Heating & Cooling	Distribution	50	Leased
Eastvale, CA	Residential & Commercial Heating & Cooling	Distribution	377	Leased
Carrollton, TX	Residential & Commercial Heating & Cooling	Distribution	252	Leased
Brampton, Canada	Residential & Commercial Heating & Cooling	Distribution	251	Leased
Houston, TX	Residential & Commercial Heating & Cooling	Distribution	241	Leased
Orlando, FL	Residential & Commercial Heating & Cooling	Distribution	173	Leased
Middletown, PA	Residential & Commercial Heating & Cooling	Distribution	166	Leased
Lenexa, KS	Residential & Commercial Heating & Cooling	Distribution	147	Leased
East Fife, WA	Residential & Commercial Heating & Cooling	Distribution	112	Leased
Calgary, Canada	Residential & Commercial Heating & Cooling	Distribution	110	Leased
Stuttgart, AR	Commercial Heating & Cooling	Manufacturing	750	Owned
Longvic, France	Commercial Heating & Cooling	Manufacturing	142	Owned
Longvic, France	Commercial Heating & Cooling	Distribution	133	Owned
Burgos, Spain	Commercial Heating & Cooling & Refrigeration	Manufacturing	140	Owned
Mions, France	Commercial Heating & Cooling & Refrigeration	Research & Development	129	Owned
Genas, France	Commercial Heating & Cooling & Refrigeration	Manufacturing, Distribution & Offices	111	Owned
Tifton, GA	Refrigeration	Manufacturing & Distribution	570	Owned & Leased
Columbus, GA	Refrigeration	Manufacturing, Warehousing & Offices	523	Owned & Leased
Milperra, Australia	Refrigeration	Distribution & Business Unit Headquarters	416	Owned
Stone Mountain, GA	Refrigeration	Manufacturing & Business Unit Headquarters	139	Owned
Midland, GA	Refrigeration	Warehousing & Offices	138	Leased
Mt. Wellington, New Zealand	Refrigeration	Distribution & Offices	110	Owned
San Jose dos Campos, Brazil	Refrigeration	Manufacturing, Warehousing & Offices	98	Owned
Wuxi, China	Refrigeration	Manufacturing	89	Owned & Leased
Krunkel, Germany	Refrigeration	Manufacturing, Distribution & Offices	43	Owned
Richardson, TX	Corporate and other	Corporate Headquarters	356	Owned & Leased
Carrollton, TX	Corporate and other	Research & Development	294	Owned

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In addition to the properties described above, we lease numerous facilities in the U.S. and worldwide for use as sales offices, service offices and district and regional warehouses. We routinely evaluate our facilities to ensure adequate capacity, effective cost structure, and consistency with our business strategy. We believe that our properties are in good condition, suitable and adequate for their present requirements and that our principal manufacturing plants are generally adequate to meet our production needs.

Item 3. 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. For more information, see Note 10 in the Notes to the Consolidated Financial Statements.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Price for Common Stock

Our common stock is listed for trading on the New York Stock Exchange under the symbol “LII.” The high and low sales prices for our common stock for each quarterly period during 2017 and 2016 were as follows:

	Price Range per Common Share
	2017				2016
	High		Low		High		Low
First Quarter	$	172.96	$	147.54	$	136.32	$	105.65
Second Quarter	192.58		161.11		143.19		131.90
Third Quarter	187.49		160.18		164.02		141.90
Fourth Quarter	213.78		177.68		164.57		140.97

Dividends

During 2017 and 2016, we declared quarterly cash dividends as set forth below:

	Dividends per Common Share
	2017		2016
First Quarter	$	0.43	$	0.36
Second Quarter	0.51		0.43
Third Quarter	0.51		0.43
Fourth Quarter	0.51		0.43
Fiscal Year	$	1.96	$	1.65

The amount and timing of dividend payments are determined by our Board of Directors and subject to certain restrictions under our domestic revolving credit facility.

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Holders of Common Stock

As of the close of business on February 9, 2018, approximately 650 holders of record held our common stock.

Comparison of Total Stockholder Return

The following graph compares the cumulative total returns of LII's common stock with the cumulative total returns of the Standards & Poor's Midcap 400 Index, a broad index of mid-size U.S. companies of which the Company is a part, and with a peer group of U.S. industrial manufacturing and service companies in the HVACR businesses. The graph assumes that $100 was invested on December 31, 2012, with dividends reinvested. Our peer group includes AAON, Inc., Ingersoll-Rand plc, Comfort Systems USA, Inc., United Technologies Corporation, Johnson Controls Inc., and Watsco, Inc. Peer group returns are weighted by market capitalization.

This performance graph and other information furnished under this Comparison of Total Stockholder Return section shall not be deemed to be “soliciting material” or to be “filed” with the Securities and Exchange Commission or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act.

Our Purchases of LII Equity Securities

Our Board of Directors has authorized a total of $2 billion towards the repurchase of shares of our common stock (collectively referred to as the "Share Repurchase Plans"), including a $550 million share repurchase authorization in 2016. The Share Repurchase Plans authorize open market repurchase transactions and do not have a stated expiration date. As of December 31, 2017, $396 million of shares may yet be repurchased under the Share Repurchase Plans.

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In the fourth quarter of 2017, we purchased shares of our common stock as follows:

	Total Shares Purchased (1)	Average Price Paid per Share (including fees)		Shares Purchased As Part of Publicly Announced Plans	Approximate Dollar Value of Shares that may yet be Purchased Under the Plans (in millions) (3)
October 1 through October 31 (2)	7,426	$	193.24	—	396.0
November 1 through November 30	73,837	172.61		68,381	396.0
December 1 through December 31	36,626	206.49		—	396.0
	117,889			68,381

⁽¹⁾ Includes the surrender to LII of 49,508 shares of common stock to satisfy employee tax-withholding obligations in connection with the exercise of vested stock appreciation rights and the vesting of restricted stock units.

⁽²⁾ Includes final settlement of shares repurchased in Accelerated Share Repurchase Plan (ASR) executed in the third quarter of 2017.

⁽³⁾ After a $75 million payment for Accelerated Share Repurchase Plan (ASR) executed in February 2017, $100 million payment for an ASR executed in April 2017 and $75 million payment for an ASR executed in July 2017. Final settlement of the February ASR occurred in the second quarter, final settlement for the April ASR occurred in the third quarter and the final settlement of the July ASR occurred in the fourth quarter. The February, April and July ASRs were effected pursuant to a previously announced repurchase plan.

Item 6. Selected Financial Data

The following table presents selected financial data for each of the five years ended December 31, 2017 to 2013 (in millions, except per share data):

	For the Years Ended December 31,
	2017		2016		2015		2014		2013
Statements of Operations Data:
Net Sales	$	3,839.6	$	3,641.6	$	3,467.4	$	3,367.4	$	3,199.1
Operating Income	494.5		429.4		305.4		334.7		289.0
Income From Continuing Operations	307.1		278.6		187.2		208.1		179.9
Net Income	305.7		277.8		186.6		205.8		171.8
Basic Earnings Per Share From Continuing Operations	7.28		6.41		4.17		4.35		3.61
Diluted Earnings Per Share From Continuing Operations	7.17		6.34		4.11		4.28		3.55
Cash Dividends Declared Per Share	1.96		1.65		1.38		1.14		0.92
Other Data:
Capital Expenditures	$	98.3	$	84.3	$	69.9	$	88.4	$	78.3
Research and Development Expenses	73.6		64.6		62.3		60.7		53.7
Balance Sheet Data at Period End:
Total Assets	$	1,891.5	$	1,760.3	$	1,677.4	$	1,764.3	$	1,626.7
Total Debt	1,004.0		868.2		741.1		925.6		400.4
Stockholders' Equity	50.1		38.0		101.6		9.0		485.7

Information in the table above is not necessarily indicative of results of future operations. To understand the factors that may affect comparability, the financial data should be read in conjunction with Item 7, "Management's Discussion and Analysis of

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Financial Condition and Results of Operations," and the Consolidated Financial Statements and the related Notes to the Consolidated Financial Statements in Item 8, "Financial Statements and Supplementary Data," of this Form 10-K.

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the other sections of this report, including the consolidated financial statements and related notes contained in Item 8 of this Annual Report on Form 10-K.

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 more detailed information regarding our reportable segments, see Note 18 in the Notes to the Consolidated Financial Statements.

We sell our products and services through a combination of direct sales, distributors and company-owned 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 costs of warranty expense 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 has impacted us and the HVACR industry in general. We seek to mitigate the impact of commodity price volatility through a combination of pricing actions, vendor 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 Highlights

• Net sales increased $198 million, or 5.4%, to $3,840 million in 2017 from $3,642 million in 2016.

• Operating income in 2017 was $495 million compared to $429 million in 2016. The increase was primarily due to increased sales, sourcing and engineering-led cost reductions, and a reduction in pension settlement costs partially offset by an increase in commodities in 2017.

• Net income in 2017 increased to $306 million from $278 million in 2016.

• Diluted earnings per share from continuing operations were $7.17 per share in 2017 compared to $6.34 per share in 2016.

• We generated $325 million of cash flow from operating activities in 2017 compared to $374 million in 2016. The decrease was primarily due to an increase in working capital, partially offset by a reduction in pension contributions and an increase in net income.

• In 2017, we returned $80 million to shareholders through dividend payments and we used $250.0 million to purchase 1.5 million shares of stock under our share repurchase plans.

Overview of Results

The Residential Heating & Cooling segment led our overall financial performance in 2017, with a 7.0% increase in net sales and a $25 million increase in segment profit compared to 2016. This segment's results benefited from market growth in the replacement and new construction markets and favorable foreign currency exchange rates. Our Commercial Heating & Cooling segment also performed well in 2017 with a 6.1% increase in net sales and a $8 million increase in segment profit compared to 2016. This segment's results benefited from market growth in North America. Sales in our Refrigeration segment were up slightly and segment profit increased $4 million compared to 2016. This segment's profit benefited from sourcing and engineering-led cost reductions partially offset by lower factory productivity.

On a consolidated basis, our gross profit margins decreased to 29.3% in 2017 due primarily to unfavorable commodities, factory inefficiencies, and continued investment in distribution expansion. These declines were partially offset by favorable price and mix and sourcing and engineering-led cost reductions across our business.

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Results of Operations

The following table provides a summary of our financial results, including information presented as a percentage of net sales (dollars in millions):

	For the Years Ended December 31,
	2017					2016					2015
	Dollars			Percent		Dollars			Percent		Dollars			Percent
Net sales	$	3,839.6		100.0	%	$	3,641.6		100.0	%	$	3,467.4		100.0	%
Cost of goods sold	2,714.4			70.7	%	2,565.1			70.4	%	2,520.0			72.7	%
Gross profit	1,125.2			29.3	%	1,076.5			29.6	%	947.4			27.3	%
Selling, general and administrative expenses	637.7			16.6	%	621.0			17.1	%	580.5			16.7	%
Losses and other expenses, net	8.2			0.2	%	11.3			0.3	%	21.7			0.6	%
Restructuring charges	3.2			0.1	%	1.8			—	%	3.2			0.1	%
Goodwill impairment	—			—	%	—			—	%	5.5			0.2	%
Impairment of assets	—			—	%	—			—	%	44.5			1.3	%
Pension settlement	—			—	%	31.4			0.9	%	—			—	%
Income from equity method investments	(18.4		)	(0.5	)%	(18.4		)	(0.5	)%	(13.4		)	(0.4	)%
Operating income	$	494.5		12.9	%	$	429.4		11.8	%	$	305.4		8.8	%
Loss from discontinued operations	(1.4		)	—	%	(0.8		)	—	%	(0.6		)	—	%
Net income	$	305.7		8.0	%	$	277.8		7.6	%	$	186.6		5.4	%

The following table provides net sales by geographic market (dollars in millions):

	For the Years Ended December 31,
	2017				2016				2015
	Dollars		Percent		Dollars		Percent		Dollars		Percent
Net Sales by Geographic Market:
U.S.	$	3,128.7	81.5	%	$	2,966.8	81.5	%	$	2,793.4	80.6	%
Canada	237.8		6.2		218.8		6.0		217.7		6.3
International	473.1		12.3		456.0		12.5		456.3		13.1
Total net sales	$	3,839.6	100.0	%	$	3,641.6	100.0	%	$	3,467.4	100.0	%

Year Ended December 31, 2017 Compared to Year Ended December 31, 2016 - Consolidated Results

Net Sales

Net sales increased 5.4% in 2017 compared to 2016, primarily driven by volume increases. The increase in volume was primarily due to market growth in our Residential Heating and Cooling and Commercial Heating and Cooling segments. Changes in foreign currency exchange rates and the effects of price and mix also had positive impacts on net sales.

Gross Profit

Gross profit margins for 2017 decreased 30 basis points ("bps") to 29.3% compared to 29.6% in 2016. We saw margin decreases of 80 bps from higher commodity costs, 50 bps for investments in distribution expansion, and 40 bps from other product costs. These decreases were offset by increases of 100 bps from sourcing and engineering-led cost reductions and 40 bps from favorable price and mix.

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Selling, General and Administrative Expenses

SG&A expenses increased by $17 million in 2017 compared to 2016. As a percentage of net sales, SG&A expenses decreased 50 bps from 17.1% to 16.6% in the same periods. SG&A increased due to general wage inflation, increased healthcare costs and increased investment in information technology and research and development partially offset by decreases in incentive compensation.

Losses and Other Expenses, Net

Losses and other expenses, net for 2017 and 2016 included the following (in millions):

	For the Years Ended December 31,
	2017			2016
Realized (gains) losses, net on settled futures contracts	$	(1.7	)	$	1.1
Foreign currency exchange (gains) losses, net	(1.8		)	2.2
Losses on disposal of fixed assets	0.2			0.5
Net change in unrealized losses (gains), net on unsettled futures contracts	0.9			(3.6		)
Asbestos-related litigation	3.5			6.3
Acquisition expenses	1.1			0.4
Special legal contingency charge	3.7			1.9
Environmental liabilities	2.2			1.9
Contractor tax payments	0.1			0.6
Losses and other expenses, net	$	8.2		$	11.3

The realized gains on settled futures contracts in 2017 was attributable to changes in commodity prices relative to our settled futures contract prices, as commodity prices have increased in 2017 relative to 2016. Additionally, the change in unrealized losses, net on unsettled futures contracts was due to lower commodity prices relative to the unsettled futures contract prices. For more information on our derivatives, see Note 8 in the Notes to the Consolidated Financial Statements.

Foreign currency exchange gains increased in 2017 primarily due to improvement in foreign exchange rates in our primary markets. The special legal contingency charges increased primarily due to costs associated with the matter reported to the Securities and Exchange Commission and Department of Justice. The asbestos-related litigation relates to known and estimated future asbestos matters. The environmental liabilities relate to estimated remediation costs for contamination at some of our facilities. The contractor tax payments relate to a charge for underpaid contractor taxes at one of our non-U.S. subsidiaries. Refer to Note 10 in the Notes to the Consolidated Financial Statements for more information on litigation, including the asbestos-related litigation, and the environmental liabilities.

Restructuring Charges

Restructuring charges were $3.2 million in 2017 compared to $1.8 million in 2016. The charges in 2017 and 2016 were primarily for projects to realign resources and enhance distribution capabilities. For more information on our restructuring activities, see Note 16 in the Notes to the Consolidated Financial Statements.

Goodwill

We performed a qualitative impairment analysis and noted no indicators of goodwill impairment through December 31, 2017. Also, we did not record any goodwill impairments in 2016. Refer to Note 4 in the Notes to the Consolidated Financial Statements for more information on goodwill.

Asset Impairment

We did not have any impairments of assets related to continuing operations in 2017 and 2016.

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Pension Settlement

In 2016 our unfunded pension liability declined by $33 million to $89 million as the favorable impact of our $50 million discretionary contribution was partially offset by lower discount rates across all plans. In addition, we recorded a pension settlement charge of $31 million in the fourth quarter of 2016. We did not have similar funding or pension buyout activity in 2017. Refer to Note 12 in the Notes to the Consolidated Financial Statements for more information on pensions and employee benefit plans.

Income from Equity Method Investments

Investments over which we do not exercise control but have significant influence are accounted for using the equity method of accounting. Income from equity method investments was $18 million in 2017 compared to $18 million in 2016 due to flat earnings from our joint ventures.

Interest Expense, net

Net interest expense of $31 million in 2017 increased from $27 million in 2016 primarily due to an increase in our average borrowings.

Income Taxes

The income tax provision was $157 million in 2017 compared to $124 million in 2016, and the effective tax rate was 34% in 2017 compared to 31% in 2016. The 2017 effective tax rate was negatively impacted by recent changes in U.S. tax legislation that reduced the value of our deferred tax assets by $31.8 million, partially offset by the benefit from the impact of excess tax benefits of $23.6 million. The 2016 effective tax rate was not impacted by either U.S. tax rate changes or the impact of excess tax benefits. We expect our effective tax rate will be between 22% and 24% in future years due to the changes in U.S. tax legislation excluding the impact of excess tax benefits. Refer to Note 9 in the Notes to the Consolidated Financial Statements for more information on the impact of recent changes in tax legislation.

Loss from Discontinued Operations

The $2 million of pre-tax losses incurred in 2017 and $1 million of pre-tax losses in 2016 primarily relate to changes in retained product liabilities and general liabilities for the Service Experts business sold in 2013 and the Hearth business sold in 2012.

Year Ended December 31, 2017 Compared to Year Ended December 31, 2016 - Results by Segment

Residential Heating & Cooling

The following table presents our ResidentialHeating & Cooling segment's net sales and profit for 2017 and 2016 (dollars in millions):

	For the Years Ended December 31,
	2017			2016			Difference		% Change
Net sales	$	2,140.4		$	2,000.8		$	139.6	7.0	%
Profit	$	373.9		$	348.8		$	25.1	7.2	%
% of net sales	17.5		%	17.4		%

Residential Heating & Cooling net sales increased 7% in 2017 compared to 2016. Sales volume increased by 7% primarily due to market growth.

Segment profit in 2017 increased $25 million due to $39 million from higher sales volume, $21 million from sourcing and engineering-led cost reductions, $15 million from favorable price, $5 million from favorable foreign currency, $2 million from lower warranty expense, and $1 million from higher income from equity method investments. Partially offsetting these increases was $20 million in higher commodity costs, $15 million in SG&A expenses to support investments in technology and research and development, incremental headcount and higher personnel costs, $12 million in freight and distribution investments, $6 million from unfavorable mix, and $5 million from increases in other product costs.

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Commercial Heating & Cooling

The following table presents our Commercial Heating & Cooling segment's net sales and profit for 2017 and 2016 (dollars in millions):

	For the Years Ended December 31,
	2017			2016			Difference		% Change
Net sales	$	973.8		$	917.9		$	55.9	6.1	%
Profit	$	157.3		$	149.3		$	8.0	5.4	%
% of net sales	16.2		%	16.3		%

Commercial Heating & Cooling net sales increased 6% in 2017 compared to 2016. Sales volume increased by 5% primarily due to market growth and 1% from favorable foreign currency.

Segment profit in 2017 increased $8 million compared to 2016 due to $14 million from higher sales volume, $7 million from sourcing and engineering-led cost reductions, and $1 million in favorable foreign currency. Partially offsetting these increases was $5 million from warranty and other product costs, $4 million of higher commodity costs, $3 million from factory inefficiencies, $1 million in higher SG&A expenses, and $1 million in freight and distribution investments.

Refrigeration

The following table presents our Refrigeration segment's net sales and profit for 2017 and 2016 (dollars in millions):

	For the Years Ended December 31,
	2017			2016			Difference		% Change
Net sales	$	725.4		$	722.9		$	2.5	0.3	%
Profit	$	72.6		$	68.9		$	3.7	5.4	%
% of net sales	10.0		%	9.5		%

Net sales in 2017 were flat compared to 2016. Favorable foreign currency increased sales by 1% offset by lower sales volume of 1% primarily from our North America supermarket business.

Segment profit in 2017 increased $4 million compared to 2016 due to $9 million from sourcing and engineering-led cost reductions, $3 million from favorable price and mix, and $3 million in lower other product costs. Partially offsetting these increases was $5 million from factory inefficiencies, $2 million from freight and distribution, $2 million from higher commodity costs, and $2 million from higher SG&A expense.

Corporate and Other

Corporate and other expenses decreased by $8 million in 2017 primarily due from lower incentive compensation with a partial offset from general wage inflation and information technology investments.

Year Ended December 31, 2016 Compared to Year Ended December 31, 2015 - Consolidated Results

Net Sales

Net sales increased 5% in 2016 compared to 2015, with sales volume up approximately 5%. The increase in volume was driven by all our business segments. The effects of both changes in foreign currency exchange rates and the effects of price and mix were neutral to net sales.

Gross Profit

Gross profit margins for 2016 increased 230 basis points ("bps") to 29.6% compared to 27.3% in 2015. Lower material costs increased our profit margin by 260 bps, increased factory productivity increased our profit margin by 30 bps, and other items contributed 10 bps. Offsetting these increases were decreases of 20 bps from unfavorable mix, 20 bps from unfavorable foreign

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currency adjustments, 20 bps for investments in distribution and other growth initiatives, and increased product warranty costs decreased our profit margin by 10 bps.

Selling, General and Administrative Expenses

SG&A expenses increased by $41 million in 2016 compared to 2015. As a percentage of net sales, SG&A expenses increased 40 bps from 16.7% to 17.1% in the same periods. The dollar increase in SG&A expenses was principally due to increased incentive compensation and general wage inflation.

Losses and Other Expenses, Net

Losses and other expenses, net for 2016 and 2015 included the following (in millions):

	For the Years Ended December 31,
	2016			2015
Realized losses on settled futures contracts	$	1.1		$	1.9
Foreign currency exchange losses	2.2			3.6
Loss on disposal of fixed assets	0.5			0.6
Net change in unrealized losses (gains) on unsettled futures contracts	(3.6		)	0.6
Asbestos charge	6.3			3.0
Acquisition expenses	0.4			1.0
Special legal contingency charge	1.9			7.4
Environmental liabilities	1.9			1.0
Contractor tax payments	0.6			2.6
Other items, net	—			—
Losses and other expenses, net	$	11.3		$	21.7

The decrease in realized losses on settled futures contracts in 2016 was attributable to changes in commodity prices relative to our settled futures contract prices, as commodity prices have increased in 2016 relative to 2015. Additionally, the change in unrealized gains and losses on unsettled futures contracts was primarily due to higher commodity prices relative to the unsettled futures contract prices creating unrealized gains on unsettled future contracts. For more information on our derivatives, see Note 8 in the Notes to the Consolidated Financial Statements.

Foreign currency exchange losses decreased in 2016 primarily due to stabilization in foreign exchange rates in our primary markets. The special legal contingency charges primarily decreased as we settled an attempted class action lawsuit in 2015. The asbestos-related litigation relates to known and estimated future asbestos matters and the increase is a result of higher estimated future claims and decreasing insurance reserves related to these claims. The environmental liabilities relate to estimated remediation costs for contamination at some of our facilities. The contractor tax payments relate to a charge for underpaid contractor taxes at one of our non-U.S. subsidiaries. Refer to Note 10 in the Notes to the Consolidated Financial Statements for more information on litigation, including the asbestos-related litigation, and the environmental liabilities.

Restructuring Charges

Restructuring charges were $2 million in 2016 compared to $3 million in 2015. The charges in 2016 and 2015 were primarily for projects to realign resources and enhance distribution capabilities in our Refrigeration segment. For more information on our restructuring activities, see Note 16 in the Notes to the Consolidated Financial Statements.

Goodwill

We performed a qualitative impairment analysis and noted no indicators of goodwill impairment through December 31, 2016. However in 2015 based on the results of the quantitative impairment test, we recorded goodwill impairment of $5.5 million related to our refrigerated display case business. Refer to Note 4 in the Notes to the Consolidated Financial Statements for more information on goodwill.

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Asset Impairment

We did not have any impairments of assets related to continuing operations in 2016. During the fourth quarter of 2015 we completed a strategic review of our refrigerated display case business. As a result, we performed an impairment analysis using a market approach and determined that intangible and certain long-lived assets relating to that business were impaired and we recorded a charge of $45 million in "Asset Impairment" in the Consolidated Statement of Operations.

Pension Settlement

In 2016 our unfunded pension liability declined by $33 million to $89 million as the favorable impact of our $50 million discretionary contribution was partially offset by lower discount rates across all plans. In addition, as part of our ongoing strategy to de-risk our pension plan obligations, we completed a one-time, lump sum pension buyout in the fourth quarter of 2016 for certain vested participants. As a result of the pension buy-out, we recorded a pension settlement charge of $31 million in the fourth quarter.

Income from Equity Method Investments

Investments over which we do not exercise control but have significant influence are accounted for using the equity method of accounting. Income from equity method investments increased to $18 million in 2016 compared to $13 million in 2015 due to increases in earnings from our joint ventures.

Interest Expense, net

Net interest expense of $27 million in 2016 increased from $24 million in 2015 primarily due to an increase in our average borrowings.

Income Taxes

The income tax provision was $124 million in 2016 compared to $95 million in 2015, and the effective tax rate was 30.8% in 2016 compared to 33.8% in 2015. Our effective tax rate declined in 2016 due to the benefit from a repatriation of earnings recognized in the second quarter.

Loss from Discontinued Operations

The $1 million of pre-tax losses incurred in 2016 primarily relates to changes in retained product liabilities and general liabilities for the Service Experts business sold in 2013 and the Hearth business sold in 2012. In 2015, there were $1 million of pre-tax losses incurred primarily related to changes in retained product liabilities and general liabilities for Service Experts and Hearth.

Year Ended December 31, 2016 Compared to Year Ended December 31, 2015 - Results by Segment

Residential Heating & Cooling

The following table presents our ResidentialHeating & Cooling segment's net sales and profit for 2016 and 2015 (dollars in millions):

	For the Years Ended December 31,
	2016			2015			Difference		% Change
Net sales	$	2,000.8		$	1,866.9		$	133.9	7.2	%
Profit	$	348.8		$	278.4		$	70.4	25.3	%
% of net sales	17.4		%	14.9		%

Residential Heating & Cooling net sales increased 7% in 2016 compared to 2015. Sales volume increased net sales by 6% due to industry growth and market share gains and the benefits of favorable price and mix contributed 1%.

Segment profit in 2016 increased $70 million due to $51 million in lower commodities and material costs, $33 million from higher sales volume and $12 million from favorable factory productivity which includes the addition of a second factory in Mexico, and $5 million in other product costs. Partially offsetting these increases was $6 million from unfavorable price and mix combined,

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$4 million of unfavorable foreign currency exchange rates, $11 million in distribution investments, and $10 million of SG&A expenses to support wage inflation and investments in information technology and research and development.

Commercial Heating & Cooling

The following table presents our Commercial Heating & Cooling segment's net sales and profit for 2016 and 2015 (dollars in millions):

	For the Years Ended December 31,
	2016			2015			Difference		% Change
Net sales	$	917.9		$	887.2		$	30.7	3.5	%
Profit	$	149.3		$	130.4		$	18.9	14.5	%
% of net sales	16.3		%	14.7		%

Commercial Heating & Cooling net sales increased 3% in 2016 compared to 2015. Sales volume increased net sales by 3%, price and mix increased net sales by 1% and changes in foreign currency exchange rates unfavorably impacted net sales by 1%.

Segment profit in 2016 increased $19 million compared to 2015. The benefits of $9 million from incremental volume, $18 million from lower commodities and material costs, $4 million from combined price and mix and $1 million from lower freight expenses were partially offset by $6 million in other product costs and unfavorable factory productivity, $6 million of higher SG&A expenses, and $1 million for investments in infrastructure for our North American Service business.

Refrigeration

The following table presents our Refrigeration segment's net sales and profit for 2016 and 2015 (dollars in millions):

	For the Years Ended December 31,
	2016			2015			Difference		% Change
Net sales	$	722.9		$	713.3		$	9.6	1.3	%
Profit	$	68.9		$	52.9		$	16.0	30.2	%
% of net sales	9.5		%	7.4		%

Refrigeration net sales increased 1% in 2016 compared to 2015 primarily due to 3% volume growth which was partially offset by a 1% impact from unfavorable foreign exchange rates and a 1% impact from mix and price reductions.

Segment profit in 2016 compared to 2015 increased $16 million compared to 2015 primarily due to $7 million from increased sales volume, $21 million in lower commodities and material costs, $6 million from lower depreciation and amortization due to the impairment of our refrigerated display case business recorded in 2015. Partially offsetting these increases were $8 million from unfavorable price and mix combined, $8 million from higher SG&A expenses, $1 million from other product costs, and $1 million from changes in foreign currency exchange rates.

Corporate and Other

Corporate and other expenses increased $13 million in 2016 as compared to 2015 due primarily to higher incentive compensation, general wage inflation, and consulting fees. Partially offsetting these increases were decreases in health care costs.

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Accounting for Futures Contracts

Realized gains and losses on settled futures contracts are a component of segment profit (loss). Unrealized gains and losses on unsettled futures contracts are excluded from segment profit (loss) as they are subject to changes in fair value until their settlement date. Both realized and unrealized gains and losses on futures contracts are a component of Losses and other expenses, net in the accompanying Consolidated Statements of Operations. See Note 8 of the Notes to Consolidated Financial Statements for more information on our derivatives and Note 18 of the Notes to the Consolidated Financial Statements for more information on our segments and for a reconciliation of segment profit to operating income.

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 years ended December 31, 2017, 2016 and 2015 (in millions):

	2017			2016			2015
Net cash provided by operating activities	$	325.1		$	373.9		$	353.6
Net cash used in investing activities	(98.1		)	(84.1		)	(69.8		)
Net cash used in financing activities	(218.3		)	(274.6		)	(271.1		)

Net Cash Provided by Operating Activities - Net cash provided by operating activities decreased $49 million to $325 million in 2017 compared to $374 million in 2016. This decrease was primarily attributable to the increases in working capital, partially offset by a reduction in pension contributions and an increase in net income.

Net Cash Used in Investing Activities -Capital expenditures were $98 million, $84 million and $70 million in 2017, 2016 and 2015, respectively. Capital expenditures in 2017 were primarily related to an expansion of manufacturing capacity and equipment, investments in systems and software to support the overall enterprise, and continued investments in our distribution network.

Net Cash Used in Financing Activities -Net cash used in financing activities decreased to $218 million in 2017 from $275 million in 2016, primarily attributable to a decrease in the amount of share repurchases in 2017 as compared to 2016. Cash continues to be provided by an increase in net borrowings and used to fund share repurchases and dividend payments. We used $250.0 million in 2017 to purchase 1.5 million shares of stock under our share repurchase plans.

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Debt Position

The following table details our lines of credit and financing arrangements as of December 31, 2017 (in millions):

	Outstanding Borrowings
Short-term debt:
Foreign Obligations	$	0.9
Asset Securitization Program (1)	—
Total short-term debt	$	0.9
Current maturities of long-term debt:
Capital lease obligations	3.2
Domestic credit facility (2)	30.0
Senior unsecured notes	—
Debt issuance costs	(0.6		)
Total current maturities of long-term debt	$	32.6
Long-term debt:
Asset Securitization Program (1)	276.0
Capital lease obligations	11.9
Domestic credit facility (2)	337.0
Senior unsecured notes	350.0
Debt issuance costs	(4.4		)
Total long-term debt	970.5
Total debt	$	1,004.0

⁽¹⁾ The maximum securitization amount ranges from $225.0 million to $380.0 million, depending on the period, after consideration of the November 13, 2017 amendment. The maximum capacity of the Asset Securitization Program ("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 $500.1 million after being reduced by the outstanding borrowings and $2.9 million in outstanding standby letters of credit. We also had $34.7 million in outstanding standby letters of credit outside of the domestic credit facility as of December 31, 2017.

Financial Leverage

We periodically review our capital structure, including our primary bank facility, to ensure the appropriate levels of liquidity and leverage and to take advantage of favorable interest rate environments or other market conditions. We consider various other financing alternatives and may, from time to time, access the capital markets.

As of December 31, 2017, our senior credit ratings were Baa3 with a stable 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 help ensure the capital markets remain available to us.

Our debt-to-total-capital ratio decreased to 95.2% at December 31, 2017 compared to 95.8% at December 31, 2016. The decrease in the ratio in 2017 is primarily due to the increase in Total stockholders' equity. We evaluate our debt-to-EBITDA ratio in order to determine the appropriate targets for share repurchases under our share repurchase programs.

Liquidity

We believe our cash and cash equivalents of $68 million, future cash generated from operations and available future borrowings are sufficient to fund our 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 $68 million as of December 31,

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2017 was $39 million of cash held in foreign locations, although that amount can fluctuate widely depending on the timing of cash receipts and payments. Our cash held in foreign locations is used for investing and operating activities in those locations, and we generally do not have the need or intent to repatriate those funds to the United States. An actual repatriation in the future from our non-U.S. subsidiaries could be subject to foreign withholding taxes and U.S. state taxes. In the first quarter of 2018 we expect to repatriate $40 million of cash on a tax-free basis.

No contributions are required to be made to our U.S. defined benefit plans in 2018. We made $3.5 million in total contributions to pension plans in 2017.

On May 17, 2017, our Board of Directors approved a 19% increase in our quarterly dividend on common stock from $0.43 to $0.51 per share effective with the May 2017 dividend payment. Dividend payments were $80 million in 2017 compared to $69 million in 2016, with the increase due primarily to the increase in dividends approved by the Board of Directors.

We also continued to increase shareholder value through our share repurchase programs. We returned $250.0 million to our investors through share repurchases in 2017 and expect to return another $350.0 million in 2018. An additional $396 million of repurchases are still available under the programs as we enter 2018.

Financial Covenants related to our Debt

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 other amounts, material inaccuracy of representations and warranties, breach of covenants, default on certain other indebtedness or receivables securitizations (cross default), certain voluntary and involuntary bankruptcy events and the occurrence of a change in control. A cross default under our 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 our domestic credit facility, our senior unsecured notes, 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).

In the event of a credit rating downgrade below investment grade resulting from a change of control, holders of our senior unsecured notes will have the right to require us to repurchase all or a portion of the senior unsecured notes at a repurchase price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest, if any. 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 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date.

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As of December 31, 2017, we believe we were in compliance with all covenant requirements. Delaware law limits the ability to pay dividends to surplus or, if there is no surplus, out of net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. In addition, stock repurchases can only be made out of surplus and only if our capital would not be impaired.

Leasing Commitments

On March 22, 2013, we entered into an agreement with a financial institution to renew the lease of our corporate headquarters in Richardson, Texas for a term of approximately six years through March 1, 2019 (the "Lake Park Renewal"). The agreement contains customary lease covenants and events of default as well as financial covenants consistent with our credit agreement and we believe we were in compliance with those covenants as of December 31, 2017.

In 2008, we expanded our Tifton, Georgia manufacturing facility using the proceeds from industrial development bonds (“IDBs”). We entered into a lease agreement with the owner of the property and the issuer of the IDBs, and through our lease payments fund the interest payments to investors in the IDBs. We also guaranteed the repayment of the IDBs and have oustanding letters of credit totaling $14.3 million to fund a potential repurchase of the IDBs in the event investors exercised their right to tender the IDBs to the trustee. As of December 31, 2017 and 2016, we had capital lease obligations of $14.3 million related to these transactions, with $2.6 million of payments due in 2018.

Refer to Note 10 in the Notes to the Consolidated Financial Statements for more details on our leasing commitments.

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. Rent expense for these leases was $58 million, $58 million, and $54 million in 2017, 2016, and 2015, respectively. Refer to Notes 10 and 22 of the Notes to the Consolidated Financial Statements for more information on our lease commitments and rent expense, respectively.

Contractual Obligations

Summarized below are our contractual obligations as of December 31, 2017 and their expected impact on our liquidity and cash flows in future periods (in millions):

	Payments Due by Period
	Total		1 Year or Less		1 - 3 Years		3 - 5 Years		More than 5 Years
Total long-term debt obligations (1)	$	1,009.0	$	34.1	$	336.3	$	277.0	$	361.6
Estimated interest payments on debt obligations (2)	97.4		22.1		36.1		27.6		11.6
Operating leases	175.9		55.3		70.8		36.0		13.8
Purchase obligations (3)	31.1		31.1		—		—		—
Total contractual obligations	$	1,313.4	$	142.6	$	443.2	$	340.6	$	387.0

⁽¹⁾ Contractual obligations related to capital leases are included as part of long-term debt.

⁽²⁾ Estimated interest payments are based on current contractual requirements and do not reflect seasonal changes in the balance of our domestic credit facility.

⁽³⁾ Purchase obligations consist of inventory that is part of our third party logistics programs.

The table above does not include pension, post-retirement benefit and warranty liabilities because it is not certain when these liabilities will be funded. For additional information regarding our contractual obligations, see Notes 10 and 11 of the Notes to the Consolidated Financial Statements. See Note 12 of the Notes to the Consolidated Financial Statements for more information on our pension and post-retirement benefits obligations.

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Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities. Our framework for measuring fair value is based on a three-level hierarchy for fair value measurements.

The three-level fair value hierarchy for disclosure of fair value measurements is defined as follows:

Level 1 -     Quoted prices for identical instruments in active markets at the measurement date.

Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date and for the anticipated term of the instrument.

Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Where available, the fair values were based upon quoted prices in active markets. However, if quoted prices were not available, then the fair values were based upon quoted prices for similar assets or liabilities or independently sourced market parameters, such as credit default swap spreads, yield curves, reported trades, broker/dealer quotes, interest rates and benchmark securities. For assets and liabilities without observable market activity, if any, the fair values were based upon discounted cash flow methodologies incorporating assumptions that, in our judgment, reflect the assumptions a marketplace participant would use. Valuation adjustments to reflect either party's creditworthiness and ability to pay were incorporated into our valuations, where appropriate, as of December 31, 2017 and 2016, the measurement dates.

See Note 19 of the Notes to the Consolidated Financial Statements for more information on the assets and liabilities measured at fair value.

Market Risk

Commodity Price Risk

We enter into commodity futures contracts to stabilize prices expected to be paid for raw materials and parts containing high copper and aluminum content. These contracts are for quantities equal to or less than quantities expected to be consumed in future production. Fluctuations in metal commodity prices impact the value of the futures contracts that we hold. When metal commodity prices rise, the fair value of our futures contracts increases. Conversely, when commodity prices fall, the fair value of our futures contracts decreases. Information about our exposure to metal commodity price market risks and a sensitivity analysis related to our metal commodity hedges is presented below (in millions):

Notional amount (pounds of aluminum and copper)	24.2
Carrying amount and fair value of net liability	$	12.9
Change in fair value from 10% change in forward prices	$	7.6

Refer to Note 8 of the Notes to the Consolidated Financial Statements for additional information regarding our commodity futures contracts.

Interest Rate Risk

Our results of operations can be affected by changes in interest rates due to variable rates of interest on our debt facilities, cash, cash equivalents and short-term investments. A 10% adverse movement in the levels of interest rates across the entire yield curve would have resulted in an increase to pre-tax interest expense of approximately $1.8 million, $2.0 million and $2.1 million for the years ended December 31, 2017, 2016 and 2015, respectively.

29

From time to time, we may use an interest rate swap hedging strategy to eliminate the variability of cash flows in a portion of our interest payments. This strategy, when employed, allows us to fix a portion of our interest payments while also taking advantage of historically low interest rates. As of December 31, 2017 and 2016, no interest rate swaps were in effect.

Foreign Currency Exchange Rate Risk

Our results of operations are affected by changes in foreign currency exchange rates. Net sales and expenses in foreign currencies are translated into U.S. dollars for financial reporting purposes based on the average exchange rate for the period. During 2017, 2016 and 2015, net sales from outside the U.S. represented 18.5%, 18.5% and 19.4% , respectively, of our total net sales. For the years ended December 31, 2017 and 2016, foreign currency transaction gains and losses did not have a material impact to our results of operations. A 10% change in foreign exchange rates would have had an estimated $5.2 million, $4.0 million and $2.5 million impact to net income for the years ended December 31, 2017, 2016 and 2015, respectively.

We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts. 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. Refer to Note 8 of the Notes to the Consolidated Financial Statements for additional information regarding our foreign currency forward contracts.

Critical Accounting Estimates

A critical accounting estimate is one that requires difficult, subjective or complex estimates and assessments and is fundamental to our results of operations and financial condition. The following are our critical accounting estimates and describe how we develop our judgments, assumptions and estimates about future events and how such policies can impact our financial statements:

• Product warranties and product-related contingencies;

• Self-insurance expense;

• Pension benefits; and

• Derivative accounting.

This discussion and analysis should be read in conjunction with our Consolidated Financial Statements and related Notes in “Item 8. Financial Statements and Supplementary Data.”

Product Warranties and Product-Related Contingencies

The estimate of our liability for future warranty costs requires us to make assumptions about the amount, timing and nature of future product-related costs. Some of the warranties we issue extend 10 years or more in duration and a relatively small adjustment to an assumption may have a significant impact on our overall liability. We may also incur costs related to our products that may not be covered under our warranties and are not covered by insurance, and, from time to time, we may repair or replace installed products experiencing quality issues in order to satisfy our customers and protect our brand.

We periodically review the assumptions used to determine the liabilities for product warranties and product-related contingencies and we adjust our assumptions based upon factors such as actual failure rates and cost experience. Numerous factors could affect actual failure rates and cost experience, including the amount and timing of new product introductions, changes in manufacturing techniques or locations, components or suppliers used. Should actual costs differ from our estimates, we may be required to adjust the liabilities and to record expense in future periods. See Note 10 in the Notes to the Consolidated Financial Statements for more information on our product warranties and product-related contingencies.

Self-Insurance Expense

We use a combination of third-party insurance and self-insurance plans to provide protection against claims relating to workers' compensation/employers' liability, general liability, product liability, auto liability, auto physical damage and other exposures. Many of these plans have large deductibles and may also include per occurrence and annual aggregate limits. As a result, we expect to incur costs related to these types of claims in future periods.

The estimates for self-insurance expense and liabilities involve assumptions about the amount, timing and nature of future claim costs. We estimate these amounts actuarially based primarily on our historical claims information and industry factors and trends. The amounts and timing of payments for future claims may vary depending on numerous factors, including the development and ultimate settlement of reported and unreported claims. To the extent actuarial assumptions change and claims experience differ from historical rates, our liabilities may change. The self-insurance liabilities as of December 31, 2017 represent the best

30

estimate of the future payments to be made on reported and unreported losses. See Note 10 in the Notes to the Consolidated Financial Statements for additional information on our self-insurance expense and liabilities.

Pension Benefits

Over the past several years, we have frozen many of our defined benefit pension and profit sharing plans and replaced them with defined contribution plans. We have a liability for the benefits earned under these inactive plans prior to the date the benefits were frozen. Our defined contribution plans generally include both company and employee contributions based on predetermined percentages of compensation earned by the employee. We also have several active defined benefit plans that provide benefits based on years of service. In the years ended December 31, 2017, December 31, 2016 and December 31, 2015, we contributed $3.5 million, $53.9 and $3.9 million to our pension plans, respectively.

We make several assumptions to calculate our liability and the expense for these benefit plans, including the discount rate and expected return on assets. We used an assumed discount rate of 3.66% for pension benefits of our U.S.-based plans as of December 31, 2017. Our discount rates were selected using the yield curve for high-quality corporate bonds, which is dependent upon risk-free interest rates and current credit market conditions. In 2017 and 2016, we utilized an assumed long-term rate of return on assets of 7.50% in both years for our U.S.-based plans. These are long-term estimates of equity and fixed income values and are not dependent on short-term variations of the equity and bond markets. Differences between actual experience and our assumptions are quantified as actuarial gains and losses. These actuarial gains and losses do not immediately impact our earnings as they are deferred in accumulated other comprehensive income (“AOCI”) and are amortized into net periodic benefit cost over the estimated service period. During 2015, we adopted the new mortality tables, MP-2015, from the Society of Actuaries, which reflects increasing life expectancies in the United States. In 2016, we adopted the additional revisions to the mortality tables included in MP-2016. In 2017, we adopted the additional revisions to the mortality tables included in MP-2017.

The assumed long-term rate of return on assets and the discount rate have significant effects on the amounts reported for our defined benefit plans. A 25 bps decrease in the long-term rate of return on assets or discount rate would have the following effects (in millions):

	25 Basis Point Decrease in Long-Term Rate of Return		25 Basis Point Decrease in Discount Rate
Increase to net periodic benefit cost for U.S. pension plans	$	0.7	$	0.5
Increase to the pension benefit obligations for U.S. pension plans	n/a		11.8

Should actual results differ from our estimates and assumptions, revisions to the benefit plan liabilities and the related expenses would be required. In the second quarter of 2017, in order to decrease volatility, we changed the targeted allocations for our U.S.-based plan assets.  The targeted allocation for fixed income, money market and cash investments was changed to 75% and the targeted allocation for equity investments was changed to 25%.  Based on this current asset allocation, it is likely that we will adjust our estimated rate of return downward.  We periodically review our asset allocation and may reallocate assets as necessary. Refer to Note 12 in the Notes to the Consolidated Financial Statements for more information on our pension benefits.

Derivative Accounting

We use futures contracts and fixed forward contracts to mitigate our exposure to volatility in metal commodity prices in the ordinary course of business. Fluctuations in metal commodity prices impact the value of the derivative instruments that we hold. When metal commodity prices rise, the fair value of our futures contracts increases and conversely, when commodity prices fall, the fair value of our futures contracts decreases. We are required to prepare and maintain contemporaneous documentation for futures contracts that are formally designated as cash flow hedges. Our failure to comply with the strict documentation requirements could result in the de-designation of cash flow hedges, which may significantly impact our consolidated financial statements. Refer to "Market Risk" above and to Note 8 in the Notes to the Consolidated Financial Statements for more information on our derivatives.

Recent Accounting Pronouncements

See Note 2 in the Notes to the Consolidated Financial Statements for disclosure of recent accounting pronouncements and the potential impact on our financial statements and disclosures.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

31

The information required by this item is included under the caption “Market Risk” in Item 7 above.

32

Item 8. Financial Statements and Supplementary Data

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

      Our management is responsible for establishing and maintaining adequate internal control over financial reporting. As defined by the Securities and Exchange Commission, internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management, including our Chief Executive Officer and Chief Financial Officer, has undertaken an assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) by the Committee of Sponsoring Organizations of the Treadway Commission. Management's assessment included an evaluation of the design of the Company's internal control over financial reporting and testing of the operational effectiveness of those controls.

Based on this assessment, management concluded that as of December 31, 2017, the Company's internal control over financial reporting was effective.

KPMG LLP, the independent registered public accounting firm that audited the Company's consolidated financial statements, has issued an audit report including an opinion on the effectiveness of our internal control over financial reporting as of December 31, 2017, a copy of which is included herein.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors

Lennox International Inc.:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Lennox International Inc. and subsidiaries (the Company) as of December 31, 2017 and 2016, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2017, and the related notes and Schedule II - Valuation and Qualifying Accounts and Reserves (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, in 2017 the Company adopted Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires entities to record all tax effects related to share-based payments at settlement or expiration through the income statement.

Basis for Opinion

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable

34

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

We have served as the Company’s auditor since 2002.

Dallas, Texas

February 16, 2018

35

LENNOX INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except shares and par values)
	As of December 31,
	2017			2016
ASSETS
Current assets:
Cash and cash equivalents	$	68.2		$	50.2
Accounts and notes receivable, net of allowances of $5.9 and $6.7 in 2017 and 2016, respectively	506.5			469.8
Inventories, net	484.2			418.5
Other assets	78.4			67.4
Total current assets	1,137.3			1,005.9
Property, plant and equipment, net of accumulated depreciation of $774.2 and $717.2 in 2017 and 2016, respectively	397.8			361.4
Goodwill	200.5			195.1
Deferred income taxes	94.4			136.7
Other assets, net	61.5			61.2
Total assets	$	1,891.5		$	1,760.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term debt	$	0.9		$	52.4
Current maturities of long-term debt	32.6			200.1
Accounts payable	348.6			361.2
Accrued expenses	270.3			265.9
Income taxes payable	2.1			9.0
Total current liabilities	654.5			888.6
Long-term debt	970.5			615.7
Post-retirement benefits, other than pensions	2.6			2.8
Pensions	84.5			87.5
Other liabilities	129.3			127.7
Total liabilities	1,841.4			1,722.3
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	1,061.5			1,046.2
Retained earnings	1,575.9			1,353.0
Accumulated other comprehensive loss	(157.4		)	(195.1		)
Treasury stock, at cost, 45,361,145 shares and 44,195,250 shares for 2017 and 2016, respectively	(2,430.8		)	(2,167.4		)
Noncontrolling interests	—			0.4
Total stockholders’ equity	50.1			38.0
Total liabilities and stockholders' equity	$	1,891.5		$	1,760.3

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

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LENNOX INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data)
	For the Years Ended December 31,
	2017			2016			2015
Net sales	$	3,839.6		$	3,641.6		$	3,467.4
Cost of goods sold	2,714.4			2,565.1			2,520.0
Gross profit	1,125.2			1,076.5			947.4
Operating expenses:
Selling, general and administrative expenses	637.7			621.0			580.5
Losses and other expenses, net	8.2			11.3			21.7
Restructuring charges	3.2			1.8			3.2
Goodwill impairment	—			—			5.5
Asset impairment	—			—			44.5
Pension settlement	—			31.4			—
Income from equity method investments	(18.4		)	(18.4		)	(13.4		)
Operating income	494.5			429.4			305.4
Interest expense, net	30.6			27.0			23.6
Other income, net	(0.1		)	(0.3		)	(0.8		)
Income from continuing operations before income taxes	464.0			402.7			282.6
Provision for income taxes	156.9			124.1			95.4
Income from continuing operations	307.1			278.6			187.2
Discontinued operations:
Loss from discontinued operations before income taxes	(2.2		)	(1.3		)	(1.0		)
Benefit from income taxes	(0.8		)	(0.5		)	(0.4		)
Loss from discontinued operations	(1.4		)	(0.8		)	(0.6		)
Net income	$	305.7		$	277.8		$	186.6
Earnings per share – Basic:
Income from continuing operations	$	7.28		$	6.41		$	4.17
Loss from discontinued operations	(0.03		)	(0.02		)	(0.01		)
Net income	$	7.25		$	6.39		$	4.16
Earnings per share – Diluted:
Income from continuing operations	$	7.17		$	6.34		$	4.11
Loss from discontinued operations	(0.03		)	(0.02		)	(0.02		)
Net income	$	7.14		$	6.32		$	4.09
Average shares outstanding:
Basic	42.2			43.4			44.9
Diluted	42.8			44.0			45.6
Cash dividends declared per share	$	1.96		$	1.65		$	1.38

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

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LENNOX INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions)
	For the Years Ended December 31,
	2017			2016			2015
Net income	305.7			277.8			186.6
Other comprehensive income (loss):
Foreign currency translation adjustments	33.9			(11.6		)	(58.7		)
Net change in pension and post-retirement benefit liabilities	(5.3		)	10.4			5.7
Change in fair value of available-for-sale marketable equity securities	(0.5		)	(2.1		)	1.2
Net change in fair value of cash flow hedges	16.1			9.8			(18.4		)
Reclassification of pension and post-retirement benefit losses into earnings	7.3			6.3			9.7
Reclassification of cash flow hedge losses into earnings	(13.7		)	12.3			12.5
Other comprehensive income (loss) before taxes	$	37.8		$	25.1		$	(48.0	)
Tax expense	(0.1		)	(15.5		)	(3.2		)
Other comprehensive income (loss), net of tax	37.7			9.6			(51.2		)
Comprehensive income	$	343.4		$	287.4		$	135.4

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

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LENNOX INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Years Ended December 31, 2017, 2016 and 2015

(In millions, except per share data)

			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock at Cost					Non-controlling Interests			Total Stockholders' Equity
	Amount											Shares		Amount
Balance as of December 31, 2014	0.9		824.9			1,022.1			(153.5		)	42.5		(1,686.0		)	0.6			9.0
Net income	—		—			186.6			—			—		—			—			186.6
Dividends, $1.38 per share	—		—			(62.0		)	—			—		—			—			(62.0		)
Foreign currency translation adjustments	—		—			—			(58.7		)	—		—			—			(58.7		)
Pension and post-retirement liability changes, net of tax benefit of $5.3	—		—			—			10.1			—		—			—			10.1
Change in fair value of available-for-sale marketable equity securities	—		—			—			1.2			—		—			—			1.2
Stock-based compensation expense	—		26.6			—			—			—		—			—			26.6
Change in cash flow hedges, net of tax benefit of $2.1	—		—			—			(3.8		)	—		—			—			(3.8		)
Treasury shares reissued for common stock	—		(6.5		)	—			—			(0.8	)	8.9			—			2.4
Additional investment in subsidiary	—		—			—			—			—		—			(0.2		)	(0.2		)
Treasury stock purchases	—		135.0			—			—			0.8		(167.0		)	—			(32.0		)
Tax benefits of stock-based compensation	—		22.4			—			—			—		—			—			22.4
Balance as of December 31, 2015	0.9		1,002.4			1,146.7			(204.7		)	42.5		(1,844.1		)	0.4			101.6
Net income	—		—			277.8			—			—		—			—			277.8
Dividends, $1.65 per share	—		—			(71.5		)	—			—		—			—			(71.5		)
Foreign currency translation adjustments	—		—			—			(11.6		)	—		—			—			(11.6		)
Pension and post-retirement liability changes, net of tax benefit of $7.4	—		—			—			9.3			—		—			—			9.3
Change in fair value of available-for-sale marketable equity securities	—		—			—			(2.1		)	—		—			—			(2.1		)
Stock-based compensation expense	—		31.7			—			—			—		—			—			31.7
Change in cash flow hedges, net of tax benefit of $8.0	—		—			—			14.0			—		—			—			14.0
Treasury shares reissued for common stock	—		(7.3		)	—			—			(0.7	)	10.0			—			2.7
Additional investment in subsidiary	—		—			—			—			—		—			—			—
Treasury stock purchases	—		—			—			—			2.4		(333.3		)	—			(333.3		)
Tax benefits of stock-based compensation	—		19.4			—			—			—		—			—			19.4
Balance as of December 31, 2016	0.9		1,046.2			1,353.0			(195.1		)	44.2		(2,167.4		)	0.4			38.0
Net income	—		—			305.7			—			—		—			—			305.7
Dividends, $1.96 per share	—		—			(82.8		)	—			—		—			—			(82.8		)
Foreign currency translation adjustments	—		—			—			33.9			—		—			—			33.9
Pension and post-retirement liability changes, net of tax benefit of $0.5	—		—			—			2.5			—		—			—			2.5
Change in fair value of available-for-sale marketable equity securities	—		—			—			(0.5		)	—		—			—			(0.5		)
Stock-based compensation expense	—		24.9			—			—			—		—			—			24.9
Change in cash flow hedges, net of tax expense of $0.6	—		—			—			1.8			—		—			—			1.8
Treasury shares reissued for common stock	—		(9.6		)	—			—			(0.4	)	12.7			—			3.1
Additional investment in subsidiary	—		—			—			—			—		—			(0.4		)	(0.4		)
Treasury stock purchases	—		—			—			—			1.6		(276.1		)	—			(276.1		)
Balance as of December 31, 2017	$	0.9	$	1,061.5		$	1,575.9		$	(157.4	)	45.4		$	(2,430.8	)	$	—		$	50.1

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

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LENNOX INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2017, 2016 and 2015 (In millions)
	2017			2016			2015
Cash flows from operating activities:
Net income	$	305.7		$	277.8		$	186.6
Adjustments to reconcile net income to net cash provided by operating activities:
Income from equity method investments	(18.4		)	(18.4		)	(13.4		)
Dividends from affiliates	14.7			14.9			11.0
Restructuring expenses, net of cash paid	0.8			(0.8		)	—
Goodwill impairment	—			—			5.5
Impairment of assets	—			—			44.5
Provision for bad debts	3.9			2.4			2.8
Unrealized (gains) loss, net on derivative contracts	(2.0		)	(0.7		)	0.8
Stock-based compensation expense	24.9			31.7			26.6
Depreciation and amortization	64.6			58.1			62.8
Deferred income taxes	43.3			(4.0		)	(21.3		)
Pension expense	5.3			37.7			10.6
Pension contributions	(3.5		)	(53.9		)	(3.9		)
Other items, net	1.3			0.9			1.0
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
Accounts and notes receivable	(28.4		)	(50.6		)	(23.5		)
Inventories	(56.4		)	0.3			28.8
Other current assets	(6.1		)	0.1			(1.6		)
Accounts payable	(18.5		)	40.1			(2.9		)
Accrued expenses	0.3			36.2			4.2
Income taxes payable and receivable	(6.7		)	(0.1		)	33.3
Other, net	0.3			2.2			1.7
Net cash provided by operating activities	325.1			373.9			353.6
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.2			0.2			0.1
Purchases of property, plant and equipment	(98.3		)	(84.3		)	(69.9		)
Net cash used in investing activities	(98.1		)	(84.1		)	(69.8		)
Cash flows from financing activities:
Short-term borrowings, net	(1.5		)	(2.4		)	(1.7		)
Asset securitization borrowings	315.0			145.0			40.0
Asset securitization payments	(89.0		)	(295.0		)	(60.0		)
Long-term debt borrowings	—			350.0			—
Long-term debt payments	(200.9		)	(58.8		)	(24.0		)
Borrowings from credit facility	2,376.5			2,336.5			1,671.0
Payments on credit facility	(2,265.5		)	(2,346.0		)	(1,807.5		)
Payments of deferred financing costs	(0.2		)	(4.2		)	—
Proceeds from employee stock purchases	3.1			2.6			2.4
Repurchases of common stock	(250.0		)	(300.0		)	—
Repurchases of common stock to satisfy employee withholding tax obligations	(26.1		)	(33.3		)	(32.0		)
Cash dividends paid	(79.7		)	(69.0		)	(59.3		)
Net cash used in financing activities	(218.3		)	(274.6		)	(271.1		)
Increase in cash and cash equivalents	8.7			15.2			12.7
Effect of exchange rates on cash and cash equivalents	9.3			(3.9		)	(11.3		)
Cash and cash equivalents, beginning of year	50.2			38.9			37.5
Cash and cash equivalents, end of year	$	68.2		$	50.2		$	38.9
Supplementary disclosures of cash flow information:
Cash paid during the year for:
Interest, net	$	32.4		$	26.3		$	23.7
Income taxes (net of refunds)	$	119.3		$	127.4		$	83.2

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

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LENNOX INTERNATIONAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Nature of Operations:

Lennox International Inc., a Delaware corporation, through its subsidiaries (referred to herein as "we," "our," "us," "LII," or the "Company"), is a leading global provider of climate control solutions. We design, manufacture, market and service a broad range of products for the heating, ventilation, air conditioning and refrigeration ("HVACR") markets and sell our products and services through a combination of direct sales, distributors and company-owned parts and supplies stores. We operate in three reportable business segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. See Note 18 for financial information regarding our reportable segments.

2. Summary of Significant Accounting Policies:

Principles of Consolidation

The consolidated financial statements include the accounts of Lennox International Inc. and our majority-owned subsidiaries. All intercompany transactions, profits and balances have been eliminated.

Cash and Cash Equivalents

We consider all highly liquid temporary investments with original maturity dates of three months or less to be cash equivalents. Cash and cash equivalents consisted primarily of bank deposits.

Accounts and Notes Receivable

Accounts and notes receivable are shown in the accompanying Consolidated Balance Sheets, net of allowance for doubtful accounts. The allowance for doubtful accounts is generally established during the period in which receivables are recognized and is based on the age of the receivables and management's judgment on our ability to collect. Management considers the historical trends of write-offs and recoveries of previously written-off accounts, the financial strength of customers and projected economic and market conditions. We determine the delinquency status of receivables predominantly based on contractual terms and we write-off uncollectible receivables after management's review of our ability to collect, as noted above. We have no significant concentrations of credit risk within our accounts and notes receivable.

Inventories

Inventory costs include material, labor, depreciation and plant overhead. Inventories of $274.5 million and $221.4 million as of December 31, 2017 and 2016, respectively, were valued at the lower of cost or market using the last-in, first-out (“LIFO”) cost method. The remainder of inventory is valued at the lower of cost or market with cost determined primarily using either the first-in, first-out (“FIFO”) or average cost methods.

We elected to use the LIFO cost method for our domestic manufacturing companies in 1974 and continued to elect the LIFO cost method for new operations through the late 1980s. The types of inventory costs that use LIFO include raw materials, purchased components, work-in-process, repair parts and finished goods. Since the late 1990s, we have adopted the FIFO cost method for all new domestic manufacturing operations (primarily acquisitions). Our operating entities with a previous LIFO election continue to use the LIFO cost method. We use the FIFO cost method for our foreign-based manufacturing facilities. See Note 3 for more information on our inventories.

Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation. Expenditures that increase the utility or extend the useful lives of fixed assets are capitalized while expenditures for maintenance and repairs are charged to expense as incurred.

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Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings and improvements:
Buildings and improvements	2 to 33 years
Leasehold improvements	1 to 39 years
Machinery and equipment:
Computer hardware	3 to 5 years
Computer software	3 to 10 years
Factory machinery and equipment	1 to 15 years
Research and development equipment	3 to 10 years
Vehicles	2 to 8 years

We periodically review long-lived assets for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. To assess recoverability, we compare the estimated expected future undiscounted cash flows identified with each long-lived asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value. See Note 5 for additional information on our property, plant and equipment.

Goodwill

Goodwill represents the excess of cost over fair value of assets from acquired businesses. Goodwill is not amortized, but is reviewed for impairment annually and whenever events or changes in circumstances indicate the asset may be impaired (See Note 4 for additional information on our goodwill). The annual goodwill impairment test was performed during the fourth quarter of 2017.

The provisions of the accounting standard for goodwill allow us to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test. As part of our qualitative assessment, we monitor economic, legal, regulatory and other factors, industry trends, our market capitalization, recent and forecasted financial performance of our reporting units and the timing and nature of our restructuring activities for LII as a whole and for each reporting unit.

If a quantitative goodwill impairment test is determined to be necessary, we estimate reporting unit fair values using a combination of the discounted cash flow approach and a market approach. The discounted cash flows used to estimate fair value are based on assumptions regarding each reporting unit’s estimated projected future cash flows and the estimated weighted-average cost of capital that a market participant would use in evaluating the reporting unit in a purchase transaction. The estimated weighted-average cost of capital is based on the risk-free interest rate and other factors such as equity risk premiums and the ratio of total debt to equity capital. In performing these impairment tests, we take steps to ensure that appropriate and reasonable cash flow projections and assumptions are used. We reconcile our estimated enterprise value to our market capitalization and determine the reasonableness of the cost of capital used by comparing to market data. We also perform sensitivity analyses on the key assumptions used, such as the weighted-average cost of capital and terminal growth rates. The market approach is based on objective evidence of market values.

Intangible Assets

We amortize intangible assets and other assets with finite lives over their respective estimated useful lives to their estimated residual values, as follows:

Asset	Useful Life
Deferred financing costs	Effective interest method
Customer relationships	Straight-line method up to 12 years
Patents and others	Straight-line method up to 20 years

We periodically review intangible assets with estimable useful lives for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. We assess recoverability by comparing the estimated expected undiscounted future cash flows identified with each intangible asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment

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loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value. In assessing the fair value of these intangible assets, we must make assumptions that a market participant would make regarding estimated future cash flows and other factors to determine the fair value of the respective assets. If these estimates or the related assumptions change, we may be required to record impairment charges for these assets in the future.

We review our indefinite-lived intangible assets for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate the asset may be impaired. The provisions of the accounting standard for indefinite-lived intangible assets allow us to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative impairment test. As part of our qualitative assessment, we monitor economic, legal, regulatory and other factors, industry trends, recent and forecasted financial performance of our reporting units and the timing and nature of our restructuring activities for LII as a whole and as they relate to the fair value of the assets. See Note 4 for additional information on our intangible assets.

Product Warranties

For some of our heating, ventilation and air conditioning (“HVAC”) products, we provide warranty terms ranging from one to 20 years to customers for certain components such as compressors or heat exchangers. For select products, we also provide limited lifetime warranties. A liability for estimated warranty expense is recorded on the date that revenue is recognized. Our estimates of future warranty costs are determined by product line. The number of units we expect to repair or replace is determined by applying an estimated failure rate, which is generally based on historical experience, to the number of units that were sold and are still under warranty. The estimated units to be repaired under warranty are multiplied by the average cost to repair or replace such products to determine the estimated future warranty cost. We do not discount product warranty liabilities as the amounts are not fixed and the timing of future cash payments is neither fixed nor reliably determinable. We also provide for specifically-identified warranty obligations. Estimated future warranty costs are subject to adjustment depending on changes in actual failure rate and cost experience. Subsequent costs incurred for warranty claims serve to reduce the accrued product warranty liability. See Note 10 for more information on our estimated future warranty costs.

Pensions and Post-retirement Benefits

We provide pension and post-retirement medical benefits to eligible domestic and foreign employees and we recognize pension and post-retirement benefit costs over the estimated service life or average life expectancy of those employees. We also recognize the funded status of our benefit plans, as measured at year-end by the difference between plan assets at fair value and the benefit obligation, in the Consolidated Balance Sheets. Changes in the funded status are recognized in the year in which the changes occur through accumulated other comprehensive income (“AOCI”). Actuarial gains or losses are amortized into net period benefit cost over the estimated service life of covered employees or average life expectancy of participants depending on the plan.

The benefit plan assets and liabilities reflect assumptions about the long-range performance of our benefit plans. Should actual results differ from management's estimates, revisions to the benefit plan assets and liabilities would be required. See Note 12 for information regarding those estimates and additional disclosures on pension and post-retirement medical benefits.

Self-Insurance

Self-insurance expense and liabilities were actuarially determined based primarily on our historical claims information and industry factors and trends. The self-insurance liabilities as of December 31, 2017 represent the best estimate of the future payments to be made on reported and unreported losses for 2017 and prior years. The amounts and timing of payments for claims reserved may vary depending on various factors, including the development and ultimate settlement of reported and unreported claims. To the extent actuarial assumptions change and claims experience rates differ from historical rates, our liabilities may change. See Note 10 for additional information on our self-insured risks and liabilities.

Derivatives

We use futures contracts, forward contracts and fixed forward contracts to mitigate our exposure to volatility in metal commodity prices and foreign exchange rates. We hedge only exposures in the ordinary course of business and do not hold or trade derivatives for profit. All derivatives are recognized in the Consolidated Balance Sheets at fair value and the classification of each derivative instrument is based upon whether the maturity of the instrument is less than or greater than 12 months. See Note 8 for more information on our derivatives.

Income Taxes

We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial

43

statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Unrecognized tax benefits are accounted for as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740. See Note 9 for more information related to income taxes.

Revenue Recognition

Our revenue recognition practices for the sale of goods depend upon the shipping terms for each transaction. Shipping terms are primarily FOB Shipping Point and, therefore, revenue is recognized for these transactions when products are shipped to customers and title passes. Certain customers in our smaller operations, primarily outside of North America, have shipping terms where title and risk of ownership do not transfer until the product is delivered to the customer. For these transactions, revenue is recognized on the date that the product is received and accepted by such customers. We experience returns for miscellaneous reasons and record a reserve for these returns at the time we recognize revenue based on historical experience. Our historical rates of return are insignificant as a percentage of sales. We also recognize revenue net of sales taxes.

For our businesses that provide services, revenue is recognized at the time services are completed. Our Commercial Heating & Cooling segment also provides sales, installation, maintenance and repair services under fixed-price contracts. Revenue for equipment sales is recognized in line with shipping terms, revenue for installation services is recognized when completed, and revenue related to maintenance and repair services is recognized when such services are performed.

We engage in cooperative advertising, customer rebate, and other miscellaneous programs that result in payments or credits being issued to our customers. We record these customer discounts and incentives as a reduction of sales when the sales are recorded. For certain cooperative advertising programs, we also receive an identifiable benefit (goods or services) in exchange for the consideration given, and, accordingly, record a ratable portion of the expenditure to Selling, general and administrative (“SG&A”) expenses. All other advertising, promotions and marketing costs are expensed as incurred. See Note 22 for more information on these costs.

Cost of Goods Sold

The principal elements of cost of goods sold are components, raw materials, factory overhead, labor, estimated costs of warranty expense and freight and distribution costs.

Selling, General and Administrative Expenses

SG&A expenses include payroll and benefit costs, advertising, commissions, research and development, information technology costs, and other selling, general and administrative related costs such as insurance, travel, non-production depreciation and rent.

Stock-Based Compensation

We recognize compensation expense for stock-based arrangements over the required employee service periods. We measure stock-based compensation costs on the estimated grant-date fair value of the stock-based awards that are expected to ultimately vest and we adjust expected vesting rates to actual rates as additional information becomes known. For stock-based arrangements with performance conditions, we periodically adjust performance achievement rates based on our best estimates of those rates at the end of the performance period. See Note 14 for more information.

Translation of Foreign Currencies

All assets and liabilities of foreign subsidiaries and joint ventures are translated into U.S. dollars using rates of exchange in effect at the balance sheet date. Revenue and expenses are translated at weighted average exchange rates during the year. Unrealized translation gains and losses are included in AOCI in the accompanying Consolidated Balance Sheets. Transaction gains and losses are included in Losses and other expenses, net in the accompanying Consolidated Statements of Operations.

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 revenue and expenses. Such estimates include the valuation of accounts receivable, inventories,

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goodwill, intangible assets and other long-lived assets, contingencies, product warranties, 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 and uncertain future economic conditions combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Reclassifications

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

Recently Adopted Accounting Guidance

On March 30, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the excess tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. This is in comparison to the prior requirement that these excess tax benefits be recognized in additional paid-in capital. The new guidance also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows rather than, as previously required, a financing activity.

We have adopted ASU 2016-09 effective January 1, 2017 on a prospective basis where permitted by the new standard. As a result of this adoption:

• We recognized discrete tax benefits of $23.6 million in the income taxes line item of our consolidated statements of operations for the twelve months ended December 31, 2017 related to excess tax benefits upon vesting or settlement in that period.

• We elected to adopt the cash flow presentation of the excess tax benefits retrospectively where these benefits are classified along with other income tax cash flows as operating cash flows.

• We have elected to continue to estimate the number of stock-based awards expected to vest, rather than electing to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period.

• We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended December 31, 2017.

Recent Accounting Pronouncements

On May 28, 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("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. We have substantially completed our evaluation of the effect that ASU 2014-09 will have on our Consolidated Financial Statements and related disclosures. The ASU will not have a material impact on the amount and timing of revenue recognition, but it will require us to enhance our disclosures to provide additional information relating to disaggregated revenue, contract assets and liabilities, and remaining performance obligations. We are currently in the process of preparing these additional disclosures, including updating our internal controls related to the additional data and disclosures to be provided upon adoption of the new standard. We will adopt the new standard using the modified retrospective approach.

On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). Lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. We will adopt the standard using the prospective approach and are still determining the effect of the standard on our ongoing financial reporting. As a result of the new standard,

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all of our leases greater than one year in duration will be recognized on our Consolidated Balance Sheets as both operating lease liabilities and right-of-use assets upon adoption of the standard.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU clarify the classification for eight different types of activities, including debt prepayment and extinguishment costs, proceeds from insurance claims and distributions from equity method investees. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2017. This standard is not expected to have a material impact on our consolidated financial statements.

On October 24, 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The new ASU eliminates the existing exception from recognition of the tax consequences of intercompany sales of assets other than inventory. Under the new standard, when an asset (other than inventory) is sold from one consolidated entity to another, the tax consequences to the seller will be recognized currently as a component of the current tax provision. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those years. In accordance with the ASU, our previously deferred tax costs and unrecognized deferred tax assets related to intra-entity asset transfers will need to be recognized at the date of transition through a cumulative effect adjustment to opening retained earnings upon adoption of the standard.

On March 10, 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating expense component is reported with similar compensation costs while the non-operating components are reported in Other Income, net. In addition, only the service cost component is eligible for capitalization as part of an asset such as inventory or property, plant and equipment. The ASU will not have a material impact on our financial results.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance in ASU 2017-12 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We intend to adopt this guidance in 2018 as it will allow us to designate certain aluminum commodity futures contracts as cash flow hedges.

3. Inventories:

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

	As of December 31,
	2017			2016
Finished goods	$	331.9		$	287.2
Work in process	5.5			5.1
Raw materials and parts	199.2			183.4
Total	536.6			475.7
Excess of current cost over last-in, first-out cost	(52.4		)	(57.2		)
Total inventories, net	$	484.2		$	418.5

The Company recorded no pre-tax loss in 2017, pre-tax loss of $0.2 million in 2016 and pre-tax loss of $0.2 million in 2015 from LIFO inventory liquidations. Reserve balances, primarily related to obsolete and slow-moving inventories, were $20.1 million and $19.7 million at December 31, 2017 and December 31, 2016, respectively.

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4. Goodwill and Intangible Assets:

Goodwill

The changes in the carrying amount of goodwill in 2017 and 2016, in total and by segment, are summarized in the table below (in millions):

Segment:	Balance at December 31, 2015 (1)		Change in foreign currency translation rate			Balance at December 31, 2016		Change in foreign currency translation rate		Balance at December 31, 2017
Residential Heating & Cooling	$	26.1	$	—		$	26.1	$	—	$	26.1
Commercial Heating & Cooling	60.6		(0.5		)	60.1		2.1		62.2
Refrigeration	108.4		0.5			108.9		3.3		112.2
	$	195.1	$	—		$	195.1	$	5.4	$	200.5

⁽¹⁾ The goodwill balances in the table above are presented net of accumulated impairment charges of $21.2 million, all of which relate to impairments in periods prior to 2016.

We reviewed our reporting unit structure as part of our annual goodwill impairment testing. We identified several components one level below our operating segments which were determined to be reporting units. We then performed our analysis to determine the proper aggregation of our reporting units, which considered similar economic and other characteristics, including product types, gross profits, production processes, customer types, distribution processes, and regulatory environments. Our analysis incorporated qualitative and quantitative measures to evaluate economic similarity and concluded that our reporting units continue to be equivalent to our operating segments except that we began evaluating our North America supermarket display cases and systems business separately beginning in 2015.

A qualitative review of impairment indicators was performed in 2017 for the Residential Heating & Cooling, the Commercial Heating & Cooling, and the Refrigeration segments and we determined that it was not more likely than not that the fair values of our reporting units, individually or collectively, were less than their carrying values. Accordingly, a quantitative impairment analysis was not performed for these segments. No indicators of goodwill impairment were identified during the current year. Also, we did not record any goodwill impairments related to continuing operations in 2016. During the fourth quarter of 2015 we performed a quantitative impairment analysis of our North American supermarket display cases and systems business. Based on the results of the quantitative impairment test, we recorded impairment of $5.5 million in "Goodwill impairment" in the Consolidated Statement of Operations.

Intangible Assets

As of December 31,2017 and 2016, there were $4.3 million and $4.3 million, respectively, of indefinite-lived intangible assets recorded in Other assets, net in the accompanying Consolidated Balance Sheets. These intangible assets consisted primarily of trademarks and are not subject to amortization.

Identifiable intangible and other assets subject to amortization were recorded in Other assets, net in the accompanying Consolidated Balance Sheets and were comprised of the following (in millions):

	As of December 31,
	2017							2016
	Gross Amount		Accumulated Amortization			Net Amount		Gross Amount		Accumulated Amortization			Net Amount
Customer relationships	15.8		(15.1		)	0.7		15.9		(14.9		)	1.0
Patents and others	14.3		(6.4		)	7.9		12.7		(6.4		)	6.3
Total	$	30.1	$	(21.5	)	$	8.6	$	28.6	$	(21.3	)	$	7.3

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Amortization expense related to these intangible and other assets was as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Amortization expense (1)	$	0.5	$	0.4	$	2.7

⁽¹⁾ Included in the amortization expense in 2015 are amounts relating to customer relationships that were written off during the fourth quarter of 2015.

Estimated amortization expense for the next five years and thereafter is as follows (in millions):

Estimated Future Amortization Expense:
2018	$	0.5
2019	0.5
2020	0.4
2021	0.2
2022	0.2
Thereafter	6.8

During the fourth quarter of 2015, we completed a strategic review of our North American supermarket display cases and systems business. As a result, we performed an impairment analysis using a market approach and determined that intangible assets relating to the North American supermarket display case business trade name and its customer relationships were impaired and we recorded a charge of $21.2 million in "Asset impairment" in the Consolidated Statement of Operations. We did not have any impairments of intangible assets related to continuing operations in 2017 or 2016.

5. Property, Plant and Equipment:

Components of Property, plant and equipment, net were as follows (in millions):

	As of December 31,
	2017			2016
Land	$	35.7		$	33.9
Buildings and improvements	234.4			218.2
Machinery and equipment	804.4			742.1
Capital leases	27.5			27.3
Construction in progress and equipment not yet in service	70.0			57.1
Total	1,172.0			1,078.6
Less accumulated depreciation	(774.2		)	(717.2		)
Property, plant and equipment, net	$	397.8		$	361.4

During the fourth quarter of 2015, we completed a strategic review of our North American supermarket display cases and systems business. As a result, we performed an impairment analysis using a market approach and determined that property, plant and equipment relating to the North American supermarket display case business unit were impaired and we recorded a charge of $23.3 million in "Asset impairment" in the Consolidated Statement of Operations. No impairment charges were recorded in 2017 or 2016.

6. Joint Ventures and Other Equity Investments:

We participate in two joint ventures, the largest located in the U.S. and the other in Mexico, 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 respective 25% and 50% 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.

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The combined balance of equity method investments included in Other assets, net totaled (in millions):

	As of December 31,
	2017		2016
Equity method investments	$	33.3	$	30.7

We purchase compressors from our U.S. joint venture for use in certain of our products. The amounts of purchases included in Cost of goods sold in the Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Purchases of compressors from joint venture	$	106.4	$	97.7	$	103.5

7. Accrued Expenses:

The significant components of Accrued expenses are presented below (in millions):

	As of December 31,
	2017		2016
Accrued compensation and benefits	$	80.7	$	89.8
Accrued rebates and promotions	70.3		64.6
Accrued warranties	34.8		30.0
Accrued sales, use, property and VAT taxes	21.6		20.2
Accrued asbestos reserves	8.5		9.8
Self insurance reserves	7.3		8.2
Deferred income	7.3		6.4
Derivative contracts	1.4		4.0
Other	38.4		32.9
Total Accrued expenses	$	270.3	$	265.9

8. Derivatives:

Objectives and Strategies for Using Derivative Instruments

Commodity Price Risk. We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes. Our hedging program includes the use of futures contracts to lock in prices, and as a result, we are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase. We utilize a dollar cost averaging strategy so that a higher percentage of commodity price exposures are hedged near-term with lower percentages hedged at future dates. This strategy allows for protection against near-term price volatility while allowing us to adjust to market price movements over time.

Interest Rate Risk. A portion of our debt bears interest at variable interest rates, and as a result, we are subject to variability in the cash paid for interest. To mitigate a portion of that risk, we may choose to engage in an interest rate swap hedging strategy to eliminate the variability of interest payment cash flows. We are not currently hedged against interest rate risk.

Foreign Currency Risk. Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of assets and liabilities arising in foreign currencies. We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts.

Cash Flow Hedges

We have commodity futures contracts and foreign exchange forward contracts designated as cash flows hedges that are scheduled to mature through May 2019 and December 2018, respectively. Unrealized gains or losses from our cash flow hedges are included

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in AOCI and are expected to be reclassified into earnings within the next 18 months based on the prices of the commodities at the settlement dates.

We recorded the following amounts related to our cash flow hedges in AOCI (in millions):

	As of December 31,
	2017			2016
Unrealized gains on unsettled contracts	$	(11.3	)	$	(8.9	)
Income tax expense	3.9			3.3
Gains included in AOCI, net of tax (1)	$	(7.4	)	$	(5.6	)

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $7.1 million of derivative gains into earnings within the next 12 months.

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

	As of December 31,
Notional Amounts	2017	2016
Copper	20.6	30.4

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

	As of December 31,
Notional Amounts (in local currency):	2017	2016
Mexican Peso	207.3	310.1
Canadian Dollar	68.6	24.9

Derivatives not Designated as Cash Flow Hedges

For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as derivatives designated as cash flow hedges, except that we elect not to designate them as cash flow hedges at the inception of the arrangement. We had

the following outstanding commodity futures contracts not designated as cash flow hedges (in millions of pounds):

	As of December 31,
	2017	2016
Copper	1.8	2.4
Aluminum	1.8	2.6

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

	As of December 31,
Notional amounts (in local currency):	2017	2016
Chinese Yuan	73.8	10.5
Mexican Peso	136.6	64.5
Euro	64.4	46.9
British Pound	4.5	1.3
Indian Rupee	39.8	584.6
Singapore Dollar	7.0	—
Australian Dollar	107.0	—
New Zealand Dollar	5.0	—
Canadian Dollar	27.3	—

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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 as of December 31 (1)
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated  as Hedging Instruments
	2017		2016		2017		2016
Current Assets:
Other assets
Commodity futures contracts	$	11.0	$	8.7	$	1.2	$	0.7
Foreign currency forward contracts	0.1		0.5		0.9		0.2
Non-Current Assets:
Other assets, net
Commodity futures contracts	0.6		1.9		0.1		0.2
Foreign currency forward contracts	$	—	$	—	$	—	$	—
Total Assets	$	11.7	$	11.1	$	2.2	$	1.1
Current Liabilities:
Accrued expenses
Commodity futures contracts	$	—	$	—	$	—	$	—
Foreign currency forward contracts	0.3		0.8		1.1		3.2
Total Liabilities	$	0.3	$	0.8	$	1.1	$	3.2

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 19 for more information on fair value measurements.

Derivatives in Cash Flow Hedging Relationships
	For the Years Ended December 31,
	2017			2016			2015
Amount of (Gain) Loss Reclassified from AOCI into Income (Effective Portion):
Commodity futures contracts (1)	$	(13.7	)	$	12.3		$	12.5
Amount of Loss (Gain) Recognized in Income on Derivatives (Ineffective Portion):
Commodity futures contracts (2)	$	1.0		$	(1.6	)	$	0.1

Derivatives Not Designated as Hedging Instruments
	For the Years Ended December 31,
	2017			2016			2015
Amount of (Gain) Loss Recognized in Income on Derivatives:
Commodity futures contracts (2)	$	(1.9	)	$	(0.9	)	$	2.5
Foreign currency forward contracts (2)	(5.7		)	4.3			0.3
	$	(7.6	)	$	3.4		$	2.8

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

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

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9. Income Taxes:

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) repeal of the domestic production activity deduction; and (6) limitations on the deductibility of certain executive compensation.

Our Provision for income taxes from continuing operations consisted of the following (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Current:
Federal	$	86.1		$	106.0		$	101.0
State	12.5			14.5			13.1
Foreign	15.0			9.7			3.6
Total current	113.6			130.2			117.7
Deferred:
Federal	43.8			(4.5		)	(21.4		)
State	0.9			(1.2		)	(0.6		)
Foreign	(1.4		)	(0.4		)	(0.3		)
Total deferred	43.3			(6.1		)	(22.3		)
Total provision for income taxes	$	156.9		$	124.1		$	95.4

Income from continuing operations before income taxes was comprised of the following (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Domestic	$	402.5	$	374.8	$	276.7
Foreign	61.5		27.9		5.9
Total	$	464.0	$	402.7	$	282.6

The difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Provision at the U.S. statutory rate of 35%	$	162.4		$	141.0		$	98.9
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	9.2			12.8			8.0
Domestic manufacturing deduction	(9.6		)	(9.2		)	(9.9		)
Tax credits, net of unrecognized tax benefits	(8.6		)	(27.9		)	(0.7		)
Change in unrecognized tax benefits	(0.1		)	(0.3		)	(0.9		)
Change in valuation allowance	6.4			(4.3		)	(0.6		)
Foreign taxes at rates other than 35%	(9.0		)	(1.3		)	0.3
Deemed inclusions	0.3			16.9			0.6
Change in rates from the Tax Act & other law changes	31.8			(0.6		)	0.8
Excess tax benefits from stock-based compensation	(23.6		)	—			—
Miscellaneous other	(2.3		)	(3.0		)	(1.1		)
Total provision for income taxes	$	156.9		$	124.1		$	95.4

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The SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.

Our accounting for the following elements of the Tax Act is incomplete. However, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments as follows:

• The Tax Act reduced the corporate tax rate to 21 percent, effective January 1, 2018. For our net federal deferred tax assets ("DTA"), we have recorded a provisional decrease of $32.1 million, with a corresponding net adjustment to deferred income tax expense of $32.1 million for the year ended December 31, 2017. This adjustment is based on a reasonable estimate of the impact of the reduction in the corporate tax rate on our DTA's as of December 22, 2017. While we are able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, our DTA's may be affected by other analyses related to the Tax Act, including our calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences.

• The Deemed Repatriation Transition Tax (Transition Tax) is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries. To assess the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. We are able to make a reasonable estimate of the Transition Tax and currently estimate that we will not have a Transition Tax obligation. However, we are continuing to review additional information regarding our accumulated E&P and non-U.S. income taxes paid to more precisely compute the amount of the Transition Tax, if any. In addition, based on current state tax law, we estimate the state impact of the Transition Tax to be insignificant. This estimate will be revised based on a calculation of our final Transition Tax as well as any updated guidance on state treatment of the deemed repatriation.

• We must assess whether our valuation allowance analyses are affected by various aspects of the Tax Act (e.g., deemed repatriation of deferred foreign income, global intangible low-taxed income ("GILTI") inclusions, new categories of foreign tax credits ("FTCs"), and share-based compensation). Since, as discussed herein, we have recorded provisional amounts related to certain portions of the Tax Act, any corresponding determination of the need for or change in a valuation allowance is also provisional. Due to the limitation on the utilization of future foreign tax credits, we recorded a provisional valuation allowance against our FTC carryforwards of $4.3 million. While we believe this is a reasonable estimate, the realizability of deferred tax assets related to share-based compensation may also be impacted by the Tax Act.

• While we have not yet completed all of the computations necessary or completed a detailed inventory of our 2017 expenditures that qualify for immediate expensing, we have recorded a provisional benefit of $4.1 million based on our current intent to fully expense all qualifying expenditures. This resulted in a decrease of approximately $1.4 million to our current income tax payable and a corresponding increase in our deferred tax liabilities ("DTLs") of approximately $0.9 million (after considering the effects of the reduction in income tax rates). This provisional benefit will be refined as we complete the detailed analysis of qualifying expenditures.

Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. We are not currently able to reasonably estimate the effect of the new GILTI tax rules on future U.S. inclusions in taxable income as the expected future impact of this provision of the Tax Act depends on our current structure and business. Therefore, we have not made any adjustments related to potential GILTI tax in our financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI.

The effect of the tax rate change for items originally recognized in other comprehensive income was properly recorded in tax expense from continuing operations.  This results in stranded tax effects in accumulated other comprehensive income at December

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31, 2017.  Companies can make a policy election to reclassify from accumulated other comprehensive income to retained earnings the stranded tax effects directly arising from the change in the federal corporate tax rate.  We will determine whether or not to make such a policy election in fiscal 2018.

Deferred income taxes reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their financial reporting basis and depending on the classification of the asset or liability generating the deferred tax. The deferred tax provision for the periods shown represents the effect of changes in the amounts of temporary differences during those periods.

Deferred tax assets (liabilities) were comprised of the following (in millions):

	As of December 31,
	2017			2016
Gross deferred tax assets:
Warranties	$	27.3		$	36.3
Loss carryforwards (foreign, U.S. and state)	21.0			19.8
Post-retirement and pension benefits	23.3			33.9
Inventory reserves	7.5			9.6
Receivables allowance	3.5			4.5
Compensation liabilities	11.1			20.6
Deferred income	0.7			1.5
Insurance liabilities	5.1			6.5
Legal reserves	7.6			12.0
Tax credits, net of federal effect	21.3			18.4
Other	7.5			5.4
Total deferred tax assets	135.9			168.5
Valuation allowance	(24.9		)	(17.1		)
Total deferred tax assets, net of valuation allowance	111.0			151.4
Gross deferred tax liabilities:
Depreciation	(5.9		)	(3.3		)
Hedges	(3.6		)	(3.2		)
Intangibles	(4.9		)	(4.9		)
Other	(2.2		)	(3.3		)
Total deferred tax liabilities	(16.6		)	(14.7		)
Net deferred tax assets	$	94.4		$	136.7

As of December 31, 2017 and 2016, we had $0.8 million and $ 1.6 million in tax-effected state net operating loss carryforwards, respectively, and $19.8 million and $16.8 million in tax-effected foreign net operating loss carryforwards, respectively. The state and foreign net operating loss carryforwards began expiring in 2014. The deferred tax asset valuation allowance relates primarily to the operating loss carryforwards European and Asian tax jurisdictions. The remainder of the valuation allowance relates to state tax credits.

In assessing whether a deferred tax asset will be realized, we consider whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. We consider the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not we will realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2017. To realize the net foreign deferred tax asset, we will need to generate future foreign taxable income of approximately $71.3 million during the periods in which those temporary differences become deductible.

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As of December 31, 2017, we had foreign tax credit carryforwards in U.S. of $10.6 million. Due to the Tax Act, we no longer believe we will realize the full benefit of these credits due to the new limitation of utilizing foreign tax credits to reduce U.S. income tax. Therefore, we recorded a valuation allowance of $4.3 million.

No provision was made for income taxes which may become payable upon distribution of our foreign subsidiaries' earnings. These earnings were approximately $87.0 million as of December 31, 2017. An actual repatriation in the future from our non-U.S. subsidiaries could still be subject to foreign withholding taxes and U.S. state taxes.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

Balance as of December 31, 2015	$	0.5
Increases related to prior year tax positions	1.0
Increases related to current year tax positions	1.4
Settlement	(0.5		)
Balance as of December 31, 2016	2.4
Increases related to prior year tax positions	0.1
Decreases related to prior year tax positions	(2.5		)
Balance as of December 31, 2017	$	—

As of December 31, 2017, we no longer had any unrecognized tax benefits.

We are currently under examination for our U.S. federal income taxes for 2017 and 2016 and are subject to examination by numerous other taxing authorities in the U.S. and in jurisdictions such as France, Canada, India and Germany. We are generally no longer subject to U.S., state and local or non-U.S. income tax examinations by taxing authorities for years before 2011.

10. Commitments and Contingencies:

Leases

We lease certain real and personal property under non-cancelable operating leases. Some of our lease agreements contain rent escalation clauses (including index-based escalations), rent holidays, capital improvement funding or other lease concessions. We recognize our minimum rental expense on a straight-line basis. We amortize this expense over the term of the lease beginning with the date of initial possession, which is the date we enter the leased space and begin to make improvements in preparation for its intended use.

Future annual minimum lease payments and capital lease commitments as of December 31, 2017 were as follows (in millions):

	Operating Leases		Capital Leases
2018	$	55.3	$	3.5
2019	42.4		0.6
2020	28.4		0.4
2021	18.3		0.1
2022	17.7		—
Thereafter	13.8		12.0
Total minimum lease payments	$	175.9	$	16.6
Less amount representing interest			0.2
Present value of minimum payments			$	16.4

On March 22, 2013, we entered into an agreement with a financial institution to renew the lease of our corporate headquarters in Richardson, Texas for a term of approximately six years through March 1, 2019 (the “Lake Park Renewal”). The leased property consists of an office building of approximately 192,000 square feet, land and related improvements. During the lease term, the Lake Park Renewal requires us to pay base rent in quarterly installments, payable in arrears. At the end of the lease term, we must

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do one of the following: (i) purchase the property for $41.2 million; (ii) vacate the property and return it in good condition; (iii) arrange for the sale of the leased property to a third party; or (iv) renew the lease under mutually agreeable terms. If we elect to sell the property to a third party and the sales proceeds are less than the lease balance, we must pay any such deficit to the financial institution. Any such deficit payment cannot exceed 86% of the lease balance. The Lake Park Renewal is classified as an operating lease and its future annual minimum lease payments are included in the table above.

Our obligations under the Lake Park Renewal are secured by a pledge of our interest in the leased property. The Lake Park Renewal contains customary lease covenants and events of default as well as events of default if (i) indebtedness of $75 million or more is not paid when due, (ii) there is a change of control or (iii) we fail to comply with certain covenants incorporated from our Sixth Amended and Restated Credit Facility Agreement. We believe we were in compliance with these financial covenants as of December 31, 2017.

Environmental

Environmental laws and regulations in the locations we operate can potentially impose obligations to remediate hazardous substances at our properties, properties formerly owned or operated by us, and facilities to which we have sent or send waste for treatment or disposal. We are aware of contamination at some facilities; however, we do not believe that any future remediation related to those facilities will be material to our results of operations. Total environmental accruals are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	3.5	$	1.2
Other liabilities	3.1		4.4
Total environmental accruals	$	6.6	$	5.6

Future environmental costs are estimates and may be subject to change due to changes in environmental remediation regulations, technology or site-specific requirements.

Product Warranties and Product Related Contingencies

We incur the risk of liability for claims related to the installation and service of heating and air conditioning products, and we maintain liabilities for those claims that we self-insure. We are involved in various claims and lawsuits related to our products. Our product liability insurance policies have limits that, if exceeded, may result in substantial costs that could have an adverse effect on our results of operations. In addition, warranty claims and certain product liability claims are not covered by our product liability insurance.

Total product warranty liabilities related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	34.8	$	30.0
Other liabilities	75.1		71.1
Total product warranty liabilities	$	109.9	$	101.1

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The changes in product warranty liabilities related to continuing operations for the years ended December 31, 2017 and 2016 were as follows (in millions):

Total warranty liability as of December 31, 2015	$	92.3
Payments made in 2016	(24.7		)
Changes resulting from issuance of new warranties	36.2
Changes in estimates associated with pre-existing liabilities	(2.6		)
Changes in foreign currency translation rates and other	(0.1		)
Total warranty liability as of December 31, 2016	$	101.1
Payments made in 2017	(28.8		)
Changes resulting from issuance of new warranties	41.1
Changes in estimates associated with pre-existing liabilities	(4.8		)
Changes in foreign currency translation rates and other	1.3
Total warranty liability as of December 31, 2017	$	109.9

We have incurred, and will likely continue to incur, product costs not covered by insurance or our suppliers’ warranties, which are not included in the 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.

During the second quarter of 2017, we identified a product quality issue in a defective vendor-supplied component affecting a product line in the Residential Heating & Cooling segment. This defect has been isolated, the vendor is supplying corrected components, and we are manufacturing product with the corrected components. We have also implemented a program for our dealers to install corrected components in the field. We recorded an expense of $5.7 million for the twelve months ended December 31, 2017, relating to estimated repair costs. The expense related to this product quality issue has been classified in Cost of goods sold in the Consolidated Statements of Operations and the related liability is included in Accrued expenses on the Consolidated Balance Sheet.

Self-Insurance

We use a combination of third-party insurance and self-insurance plans to provide protection against claims relating to workers' compensation/employers' liability, general liability, product liability, auto liability, auto physical damage and other exposures. We use large deductible insurance plans, written through third-party insurance providers, for workers' compensation/employers' liability, general liability, product liability and auto liability. We also carry umbrella or excess liability insurance for all third-party and self-insurance plans, except for directors' and officers' liability, property damage and certain other insurance programs. For directors' and officers' liability, property damage and certain other exposures, we use third-party insurance plans that may include per occurrence and annual aggregate limits. We believe the deductibles and liability limits for all of our insurance policies are appropriate for our business and are adequate for companies of our size in our industry.

We maintain safety and manufacturing programs that are designed to remove risk, improve the effectiveness of our business processes and reduce the likelihood and significance of our various retained and insured risks. In recent years, our actual claims experience has collectively trended favorably and, as a result, both self-insurance expense and the related liability have decreased.

Total self-insurance liabilities were included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	7.3	$	8.2
Other liabilities	21.6		22.7
Total self-insurance liabilities	$	28.9	$	30.9

Litigation

We are involved in a number of claims and lawsuits incident to the operation of our businesses. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known.

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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 vary depending on several factors, and are subject to policy limits, so we may have greater financial exposure for future settlements and judgments. We currently estimate our probable liability for known and future asbestos-related litigation cases to be between $28.5 million and $46.5 million before consideration of probable insurance recoveries with all amounts in that range equally likely. We have accrued $8.5 million in Accrued expenses and $20.0 million in Other liabilities in the Consolidated Balance at December 31, 2017. For the years ended December 31, 2017, 2016 and 2015, we recorded expense of $3.5 million, $6.3 million and $0.9 million, respectively, net of probable insurance recoveries, for known and future asbestos-related litigation and is recorded in Losses and other expenses, net in the Consolidated Statements of Operations.

In October 2016, we self-reported to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) an alleged payment in the amount of 30,000 rubles (approximately US $475) to a Russian customs broker or official. Under the oversight of our Audit Committee, we initiated an investigation into this matter with the assistance of external legal counsel and external forensic accountants.The scope of the investigation was later expanded to include our operations in Poland and Ukraine. The investigation raised questions regarding possible irregularities with respect to non-compliance with customs documents and procedures related to these operations. We continue to fully cooperate with the SEC and the DOJ regarding this matter. We do not anticipate any material adverse effect on our business or financial condition as a result of this matter.

It is management's opinion that none of these claims or lawsuits or any threatened litigation will have a material adverse effect, individually or in the aggregate, 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 in a future period.

11. Lines of Credit and Financing Arrangements:

The following tables summarize our outstanding debt obligations and the classification in the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017			2016
Short-Term Debt:
Asset Securitization Program	$	—		$	50.0
Foreign obligations	0.9			2.4
Total short-term debt	$	0.9		$	52.4
Current maturities of long-term debt:
Capital lease obligations	$	3.2		$	0.8
Domestic credit facility	30.0			—
Senior unsecured notes	—			200.0
Debt issuance costs	(0.6		)	(0.7		)
Total current maturities of long-term debt	$	32.6		$	200.1
Long-Term Debt:
Asset Securitization Program	$	276.0		$	—
Capital lease obligations	11.9			15.0
Domestic credit facility	337.0			256.0
Senior unsecured notes	350.0			350.0
Debt issuance costs	(4.4		)	(5.3		)
Total long-term debt	$	970.5		$	615.7
Total debt	$	1,004.0		$	868.2

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As of December 31, 2017, the aggregate amounts of required principal payments on total debt were as follows (in millions):

2018	$	34.1
2019	306.3
2020	30.0
2021	277.0
2022	—
Thereafter	361.6

Short-Term Debt

Foreign Obligations

Through several of our foreign subsidiaries, we have available to us facilities to assist in financing seasonal borrowing needs for our foreign locations. We had $0.9 million and $2.4 million of foreign obligations as of December 31, 2017 and 2016, respectively, that were primarily borrowings under non-committed facilities. Proceeds on these facilities were $30.4 million, $28.4 million and $79.0 million during the years ended December 31, 2017, 2016 and 2015, respectively. Repayments on the facilities were $31.9 million, $30.8 million and $85.4 million during the years ended December 31, 2017, 2016 and 2015, 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 contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. Our continued involvement with the transferred assets includes servicing, collection and administration of the transferred beneficial interests. The accounts receivable securitized under the ASP are high-quality domestic customer accounts that have not aged significantly. The receivables represented by the retained interest that we service are exposed to the risk of loss for any uncollectible amounts in the pool of receivables sold under the ASP. The fair values assigned to the retained and transferred interests are based on the sold accounts receivable carrying value given the short term to maturity and low credit risk. The sale of the beneficial interests in our trade accounts receivable are reflected as secured borrowings in the accompanying Consolidated Balance Sheets and proceeds received are included in cash flows from financing activities in the accompanying Consolidated Statements of Cash Flows.

Prior to the amendment on November 13, 2017, the ASP provided for a maximum securitization amount ranging from $200.0 million to $325.0 million, depending on the period. The ASP was amended effective as of November 13, 2017 to increase the maximum securitization range from $225.0 million to $380.0 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 December 31,
	2017			2016
Eligible amount available under the ASP on qualified accounts receivable	$	290.0		$	250.0
Beneficial interest sold	(276.0		)	(50.0		)
Remaining amount available	$	14.0		$	200.0

We pay certain discount fees to use the ASP and to have the facility available to us. These fees relate to both the used and unused portions of the securitization. The used fee is based on the beneficial interest sold and calculated on either the average LIBOR rate or floating commercial paper rate determined by the purchaser of the beneficial interest, plus a program fee of 0.70%. The average rates as of December 31, 2017 and 2016 were 2.60% and 1.66%, respectively. The unused fee is based on 101% of the maximum available amount less the beneficial interest sold and calculated at a 0.35% fixed rate throughout the term of the agreement. We recorded these fees in Interest expense, net in the accompanying Consolidated Statements of Operations.

The ASP contains certain restrictive covenants relating to the quality of our accounts receivable and cross-default provisions with our Sixth Amended and Restated Credit Facility Agreement ("Domestic Credit Facility"), senior unsecured notes and any

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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 December 31, 2017, we believe we were in compliance with all covenant requirements.

Long-Term Debt

Domestic Credit Facility

On August 30, 2016, we replaced an earlier credit facility with the Domestic Credit Facility, which consists of a $650.0 million unsecured revolving credit facility and a $250.0 million unsecured term loan and matures in August 2021 (the "Maturity Date"). Under our Domestic Credit Facility, we had outstanding borrowings of $367.0 million, of which $220.0 million was the term loan balance, as well as $2.9 million committed to standby letters of credit as of December 31, 2017. Subject to covenant limitations, $500.1 million was available for future borrowings. The unsecured term loan also matures on the Maturity Date and requires quarterly principal repayments of $7.5 million beginning in March 2017; however, we made $30.0 million of required principal repayments for 2017 in November 2016. The revolving credit facility allows up to $100.0 million of letters of credit to be issued and also includes a subfacility for swingline loans of up to $65.0 million. Additionally, at our request and subject to certain conditions, the commitments under the Domestic Credit Facility may be increased by a maximum of $350.0 million as long as existing or new lenders agree to provide such additional commitments.

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

	As of December 31,
	2017		2016
Weighted average borrowing rate	2.76	%	2.00	%

Our Domestic Credit Facility is guaranteed by certain of our subsidiaries and contains financial covenants relating to leverage and interest coverage. Other covenants contained in the Domestic Credit Facility restrict, among other things, certain mergers, asset dispositions, guarantees, debt, liens, and affiliate transactions. The financial covenants require us to maintain a defined Consolidated Indebtedness to Adjusted EBITDA Ratio and a Cash Flow (defined as EBITDA minus capital expenditures) to Net Interest Expense Ratio. The required ratios under our Domestic Credit Facility are detailed below:

Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than	3.5 : 1.0
Cash Flow to Net Interest Expense Ratio no less than	3.0 : 1.0

Our Domestic Credit Facility contains customary events of default. These events of default include nonpayment of principal or other amounts, material inaccuracy of representations and warranties, breach of covenants or other restrictions or requirements, default on certain other indebtedness or receivables securitizations (cross default), certain voluntary and involuntary bankruptcy events and the occurrence of a change in control. A cross default under our Domestic Credit Facility could occur if:

• We fail to pay any principal or interest when due on any other indebtedness or receivables securitization of at least $75.0 million; or

• We are in default in the performance of, or compliance with any term of any other indebtedness or receivables securitization in an aggregate principal amount of at least $75.0 million or any other condition exists which would give the holders the right to declare such indebtedness due and payable prior to its stated maturity.

Each of our major debt agreements contains provisions by which a default under one agreement causes a default in the others (a cross default). If a cross default under the Domestic Credit Facility, our senior unsecured notes, our lease of our corporate headquarters in Richardson, Texas (recorded as an operating lease), or our ASP were to occur, it could have a wider impact on our liquidity than might otherwise occur from a default of a single debt instrument or lease commitment.

If any event of default occurs and is continuing, lenders with a majority of the aggregate commitments may require the administrative agent to terminate our right to borrow under our Domestic Credit Facility and accelerate amounts due under our Domestic Credit Facility (except for a bankruptcy event of default, in which case such amounts will automatically become due and payable and the lenders’ commitments will automatically terminate). As of December 31, 2017, we believe we were in compliance with all covenant requirements.

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Senior Unsecured Notes

We issued $350.0 million of senior unsecured notes in November 2016 (the "Notes") which will mature on November 15, 2023 with interest being paid on May 15 and November 15 at 3.00% per annum semiannually. We also repaid $200.0 million of senior unsecured notes issued in 2010 which matured on May 15, 2017. The Notes are guaranteed, on a senior unsecured basis, by each of our domestic subsidiaries that guarantee 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; and enter into certain mergers, consolidations and transfers of substantially all of our assets. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date. As of December 31, 2017, we believe we were in compliance with all covenant requirements.

12. Employee Benefit Plans:

Over the past several years, we have frozen many of our defined benefit pension and profit sharing plans and replaced them with defined contribution plans. We have a liability for the benefits earned under these inactive plans prior to the date the benefits were frozen. We also have several active defined benefit plans that provide benefits based on years of service. Our defined contribution plans generally include both company and employee contributions which are based on predetermined percentages of compensation earned by the employee.

In addition to freezing the benefits of our defined benefit pension plans, we have also eliminated nearly all of our post-retirement medical benefits. In 2012, we amended the post-retirement benefit plan to shift pre-65 medical coverage for the employees of our largest manufacturing plant so that by 2016, retirees would pay 100% of the cost of post-retirement medical coverage. This change resulted in a significant reduction in the projected benefit obligation for post-retirement medical benefits in 2012.

Effective for fiscal year 2016, we adopted the full yield curve approach for estimating the service cost and interest cost components of expense for plans that use a yield curve to determine the discount rate. The new method applies the specific spot rates along the yield curve used in the most recent measurement of the benefit obligation, resulting in a more precise estimate of expense. The impact for fiscal year 2016 was a decrease in expense of approximately $3.2 million.

In 2016, we offered certain former employees with vested pension benefits a lump sum payout in an effort to reduce our long-term pension obligations. As a result, for 2016, the net periodic benefit cost for our pension plans included a non-cash settlement charge of $31.4 million and the projected benefit obligation decreased by $50.6 million. We did not have similar funding of pension buyout activity in 2017.

Defined Contribution Plans

We recorded the following expenses related to our contributions to the defined contribution plans (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Contributions to defined contribution plans	$	18.1	$	16.3	$	16.1

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Pension and Post-retirement Benefit Plans

The following tables set forth amounts recognized in our financial statements and the plans' funded status for our pension and post-retirement benefit plans (dollars in millions):

	Pension Benefits						Other Benefits
	2017			2016			2017			2016
Accumulated benefit obligation	$	401.5		$	374.1		N/A			N/A
Changes in projected benefit obligation:
Benefit obligation at beginning of year	$	381.6		$	415.4		$	3.3		$	4.9
Service cost	5.0			4.4			—			—
Interest cost	12.6			15.3			0.1			0.1
Plan participants' contributions	—			—			0.3			0.3
Amendments	—			0.1			—			—
Actuarial (gain) loss	22.1			22.8			(0.1		)	(0.7		)
Effect of exchange rates	4.3			(3.8		)	—			—
Settlements and curtailments	(1.3		)	(50.6		)	—			—
Benefits paid	(18.8		)	(22.0		)	(0.5		)	(1.3		)
Benefit obligation at end of year	$	405.5		$	381.6		$	3.1		$	3.3
Changes in plan assets:
Fair value of plan assets at beginning of year	$	292.5		$	293.0		$	—		$	—
Actual gain (loss) return on plan assets	39.8			21.0			—			—
Employer contribution	3.5			53.9			0.3			1.0
Plan participants' contributions	—			—			0.2			0.3
Effect of exchange rates	2.9			(2.8		)	—			—
Plan settlements	(1.3		)	(50.6		)	—			—
Benefits paid	(18.8		)	(22.0		)	(0.5		)	(1.3		)
Fair value of plan assets at end of year	318.6			292.5			—			—
Funded status / net amount recognized	$	(86.9	)	$	(89.1	)	$	(3.1	)	$	(3.3	)
Net amount recognized consists of:
Noncurrent assets	$	1.6		$	—		$	—		$	—
Current liability	(4.0		)	(1.6		)	(0.5		)	(0.5		)
Non-current liability	(84.5		)	(87.5		)	(2.6		)	(2.8		)
Net amount recognized	$	(86.9	)	$	(89.1	)	$	(3.1	)	$	(3.3	)

	For the Years Ended December 31,
	2017		2016
Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$	394.4	$	370.2
Accumulated benefit obligation	390.4		362.9
Fair value of plan assets	305.9		280.8

Our U.S.-based pension plans comprised approximately 88% of the projected benefit obligation and 87% of plan assets as of December 31, 2017.

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	Pension Benefits									Other Benefits
	2017			2016			2015			2017			2016			2015
Components of net periodic benefit cost as of December 31:
Service cost	$	5.0		$	4.4		$	4.8		$	—		$	—		$	—
Interest cost	12.6			15.3			17.2			0.1			0.1			0.2
Expected return on plan assets	(21.3		)	(21.5		)	(21.4		)	—			—			—
Amortization of prior service cost	0.2			0.3			0.2			(2.4		)	(3.0		)	(3.1		)
Recognized actuarial loss	8.1			7.6			9.5			1.4			1.4			1.5
Settlements and curtailments(1)	0.7			31.6			0.4			—			—			—
Net periodic benefit cost	$	5.3		$	37.7		$	10.7		$	(0.9	)	$	(1.5	)	$	(1.4	)

⁽¹⁾ The Consolidated Statements of Operations discloses $31.4 million related to pension settlement charges that represent the lump-sum payments made in the fourth quarter of 2016.

The following table sets forth amounts recognized in AOCI and Other comprehensive income (loss) in our financial statements for 2017 and 2016 (in millions):

	Pension Benefits						Other Benefits
	2017			2016			2017			2016
Amounts recognized in AOCI:
Prior service costs	$	(0.8	)	$	(0.9	)	$	9.5		$	12.0
Actuarial loss	(194.6		)	(197.3		)	(14.7		)	(16.3		)
Subtotal	(195.4		)	(198.2		)	(5.2		)	(4.3		)
Deferred taxes	71.2			71.0			1.9			1.6
Net amount recognized	$	(124.2	)	$	(127.2	)	$	(3.3	)	$	(2.7	)
Changes recognized in other comprehensive income (loss):
Current year prior service costs	0.1			0.1			—			—
Current year actuarial (gain) loss	3.7			23.3			(0.1		)	(0.7		)
Effect of exchange rates	1.7			(1.5		)	—			—
Amortization of prior service (costs) credits	(0.2		)	(0.3		)	2.4			3.1
Amortization of actuarial loss	(8.8		)	(39.2		)	(1.4		)	(1.4		)
Total recognized in other comprehensive income (loss)	$	(3.5	)	$	(17.6	)	$	0.9		$	1.0
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	1.8		$	20.1		$	—		$	(0.5	)

The estimated prior service (costs) credits and actuarial losses that will be amortized from AOCI in 2018 are $(0.1) million and (9.3) million, respectively, for pension benefits and $1.4 million and $(1.3) million, respectively, for other benefits.

The following tables set forth the weighted-average assumptions used to determine Benefit obligations and Net periodic benefit cost for the U.S.-based plans in 2017 and 2016:

	Pension Benefits				Other Benefits
	2017		2016		2017		2016
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	3.66	%	4.17	%	3.25	%	3.50	%
Rate of compensation increase	4.23	%	4.23	%	—		—

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	Pension Benefits						Other Benefits
	2017		2016		2015		2017		2016		2015
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	3.96	%	4.30	%	3.97	%	4.61	%	4.95	%	3.23	%
Discount rate - interest cost	3.51	%	3.76	%	3.97	%	2.56	%	2.49	%	3.23	%
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%	—		—		—
Rate of compensation increase	4.23	%	4.23	%	4.23	%	—		—		—

The following tables set forth the weighted-average assumptions used to determine Benefit obligations and Net periodic benefit cost for the non-U.S.-based plans in 2017 and 2016:

	Pension Benefits
	2017		2016
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	2.58	%	2.83	%
Rate of compensation increase	3.63	%	3.78	%

	Pension Benefits
	2017		2016		2015
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	1.34	%	2.04	%	4.12	%
Discount rate - interest cost	2.75	%	3.45	%	4.12	%
Expected long-term return on plan assets	4.40	%	4.87	%	5.22	%
Rate of compensation increase	3.78	%	3.70	%	3.48	%

To develop the expected long-term rate of return on assets assumption for the U.S. plans, we considered the historical returns for each asset category, as well as the target asset allocation of the pension portfolio and the effect of periodic balancing. These results were adjusted for the payment of reasonable expenses of the plan from plan assets. This resulted in the selection of the 7.5% long-term rate of return on assets assumption. A similar process was followed for the non-U.S.-based plans.

To select a discount rate for the purpose of valuing the plan obligations for the U.S. plans, we performed an analysis in which the projected cash flows from defined benefit and retiree healthcare plans was matched with a yield curve based on the appropriate universe of high-quality corporate bonds that were available. We used the results of the yield curve analysis to select the discount rate for each plan. The analysis was completed separately for each U.S. pension and OPEB plan. A similar process was followed for the non-U.S.-based plans with sufficient corporate bond information. In other countries, the discount rate was selected based on the approximate duration of plan obligations.

Assumed health care cost trend rates have an effect on the amounts reported for our healthcare plan. The following table sets forth the healthcare trend rate assumptions used:

	2017		2016
Assumed health care cost trend rates as of December 31:
Health care cost trend rate assumed for next year	6.50	%	6.50	%
Rate to which the cost rate is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2021		2020

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A one percentage-point change in assumed healthcare cost trend rates would have the following effects (in millions):

	1-Percentage-Point Increase		1-Percentage-Point Decrease
Effect on total of service and interest cost	$	—	$	—
Effect on the post-retirement benefit obligation	0.1		(0.1		)

Expected future benefit payments are shown in the table below (in millions):

	For the Years Ended December 31,
	2018		2019		2020		2021		2022		2023-2027
Pension benefits	$	21.8	$	19.3	$	19.9	$	26.0	$	20.4	$	146.4
Other benefits	0.5		0.5		0.4		0.3		0.3		0.9

Pension Plan Assets

We believe asset returns can be optimized at an acceptable level of risk by adequately diversifying the plan assets between equity and fixed income. In the second quarter of 2017, in order to decrease volatility, we changed the targeted allocations for our plan assets. The targeted allocation for fixed income, money market and cash investments was changed to 75%, and the targeted allocation for equity investments was changed to 25%. Our targeted exposure to International equity including emerging markets was changed to 12.5% of total assets and our exposure to domestic equity was changed to 12.5%. Our U.S. pension plan represents 87%, our Canadian pension plan 6%, and our United Kingdom (“U.K.”) pension plan 7% of the total fair value of our plan assets as of December 31, 2017.

Our U.S. pension plans' weighted-average asset allocations as of December 31, 2017 and 2016, by asset category, are as follows:

	Plan Assets as of December 31,
Asset Category:	2017		2016
U.S. equity	12.5	%	27.0	%
International equity	15.1	%	18.5	%
Fixed income	71.1	%	52.5	%
Money market/cash	1.3	%	2.0	%
Total	100.0	%	100.0	%

U.S. pension plan assets are invested according to the following targets:

Asset Category:	Target
U.S. equity	12.5	%
International equity	12.5	%
Fixed income	73.0	%
Money market/cash	2.0	%

Our Canadian pension plans were invested approximately 75% in Canadian bonds and 25% in international equities. Our U.K. pension plan was invested in a broad mix of assets consisting of U.K. and international equities, and U.K. fixed income securities, including corporate and government bonds.

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The fair values of our pension plan assets, by asset category, are as follows (in millions):

	Fair Value Measurements as of December 31, 2017
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Asset Category:
Cash and cash equivalents	3.9	—	—	3.9
Commingled pools / Collective Trusts:
U.S. equity (1)	—	34.7	—	34.7
International equity (2)	—	42.2	—	42.2
Fixed income (3)	—	197.9	—	197.9
Balanced pension trust: (4)
International equity	—	4.6	—	4.6
Fixed income	—	13.6	—	13.6
Pension fund:
International equity (5)	—	3.3	—	3.3
Fixed income (6)	—	5.9	—	5.9
Blend (7)	—	12.5	—	12.5
Total	3.9	314.7	—	318.6

	Fair Value Measurements as of December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Asset Category:
Cash and cash equivalents	5.3	—	—	5.3
Commingled pools / Collective Trusts:
U.S. equity (1)	—	69.5	—	69.5
International equity (2)	—	47.6	—	47.6
Fixed income (3)	—	134.9	—	134.9
Balanced pension trust: (4)
International equity	—	4.7	—	4.7
Fixed income	—	11.9	—	11.9
Pension fund:
International equity (5)	—	13.5	—	13.5
Fixed income (6)	—	5.1	—	5.1
Total	5.3	287.2	—	292.5

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Additional information about assets measured at Net Asset Value (“NAV”) per share (in millions):

	As of December 31, 2017
	Fair Value		Redemption Frequency  (if currently eligible)	Redemption Notice Period
Asset Category:
Commingled pools / Collective Trusts:
U.S. equity (1)	$	34.7	Daily	5 days
International equity (2)	42.2		Daily	5 days
Fixed income (3)	197.9		Daily	5-15 days
Balanced pension trust: (4)
International equity	4.6		Daily	3-5 days
Fixed income	13.6		Daily	3-5 days
Pension fund:
International equity (5)	3.3		Daily	1-3 days
Fixed income (6)	5.9		Daily	1-7 days
Blend (7)	12.5		Daily	1-3 days
Total	$	314.7

	As of December 31, 2016
	Fair Value		Redemption Frequency  (if currently eligible)	Redemption Notice Period
Asset Category:
Commingled pools / Collective Trusts:
U.S. equity (1)	$	69.5	Daily	5 days
International equity (2)	47.6		Daily	5 days
Fixed income (3)	134.9		Daily	5-15 days
Balanced pension trust: (4)
International equity	4.7		Daily	3-5 days
Fixed income	11.9		Daily	3-5 days
Pension fund:
International equity (5)	13.5		Daily	1-7 days
Fixed income (6)	5.1		Daily	1-7 days
Total	$	287.2

(1)	This category includes investments primarily in U.S. equity securities that include large, mid and small capitalization companies.
(2)	This category includes investments primarily in international equity securities that include large, mid and small capitalization companies in large developed markets as well as emerging markets equities.
(3)	This category includes investments in U.S. investment grade and high yield fixed income securities, international fixed income securities and emerging markets fixed income securities.
(4)	The investment objectives of the fund are to provide long-term capital growth and income by investing primarily in a well-diversified, balanced portfolio of Canadian common stocks, bonds and money market securities. The fund also holds a portion of its assets in international equities.
(5)	This category includes investments in international equity securities and aims to provide returns consistent with the markets in which it invests and provide broad exposure to countries around the world.
(6)	This category includes investments in U.K. government index-linked securities (index-linked gilts) that have maturity periods of 5 years or longer with a derivatives overlay and investment grade corporate bonds denominated in sterling.
(7)	This category includes investments in pooled funds where the fund manager has discretion for the asset allocation and can invest in a wide range of international and US asset classes including equity, credit markets, sovereign debt and alternative assets (including derivative-based strategies).

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The majority of our commingled pool/collective trusts, mutual funds, balanced pension trusts and pension funds are managed by professional investment advisors. The NAVs per share are furnished in monthly and/or quarterly statements received from the investment advisors and reflect valuations based upon their pricing policies. We assessed the fair value classification of these investments as Level 2 for commingled pool/collective trusts, balanced pension trusts and pension funds based on an examination of their pricing policies and the related controls and procedures. The fair values we report are based on the pool, trust or fund's NAV per share. The NAVs per share are calculated periodically (daily or no less than one time per month) as the aggregate value of each pool or trust's underlying assets divided by the number of units owned. See Note 19 for information about our fair value hierarchies and valuation techniques.

13. Comprehensive Income:

The following table provides information on items not reclassified in their entirety from AOCI to Net Income in the accompanying Consolidated Statements of Operations (in millions):

	For the Years Ended December 31,
AOCI Component	2017			2016			Affected Line Item(s) in the Consolidated Statements of Operations
Gains/(Losses) on cash flow hedges:
Commodity derivative contracts	$	13.7		$	(12.3	)	Cost of goods sold
Income tax benefit	(5.0		)	4.3			Provision for income taxes
Net of tax	$	8.7		$	(8.0	)
Defined Benefit Plan Items:
Pension and Post-Retirement Benefits costs	$	(7.3	)	$	(6.3	)	Cost of goods sold; Selling, general and administrative expenses
Income tax benefit	2.8			2.2			Provision for income taxes
Net of tax	$	(4.5	)	$	(4.1	)
Total reclassifications from AOCI	$	4.2		$	(12.1	)

The following tables provide information on changes in AOCI, by component (net of tax), for the years ended December 31, 2017 and 2016 (in millions):

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Plan Items			Foreign Currency Translation Adjustments			Total AOCI
Balance as of December 31, 2016	$	5.6		$	2.3		$	(130.0	)	$	(73.0	)	$	(195.1	)
Other comprehensive income (loss) before reclassifications	10.5			(0.5		)	(2.0		)	33.9			41.9
Amounts reclassified from AOCI	(8.7		)	—			4.5			—			(4.2		)
Net other comprehensive income (loss)	1.8			(0.5		)	2.5			33.9			37.7
Balance as of December 31, 2017	$	7.4		$	1.8		$	(127.5	)	$	(39.1	)	$	(157.4	)

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	Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Plan Items			Foreign Currency Translation Adjustments			Total AOCI
Balance as of December 31, 2015	$	(8.4	)	$	4.4		$	(139.3	)	$	(61.4	)	$	(204.7	)
Other comprehensive income (loss) before reclassifications	6.0			(2.1		)	5.2			(11.6		)	(2.5		)
Amounts reclassified from AOCI	8.0			—			4.1			—			12.1
Net other comprehensive income (loss)	14.0			(2.1		)	9.3			(11.6		)	9.6
Balance as of December 31, 2016	$	5.6		$	2.3		$	(130.0	)	$	(73.0	)	$	(195.1	)

14. Stock-Based Compensation:

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

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense(1)	$	24.9	$	31.7	$	26.6

⁽¹⁾ Stock-based compensation expense was recorded in our Corporate and other business segment.

Incentive Plan

Under the Lennox International Inc. 2010 Incentive Plan, as amended and restated (the “2010 Incentive Plan”), we are authorized to issue awards for 24.3 million shares of common stock. The 2010 Incentive Plan provides for various long-term incentive awards, including performance share units, restricted stock units and stock appreciation rights. A description of these long-term incentive awards and related activity within each award category is provided below.

As of December 31, 2017, awards for 13.5 million shares of common stock had been granted, net of cancellations and repurchases, and there were 3.4 million shares available for future issuance.

Performance Share Units

Performance share units are granted to certain employees at the discretion of the Board of Directors with a three-year performance period beginning January 1^st of each year. Upon meeting the performance and vesting criteria, performance share units are converted to an equal number of shares of our common stock. Performance share units vest if, at the end of the three-year performance period, at least the threshold performance level has been attained. To the extent that the payout level attained is less than 100%, the difference between 100% and the units earned and distributed will be forfeited. Eligible participants may also earn additional units of our common stock, which would increase the potential payout up to 200% of the units granted, depending on LII's performance over the three-year performance period.

Performance share units are classified as equity awards. Compensation expense is recognized on an earnings curve over the period and is based on the expected number of units to be earned and the fair value of the stock at the date of grant. The fair value of units is calculated as the average of the high and low market price of the stock on the date of grant discounted by the expected dividend rate over the service period. The number of units expected to be earned will be adjusted in future periods as necessary to reflect changes in the estimated number of award to be issued and, upon vesting, the actual number of units awarded. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy performance share unit distributions.

The following table provides information on our performance share units:

	For the Years Ended December 31,
	2017			2016			2015
Compensation expense for performance share units (in millions)	$	12.2		$	18.1		$	13.6
Weighted-average fair value of grants, per share	$	197.54		$	150.21		$	126.31
Payout ratio for shares paid	185.9		%	200.0		%	200.0		%

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A summary of the status of our undistributed performance share units as of December 31, 2017, and changes during the year then ended, is presented below (in millions, except per share data):

	Shares (2)		Weighted- Average Grant Date Fair Value per Share
Undistributed performance share units as of December 31, 2016	0.4		$	101.03
Granted	0.1		197.54
Adjustment to shares paid based on payout ratio	0.1		88.26
Distributed	(0.2	)	81.17
Forfeited	—		—
Undistributed performance share units as of December 31, 2017 (1)	0.3		$	123.80

⁽¹⁾ Undistributed performance share units include approximately 0.2 million units with a weighted-average grant date fair value of $154.90 per share that had not yet vested and 0.2 million units that have vested but were not yet distributed.

⁽²⁾ Share amounts are rounded but the balance of undistributed performance share units as of December 31, 2017 accurately reflects actual units undistributed.

As of December 31, 2017, we had $20.7 million of total unrecognized compensation cost related to non-vested performance share units that is expected to be recognized over a weighted-average period of 2.2 years. Our estimated forfeiture rate for these performance share units was 15.1% as of December 31, 2017.

The total fair value of performance share units distributed and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Fair value of performance share units distributed	$	64.3	$	39.4	$	44.9
Realized tax benefits from tax deductions	$	24.5	$	15.0	$	17.1

Restricted Stock Units

Restricted stock units are issued to attract and retain key employees. Generally, at the end of a three-year retention period, the units will vest and be distributed in shares of our common stock to the participant. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy restricted stock unit vestings. Restricted stock units are classified as equity awards. The fair value of units granted is the average of the high and low market price of the stock on the date of grant discounted by the expected dividend rate over the service period. Units are amortized to compensation expense ratably over the service period.

The following table provides information on our restricted stock units (in millions, except per share data):

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense for restricted stock units	$	8.3	$	9.0	$	8.3
Weighted-average fair value of grants, per share	$	197.54	$	150.14	$	126.15

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A summary of our non-vested restricted stock units as of December 31, 2017 and changes during the year then ended is presented below (in millions, except per share data):

	Shares(2)		Weighted- Average Grant Date Fair Value per Share
Non-vested restricted stock units as of December 31, 2016	0.3		$	118.38
Granted	0.1		197.54
Distributed	(0.1	)	89.33
Forfeited	—		—
Non-vested restricted stock units as of December 31, 2017(1)	0.2		$	156.16

⁽¹⁾ As of December 31, 2017, we had $18.8 million of total unrecognized compensation cost related to non-vested restricted stock units that is expected to be recognized over a weighted-average period of 2.4 years. Our estimated forfeiture rate for restricted stock units was 18.2% as of December 31, 2017.

⁽²⁾ Share amounts are rounded but the balance of undistributed performance share units as of December 31, 2017 accurately reflects actual units undistributed.

The total fair value of restricted stock units vested and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Fair value of restricted stock units vested	$	19.0	$	17.0	$	19.7
Realized tax benefits from tax deductions	7.2		6.5		7.5

Stock Appreciation Rights

Stock appreciation rights are issued to certain key employees. Each recipient is given the “right” to receive compensation, paid in shares of our common stock, equal to the future appreciation of our common stock price. Stock appreciation rights generally vest in one-third increments beginning on the first anniversary date after the grant date and expire after seven years. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy the exercise of stock appreciation rights.

The following table provides information on our stock appreciation rights (in millions, except per share data):

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense for stock appreciation rights	$	4.4	$	4.6	$	4.7
Weighted-average fair value of grants, per share	32.32		22.93		22.74

Compensation expense for stock appreciation rights is based on the fair value on the date of grant, estimated using the Black-Scholes-Merton valuation model, and is recognized over the service period. We used historical stock price data to estimate the expected volatility. We determined that the recipients of stock appreciation rights can be combined into one employee group that has similar historical exercise behavior and we used our historical pattern of award exercises to estimate the expected life of the awards for the employee group. The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve with a maturity equal to the expected life of the awards at the time of grant.

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The fair value of the stock appreciation rights granted in 2017, 2016 and 2015 were estimated on the date of grant using the following assumptions:

	2017		2016		2015
Expected dividend yield	1.47	%	1.62	%	1.61	%
Risk-free interest rate	2.02	%	1.66	%	1.36	%
Expected volatility	19.97	%	19.60	%	23.78	%
Expected life (in years)	3.95		3.99		4.00

A summary of our stock appreciation rights as of December 31, 2017, and changes during the year then ended, is presented below (in millions, except per share data):

	Shares		Weighted-Average Exercise Price per Share
Outstanding stock appreciation rights as of December 31, 2016	1.1		$	98.35
Granted	0.2		205.53
Exercised	(0.2	)	70.00
Forfeited	—		—
Outstanding stock appreciation rights as of December 31, 2017	1.1		$	121.63
Exercisable stock appreciation rights as of December 31, 2017	0.7		$	90.43

The following table summarizes information about stock appreciation rights outstanding as of December 31, 2017 (in millions, except per share data and years):

	Stock Appreciation Rights Outstanding				Stock Appreciation Rights Exercisable
Range of Exercise Prices	Shares	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value		Shares	Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
$34.06 to $81.14	0.3	2.21	$	49.3	0.3	2.21	$	49.3
$92.64 to $ 131.94	0.3	4.52	$	31.9	0.3	4.42	$	27.5
$156.94 to $205.53	0.4	6.45	$	12.1	0.1	6.00	$	3.9

As of December 31, 2017, we had $9.6 million of unrecognized compensation cost related to non-vested stock appreciation rights that is expected to be recognized over a weighted-average period of 2.40 years. Our estimated forfeiture rate for stock appreciation rights was 14.2% as of December 31, 2017.

The total intrinsic value of stock appreciation rights exercised and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Intrinsic value of stock appreciation rights exercised	$	25.1	$	36.9	$	27.3
Realized tax benefits from tax deductions	$	9.6	$	14.1	$	10.4

Employee Stock Purchase Plan

Under the 2012 Employee Stock Purchase Plan (“ESPP”), all employees who meet certain service requirements are eligible to purchase our common stock through payroll deductions at the end of three month offering periods. The purchase price for such shares is 95% of the fair market value of the stock on the last day of the offering period. A maximum of 2.5 million shares is authorized for purchase until the ESPP plan termination date of May 10, 2022, unless terminated earlier at the discretion of the Board of Directors. Employees purchased approximately 16,000 shares under the ESPP during the year ended December 31, 2017. Approximately 2.4 million shares remain available for purchase under the ESPP as of December 31, 2017.

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15. Stock Repurchases:

Our Board of Directors has authorized a total of $2 billion towards the repurchase of shares of our common stock (collectively referred to as the "Share Repurchase Plans"), including a $550 million share repurchase authorization in 2016. The Share Repurchase Plans authorize open market repurchase transactions and do not have a stated expiration date. As of December 31, 2017, $396.0 million of shares may still be repurchased under the Share Repurchase Plans.

On February 9, 2017, the Company entered into a Fixed Dollar Accelerated Share Repurchase Transaction (the “ASR Agreement”) with Morgan Stanley, to effect an accelerated stock buyback of our common stock. Under the ASR Agreement, on February 9, 2017, we paid Morgan Stanley an initial purchase price of $75 million, and Morgan Stanley delivered to us common stock, representing approximately 85% of the shares expected to be purchased under the ASR Agreement. The ASR Agreement was completed in the second quarter and Morgan Stanley delivered additional shares for a total of 0.5 million shares of common stock repurchased as part of this ASR Agreement.

On April 28, 2017, we entered into another Fixed Dollar ASR Agreement (the "Second ASR Agreement") with J.P. Morgan Chase Bank to effect an accelerated stock buyback of common stock. Under the Second ASR Agreement, on April 28, 2017, we paid J.P. Morgan Chase Bank an initial purchase price of $100 million, and J.P. Morgan Chase Bank delivered to us common stock, representing approximately 85% of the shares expected to be purchased under the ASR Agreement. The ASR Agreement was completed in the third quarter and J.P. Morgan Chase Bank delivered additional shares for a total of 0.6 million shares of common stock repurchased as part of this ASR Agreement.

On July 27, 2017, we entered into another Fixed Dollar ASR Agreement (the "Third ASR Agreement") with Bank of America to effect an accelerated stock buyback of common stock. Under the Third ASR Agreement, on July 27, 2017, we paid Bank of America an initial purchase price of $75 million, and Bank of America delivered to us common stock, representing approximately 85% of the shares expected to be purchased under the third ASR Agreement. The ASR Agreement was completed in the fourth quarter and Bank of America delivered additional shares for a total of 0.4 million shares of common stock repurchased as part of this ASR Agreement.

We also repurchased 0.1 million shares for $26.1 million and 0.2 million shares for $33.3 million for the years ended December 31, 2017 and 2016, respectively, from employees who surrendered their shares to satisfy minimum tax withholding obligations upon the vesting of stock-based compensation awards.

16. Restructuring Charges:

We record restructuring charges associated with management-approved restructuring plans to reorganize or to 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 18.

Restructuring Activities in 2017

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

	Incurred in 2017		Incurred to Date		Total Expected to be Incurred
Severance and related expense	$	2.0	$	11.3	$	11.5
Asset write-offs and accelerated depreciation	0.8		3.2		3.2
Equipment moves	—		—		—
Lease termination	—		0.2		0.2
Other	0.4		4.1		4.5
Total	$	3.2	$	18.8	$	19.4

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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):

	Incurred in 2017		Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	0.5	$	1.4	$	1.4
Commercial Heating & Cooling	0.9		2.0		2.1
Refrigeration	1.2		13.1		13.1
Corporate & Other	0.6		2.3		2.8
Total	$	3.2	$	18.8	$	19.4

Restructuring accruals are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The activity within the restructuring accruals is summarized in the tables below (in millions):

Description of Reserves:	Balance as of December 31, 2016		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2017
Severance and related expense	$	—	$	2.0	$	(1.8	)	$	—		$	0.2
Asset write-offs and accelerated depreciation	—		0.8		(0.2		)	(0.6		)	—
Equipment moves	—		—		—			—			—
Lease termination	—		—		—			—			—
Other	—		0.4		(0.4		)	—			—
Total restructuring reserves	$	—	$	3.2	$	(2.4	)	$	(0.6	)	$	0.2

Description of Reserves:	Balance as of December 31, 2015		Charged to Earnings			Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2016
Severance and related expense	$	0.7	$	(0.2	)	$	(0.5	)	$	—		$	—
Asset write-offs and accelerated depreciation	—		0.3			(0.2		)	(0.1		)	—
Equipment moves	—		—			—			—			—
Lease termination	0.2		—			(0.2		)	—			—
Other	—		1.7			(1.8		)	0.1			—
Total restructuring reserves	$	0.9	$	1.8		$	(2.7	)	$	—		$	—

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17. Earnings Per Share:

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

The computations of basic and diluted earnings per share for Income from continuing operations were as follows (in millions, except per share data):

	For the Years Ended December 31,
	2017			2016			2015
Net income	$	305.7		$	277.8		$	186.6
Add: Loss from discontinued operations	1.4			0.8			0.6
Income from continuing operations	$	307.1		$	278.6		$	187.2
Weighted-average shares outstanding – basic	42.2			43.4			44.9
Add: Potential effect of diluted securities attributable to stock-based payments	0.6			0.6			0.7
Weighted-average shares outstanding – diluted	42.8			44.0			45.6
Earnings per share - Basic:
Income from continuing operations	$	7.28		$	6.41		$	4.17
Loss from discontinued operations	(0.03		)	(0.02		)	(0.01		)
Net income	$	7.25		$	6.39		$	4.16
Earnings per share - Diluted:
Income from continuing operations	$	7.17		$	6.34		$	4.11
Loss from discontinued operations	(0.03		)	(0.02		)	(0.02		)
Net income	$	7.14		$	6.32		$	4.09

An insignificant number of 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.

18. Reportable Business Segments:

Description of 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	Products 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 and supplies	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, variable refrigerant flow commercial products	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

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Segment Data

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.

Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations included in the results presented in the table below.

Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Net Sales (1)
Residential Heating & Cooling	$	2,140.4		$	2,000.8		$	1,866.9
Commercial Heating & Cooling	973.8			917.9			887.2
Refrigeration	725.4			722.9			713.3
	$	3,839.6		$	3,641.6		$	3,467.4
Segment Profit (Loss) (2)
Residential Heating & Cooling	$	373.9		$	348.8		$	278.4
Commercial Heating & Cooling	157.3			149.3			130.4
Refrigeration	72.6			68.9			52.9
Corporate and other	(89.2		)	(97.4		)	(84.1		)
Subtotal segment profit	514.6			469.6			377.6
Reconciliation to Operating income:
Special product quality adjustments	5.4			(0.4		)	(2.2		)
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss) (2)	11.5			7.4			15.6
Restructuring charges	3.2			1.8			3.2
Pension settlement	—			31.4			—
Goodwill impairment	—			—			5.5
Asset impairment	—			—			44.5
One time inventory write down	—			—			5.6
Operating income	$	494.5		$	429.4		$	305.4

⁽¹⁾ On a consolidated basis, no revenue from transactions with a single customer were 10% or greater of our consolidated net sales for any of the periods presented.

⁽²⁾ The Company defines segment profit (loss) as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding:

• Special product quality adjustments;

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

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

◦ Special legal contingency charges,

◦ Asbestos-related litigation,

◦ Environmental liabilities,

◦ Contractor tax payments,

◦ Acquisition/disposition costs, and

◦ Other items, net;

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• Restructuring charges;

• Pension settlement;

• Goodwill and asset impairments; and

• One time inventory write down.

Total assets by segment are shown below (in millions):

	As of December 31,
	2017		2016		2015
Total Assets:
Residential Heating & Cooling	$	771.3	$	673.4	$	628.3
Commercial Heating & Cooling	443.9		385.8		363.6
Refrigeration	506.9		442.8		444.9
Corporate and other	169.4		258.3		240.6
Total assets	$	1,891.5	$	1,760.3	$	1,677.4

The assets in the Corporate and other segment primarily consist of cash, short-term investments and deferred tax assets. Assets recorded in the operating segments represent those assets directly associated with those segments.

Total capital expenditures by segment are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Capital Expenditures:
Residential Heating & Cooling	$	38.9	$	36.7	$	28.1
Commercial Heating & Cooling	18.5		11.5		8.6
Refrigeration	8.0		12.1		11.4
Corporate and other	32.9		24.0		21.8
Total capital expenditures (1)	$	98.3	$	84.3	$	69.9

⁽¹⁾ Includes amounts recorded under capital leases. There were no significant new capital leases in 2017, 2016 or 2015.

Depreciation and amortization expenses by segment are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Depreciation and Amortization:
Residential Heating & Cooling	$	24.9	$	21.0	$	20.7
Commercial Heating & Cooling	10.1		9.8		9.7
Refrigeration	9.9		9.7		15.5
Corporate and other	19.7		17.6		16.9
Total depreciation and amortization	$	64.6	$	58.1	$	62.8

The equity method investments are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Income from Equity Method Investments:
Refrigeration	$	3.9	$	4.0	$	2.8
Residential	11.7		11.5		8.0
Commercial	2.8		2.9		2.6
Total income from equity method investments	$	18.4	$	18.4	$	13.4

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Geographic Information

Net sales for each major geographic area in which we operate are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Net Sales to External Customers by Point of Shipment:
United States	$	3,128.7	$	2,966.8	$	2,793.4
Canada	237.8		218.8		217.7
International	473.1		456.0		456.3
Total net sales to external customers	$	3,839.6	$	3,641.6	$	3,467.4

Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):

	As of December 31,
	2017		2016		2015
Property, Plant and Equipment, net:
United States	$	257.6	$	237.6	$	224.8
Mexico	79.8		69.4		60.0
Canada	1.7		1.4		1.2
International	58.7		53.0		53.6
Total Property, plant and equipment, net	$	397.8	$	361.4	$	339.6

19. Fair Value Measurements:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities. Our framework for measuring fair value is based on the following three-level hierarchy for fair value measurements:

Level 1 -     Quoted prices for identical instruments in active markets at the measurement date.

Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date and for the anticipated term of the instrument.

Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Where available, the fair values were based upon quoted prices in active markets. However, if quoted prices were not available, then the fair values were based upon quoted prices for similar assets or liabilities or independently sourced market parameters, such as credit default swap spreads, yield curves, reported trades, broker/dealer quotes, interest rates and benchmark securities. For assets and liabilities without observable market activity, if any, the fair values were based upon discounted cash flow methodologies incorporating assumptions that, in our judgment, reflect the assumptions a marketplace participant would use. Valuation adjustments to reflect either party's creditworthiness and ability to pay were incorporated into our valuations, where appropriate, as of December 31, 2017 and 2016, the measurement dates. The methodologies used to determine the fair value of our financial assets and liabilities as of December 31, 2017 were the same as those used as of December 31, 2016.

Fair values are estimates and are not necessarily indicative of amounts for which we could settle such instruments currently nor indicative of our intent or ability to dispose of or liquidate them.

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Assets and Liabilities Carried at Fair Value on a Recurring Basis

Derivatives

Derivatives, classified as Level 2, were 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, but they were insignificant to the overall value of the derivatives. Refer to Note 8 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, 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 December 31,
	2017		2016
Quoted Prices in Active Markets for Identical Assets (Level 1):
Investment in marketable equity securities	$	4.1	$	4.4

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 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 the fair value for our senior unsecured notes in Long-term debt (in millions):

	As of December 31,
	2017		2016
Quoted Prices in Active Markets for Similar Instruments (Level 2):
Senior unsecured notes	$	308.1	$	499.3

20. Selected Quarterly Financial Information (unaudited):

The following tables provide information on Net sales, Gross profit, Net income, Earnings per share and Cash dividends declared per share by quarter (in millions, except per share data):

	Net Sales (1)				Gross Profit (1)				Net Income (1)
	2017		2016		2017		2016		2017		2016
First Quarter	$	793.4	$	715.2	$	210.9	$	183.6	$	43.5	$	24.9
Second Quarter	1,102.1		1,019.2		340.8		315.0		115.5		110.7
Third Quarter	1,052.3		1,010.0		313.7		310.3		103.5		101.7
Fourth Quarter	891.8		897.3		259.8		267.6		43.1		40.4

79

	Basic Earnings per Share (2)				Diluted Earnings per Share (2)				Cash Dividends per Common Share
	2017		2016		2017		2016		2017		2016
First Quarter	$	1.02	$	0.57	$	1.00	$	0.56	$	0.43	$	0.36
Second Quarter	2.73		2.54		2.69		2.51		0.51		0.43
Third Quarter	2.47		2.35		2.44		2.33		0.51		0.43
Fourth Quarter	1.03		0.94		1.02		0.93		0.51		0.43

⁽¹⁾ The sum of the quarterly results for each of the four quarters may not equal the full year results due to rounding.

⁽²⁾ EPS for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while EPS for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the EPS for each of the four quarters may not equal the EPS for the fiscal year.

Summary of 2017 Quarterly Results

The following unusual or infrequent pre-tax items were included in the 2017 quarterly results:

1st Quarter. No significant unusual or infrequent items.

2nd Quarter. No significant unusual or infrequent items.

3rd Quarter. No significant unusual or infrequent items.

4th Quarter. As a result of recent tax legislation, we recorded a one-time charge of $31.8 million in the fourth quarter to revalue our deferred tax assets and liabilities.

Summary of 2016 Quarterly Results

The following unusual or infrequent pre-tax items were included in the 2016 quarterly results:

1st Quarter. No significant unusual or infrequent items.

2nd Quarter. No significant unusual or infrequent items.

3rd Quarter. No significant unusual or infrequent items.

4th Quarter. As part of our ongoing strategy to de-risk our pension plan obligations, we completed a one-time, lump sum pension buyout in the fourth quarter of 2016 for certain vested participants. As a result of the pension buy-out, we recorded a pension settlement charge of $31.4 million in the fourth quarter.

80

21. Losses and Other Expenses, net:

Losses and other expenses, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Realized (gains) losses on settled futures contracts	$	(1.7	)	$	1.1		$	1.9
Foreign currency exchange (gains) losses	(1.8		)	2.2			3.6
Losses on disposal of fixed assets	0.2			0.5			0.6
Net change in unrealized losses (gains) on unsettled futures contracts	0.9			(3.6		)	0.6
Asbestos-related litigation	3.5			6.3			3.0
Acquisition/disposition expenses	1.1			0.4			1.0
Special legal contingency charges	3.7			1.9			7.4
Environmental liabilities	2.2			1.9			1.0
Contractor tax payments	0.1			0.6			2.6
Losses and other expenses, net	$	8.2		$	11.3		$	21.7

22. Supplemental Information:

Below is information about expenses included in our Consolidated Statements of Operations (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Research and development	$	73.6	$	64.6	$	62.3
Advertising, promotions and marketing (1)	45.0		41.0		42.5
Cooperative advertising expenditures (2)	18.6		14.7		13.7
Rent expense	57.7		57.9		53.5

⁽¹⁾ Cooperative advertising expenditures were not included in these amounts.

⁽²⁾ Cooperative advertising expenditures were included in Selling, general and administrative expenses in the Consolidated Statements of Operations.

Interest Expense, net

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Interest expense, net of capitalized interest	$	32.1	$	28.1	$	25.2
Interest income	1.5		1.1		1.6
Interest expense, net	$	30.6	$	27.0	$	23.6

81

23. 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 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 December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015 are shown on the following pages.

82

Condensed Consolidating Balance Sheets

As of December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.6		$	28.0	$	38.6		$	—		$	68.2
Accounts and notes receivable, net	—			35.3		471.2			—			506.5
Inventories, net	—			355.7		131.9			(3.4		)	484.2
Other assets	16.2			23.1		67.5			(28.4		)	78.4
Total current assets	17.8			442.1		709.2			(31.8		)	1,137.3
Property, plant and equipment, net	—			257.6		144.4			(4.2		)	397.8
Goodwill	—			134.9		65.6			—			200.5
Investment in subsidiaries	1,257.7			365.8		(0.6		)	(1,622.9		)	—
Deferred income taxes	3.9			69.1		33.6			(12.2		)	94.4
Other assets, net	2.1			41.3		19.6			(1.5		)	61.5
Intercompany receivables (payables), net	(559.3		)	554.7		107.4			(102.8		)	—
Total assets	$	722.2		$	1,865.5	$	1,079.2		$	(1,775.4	)	$	1,891.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	0.9		$	—		$	0.9
Current maturities of long-term debt	29.4			2.9		0.3			—			32.6
Accounts payable	21.3			228.0		99.3			—			348.6
Accrued expenses	3.1			209.4		57.8			—			270.3
Income taxes payable	(64.5		)	56.5		60.9			(50.8		)	2.1
Total current liabilities	(10.7		)	496.8		219.2			(50.8		)	654.5
Long-term debt	682.8			11.7		276.0			—			970.5
Post-retirement benefits, other than pensions	—			2.6		—			—			2.6
Pensions	—			74.7		9.8			—			84.5
Other liabilities	—			120.6		8.7			—			129.3
Total liabilities	672.1			706.4		513.7			(50.8		)	1,841.4
Commitments and contingencies
Total stockholders' equity	50.1			1,159.1		565.5			(1,724.6		)	50.1
Total liabilities and stockholders' equity	$	722.2		$	1,865.5	$	1,079.2		$	(1,775.4	)	$	1,891.5

83

Condensed Consolidating Balance Sheets

As of December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.2		$	17.1	$	31.9		$	—		$	50.2
Accounts and notes receivable, net	—			30.6		439.2			—			469.8
Inventories, net	—			314.7		108.9			(5.1		)	418.5
Other assets	12.8			48.8		67.5			(61.7		)	67.4
Total current assets	14.0			411.2		647.5			(66.8		)	1,005.9
Property, plant and equipment, net	—			237.6		123.8			—			361.4
Goodwill	—			134.9		60.2			—			195.1
Investment in subsidiaries	1,166.9			524.7		(0.5		)	(1,691.1		)	—
Deferred income taxes	6.8			113.5		31.1			(14.7		)	136.7
Other assets, net	3.6			40.0		19.0			(1.4		)	61.2
Intercompany receivables (payables), net	(382.4		)	375.2		80.4			(73.2		)	—
Total assets	$	808.9		$	1,837.1	$	961.5		$	(1,847.2	)	$	1,760.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	52.4		$	—		$	52.4
Current maturities of long-term debt	199.3			0.4		0.4			—			200.1
Accounts payable	18.5			248.5		94.2			—			361.2
Accrued expenses	6.3			206.3		53.3			—			265.9
Income taxes payable	(54.0		)	89.8		52.5			(79.3		)	9.0
Total current liabilities	170.1			545.0		252.8			(79.3		)	888.6
Long-term debt	600.9			14.5		0.3			—			615.7
Post-retirement benefits, other than pensions	—			2.8		—			—			2.8
Pensions	—			75.5		12.0			—			87.5
Other liabilities	—			119.1		11.1			(2.5		)	127.7
Total liabilities	771.0			756.9		276.2			(81.8		)	1,722.3
Commitments and contingencies
Total stockholders' equity	37.9			1,080.2		685.3			(1,765.4		)	38.0
Total liabilities and stockholders' equity	$	808.9		$	1,837.1	$	961.5		$	(1,847.2	)	$	1,760.3

84

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	3,295.8		$	1,144.2		$	(600.4	)	$	3,839.6
Cost of goods sold	—			2,359.6			953.6			(598.8		)	2,714.4
Gross profit	—			936.2			190.6			(1.6		)	1,125.2
Operating expenses:
Selling, general and administrative expenses	—			553.6			85.0			(0.9		)	637.7
Losses (gains) and other expenses, net	2.0			4.4			1.9			(0.1		)	8.2
Restructuring charges	—			2.1			1.1			—			3.2
Goodwill impairment	—			—			—			—			—
Asset impairment	—			—			—			—			—
Pension settlement	—			—			—			—			—
(Income) loss from equity method investments	(324.3		)	(74.9		)	(14.5		)	395.3			(18.4		)
Operational income	322.3			451.0			117.1			(395.9		)	494.5
Interest expense, net	26.9			(2.7		)	6.4			—			30.6
Other income, net	—			—			(0.1		)	—			(0.1		)
Income from continuing operations before income taxes	295.4			453.7			110.8			(395.9		)	464.0
Provision for income taxes	(10.3		)	136.2			31.2			(0.2		)	156.9
Income from continuing operations	305.7			317.5			79.6			(395.7		)	307.1
Loss from discontinued operations	—			—			(1.4		)	—			(1.4		)
Net income	$	305.7		$	317.5		$	78.2		$	(395.7	)	$	305.7
Other comprehensive income (loss)	$	1.7		$	5.5		$	30.5		$	—		$	37.7
Comprehensive Income	$	307.4		$	323.0		$	108.7		$	(395.7	)	$	343.4

85

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	3,117.6		$	728.0		$	(204.0	)	$	3,641.6
Cost of goods sold	—			2,203.8			564.5			(203.2		)	2,565.1
Gross profit	—			913.8			163.5			(0.8		)	1,076.5
Operating expenses:
Selling, general and administrative expenses	—			524.3			96.7			—			621.0
Losses (gains) and other expenses, net	(3.3		)	9.7			5.1			(0.2		)	11.3
Restructuring charges	—			1.9			(0.1		)	—			1.8
Goodwill Impairment	—			—			—			—			—
Asset Impairment	—			—			—			—			—
Pension settlement	—			30.5			0.9			—			31.4
(Income) loss from equity method investments	(292.4		)	(40.7		)	(14.4		)	329.1			(18.4		)
Operational income	295.7			388.1			75.3			(329.7		)	429.4
Interest expense, net	24.4			(2.2		)	4.8			—			27.0
Other income, net	—			—			(0.3		)	—			(0.3		)
Income from continuing operations before income taxes	271.3			390.3			70.8			(329.7		)	402.7
Provision for income taxes	(6.5		)	108.2			22.6			(0.2		)	124.1
Income from continuing operations	277.8			282.1			48.2			(329.5		)	278.6
Loss from discontinued operations	—			—			(0.8		)	—			(0.8		)
Net income	$	277.8		$	282.1		$	47.4		$	(329.5	)	$	277.8
Other comprehensive income (loss)	$	14.0		$	8.5		$	(14.2	)	$	1.3		$	9.6
Comprehensive income	$	291.8		$	290.6		$	33.2		$	(328.2	)	$	287.4

86

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2015

(In millions)

(Amounts in millions)	Parent				Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—			$	2,950.6		$	701.8		$	(185.0	)	$	3,467.4
Cost of goods sold	—				2,150.9			556.4			(187.3		)	2,520.0
Gross profit	—				799.7			145.4			2.3			947.4
Operating expenses:
Selling, general and administrative expenses	—				485.6			94.9			—			580.5
Losses (gains) and other expenses, net	0.7				13.7			7.5			(0.2		)	21.7
Restructuring charges	—			—	(0.5		)	3.7			—			3.2
Goodwill impairment	—				5.5			—			—			5.5
Asset impairment	—				44.5			—			—			44.5
Pension settlement	—				—			—			—			—
(Income) loss from equity method investments	(201.8		)		(5.9		)	(10.5		)	204.8			(13.4		)
Operational income	201.1				256.8			49.8			(202.3		)	305.4
Interest expense, net	22.4				(2.0		)	3.2			—			23.6
Other income, net	—				—			(0.8		)	—			(0.8		)
Income from continuing operations before income taxes	178.7				258.8			47.4			(202.3		)	282.6
Provision for income taxes	(7.8		)		87.9			14.3			1.0			95.4
Income from continuing operations	186.5				170.9			33.1			(203.3		)	187.2
Loss from discontinued operations	—				—			(0.6		)	—			(0.6		)
Net income	$	186.5			$	170.9		$	32.5		$	(203.3	)	$	186.6
Other comprehensive income (loss)	$	(3.5	)		$	(3.3	)	$	(40.4	)	$	(4.0	)	$	(51.2	)
Comprehensive Income	$	183.0			$	167.6		$	(7.9	)	$	(207.3	)	$	135.4

87

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	467.4		$	31.1		$	(173.4	)	$	—	$	325.1
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.1			0.1			—		0.2
Purchases of property, plant and equipment	—			(70.7		)	(27.6		)	—		(98.3		)
Net cash used in investing activities	—			(70.6		)	(27.5		)	—		(98.1		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(1.5		)	—		(1.5		)
Asset securitization borrowings	—			—			315.0			—		315.0
Asset securitization payments	—			—			(89.0		)	—		(89.0		)
Long-term debt borrowings	—			—			—			—		—
Borrowings from credit facility	2,376.5			—			—			—		2,376.5
Long-term debt payments	(200.0		)	(0.3		)	(0.6		)	—		(200.9		)
Payments on credit facility	(2,265.5		)	—			—			—		(2,265.5		)
Payments of deferred financing costs	—			—			(0.2		)	—		(0.2		)
Proceeds from employee stock purchases	3.1			—			—			—		3.1
Repurchases of common stock to satisfy employee withholding tax obligations	(26.1		)	—			—			—		(26.1		)
Repurchases of common stock	(250.0		)	—			—			—		(250.0		)
Excess tax benefits related to share-based payments	—			—			—			—		—
Intercompany debt	56.4			(34.9		)	(21.5		)	—		—
Intercompany financing activity	(81.7		)	85.6			(3.9		)	—		—
Cash dividends paid	(79.7		)	—			—			—		(79.7		)
Net cash provided by (used in) financing activities	(467.0		)	50.4			198.3			—		(218.3		)
Increase (decrease) in cash and cash equivalents	0.4			10.9			(2.6		)	—		8.7
Effect of exchange rates on cash and cash equivalents	—			—			9.3			—		9.3
Cash and cash equivalents, beginning of year	1.2			17.1			31.9			—		50.2
Cash and cash equivalents, end of year	$	1.6		$	28.0		$	38.6		$	—	$	68.2

88

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	17.8		$	218.5		$	137.6		$	—	$	373.9
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			—			0.2			—		0.2
Purchases of property, plant and equipment	—			(71.5		)	(12.8		)	—		(84.3		)
Net cash used in investing activities	—			(71.5		)	(12.6		)	—		(84.1		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(2.4		)	—		(2.4		)
Asset securitization borrowings	—			—			145.0			—		145.0
Asset securitization payments	—			—			(295.0		)	—		(295.0		)
Long-term debt borrowings	350.0			—			—			—		350.0
Borrowings from credit facility	2,336.5			—			—			—		2,336.5
Long-term debt payments	(57.5		)	(0.9		)	(0.4		)	—		(58.8		)
Payments on credit facility	(2,346.0		)	—			—			—		(2,346.0		)
Payments of deferred financing costs	(4.2		)	—			—			—		(4.2		)
Proceeds from employee stock purchases	2.6			—			—			—		2.6
Repurchases of common stock to satisfy employee withholding tax obligations	(33.3		)	—			—			—		(33.3		)
Repurchases of common stock	(300.0		)	—			—			—		(300.0		)
Intercompany debt	30.0			(65.8		)	35.8			—		—
Intercompany financing activity	73.8			(71.0		)	(2.8		)	—		—
Cash dividends paid	(69.0		)	—			—			—		(69.0		)
Net cash provided by (used in) financing activities	(17.1		)	(137.7		)	(119.8		)	—		(274.6		)
Increase (decrease) in cash and cash equivalents	0.7			9.3			5.2			—		15.2
Effect of exchange rates on cash and cash equivalents	—			—			(3.9		)	—		(3.9		)
Cash and cash equivalents, beginning of year	0.5			7.8			30.6			—		38.9
Cash and cash equivalents, end of year	$	1.2		$	17.1		$	31.9		$	—	$	50.2

89

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2015

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	249.3		$	49.3		$	55.0		$	—	$	353.6
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.1			—			—		0.1
Purchases of property, plant and equipment	—			(60.2		)	(9.7		)	—		(69.9		)
Net cash used in investing activities	—			(60.1		)	(9.7		)	—		(69.8		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(1.7		)	—		(1.7		)
Asset securitization borrowings	—			—			40.0			—		40.0
Asset securitization payments	—			—			(60.0		)	—		(60.0		)
Long-term debt borrowings	—			—			—			—		—
Borrowings from revolving credit facility	1,671.0			—			—			—		1,671.0
Long-term debt payments	(22.5		)	(1.2		)	(0.3		)	—		(24.0		)
Payments on revolving credit facility	(1,807.5		)	—			—			—		(1,807.5		)
Payments of deferred financing costs	—			—			—			—		—
Proceeds from employee stock purchases	2.4			—			—			—		2.4
Repurchases of common stock to satisfy employee withholding tax obligations	(32.0		)	—			—			—		(32.0		)
Repurchases of common stock	—			—			—			—		—
Intercompany debt	(9.4		)	7.1			2.3			—		—
Intercompany financing activity	7.5			1.2			(8.7		)	—		—
Cash dividends paid	(59.3		)	—			—			—		(59.3		)
Net cash provided by (used in) financing activities	(249.8		)	7.1			(28.4		)	—		(271.1		)
Decrease in cash and cash equivalents	(0.5		)	(3.7		)	16.9			—		12.7
Effect of exchange rates on cash and cash equivalents	—			—			(11.3		)	—		(11.3		)
Cash and cash equivalents, beginning of year	1.0			11.5			25.0			—		37.5
Cash and cash equivalents, end of year	$	0.5		$	7.8		$	30.6		$	—	$	38.9

90

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. 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, our Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2017, 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.

Management's Annual Report on Internal Control Over Financial Reporting

See “Management's Report on Internal Control Over Financial Reporting” included in Item 8 “Financial Statements and Supplementary Data.”

Attestation Report of the Independent Registered Public Accounting Firm

See “Report of Independent Registered Public Accounting Firm” included in Item 8 “Financial Statements and Supplementary Data.”

Changes in Internal Control Over Financial Reporting

There were no changes during the fourth quarter ended December 31, 2017 in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Incorporated herein by reference from the Company’s definitive proxy statement, which will be filed no later than 120 days after December 31, 2017. Also, refer to Part I, Item 1 “Business - Executive Officers of the Company” of this Annual Report on Form 10-K, which identifies our executive officers and is incorporated herein by reference.

Item 11. Executive Compensation

Incorporated herein by reference from the Company’s definitive proxy statement, which will be filed no later than 120 days after December 31, 2017.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Incorporated herein by reference from the Company’s definitive proxy statement, which will be filed no later than 120 days after December 31, 2017. Also, refer to Note 14 in the Notes to the Consolidated Financial Statements for additional information about our equity compensation plans.

91

Item 13. Certain Relationships and Related Transactions and Director Independence

Incorporated herein by reference from the Company’s definitive proxy statement, which will be filed no later than 120 days after December 31, 2017.

Item 14. Principal Accounting Fees and Services

Incorporated herein by reference from the Company’s definitive proxy statement, which will be filed no later than 120 days after December 31, 2017.

PART IV

Item 15. Exhibits and Financial Statement Schedules

Financial Statements

The following financial statements are included in Part II, Item 8 of the Annual Report on Form 10-K:

• Report of Independent Registered Public Accounting Firm

• Consolidated Balance Sheets as of December 31, 2017 and 2016

• Consolidated Statements of Operations for the Years Ended December 31, 2017, 2016 and 2015

• Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2017, 2016 and 2015

• Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2017, 2016 and 2015

• Consolidated Statements of Cash Flows for the Years Ended December 31, 2017, 2016 and 2015

• Notes to the Consolidated Financial Statements for the Years Ended December 31, 2017, 2016 and 2015

Financial Statement Schedules

The financial statement schedule included in this Annual Report on Form 10-K is Schedule II - Valuation and Qualifying Accounts and Reserves for the Years Ended December 31, 2017, 2016 and 2015 (see Schedule II immediately following the signature page of this Annual Report on Form 10-K).

Financial statement schedules not included in this Annual Report on Form 10-K have been omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or Notes thereto.

Exhibits

A list of the exhibits required to be filed or furnished as part of this Annual Report on Form 10-K is set forth in the Index to Exhibits, which immediately precedes such exhibits, and is incorporated herein by reference.

92

SIGNATURES

Pursuant to the requirements 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/ Todd M. Bluedorn

Todd M. Bluedorn

Chief Executive Officer

February 16, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.

93

SIGNATURE	TITLE	DATE
/s/ TODD M. BLUEDORN	Chief Executive Officer and Chairman of the Board of Directors	February 16, 2018
Todd M. Bluedorn	(Principal Executive Officer)
/s/ JOSEPH W. REITMEIER	Executive Vice President and Chief Financial Officer	February 16, 2018
Joseph W. Reitmeier	(Principal Financial Officer)
/s/ CHRIS A. KOSEL	Vice President, Controller and Chief Accounting Officer	February 16, 2018
Chris A. Kosel	(Principal Accounting Officer)
/s/ TODD J. TESKE	Lead Director	February 16, 2018
Todd J. Teske
/s/ JANET K. COOPER	Director	February 16, 2018
Janet K. Cooper
/s/ JOHN E. MAJOR	Director	February 16, 2018
John E. Major
/s/ JOHN W. NORRIS, III	Director	February 16, 2018
John W. Norris, III
/s/ KAREN H. QUINTOS	Director	February 16, 2018
Karen. H. Quintos
/s/ KIM K.W. RUCKER	Director	February 16, 2018
Kim K.W. Rucker
/s/ MAX H. MITCHELL	Director	February 16, 2018
Max H. Mitchell
/s/ PAUL W. SCHMIDT	Director	February 16, 2018
Paul W. Schmidt
/s/ GREGORY T. SWIENTON	Director	February 16, 2018
Gregory T. Swienton

94

LENNOX INTERNATIONAL INC.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

For the Years Ended December 31,2017, 2016 and 2015

(In millions)

	Balance at beginning of year		Additions charged to cost and expenses		Write-offs			Recoveries		Other			Balance at end of year
2015:
Allowance for doubtful accounts	$	7.9	$	2.8	$	(4.9	)	$	1.1	$	(0.6	)	$	6.3
2016
Allowance for doubtful accounts	$	6.3	$	2.4	$	(2.7	)	$	0.9	$	(0.2	)	$	6.7
2017
Allowance for doubtful accounts	$	6.7	$	3.9	$	(5.6	)	$	0.9	$	—		$	5.9

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INDEX TO 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 then 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 Current Report on Form 10-K filed on February 13, 2014 and incorporated herein by reference).
4.6	Fifth Supplemental Indenture, dated as of August 30, 2016, among LGL Europe Holding Co., each other existing Guarantor under the Indenture, dated as of May 3, 2010, as subsequently supplemented, and US Bank National Association (filed as Exhibit 4.6 to LII’s Quarterly Report on Form 10-Q filed on October 17, 2016, and incorporated by reference).
4.7	Sixth Supplemental Indenture, dated as of November 3, 2016, among LII, each other existing Guarantor under the Indenture, dated as of May 3, 2010, as subsequently supplemented, and US Bank National Association, as trustee (filed as Exhibit 4.2 to LII’s Current Report on Form 8-K filed on November 3, 2016, and incorporated by reference).
4.8	Form of 3.000% Notes due 2023 (filed as Exhibit A in Exhibit 4.2 to LII’s Current Report on Form 8-K filed on November 3, 2016, and incorporated by reference).
4.9	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).
10.1	Sixth Amended and Restated Credit Facility Agreement dated as of August 30, 2016, among Lennox International Inc., a Delaware corporation, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on September 2, 2016 and incorporated herein by reference)
10.2	First Amendment to Sixth Amended and Restated Credit Facility Agreement dated as of October 20, 2016, among Lennox International Inc., a Delaware corporation, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (filed as Exhibit 10.1 to LII's Quarterly Report on Form 10-Q filed on October 24, 2017, and incorporated herein by reference).
10.3	Form of Sixth Amended and Restated Subsidiary Guarantee Agreement for the Sixth Amended and Restated Credit Facility dated as of August 30, 2016 signed by Allied Air Enterprises LLC, Advanced Distributor Products LLC, Heatcraft Inc., Heatcraft Refrigeration Products LLC, Lennox Global Ltd., Lennox Industries Inc., LGL Australia (US) Inc., Lennox National Account Services LLC and LGL Europe Holding Co. (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on September 2, 2016 and incorporated herein by reference).
10.4	Amendment No. 2 to Amended and Restated Receivables Purchase Agreement, effective as of November 15, 2013, among LPAC Corp., as the Seller, Lennox Industries Inc., as the Master Servicer, Victory Receivables Corporation, as a Purchaser, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Administrative Agent, a Liquidity Bank, and the BTMU Purchaser Agent, and PNC Bank, National Association as a Liquidity Bank and the PNC Purchaser Agent (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on November 19, 2013 and incorporated herein by reference).

96

10.5	Omnibus Amendment No. 3 to the Amended and Restated Receivables Purchase agreement, effective as of November 21, 2014 among LPAC Corp., as the Seller, Lennox Industries Inc., as the Master Servicer, Victory Receivables Corporation, as a Purchaser, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Administrative Agent, a Liquidity Bank, and the BTMU Purchaser Agent, and PNC Bank, National Association, as a Liquidity Bank and the PNC Purchaser Agent (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on November 24, 2014 and incorporated herein by reference).
10.6	Amendment to the Amended and Restated Receivables Purchase Agreement, effective as of December 15, 2014, among LPAC Corp., as the Seller, Lennox Industries Inc., as the Master Servicer, with Victory Receivables Corporation, as Purchaser, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Administrative Agent, a Liquidity Bank and the BTMU purchaser agent, and PNC Bank, National Association, as a Liquidity Bank and the PNC purchaser agent (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on December 18, 2014 and incorporated herein by reference).
10.7	Amendment No. 4 to Amended and Restated Receivables Purchase Agreement among LPAC Corp., as the Seller, Lennox Industries Inc., as the Master Servicer, Victory Receivables Corporation, as Purchaser, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Administrative Agent, a Liquidity Bank and a Purchaser Agent, and PNC Bank, National Association, as a Liquidity Bank and a Purchaser Agent, effective as of November 13, 2015 (filed as Exhibit 10.1 to LII’s Current Report on Form 8-K filed on November 18, 2015 and incorporated herein by reference).
10.8	Amendment No. 5 to Amended and Restated Receivables Purchase Agreement among LPAC Corp., as the Seller, Lennox Industries Inc., as the Master Servicer, Victory Receivables Corporation, as Purchaser and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Administrative Agent, a Liquidity Bank and a Purchaser Agent, (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on July 6, 2016 and incorporated herein by reference).
10.9	Amended and Restated Lease Agreement, dated as of March 22, 2013, by and between BTMU Capital Leasing & Finance, Inc., as lessor, and Lennox International Inc., as lessee (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on March 25, 2013 and incorporated herein by reference).
10.10	Amendment No. 6 to Amended and Restated Receivables Purchase Agreement among LPAC Corp., as the Seller, Lennox Industries Inc., as the Master Servicer, Victory Receivables Corporation, as Purchaser and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Administrative Agent, a Liquidity Bank and a Purchaser Agent, (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on November 16, 2017 and incorporated herein by reference).
10.11	Amended and Restated Participation Agreement, dated as of March 22, 2013, by and among Lennox International Inc., as lessee and BTMU Capital Leasing & Finance, Inc., as lessor (filed as Exhibit 10.2 to LII's Current Report on Form 8-K filed on March 25, 2013 and incorporated herein by reference).
10.12	Amended and Restated Memorandum of Lease, Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of March 22, 2013, by and among Lennox International Inc., BTMU Capital Leasing and Finance, Inc. and David Parnell, as Deed of Trust Trustee, for the benefit of BTMU Capital Leasing & Finance, Inc. (filed as Exhibit 10.3 to LII's Current Report on Form 8-K filed on March 25, 2013 and incorporated herein by reference).
10.13*	Lennox International Inc. 2010 Incentive Plan, as amended and restated (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on May 19, 2010 and incorporated herein by reference).
10.14*	Form of Long-Term Incentive Award Agreement for U.S. Employees - Vice President and Above (for use under the 2010 Incentive Plan) (filed herewith).
10.15*	Form of Restricted Stock Unit Award Agreement for Non-Employee Directors (for use under the 2010 Incentive Plan) (filed herewith).
10.16*	Lennox International Inc. Profit Sharing Restoration Plan, as amended and restated as of January 1, 2009 (filed as Exhibit 10.3 to LII's Current Report on Form 8-K filed on December 17, 2008 and incorporated herein by reference).
10.17*	Lennox International Inc. Supplemental Retirement Plan, as amended and restated as of January 1, 2009 (filed as Exhibit 10.2 to LII's Current Report on Form 8-K filed on December 17, 2008 and incorporated herein by reference).
10.18*	Form of Indemnification Agreement entered into between LII and certain executive officers and directors of LII (filed as Exhibit 10.15 to LII's Registration Statement on Form S-1 (Registration No. 333-75725) filed on April 6, 1999 and incorporated herein by reference).
10.19*	Form of Employment Agreement entered into between LII and certain executive officers of LII (filed as Exhibit 10.30 to LII's Annual Report on Form 10-K for the year ended December 31, 2006 and incorporated herein by reference).
10.20*	Form of Amendment to Employment Agreement entered into between LII and certain executive officers of LII (filed as Exhibit 10.2 to LII's Current Report on Form 8-K filed on December 12, 2007 and incorporated herein by reference).

97

10.21*	Form of Change of Control Employment Agreement entered into between LII and certain executive officers of LII (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on July 17, 2012 and incorporated herein by reference).
10.22*	Lennox International Inc. Directors' Retirement Plan (as Amended and Restated as of January 1, 2010) (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on December 16, 2009 and incorporated herein by reference).
10.23*	Form of Change of Control Employment Agreement entered into between LII and certain executive officers of LII (filed as Exhibit 10.1 to LII's Current Report on Form 8-K filed on December 17, 2008 and incorporated herein by reference).
10.24*	Separation and General Release Agreement entered into between LII and David W. Moon, dated October 23, 2017 (filed herewith).
21.1	Subsidiaries of LII (filed herewith).
23.1	Consent of KPMG LLP (filed herewith).
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

* Management contract or compensatory plan or arrangement.

98

EX-10.14

Exhibit 10.14

LENNOX INTERNATIONAL INC.

Long-Term Incentive Award Agreement

U.S. Employees - Vice President and Above

THIS AGREEMENT (“Agreement”) is made as of __________________(the “Award Date”), by and between Lennox International Inc., a Delaware corporation (the “Company”), and __________ (“Participant”).

The Company has adopted the Lennox International Inc. 2010 Incentive Plan, as amended and restated (the “Plan”), the terms of which are incorporated by reference and made a part of this Agreement, for the benefit of eligible employees, directors, consultants or advisors of the Company and its Subsidiaries (together, “LII”). Capitalized terms used and not otherwise defined in this Agreement have the meanings set forth in the Plan.

Pursuant to the Plan, the Committee, which has responsibility for administering the Plan, has determined that it is in the interest of the Company and its stockholders to make the awards provided in this Agreement in order to increase Participant's personal interest in the continued success and progress of the Company, to foster and enhance the long-term profitability of the Company for the benefit of its shareholders by offering the incentive of long-term rewards, and to encourage Participant to remain in the employ of LII.

The Company and Participant therefore agree as follows:

1. Grant of Awards. Subject to the terms of this Agreement, the Company grants to Participant on the Award Date:

(a)PSU Award - for the period beginning on January 1, 20___ and ending on December 31, 20__ (the “Performance Period”), an award of __________ performance share units (“PSUs” and such award, the “PSU Award”);

(b)RSU Award - for the period beginning on December __, 20__ and ending on December __, 20__ (except as provided below, the “Retention Period”), an award of __________ Restricted Stock Units (“RSUs” and such award, the “RSU Award”); and

(c)SAR Award - for the period beginning on December __, 20 and ending on December __, 20__ (the “SAR Period”), __________ Stock Appreciation Rights (“SARs” and such award, the “SAR Award”) at a grant price of $__________ per share of Common Stock (the Fair Market Value of a share of Common Stock on the date of grant).

2. Conditions for Vesting.

Subject to Participant’s compliance with the terms of this Agreement:

(a)PSU Award - 50% of the PSU Award is based upon achievement of core net income growth rate performance goals (“Net Income”) for the Performance Period, and 50% of the PSU Award is based upon achievement of return on invested capital performance goals (“ROIC”) for the Performance Period. At the end of the Performance Period, the Committee will evaluate the Company’s attained levels of performance with respect to Core Net Income and ROIC to determine the number of whole PSUs earned, if any, by Participant (the “Earned PSUs”). The Committee will

determine Participant's total Earned PSUs for such period by reference to the following performance matrix:

PSU Award - Performance Goals
	Threshold	Target	Maximum
Earned PSUs Payout Levels	50%	100%	200%
Core Net Income: 3-year compound annual growth rate	__%	__%	__%
ROIC: 3-year weighted average*	__%	__%	__%

*lowest-year ROIC weighted 20%, remaining years weighted 40% each

If, at the end of the Performance Period, the threshold, target or maximum performance goal has been attained for either or both Core Net Income or ROIC, Participant will vest in Earned PSUs as provided in the matrix. If the attained level of performance for either goal is between the threshold and target, or between target and maximum, Earned PSUs will be determined by linear interpolation.

(b)RSU Award - At the end of the Retention Period, the RSU Award will vest (the “Earned RSUs”). If the last day of the Retention Period is not a day on which shares of Common Stock are traded on a U.S. national securities exchange or quoted in an inter-dealer quotation system, then the Retention Period will end on the last preceding day on which sales of shares of Common Stock were reported.

(c)SAR Award - To the extent the SAR Award has become vested (the “Earned SARs”) according to the following schedule, the Earned SARs may be exercised in whole or part at any time until expiration of the SAR Period:

DateSARs Vested

December __, 20__33 1/3%

December __, 20__66 2/3%

December __, 20__100%

3. Method and Time of Payment.

Subject to the terms of this Agreement:

(a)PSU Award - Earned PSUs will be paid within 2.5 months following the end of the Performance Period, minus any shares of Common Stock withheld for taxes pursuant to Section 4 below. Earned PSUs will be paid in the form of the nearest number of whole shares of Common Stock which is equal to or less than the Earned PSUs determined by the reference to the performance matrix specified in Section 2(a) above.

(b)RSU Awards - Earned RSUs will be paid within 30 days following the end of the Retention Period. Earned RSUs will be paid in whole shares of Common Stock equal to the number of Earned RSUs, minus any shares of Common Stock withheld for taxes pursuant to Section 4 below.

(c)SAR Award - Within 30 days of the date of exercise, the Company will deliver to Participant for each Earned SAR that is being exercised (“Exercised SAR”) a number of shares of

Common Stock, in the form of the nearest number of whole shares of Common Stock, equal to the excess (if any) of the most recent publicly quoted sale price of a share of Common Stock at the time of exercise over the grant price of the SAR on the Award Date. If on the last day of the SAR Period (i) the Fair Market Value of a share of Common Stock exceeds the grant price of the SAR on the Award Date, (ii) Participant has not exercised the Earned SARs and (iii) the SAR Award has not otherwise been cancelled, then the Earned SARs will be deemed to have been exercised by Participant as of such day, and the Company will settle the Exercised SARs in accordance with this Section 3(c).

4.Withholding for Taxes. Participant acknowledges and agrees that the Company may deduct from the shares of Common Stock otherwise deliverable in connection with Earned PSUs, Earned RSUs and Exercised SARs a number of whole shares of Common Stock (in the case of Earned PSUs and Earned RSUs, valued at the Fair Market Value of Common Stock on the date of distribution of the Earned PSUs and Earned RSUs; in the case of Earned SARs, valued at the most recent publicly quoted sale price of Common Stock at the time of exercise of the Earned SARs) that is equal to no more than the minimum statutory amount of all Federal, state and local taxes required to be withheld by the Company in connection with such delivery,as determined by the Company.

5.Termination of Employment. Unless otherwise determined by the Committee in its sole discretion, the PSU Award, the RSU Award and the SAR Award will terminate at the times specified below:

(a)If, prior to the end of the Performance Period, Retention Period or SAR Period, Participant violates Section 6 of this Agreement or is terminated by LII for Cause (as defined in any applicable employment agreement between LII and Participant or as determined by the Committee in its sole discretion in the absence of any such employment agreement), then, immediately after LII becomes aware of a violation of Section 6 or Participant’s termination, the PSU Award, RSU Award or SAR Award will be cancelled.

(b)If, prior to the end of the Performance Period, Retention Period or SAR Period, Participant terminates employment with LII voluntarily or Participant’s employment with LII is terminated by LII not for Cause, then, (i) immediately after Participant’s termination, the PSU Award or RSU Award will be cancelled, and (ii) immediately after Participant’s termination, the Earned SARs will continue to be exercisable subject to the SAR Period for 90 days following Participant’s termination, and the remainder of the SAR Award will be cancelled.

(c)If, prior to the end of the SAR Period, Participant’s employment with LII is terminated by LII for any reason within one year following a Change in Control, then the Earned SARs will continue to be exercisable subject to the SAR Period for 90 days following Participant’s termination, and the remainder of the SAR Award will be cancelled.

(d)If, prior to the end of the Performance Period, Retention Period or SAR Period, Participant’s employment with LII terminates by reason of Participant’s retirement, and in connection with such termination of employment (i) Participant is at least 65 years of age, (ii) Participant is at least 62 years of age and has achieved at least 10 years of service with LII or (iii) the number of years of service Participant has achieved with LII plus Participant’s age equals at least 80, then (x) Participant will earn a pro rata amount of the PSU Award based upon the Company’s attainment of its performance goals in accordance with the performance matrix described in Section 2(a) above, determined at the end of the Performance Period, and the remainder of the PSU Award will be cancelled, (y) Participant will earn a pro rata amount of the RSU Award based upon the portion of the Retention Period during which Participant

served as an employee of LII, determined as of the date of such retirement, and the remainder of the RSU Award will be cancelled, and (z) the Earned SARs will continue to be exercisable for the remainder of the SAR Period, and the remainder of the SAR Award will be cancelled. In the case of the PSU Award, any pro rata amount earned will be payable within 2.5 months after the end of the Performance Period, and in the case of the RSU Award, any pro rata amount earned will be payable within 30 days after the end of the Retention Period.

(e)If, prior to the end of the Performance Period, Retention Period or SAR Period, Participant dies or incurs a Disability, then (i) Participant, or in the event of Participant’s death, Participant’s beneficiary, will earn a pro rata amount of the PSU Award based upon the Company’s attainment of its performance goals in accordance with the performance matrix described in Section 2(a) above (as determined in the sole discretion of the Committee), determined as of the date of death or Disability, and the remainder of the PSU Award will be cancelled, (ii) Participant, or in the event of Participant’s death, Participant’s beneficiary, will earn a pro rata amount of the RSU Award based upon the portion of the Retention Period during which Participant served as an employee of LII, determined as of the date of death or Disability, and the remainder of the RSU Award will be cancelled, and (iii) the SAR Award will become fully vested and exercisable and will continue to be exercisable for the remainder of the SAR Period. Any pro rata amounts earned will be payable within 2.5 months after the date of death or Disability.

6.Protective Covenants.

(a)Noncompete Obligations. For one year following the effective date of Participant’s termination of employment with LII (the “Termination Date”), Participant will not participate in any way in any activities within the same geographic area where Participant had responsibility to conduct business activity prior to the Termination Date, on behalf of a business that provides products or services that are the same or similar to products or services offered or planned by LII as of the Termination Date.

If Participant violates Section 6(a), Participant must pay LII on demand an amount equal to the sum of the pre-tax gains received from: (1) vested PSU Awards and vested RSU Awards awarded to Participant under this Agreement in the one year period prior to the Termination Date; and (2) exercised SAR Awards awarded to Participant under this Agreement in the period beginning one year prior to the Termination Date and ending 90 days after the Termination Date, up to a maximum amount of the following multiple of Participant’s annual base salary in effect on the Termination Date: .75 if Participant is a Vice President; 1.5 if Participant is an Executive Vice President; or 3.0 if Participant is the Chief Executive Officer.

(b)Nonsolicitation Obligations. For one year following the Termination Date, Participant will not, directly or indirectly: (1) solicit, recruit or hire any person who is an LII employee as of the Termination Date; or (2) solicit or induce any customer, supplier or distributor as of the Termination Date to cease or reduce doing business with LII, or divert an LII business opportunity.

If Participant violates Section 6(b), LII will be irreparably harmed and entitled to specific performance, injunctive relief, attorneys’ fees and costs incurred in obtaining relief, and any other remedy available at law or equity.

(c)Consent. Participant may engage in activities otherwise restricted by this Section 6 with the written consent of LII’s Chief Executive Officer if Participant is a Vice President or Executive

Vice President, or with the written consent of the independent members of the Board of Directors if Participant is the Chief Executive Officer.

7.No Stockholder Rights. Participant will not be deemed for any purpose, including voting rights and dividends or dividend equivalents, to be, or to have any of the rights of, a stockholder of LII with respect to any shares of Common Stock as to which the PSU Award, the RSU Award or the SAR Award relate until such shares are issued to Participant by the Company. The existence of this Agreement will not affect the right or power of LII or its stockholders to accomplish any corporate act.

8.Restrictions Imposed by Law. Participant agrees that LII will not be obligated to deliver any shares of Common Stock if LII counsel determines that such delivery would violate any applicable law or any rule or regulation of any governmental authority or any rule or regulation of, or agreement of the Company with, any securities exchange or association upon which the Common Stock may be listed or quoted. LII will not be obligated to take any affirmative action to cause the delivery of shares of Common Stock to comply with any such law, rule, regulation or agreement.

9.Notice. Unless LII notifies Participant in writing of a different procedure, any notice or other communication to LII with respect to this Agreement must be in writing and delivered personally or by first class mail, postage prepaid, to the following address:

Lennox International Inc.

c/o Corporate Secretary

2140 Lake Park Boulevard

Richardson, Texas 75080

Any notice or other communication to Participant with respect to this Agreement must be in writing and delivered personally, or sent electronically to Participant or by first class mail, postage prepaid, to Participant's address as listed in the records of the Company on the Award Date, unless LII has received written notification from Participant of a change of address.

10.Amendment. This Agreement may be supplemented or amended from time to time as approved by the Committee as contemplated by Section 4.2 of the Plan.

11.Participant Employment. Nothing contained in this Agreement, and no action of LII or the Committee, will confer or be construed to confer on Participant any right to continue in the employ of LII or interfere in any way with the right of LII to terminate Participant's employment at any time, with or without cause, subject, however, to the provisions of any employment agreement between Participant and LII.

12.Governing Law. This Agreement is governed by Delaware law.

13.Construction. This Agreement is entered into, and the PSU Award, RSU Award and SAR Award are granted, pursuant to the Plan and are governed by and construed in accordance with the Plan and the administrative interpretations adopted under the Plan. In the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan will control.

14.Severability and Reformation. If any restriction or covenant in this Agreement is deemed by a court of competent jurisdiction to be unreasonable or unenforceable as written, the court may modify any unreasonable or unenforceable element of the restriction or covenant to make it reasonable and enforceable or enforce it only to the extent it is reasonable and enforceable. If the court determines that any restriction

or covenant in this Agreement is wholly or partially invalid or unenforceable, the remainder of the restrictions or covenants will be given full effect.

15.Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the PSU Award, the RSU Award and the SAR Award. If Participant has a written employment agreement or change in control agreement which contains provisions that conflict with this Agreement: (1) the provisions in the employment agreement or change in control agreement will control with respect to the parties’ rights and remedies under those agreements; and (2) the provisions of this Agreement will control with respect to the parties’ rights and remedies under this Agreement.

16.Participant Acceptance. Participant must accept the terms and conditions of this Agreement by electronic signature or by signing in the space below and returning a signed copy to LII.

17.No-Waiver. Any waiver by the Company of a breach of any provision of this Agreement will not operate or be construed as waiver of any subsequent breach.

18.Other Entities Protected. This Agreement, including the restrictions on Participant’s activities apply to any subsidiary, affiliate, successor and assign of LII to which Participant provides services or about which Participant receives Confidential Information. LII has the right to assign this Agreement at its sole election without the need for further notice to or consent by Participant. Accordingly, this Agreement will inure to the benefit of, and may be enforced by, any and all successors and assigns of LII, including without limitation by asset assignment, stock sale, merger, consolidation or other corporate reorganization, and will be binding on Participant, Participant’s executors, administrators, personal representatives or other successors in interest. Participant further agrees that Participant’s rights are personal and may not be assigned or transferred.

ACCEPTED:

Signed: _________________________________________

«First» «Last»

Date: _________________________________________

«Date»

EX-10.15

Exhibit 10.15

LENNOX INTERNATIONAL INC.

Restricted Stock Unit Award Agreement

Non-Employee Directors

THIS AGREEMENT ("Agreement") is made as of ___________________ (the "Award Date"), by and between Lennox International Inc., a Delaware corporation (the "Company"), and __________  ("Participant").

The Company has adopted the Lennox International Inc. 2010 Incentive Plan, as amended and restated (the "Plan"), the terms of which are incorporated by reference and made a part of this Agreement, for the benefit of eligible employees, directors, consultants or advisors of the Company and its Subsidiaries. Capitalized terms used and not otherwise defined herein have the meanings set forth in the Plan.

Pursuant to the Plan, the Committee, which has responsibility for administering the Plan, has determined that it is in the interest of the Company and its stockholders to make this award in order to increase Participant's personal interest in the continued success and progress of the Company, to foster and enhance the long-term profitability of the Company for the benefit of its shareholders by offering the incentive of long-term rewards, and to encourage Participant to remain a director of the Company.

The Company and Participant therefore agree as follows:

1.Grant of Award. Subject to the terms and conditions of this Agreement, the Company grants to Participant on the Award Date for the period beginning on _______________ and ending on ____________ (except as provided below, the “Retention Period”), an award of __________ Restricted Stock Units (“RSUs” and such award, the "RSU Award"). If the last day of the Retention Period is not a day on which shares of Common Stock are traded on a U.S. national securities exchange or quoted in an inter-dealer quotation system, then the Retention Period will end on the last preceding day preceding on which sales of shares of Common Stock were reported.

2.Conditions for Vesting. Subject to Section 5 of this Agreement, at the end of the Retention Period, the RSU Award will vest and be distributed to Participant (the “Earned RSUs”).

3.Method and Time of Payment. Except as otherwise provided in Section 5, Earned RSUs will be paid within 30 days following the end of the Retention Period by the Company delivering to Participant a number of whole shares of Common Stock equal to the number of Earned RSUs, minus any shares of Common Stock withheld for taxes pursuant to Section 4 below.

4.Withholding for Taxes. Participant acknowledges and agrees that the Company may deduct from the shares of Common Stock otherwise deliverable in connection with the Earned RSUs a number of whole shares of Common Stock (valued at their Fair Market Value on the date of distribution of the Earned RSUs) that is equal to no more than the minimum statutory amount of all Federal, state and local taxes required to be withheld by the Company in connection with such delivery,as determined by the Company.

5.Termination of Directorship. If Participant’s directorship with the Company is terminated for any reason (other than “For Cause” or performance as determined by a majority of the remaining directors) prior to the expiration of the Retention Period, the RSU Award will become fully vested and be distributed to Participant within 30 days of termination.“For Cause” as used in this Agreement means (a) any violation

by Participant of the Company’s written policies as they may exist or be created or modified from time to time in the future; (b) any state or federal criminal conviction, including, but not limited to, entry of a plea of nolo contendere or deferred adjudication upon a felony or misdemeanor charge; (c) the commission by Participant of any material act of misconduct or dishonesty; (d) any intentional or grossly negligent action or omission to act that breaches any covenant, agreement, condition or obligation contained in any written Agreement with the Company; or (e) acts that in any way have a direct, substantial, and adverse effect on the Company’s reputation. If Participant’s directorship with the Company is terminated “For Cause” or performance as determined by a majority of the remaining directors prior to the expiration of the Retention Period, then, immediately after termination of Participant’s directorship, the RSU Award will be cancelled.

6.No Stockholder Rights. Participant will not be deemed for any purpose, including voting rights and dividends or dividend equivalents, to be, or to have any of the rights of, a stockholder of the Company with respect to any shares of Common Stock as to which the RSU Award relates until such shares are issued to Participant by the Company. The existence of this Agreement will not affect the right or power of the Company or its stockholders to accomplish any corporate act.

7.Restrictions Imposed by Law. Participant agrees that the Company will not be obligated to deliver any shares of Common Stock if counsel to the Company determines that such delivery would violate any applicable law or any rule or regulation of any governmental authority or any rule or regulation of, or agreement of the Company with, any securities exchange or association upon which the Common Stock may be listed or quoted. The Company will not be obligated to take any affirmative action to cause the delivery of shares of Common Stock to comply with any such law, rule, regulation or agreement.

8.Notice. Unless the Company notifies Participant in writing of a different procedure, any notice or other communication to the Company with respect to this Agreement must be in writing and delivered personally or by first class mail, postage prepaid, to the following address:

Lennox International Inc.

c/o Corporate Secretary

2140 Lake Park Boulevard

Richardson, Texas 75080

Any notice or other communication to Participant with respect to this Agreement must be in writing and delivered personally, or sent electronically to Participant or by first class mail, postage prepaid, to Participant's address as listed in the records of the Company on the Award Date, unless the Company has received written notification from Participant of a change of address.

9.Amendment. This Agreement may be supplemented or amended from time to time as approved by the Committee as contemplated by Section 4.2 of the Plan.

10.Governing Law. This Agreement is governed by Delaware law.

11.Construction. This Agreement is entered into, and the RSU Award is granted, pursuant to the Plan and governed by and construed in accordance with the Plan and the administrative interpretations adopted under the Plan. In the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan will control.

12.Entire Agreement. This Agreement contains the entire agreement between the parties to this Agreement with respect to the RSU Award and replaces and makes null and void any prior agreements, oral or written, between Participant and the Company regarding the RSU Award.

13.Participant Acceptance. Participant must accept the terms and conditions of this Agreement by electronic signature or by signing in the space below and returning a signed copy to the Company.

ACCEPTED:

Signed: _________________________________________

«First» «Last»

Date: _________________________________________

«Date»

EX-10.24

Exhibit 10.24

SEPARATION AND GENERAL RELEASE AGREEMENT

This Separation and General Release Agreement ("Agreement") is between David W. Moon ("Executive"), and Lennox International Inc., a Delaware corporation, its subsidiaries, affiliates and related companies (collectively "Lennox").

BACKGROUND

Executive and Lennox entered into an Employment Agreement dated October 13, 2006, as amended (the “Employment Agreement”). Pursuant to Section 3.c of the Employment Agreement, Lennox has elected to terminate Executive’s employment other than for Cause (as defined in the Employment Agreement). Pursuant to Section 3 of Exhibit C to the Employment Agreement, Executive elects to receive Enhanced Severance Benefits (as defined in the Employment Agreement), and to provide a written general release of all possible claims against Lennox.

AGREEMENT

For valuable consideration received, Executive and Lennox agree as follows:

1. Effective at the close of business on December 31, 2017 (the “Termination Date”), Executive will be relieved of his duties, will perform no further services for Lennox, and his employment will terminate. Prior to the Termination Date, Executive will resign from all boards, associations, or groups in which he has served in his capacity as an employee of Lennox. Lennox has no obligation to retain Executive until the Termination Date. Lennox’s promise to retain him until the Termination Date provides him with significant financial benefits, including vesting of certain long-term incentive awards and eligibility for a short-term incentive payment for services performed in 2017.

2. Lennox covenants and agrees to provide Executive with the payments and benefits specified in this Section 2. Each payment made under this Section 2 will be paid pursuant to Lennox’s then-current payroll policies and subject to all applicable taxes and withholdings.

a. a.    Lennox will pay the total amount of $1,030,000, equal to two times Executive’s Annual Base Salary (as defined in the Employment Agreement) in effect as of the Termination Date, pursuant to the following payment schedule. The first payment of $257,500, equal to six months of Executive’s Monthly Base Salary (as defined in the Employment Agreement) in effect as of the Termination Date, will be paid in a lump sum on July 2, 2018, which is the date six months and two days after the Termination Date (the “First Severance Payment Date”). The balance will be paid in 18 equal monthly payments of $42,916.67 each, beginning on or about July 31, 2018.

b. Lennox will make a lump sum payment on the First Severance Payment Date in the amount of $850,226, equal to the total short-term bonus payments actually paid to Executive over the 24 month period prior to the Termination Date.

c. Lennox will make a lump sum payment on the First Severance Payment Date in the amount of $51,500, equal to 10% of Executive’s Annual Base Salary in effect as of the Termination Date, in lieu of continuing or paying for any perquisites.

d. Lennox will make a lump sum payment on the First Severance Payment Date in the amount of $51,500, equal to 10% of Executive’s Annual Base Salary in effect as of the Termination Date, in lieu of providing outplacement services as Executive elects not to receive outplacement services.

e. Executive and his eligible family members may continue to participate in the Lennox group medical and dental insurance plans on the same terms as other Lennox employees, all in accordance with the Comprehensive Omnibus Budget Reconciliation Act (COBRA). Lennox will pay the premiums for COBRA coverage for up to 18 months following the Termination Date. However, if Executive obtains employment that provides group health insurance coverage during the 18-month period, Lennox’s payment of Executive’s COBRA coverage will cease immediately upon Executive’s eligibility for such insurance coverage with his new employer. If Executive remains unemployed at the end of 18 months following the Termination Date, to assist Executive in paying for medical and dental insurance outside the Lennox group plans, Lennox will pay Executive an amount equal to

the monthly COBRA payments for up to six month. However, if Executive obtains employment that provides group health insurance coverage during the six-month period, Lennox’s payment to Executive will cease immediately upon Executive’s eligibility for insurance coverage with his new employer. Executive agrees to immediately notify Lennox if he obtains employment that provides group health insurance coverage during the 24-month period following his termination.

f. If Executive dies prior to receiving all of the payments provided for in this Section 2, in addition to continuing the payments and benefits provided for in this Section 2, Lennox will make one lump sum payment to Executive’s beneficiary designated in Exhibit D to the Employment Agreement, in the amount of $257,500, equal to six months of Executive’s Monthly Base Salary in effect as of the Termination Date.

Executive understands and agrees that he would not receive the monies or benefits specified in Sections 1 and 2 above except for his execution of this Agreement and the fulfillment of the promises contained in this Agreement.

3.    Executive covenants and agrees as follows:

a. The provisions of Sections C.2(a)-(f) of Exhibit A to the Employment Agreement remain fully effective. Those provisions impose obligations on Executive with respect to: trade secrets, proprietary and confidential information; restrictions on diverting Lennox employees; restrictions on diverting Lennox vendors or contractors; and restrictions on soliciting Lennox customers, all as detailed in the Employment Agreement.

b. For two years following the Termination Date Executive will not, directly or indirectly, provide services of any kind, as an employee, contractor or otherwise, to the following companies, including all of their subsidiaries, affiliates and related businesses (collectively, the “Restricted Businesses”), but only to the extent the Restricted Businesses are in the HVAC or commercial refrigeration business, or currently serve as a supplier to Lennox: Alfa Laval AB; Beijer Ref AB; Bitzer International; Daikin Industries, Ltd.; Danfoss Group; Dover Corporation; Emerson Electric Co.; Glen Dimplex Deutschland GmbH; Güntner Group Europe GmbH; Ingersoll-Rand Plc; Johnson Controls International Plc; Kelvion Holding GmbH; LU-VE Group; Mitsubishi Group; Panasonic Corporation; Rae Corporation; Regal Beloit Corporation; Rheem Manufacturing Company; Technotrans Group; Trenton/KeepRite Refrigeration; United Technologies Corp.; Yantai Moon Group Co., Ltd; Zero Zone, Inc.

c. To pay and discharge on or before the Termination Date all debts owed Lennox, including those incurred for travel on Lennox business, private telephone charges, and employee purchases (Lennox will reimburse Executive for expenses incurred on Lennox business in accordance with Lennox's standard practices); to account for and return to Lennox all Lennox property in his use or possession not already returned including, but not limited to, company identification card, company credit cards, and any documents generated, owned or containing information obtained in any form from Lennox; to delete the Lennox email server and all associated content from any mobile device in his possession.

d. Subject to Section 14 below, to refrain from any actions that would reasonably be expected to lead to the impairment of Lennox’s reputation and good standing in the community or industry, or which would reasonably be expected to interfere with its relationships with its customers or employees.

e. To reasonably cooperate with Lennox following the Termination Date with respect to any: (A) project for a reasonable period of time not to exceed six (6) months, and (B) litigation involving Lennox related to Executive’s employment at Lennox at any time such litigation may occur, in each case, without additional compensation or remuneration hereunder. Executive will be reimbursed for reasonable out-of-pocket expenses incurred in connection with any cooperation.

4. As a material inducement to Lennox to enter into this Agreement, Executive:

a. Enters into this Agreement for himself, his spouse, assigns, heirs, executors and legal representatives,

b. Releases and forever discharges, Lennox and its officers, directors, agents, employees, successors and assigns (collectively the “Released Parties”), from all claims of any and every kind, nature and character, known or unknown, including all claims for attorneys' fees and costs, that Executive may now have, known or unknown, against the Released Parties,

i. That arise in whole or in part from Executive's employment relationship with Lennox, the termination of that relationship and any other employment-related dealings of any kind between Executive on the one hand, and the Released Parties on the other; and

ii. Including, but not limited to, all claims, rights, demands and causes of action for: breach of any employment contract or employment agreement; wrongful discharge; breach of the covenant or duty of good faith and fair dealing; intentional or negligent infliction of emotional distress; fraud or misrepresentation; failure to pay wages, stock awards, bonuses, incentive pay, benefits, vacation pay, profit sharing, severance or other compensation of any sort; discrimination on the basis of race, color, national origin, religion, sex, age, handicap, or disability; and violation of any statutes, rules, regulations or ordinances, whether state, federal or local, as amended, including, but not limited to the Texas Commission on Human Rights Act, the Texas Labor Code; the Texas Deceptive Trade Practices Act; Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; Sections 1981 through 1988 of Title 42 of the United States Code; the Age Discrimination in Employment Act; the Older Workers Benefit Protection Act (“OWBPA”); the Americans with Disabilities Act; the Family and Medical Leave Act; the Occupational Safety and Health Act; the Sarbanes-Oxley Act of 2002; the Genetic Information Nondiscrimination Act of 2008; the Dodd-Frank Wall Street Reform and Consumer Protection Act; the National Labor Relations Act (“NLRA”); and the Employee Retirement Income Security Act.

c. Agrees that nothing in this Agreement releases claims to (A) rights that Executive may now or hereafter have in any qualified and nonqualified pension and profit sharing plans in effect during the time he was an employee of Lennox, (B) future rights he may hereafter acquire under federal statute, (C) rights that he or any of his covered dependents may have for reimbursement or payment of dental or health claims, or (D) rights that he or any specified party may have under this Agreement, including for breach hereof.

5. Executive understands that the release set forth in Section 4 includes a release of any claims under the Age Discrimination in Employment Act (“ADEA”) that may have existed on or before the date Executive signs this Agreement. Executive understands that the ADEA is a federal statute that prohibits discrimination on the basis of age. As required by law, Lennox specifically advises Executive of, and Executive acknowledges understanding of, the following:

a. This Agreement constitutes an enforceable contract, and by signing this Agreement, Executive is waiving certain rights that he may have under the ADEA, as well as other federal, state, and local labor and employment laws, based upon his employment with and separation from Lennox.

b. The payments and benefits described in Section 2 constitute money and benefits to which Executive would not be entitled absent his decision to sign this Agreement.

c. Executive agrees that he is voluntarily entering into this Agreement and that no promises or agreements have been made to him except those contained in this Agreement.

d. Executive is advised of his right to consult with an attorney prior to executing this Agreement. Executive is responsible for paying all attorney’s fees and costs, if any.

e. Executive has twenty-one (21) calendar days from the Receipt Date, as defined in Section 9, to consider this Agreement, to consult with an attorney regarding its terms, and to sign and return the Agreement, if he chooses to accept it, to Dan Sessa at Dan.Sessa@lennoxintl.com. Any material change to this Agreement will not restart the 21-day period. If Executive signs this Agreement before the expiration of the 21-day period, he acknowledges that he has freely chosen to waive the remainder of the 21-day period.

f. Executive may revoke this Agreement at any time within seven (7) calendar days following the date on which he signs this Agreement (the “Revocation Period”). This Agreement shall not become effective or enforceable until the day following the expiration of the Revocation Period (the “Effective Date”).  To revoke his execution of this Agreement, Executive must provide notice of revocation in writing to Dan Sessa, and such notice of revocation must be received by Dan Sessa at Dan.Sessa@lennoxintl.comby the close of business on the seventh (7th) calendar day after Executive signs this Agreement.

g. Lennox’s obligation to provide Executive with the payments and benefits described in Section 2 is contingent upon his execution of this Agreement and the expiration of the Revocation Period without his revocation of the Agreement.

6. This Agreement is intended to comply with Section 409A of the Internal Revenue Code, as amended, and will be construed consistent with that intention. The parties will, if necessary, amend this Agreement to the extent necessary to comply with the requirements of Section 409A. Each payment due to Executive under this Agreement will be considered a separate payment and not one of a series of payments for purposes of Section 409A. Lennox will not be required to increase the amounts paid to Executive under this Agreement for purposes of Section 409A compliance.

7. Except as required by law (including, without limitation, any filing obligations with the Securities and Exchange Commission), Lennox and Executive will not publicize or disclose the existence or contents of this Agreement, or the basis for any claims or allegations that were or could have been made in connection with this Agreement, to any person or entity without the prior written consent of the other party, and both parties will use their best efforts to prevent any publicity or disclosure. Lennox may make confidential disclosures about this Agreement internally and with outside professional advisors as necessary in the ordinary course of business. Executive may make confidential disclosures about this Agreement as required to his accountants, attorneys, governmental taxing authorities and spouse, or to remedy a breach of any term or condition of this Agreement.

8. This Agreement was reached after good faith negotiations. Executive acknowledges that he is fully aware of his right to discuss all aspects of this matter with his attorney and has been advised by Lennox to consult an attorney.

9. Executive acknowledges receipt of this Agreement on October 2, 2017 (the “Receipt Date”). He has carefully read and fully understands all of the provisions of this Agreement and he is voluntarily entering into this Agreement.

10. An "Event of Default" will occur if Lennox reasonably determines (after due consideration of all relevant facts) that Executive has materially breached any of the provisions of this Agreement, provides Executive with written notice specifying the breach, and Executive fails to cure the breach within ten (10) calendar days of receipt of notice of the breach. In addition to any rights and remedies Lennox may have in an Event of Default, including seeking specific performance of Executive’s obligations, Lennox may, at its option, immediately terminate this Agreement by sending written notice of termination to Executive (or Executive's representative). Upon termination of this Agreement, Lennox will have no further obligations to Executive and may seek damages, including, without limitation, return of all monies paid to Executive under this Agreement. The foregoing sentence will not be construed to determine any amount of liquidated damages.

11. This Agreement is governed by the laws of the State of Texas, excluding that State’s choice of law principles, and all claims relating to or arising out of this Agreement, or the breach of this Agreement, whether in contract, tort or otherwise, will likewise be governed by the laws of the State of Texas, excluding that State’s choice of law principles. If any provision is unenforceable the remainder of this Agreement will remain effective.

12. This Agreement will not be construed as an admission of wrongdoing by either party.

13. Executive understands that, regardless of whether he signs this Agreement, he remains bound by the terms and conditions of Sections C.2(a)-(f) of Exhibit A to the Employment Agreement, his Proprietary Rights Agreement, and all agreements signed in connection with previous Long-Term Incentive Awards (collectively, the “Other Agreements”), which include post-employment restrictions on competition and solicitation. Except for the Other Agreements, which shall continue in full force and effect pursuant to their terms, Executive acknowledges that this Agreement sets forth the entire agreement between the parties and supersedes all other prior agreements or understandings between the parties pertaining to its subject matter.

14. Nothing is this Agreement, including but not limited to the release of claims, return of property, confidentiality, cooperation and event of default provisions,(i) limits or affects Executive’s right to challenge the validity of this Agreement under the ADEA or the OWBPA; (ii) prevents Executive from filing a charge or complaint with, or from participating in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission, National Labor Relations Board, the Securities and Exchange Commission, or any other any federal, state or local agency charged with the enforcement of any laws, including providing documents or other information; or (iii) limits Executive from exercising rights under Section 7 of the NLRA to engage in protected, concerted activity with other employees. However, by signing this Agreement, Executive waives his right to individual relief (including any backpay, frontpay, compensatory damages, reinstatement, or other legal or

equitable relief) in any charge, complaint, lawsuit, or other proceeding brought by Executive or on Executive’s behalf by any third party. Executive retains his right to accept a payment (if any) from a government agency for information provided to the government agency. This Agreement may be amended only in a writing signed by the parties.

15. This Agreement will be automatically revoked by Lennox if not signed and delivered to Lennox within 30 days after the Receipt Date.

PLEASE READ THIS DOCUMENT CAREFULLY. THIS SEPARATION AND GENERAL RELEASE AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

EXECUTIVELENNOX INTERNATIONAL INC.

        By: _________________________________

David W. Moon                 Daniel M. Sessa

Chief Human Resources Officer

Date: ___________________________        Date: _______________________________    

EX-21.1

EXHIBIT 21.1

Lennox International Inc. Subsidiaries

The following are the subsidiaries of Lennox International Inc. and the states or jurisdictions in which they are organized. Subsidiaries are indented below their immediate parent entity. The names of certain subsidiaries have been omitted because, considered in the aggregate as a single subsidiary, they would not constitute, as of the end of the year covered by this report, a “significant subsidiary” as that term is defined in Rule 1-02(w) of Regulation S-X under the Securities Exchange Act of 1934.

Name	Ownership	Jurisdiction
Lennox Industries Inc.	100%	Delaware
SEE ANNEX A
Heatcraft Inc.	100%	Delaware
Bohn de Mexico S.A. de C.V.	50%	Mexico
Frigus-Bohn S.A. de C.V.	50%	Mexico
Kysor/Warren de Mexico, S. de R.L. de C.V.	0.00005%	Mexico
Kysor/Warren Services, S. de R.L. de C.V.	1%	Mexico
Kysor-Warren Instalaciones, S. de R.L. de C.V.	1%	Mexico
Lennox Participações Ltda.	0.66%	Brazil
Heatcraft do Brasil Ltda.	46%	Brazil
Advanced Distributor Products LLC	100%	Delaware
Heatcraft Refrigeration Products LLC	100%	Delaware
Kysor/Warren de Mexico, S. de R.L. de C.V.	99.99995%	Mexico
Kysor/Warren Services, S. de R.L. de C.V.	99%	Mexico
Kysor-Warren Instalaciones, S. de R.L. de C.V.	99%	Mexico
Advanced Heat Transfer LLC	50%	Delaware
Heatcraft Technologies Inc.	100%	Delaware
Alliance Compressor LLC	24.5%	Delaware
Lennox Global Ltd.	100%	Delaware
SEE ANNEX B
Lennox Procurement Company Inc.	100%	Delaware

ANNEX A

TO

EXHIBIT 21.1

Lennox Industries Inc. Subsidiaries

Name	Ownership	Jurisdiction
Allied Air Enterprises LLC	100%	Delaware
LPAC Corp.	100%	Delaware
LGL Europe Holding Co	43.2%	Delaware
SEE ANNEX C
Lennox National Account Services Inc.	100%	California
Lennox National Account Services LLC	100%	Florida

ANNEX B

TO

EXHIBIT 21.1

Lennox Global Ltd. Subsidiaries

Name	Ownership	Jurisdiction
Heatcraft Refrigeration Asia Pte Ltd.	100%	Rep. of Singapore
Lennox (Shanghai) Refrigeration Technology Consulting Co Ltd.	100%	China
LGL Europe Holding Co.	56.8%	Delaware
SEE ANNEX C
Lennox Participações Ltda.	99.34%	Brazil
LGL Australia (US) Inc.	100%	Delaware
SEE ANNEX D
LII Comercial de Mexico, S. de R.L. de C.V.	99.97%	Mexico
Lennox India Technology Centre Private Ltd.	0.0005%	India
Heatcraft do Brasil Ltda.	54%	Brazil

ANNEX C

TO

EXHIBIT 21.1

LGL Europe Holding Co. Subsidiaries

Name	Ownership	Jurisdiction
LGL Holland B.V.	100%	Netherlands
Lennox Benelux N.V./S.A.	0.024%	Belgium
Lennox Industries (Canada) Ltd.	100%	Canada
LII Mexico Holdings Ltd.	100%	UK
LII United Products, S. de R.L. de C.V.	99.99%	Mexico
LII Comercial de Mexico,S. de R.L. de C.V.	0.03%	Mexico
LII United Comfort Systems, S. de R.L. de C.V.	99%	Mexico
Lennox Mexico Minority Holdings LLC	100%	Delaware
LII United Products, S. de R.L. de C.V.	0.01%	Mexico
LII Comercial de Mexico,S. de R.L. de C.V.	0.03%	Mexico
LII United Comfort Systems, S. de R.L. de C.V.	1%	Mexico
Lennox Ukraine LLC	99%	Ukraine
Lennox India Technology Centre Private Ltd.	99.9995%	India
Etablissements Brancher S.A.S.	100%	France
LGL France S.A.S.	100%	France
Hyfra Ind. GmbH	0.1%	Germany
Lennox Refac, S.A.	0.02%	Spain
LGL Germany GmbH	100%	Germany
Hyfra Ind. GmbH	99.9%	Germany
Lennox Deutschland GmbH	100%	Germany
LGL Deutschland GmbH	100%	Germany
Lennox Global Spain S.L.	100%	Spain
LGL Refrigeration Spain S.A.	100%	Spain
Lennox Refac, S.A.	99.98%	Spain
Lennox Portugal Lda	100%	Portugal
Lennox Polska sp. z.o.o.	100%	Poland
Lennox Benelux B.V.	100%	Netherlands
Lennox Benelux N.V./S.A.	99.976%	Belgium
Lennox NAO	0.5%	Russia
Lennox Ukraine LLC	1%	Ukraine
HCF-Lennox Limited	100%	United Kingdom
Lennox Industries	100%	United Kingdom
Lennox NAO	99.5%	Russia

ANNEX D

TO

EXHIBIT 21.1

LGL Australia (US) Inc. Subsidiaries

Name	Ownership	Jurisdiction
LGL Co Pty Ltd	100%	Australia
IGLL Pty Ltd	100%	Australia
LGL Australia Finance Pty Ltd	10%	Australia
LGL Australia Finance Pty Ltd	90%	Australia
LGL Australia Holdings Pty Ltd	100%	Australia
Heatcraft Australia Pty Ltd	100%	Australia
Heatcraft Tasmania Pty Ltd	75%	Australia
Kulthorn Kirby Public Company Limited	5.5%	Thailand
Heatcraft New Zealand Limited	100%	New Zealand
Heatcraft Refrigeration (Wuxi) Co. Ltd.	100%	China

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Lennox International Inc.:

We consent to the incorporation by reference in the registration statements (Nos. 333‑181369, 333-127540, 333-91130, 333-91128, 333-71416, 333-60122, 333-52046, 333-86989, 333-83961, and 333-83959) on Form S-8 of Lennox International Inc. and subsidiaries of our report dated February 16, 2018, with respect to the consolidated balance sheets of Lennox International Inc. and subsidiaries as of December 31, 2017 and 2016, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2017, and the related notes and Schedule II - Valuation and Qualifying Accounts and Reserves (collectively, the consolidated financial statements), and the effectiveness of internal control over financial reporting as of December 31, 2017, which report appears in the December 31, 2017 annual report on Form 10‑K of Lennox International Inc.

(signed) KPMG LLP

Dallas, Texas

February 16, 2018

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Todd M. Bluedorn, certify that:

1. I have reviewed this annual report on Form 10-K 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: February 16, 2018

/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 annual report on Form 10-K 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: February 16, 2018

/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 Annual Report of Lennox International Inc. (the “Company”) on Form 10-K for the fiscal year ended December 31, 2017 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

February 16, 2018

/s/ Joseph W. Reitmeier

Joseph W. Reitmeier

Chief Financial Officer

February 16, 2018

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

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2017	Feb. 09, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	LENNOX INTERNATIONAL INC
Entity Central Index Key	0001069202
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
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 Public Float			$ 7.7
Entity Common Stock, Shares Outstanding		41,176,787

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 68.2	$ 50.2
Accounts and notes receivable, net of allowances of $5.9 and $6.7 in 2017 and 2016, respectively	506.5	469.8
Inventories, net	484.2	418.5
Other assets	78.4	67.4
Total current assets	1,137.3	1,005.9
Property, plant and equipment, net of accumulated depreciation of $774.2 and $717.2 in 2017 and 2016, respectively	397.8	361.4
Goodwill	200.5	195.1
Deferred income taxes	94.4	136.7
Other assets, net	61.5	61.2
Total assets	1,891.5	1,760.3
Current Liabilities:
Short-term debt	0.9	52.4
Current maturities of long-term debt	32.6	200.1
Accounts payable	348.6	361.2
Accrued expenses	270.3	265.9
Income taxes payable	2.1	9.0
Total current liabilities	654.5	888.6
Long-term debt	970.5	615.7
Post-retirement benefits, other than pensions	2.6	2.8
Pensions	84.5	87.5
Other liabilities	129.3	127.7
Total liabilities	1,841.4	1,722.3
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares issued or outstanding	0.0	0.0
Common stock, $.01 par value, 200,000,000 shares authorized, 87,170,197 shares issued	0.9	0.9
Additional paid-in capital	1,061.5	1,046.2
Retained earnings	1,575.9	1,353.0
Accumulated other comprehensive loss	(157.4)	(195.1)
Treasury stock, at cost, 45,361,145 shares and 44,195,250 shares for 2017 and 2016, respectively	(2,430.8)	(2,167.4)
Noncontrolling interests	0.0	0.4
Total stockholders’ equity	50.1	38.0
Total liabilities and stockholders' equity	$ 1,891.5	$ 1,760.3

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowances, accounts and notes receivable	$ 5.9	$ 6.7
Accumulated depreciation	$ 774.2	$ 717.2
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	87,170,197	87,170,197
Treasury stock, shares	45,361,145	44,195,250

XML

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 3,839.6	$ 3,641.6	$ 3,467.4
Cost of goods sold	2,714.4	2,565.1	2,520.0
Gross profit	1,125.2	1,076.5	947.4
Operating expenses:
Selling, general and administrative expenses	637.7	621.0	580.5
Losses and other expenses, net	8.2	11.3	21.7
Restructuring charges	3.2	1.8	3.2
Goodwill impairment	0.0	0.0	5.5
Asset impairment	0.0	0.0	44.5
Pension settlement	0.0	31.4	0.0
Income from equity method investments	(18.4)	(18.4)	(13.4)
Operating income	494.5	429.4	305.4
Interest expense, net	30.6	27.0	23.6
Other income, net	(0.1)	(0.3)	(0.8)
Income from continuing operations before income taxes	464.0	402.7	282.6
Provision for income taxes	156.9	124.1	95.4
Income from continuing operations	307.1	278.6	187.2
Discontinued operations:
Loss from discontinued operations before income taxes	(2.2)	(1.3)	(1.0)
Benefit from income taxes	(0.8)	(0.5)	(0.4)
Loss from discontinued operations	(1.4)	(0.8)	(0.6)
Net income	$ 305.7	$ 277.8	$ 186.6
Earnings per share – Basic:
Income from continuing operations (in usd per share)	$ 7.28	$ 6.41	$ 4.17
Loss from discontinued operations (in usd per share)	(0.03)	(0.02)	(0.01)
Net income (in usd per share)	7.25	6.39	4.16
Earnings per share – Diluted:
Income from continuing operations (in usd per share)	7.17	6.34	4.11
Loss from discontinued operations (in usd per share)	(0.03)	(0.02)	(0.02)
Net income (in usd per share)	$ 7.14	$ 6.32	$ 4.09
Average shares outstanding:
Basic (in shares)	42.2	43.4	44.9
Diluted (in shares)	42.8	44.0	45.6
Cash dividends declared per share (in usd per share)	$ 1.96	$ 1.65	$ 1.38

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 305.7	$ 277.8	$ 186.6
Other comprehensive income (loss):
Foreign currency translation adjustments	33.9	(11.6)	(58.7)
Net change in pension and post-retirement benefit liabilities	(5.3)	10.4	5.7
Change in fair value of available-for-sale marketable equity securities	(0.5)	(2.1)	1.2
Net change in fair value of cash flow hedges	16.1	9.8	(18.4)
Reclassification of pension and post-retirement benefit losses into earnings	7.3	6.3	9.7
Reclassification of cash flow hedge losses into earnings	(13.7)	12.3	12.5
Other comprehensive income (loss) before taxes	37.8	25.1	(48.0)
Tax expense	(0.1)	(15.5)	(3.2)
Other comprehensive income (loss), net of tax	37.7	9.6	(51.2)
Comprehensive income	$ 343.4	$ 287.4	$ 135.4

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Common Stock Issued [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock at Cost [Member]	Noncontrolling Interest [Member]
Beginning balance at Dec. 31, 2014	$ 9.0	$ 0.9	$ 824.9	$ 1,022.1	$ (153.5)	$ (1,686.0)	$ 0.6
Beginning balance, Treasury shares at Dec. 31, 2014						42,500,000
Stockholders' Equity [Roll Forward]
Net income	186.6			186.6
Dividends	(62.0)			(62.0)
Foreign currency translation adjustments, net	(58.7)				(58.7)
Pension and postretirement liability changes, net of tax expense (benefit)	10.1				10.1
Change in fair value of available-for-sale marketable equity securities	1.2				1.2
Stock-based compensation expense	26.6		26.6
Change in cash flow hedges, net of tax expense (benefit)	(3.8)				(3.8)
Treasury shares reissued for common stock	(2.4)		(6.5)			$ (8.9)
Treasury shares reissued for common stock, shares						(800,000)
Additional investment in subsidiary	(0.2)						(0.2)
Treasury stock purchases	(32.0)		135.0			$ (167.0)
Treasury stock purchases, shares						800,000
Tax benefits of stock-based compensation	22.4		22.4
Ending balance at Dec. 31, 2015	101.6	0.9	1,002.4	1,146.7	(204.7)	$ (1,844.1)	0.4
Ending balance, Treasury shares at Dec. 31, 2015						42,500,000
Stockholders' Equity [Roll Forward]
Net income	277.8			277.8
Dividends	(71.5)			(71.5)
Foreign currency translation adjustments, net	(11.6)				(11.6)
Pension and postretirement liability changes, net of tax expense (benefit)	9.3				9.3
Change in fair value of available-for-sale marketable equity securities	(2.1)				(2.1)
Stock-based compensation expense	31.7		31.7
Change in cash flow hedges, net of tax expense (benefit)	14.0				14.0
Treasury shares reissued for common stock	(2.7)		(7.3)			$ (10.0)
Treasury shares reissued for common stock, shares						(700,000)
Additional investment in subsidiary	0.0						0.0
Treasury stock purchases	(333.3)		0.0			$ (333.3)
Treasury stock purchases, shares						2,400,000
Tax benefits of stock-based compensation	19.4		19.4			$ 0.0
Ending balance at Dec. 31, 2016	$ 38.0	0.9	1,046.2	1,353.0	(195.1)	$ (2,167.4)	0.4
Ending balance, Treasury shares at Dec. 31, 2016	44,195,250					44,200,000
Stockholders' Equity [Roll Forward]
Net income	$ 305.7			305.7
Dividends	(82.8)			(82.8)
Foreign currency translation adjustments, net	33.9				33.9
Pension and postretirement liability changes, net of tax expense (benefit)	2.5				2.5
Change in fair value of available-for-sale marketable equity securities	(0.5)				(0.5)
Stock-based compensation expense	24.9		24.9
Change in cash flow hedges, net of tax expense (benefit)	1.8				1.8
Treasury shares reissued for common stock	(3.1)		(9.6)			$ (12.7)
Treasury shares reissued for common stock, shares						(400,000)
Additional investment in subsidiary	(0.4)						(0.4)
Treasury stock purchases	(276.1)					$ (276.1)
Treasury stock purchases, shares						1,600,000
Ending balance at Dec. 31, 2017	$ 50.1	$ 0.9	$ 1,061.5	$ 1,575.9	$ (157.4)	$ (2,430.8)	$ 0.0
Ending balance, Treasury shares at Dec. 31, 2017	45,361,145					45,400,000

XML

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Dividends per share (in usd per share)	$ 1.96	$ 1.65	$ 1.38
Benefit (expense) for tax, pension and post-retirement liability changes	$ 0.5	$ 7.4	$ 5.3
Provision (benefit) for tax, derivatives	$ 0.6	$ (8.0)	$ (2.1)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 305.7	$ 277.8	$ 186.6
Adjustments to reconcile net income to net cash provided by operating activities:
Income from equity method investments	(18.4)	(18.4)	(13.4)
Dividends from affiliates	14.7	14.9	11.0
Restructuring expenses, net of cash paid	0.8	(0.8)	0.0
Goodwill impairment	0.0	0.0	5.5
Impairment of assets	0.0	0.0	(44.5)
Provision for bad debts	3.9	2.4	2.8
Unrealized (gains) loss, net on derivative contracts	(2.0)	(0.7)	0.8
Stock-based compensation expense	24.9	31.7	26.6
Depreciation and amortization	64.6	58.1	62.8
Deferred income taxes	43.3	(4.0)	(21.3)
Pension expense	5.3	37.7	10.6
Pension contributions	(3.5)	(53.9)	(3.9)
Other items, net	1.3	0.9	1.0
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
Accounts and notes receivable	(28.4)	(50.6)	(23.5)
Inventories	(56.4)	0.3	28.8
Other current assets	(6.1)	0.1	(1.6)
Accounts payable	(18.5)	40.1	(2.9)
Accrued expenses	0.3	36.2	4.2
Income taxes payable and receivable	(6.7)	(0.1)	33.3
Other, net	0.3	2.2	1.7
Net cash provided by operating activities	325.1	373.9	353.6
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.2	0.2	0.1
Purchases of property, plant and equipment	(98.3)	(84.3)	(69.9)
Net cash used in investing activities	(98.1)	(84.1)	(69.8)
Cash flows from financing activities:
Short-term borrowings, net	(1.5)	(2.4)	(1.7)
Asset securitization borrowings	315.0	145.0	40.0
Asset securitization payments	(89.0)	(295.0)	(60.0)
Long-term debt borrowings	0.0	350.0	0.0
Long-term debt payments	(200.9)	(58.8)	(24.0)
Borrowings from credit facility	2,376.5	2,336.5	1,671.0
Payments on credit facility	(2,265.5)	(2,346.0)	(1,807.5)
Payments of deferred financing costs	(0.2)	(4.2)	0.0
Proceeds from employee stock purchases	3.1	2.6	2.4
Repurchases of common stock	(250.0)	(300.0)	0.0
Repurchases of common stock to satisfy employee withholding tax obligations	(26.1)	(33.3)	(32.0)
Cash dividends paid	(79.7)	(69.0)	(59.3)
Net cash used in financing activities	(218.3)	(274.6)	(271.1)
Increase (decrease) in cash and cash equivalents	8.7	15.2	12.7
Effect of exchange rates on cash and cash equivalents	9.3	(3.9)	(11.3)
Cash and cash equivalents, beginning of year	50.2	38.9	37.5
Cash and cash equivalents, end of year	68.2	50.2	38.9
Cash paid during the year for:
Interest, net	32.4	26.3	23.7
Income taxes (net of refunds)	$ 119.3	$ 127.4	$ 83.2

XML

Nature of Operations

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations:

Lennox International Inc., a Delaware corporation, through its subsidiaries (referred to herein as "we," "our," "us," "LII," or the "Company"), is a leading global provider of climate control solutions. We design, manufacture, market and service a broad range of products for the heating, ventilation, air conditioning and refrigeration ("HVACR") markets and sell our products and services through a combination of direct sales, distributors and company-owned parts and supplies stores. We operate in three reportable business segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. See Note 18 for financial information regarding our reportable segments.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies:

Principles of Consolidation

The consolidated financial statements include the accounts of Lennox International Inc. and our majority-owned subsidiaries. All intercompany transactions, profits and balances have been eliminated.

Cash and Cash Equivalents

We consider all highly liquid temporary investments with original maturity dates of three months or less to be cash equivalents. Cash and cash equivalents consisted primarily of bank deposits.

Accounts and Notes Receivable

Accounts and notes receivable are shown in the accompanying Consolidated Balance Sheets, net of allowance for doubtful accounts. The allowance for doubtful accounts is generally established during the period in which receivables are recognized and is based on the age of the receivables and management's judgment on our ability to collect. Management considers the historical trends of write-offs and recoveries of previously written-off accounts, the financial strength of customers and projected economic and market conditions. We determine the delinquency status of receivables predominantly based on contractual terms and we write-off uncollectible receivables after management's review of our ability to collect, as noted above. We have no significant concentrations of credit risk within our accounts and notes receivable.

Inventories

Inventory costs include material, labor, depreciation and plant overhead. Inventories of $274.5 million and $221.4 million as of December 31, 2017 and 2016, respectively, were valued at the lower of cost or market using the last-in, first-out (“LIFO”) cost method. The remainder of inventory is valued at the lower of cost or market with cost determined primarily using either the first-in, first-out (“FIFO”) or average cost methods.

We elected to use the LIFO cost method for our domestic manufacturing companies in 1974 and continued to elect the LIFO cost method for new operations through the late 1980s. The types of inventory costs that use LIFO include raw materials, purchased components, work-in-process, repair parts and finished goods. Since the late 1990s, we have adopted the FIFO cost method for all new domestic manufacturing operations (primarily acquisitions). Our operating entities with a previous LIFO election continue to use the LIFO cost method. We use the FIFO cost method for our foreign-based manufacturing facilities. See Note 3 for more information on our inventories.

Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation. Expenditures that increase the utility or extend the useful lives of fixed assets are capitalized while expenditures for maintenance and repairs are charged to expense as incurred.

Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings and improvements:
Buildings and improvements	2 to 33 years
Leasehold improvements	1 to 39 years
Machinery and equipment:
Computer hardware	3 to 5 years
Computer software	3 to 10 years
Factory machinery and equipment	1 to 15 years
Research and development equipment	3 to 10 years
Vehicles	2 to 8 years

We periodically review long-lived assets for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. To assess recoverability, we compare the estimated expected future undiscounted cash flows identified with each long-lived asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value. See Note 5 for additional information on our property, plant and equipment.

Goodwill

Goodwill represents the excess of cost over fair value of assets from acquired businesses. Goodwill is not amortized, but is reviewed for impairment annually and whenever events or changes in circumstances indicate the asset may be impaired (See Note 4 for additional information on our goodwill). The annual goodwill impairment test was performed during the fourth quarter of 2017.

The provisions of the accounting standard for goodwill allow us to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test. As part of our qualitative assessment, we monitor economic, legal, regulatory and other factors, industry trends, our market capitalization, recent and forecasted financial performance of our reporting units and the timing and nature of our restructuring activities for LII as a whole and for each reporting unit.

If a quantitative goodwill impairment test is determined to be necessary, we estimate reporting unit fair values using a combination of the discounted cash flow approach and a market approach. The discounted cash flows used to estimate fair value are based on assumptions regarding each reporting unit’s estimated projected future cash flows and the estimated weighted-average cost of capital that a market participant would use in evaluating the reporting unit in a purchase transaction. The estimated weighted-average cost of capital is based on the risk-free interest rate and other factors such as equity risk premiums and the ratio of total debt to equity capital. In performing these impairment tests, we take steps to ensure that appropriate and reasonable cash flow projections and assumptions are used. We reconcile our estimated enterprise value to our market capitalization and determine the reasonableness of the cost of capital used by comparing to market data. We also perform sensitivity analyses on the key assumptions used, such as the weighted-average cost of capital and terminal growth rates. The market approach is based on objective evidence of market values.

Intangible Assets

We amortize intangible assets and other assets with finite lives over their respective estimated useful lives to their estimated residual values, as follows:

Asset	Useful Life
Deferred financing costs	Effective interest method
Customer relationships	Straight-line method up to 12 years
Patents and others	Straight-line method up to 20 years

We periodically review intangible assets with estimable useful lives for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. We assess recoverability by comparing the estimated expected undiscounted future cash flows identified with each intangible asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value. In assessing the fair value of these intangible assets, we must make assumptions that a market participant would make regarding estimated future cash flows and other factors to determine the fair value of the respective assets. If these estimates or the related assumptions change, we may be required to record impairment charges for these assets in the future.

We review our indefinite-lived intangible assets for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate the asset may be impaired. The provisions of the accounting standard for indefinite-lived intangible assets allow us to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative impairment test. As part of our qualitative assessment, we monitor economic, legal, regulatory and other factors, industry trends, recent and forecasted financial performance of our reporting units and the timing and nature of our restructuring activities for LII as a whole and as they relate to the fair value of the assets. See Note 4 for additional information on our intangible assets.

Product Warranties

For some of our heating, ventilation and air conditioning (“HVAC”) products, we provide warranty terms ranging from one to 20 years to customers for certain components such as compressors or heat exchangers. For select products, we also provide limited lifetime warranties. A liability for estimated warranty expense is recorded on the date that revenue is recognized. Our estimates of future warranty costs are determined by product line. The number of units we expect to repair or replace is determined by applying an estimated failure rate, which is generally based on historical experience, to the number of units that were sold and are still under warranty. The estimated units to be repaired under warranty are multiplied by the average cost to repair or replace such products to determine the estimated future warranty cost. We do not discount product warranty liabilities as the amounts are not fixed and the timing of future cash payments is neither fixed nor reliably determinable. We also provide for specifically-identified warranty obligations. Estimated future warranty costs are subject to adjustment depending on changes in actual failure rate and cost experience. Subsequent costs incurred for warranty claims serve to reduce the accrued product warranty liability. See Note 10 for more information on our estimated future warranty costs.

Pensions and Post-retirement Benefits

We provide pension and post-retirement medical benefits to eligible domestic and foreign employees and we recognize pension and post-retirement benefit costs over the estimated service life or average life expectancy of those employees. We also recognize the funded status of our benefit plans, as measured at year-end by the difference between plan assets at fair value and the benefit obligation, in the Consolidated Balance Sheets. Changes in the funded status are recognized in the year in which the changes occur through accumulated other comprehensive income (“AOCI”). Actuarial gains or losses are amortized into net period benefit cost over the estimated service life of covered employees or average life expectancy of participants depending on the plan.

The benefit plan assets and liabilities reflect assumptions about the long-range performance of our benefit plans. Should actual results differ from management's estimates, revisions to the benefit plan assets and liabilities would be required. See Note 12 for information regarding those estimates and additional disclosures on pension and post-retirement medical benefits.

Self-Insurance

Self-insurance expense and liabilities were actuarially determined based primarily on our historical claims information and industry factors and trends. The self-insurance liabilities as of December 31, 2017 represent the best estimate of the future payments to be made on reported and unreported losses for 2017 and prior years. The amounts and timing of payments for claims reserved may vary depending on various factors, including the development and ultimate settlement of reported and unreported claims. To the extent actuarial assumptions change and claims experience rates differ from historical rates, our liabilities may change. See Note 10 for additional information on our self-insured risks and liabilities.

Derivatives

We use futures contracts, forward contracts and fixed forward contracts to mitigate our exposure to volatility in metal commodity prices and foreign exchange rates. We hedge only exposures in the ordinary course of business and do not hold or trade derivatives for profit. All derivatives are recognized in the Consolidated Balance Sheets at fair value and the classification of each derivative instrument is based upon whether the maturity of the instrument is less than or greater than 12 months. See Note 8 for more information on our derivatives.

Income Taxes

We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Unrecognized tax benefits are accounted for as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740. See Note 9 for more information related to income taxes.

Revenue Recognition

Our revenue recognition practices for the sale of goods depend upon the shipping terms for each transaction. Shipping terms are primarily FOB Shipping Point and, therefore, revenue is recognized for these transactions when products are shipped to customers and title passes. Certain customers in our smaller operations, primarily outside of North America, have shipping terms where title and risk of ownership do not transfer until the product is delivered to the customer. For these transactions, revenue is recognized on the date that the product is received and accepted by such customers. We experience returns for miscellaneous reasons and record a reserve for these returns at the time we recognize revenue based on historical experience. Our historical rates of return are insignificant as a percentage of sales. We also recognize revenue net of sales taxes.

For our businesses that provide services, revenue is recognized at the time services are completed. Our Commercial Heating & Cooling segment also provides sales, installation, maintenance and repair services under fixed-price contracts. Revenue for equipment sales is recognized in line with shipping terms, revenue for installation services is recognized when completed, and revenue related to maintenance and repair services is recognized when such services are performed.

We engage in cooperative advertising, customer rebate, and other miscellaneous programs that result in payments or credits being issued to our customers. We record these customer discounts and incentives as a reduction of sales when the sales are recorded. For certain cooperative advertising programs, we also receive an identifiable benefit (goods or services) in exchange for the consideration given, and, accordingly, record a ratable portion of the expenditure to Selling, general and administrative (“SG&A”) expenses. All other advertising, promotions and marketing costs are expensed as incurred. See Note 22 for more information on these costs.

Cost of Goods Sold

The principal elements of cost of goods sold are components, raw materials, factory overhead, labor, estimated costs of warranty expense and freight and distribution costs.

Selling, General and Administrative Expenses

SG&A expenses include payroll and benefit costs, advertising, commissions, research and development, information technology costs, and other selling, general and administrative related costs such as insurance, travel, non-production depreciation and rent.

Stock-Based Compensation

We recognize compensation expense for stock-based arrangements over the required employee service periods. We measure stock-based compensation costs on the estimated grant-date fair value of the stock-based awards that are expected to ultimately vest and we adjust expected vesting rates to actual rates as additional information becomes known. For stock-based arrangements with performance conditions, we periodically adjust performance achievement rates based on our best estimates of those rates at the end of the performance period. See Note 14 for more information.

Translation of Foreign Currencies

All assets and liabilities of foreign subsidiaries and joint ventures are translated into U.S. dollars using rates of exchange in effect at the balance sheet date. Revenue and expenses are translated at weighted average exchange rates during the year. Unrealized translation gains and losses are included in AOCI in the accompanying Consolidated Balance Sheets. Transaction gains and losses are included in Losses and other expenses, net in the accompanying Consolidated Statements of Operations.

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 revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, product warranties, 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 and uncertain future economic conditions combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Reclassifications

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

Recently Adopted Accounting Guidance

On March 30, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the excess tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. This is in comparison to the prior requirement that these excess tax benefits be recognized in additional paid-in capital. The new guidance also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows rather than, as previously required, a financing activity.

We have adopted ASU 2016-09 effective January 1, 2017 on a prospective basis where permitted by the new standard. As a result of this adoption:

• We recognized discrete tax benefits of $23.6 million in the income taxes line item of our consolidated statements of operations for the twelve months ended December 31, 2017 related to excess tax benefits upon vesting or settlement in that period.

• We elected to adopt the cash flow presentation of the excess tax benefits retrospectively where these benefits are classified along with other income tax cash flows as operating cash flows.

• We have elected to continue to estimate the number of stock-based awards expected to vest, rather than electing to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period.

• We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended December 31, 2017.

Recent Accounting Pronouncements

On May 28, 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("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. We have substantially completed our evaluation of the effect that ASU 2014-09 will have on our Consolidated Financial Statements and related disclosures. The ASU will not have a material impact on the amount and timing of revenue recognition, but it will require us to enhance our disclosures to provide additional information relating to disaggregated revenue, contract assets and liabilities, and remaining performance obligations. We are currently in the process of preparing these additional disclosures, including updating our internal controls related to the additional data and disclosures to be provided upon adoption of the new standard. We will adopt the new standard using the modified retrospective approach.

On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). Lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. We will adopt the standard using the prospective approach and are still determining the effect of the standard on our ongoing financial reporting. As a result of the new standard, all of our leases greater than one year in duration will be recognized on our Consolidated Balance Sheets as both operating lease liabilities and right-of-use assets upon adoption of the standard.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU clarify the classification for eight different types of activities, including debt prepayment and extinguishment costs, proceeds from insurance claims and distributions from equity method investees. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2017. This standard is not expected to have a material impact on our consolidated financial statements.

On October 24, 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The new ASU eliminates the existing exception from recognition of the tax consequences of intercompany sales of assets other than inventory. Under the new standard, when an asset (other than inventory) is sold from one consolidated entity to another, the tax consequences to the seller will be recognized currently as a component of the current tax provision. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those years. In accordance with the ASU, our previously deferred tax costs and unrecognized deferred tax assets related to intra-entity asset transfers will need to be recognized at the date of transition through a cumulative effect adjustment to opening retained earnings upon adoption of the standard.

On March 10, 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating expense component is reported with similar compensation costs while the non-operating components are reported in Other Income, net. In addition, only the service cost component is eligible for capitalization as part of an asset such as inventory or property, plant and equipment. The ASU will not have a material impact on our financial results.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance in ASU 2017-12 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We intend to adopt this guidance in 2018 as it will allow us to designate certain aluminum commodity futures contracts as cash flow hedges.

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Inventories

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories:

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

	As of December 31,
	2017			2016
Finished goods	$	331.9		$	287.2
Work in process	5.5			5.1
Raw materials and parts	199.2			183.4
Total	536.6			475.7
Excess of current cost over last-in, first-out cost	(52.4		)	(57.2		)
Total inventories, net	$	484.2		$	418.5

The Company recorded no pre-tax loss in 2017, pre-tax loss of $0.2 million in 2016 and pre-tax loss of $0.2 million in 2015 from LIFO inventory liquidations. Reserve balances, primarily related to obsolete and slow-moving inventories, were $20.1 million and $19.7 million at December 31, 2017 and December 31, 2016, respectively.

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets:

Goodwill

The changes in the carrying amount of goodwill in 2017 and 2016, in total and by segment, are summarized in the table below (in millions):

Segment:	Balance at December 31, 2015 (1)		Change in foreign currency translation rate			Balance at December 31, 2016		Change in foreign currency translation rate		Balance at December 31, 2017
Residential Heating & Cooling	$	26.1	$	—		$	26.1	$	—	$	26.1
Commercial Heating & Cooling	60.6		(0.5		)	60.1		2.1		62.2
Refrigeration	108.4		0.5			108.9		3.3		112.2
	$	195.1	$	—		$	195.1	$	5.4	$	200.5

⁽¹⁾ The goodwill balances in the table above are presented net of accumulated impairment charges of $21.2 million, all of which relate to impairments in periods prior to 2016.

We reviewed our reporting unit structure as part of our annual goodwill impairment testing. We identified several components one level below our operating segments which were determined to be reporting units. We then performed our analysis to determine the proper aggregation of our reporting units, which considered similar economic and other characteristics, including product types, gross profits, production processes, customer types, distribution processes, and regulatory environments. Our analysis incorporated qualitative and quantitative measures to evaluate economic similarity and concluded that our reporting units continue to be equivalent to our operating segments except that we began evaluating our North America supermarket display cases and systems business separately beginning in 2015.

A qualitative review of impairment indicators was performed in 2017 for the Residential Heating & Cooling, the Commercial Heating & Cooling, and the Refrigeration segments and we determined that it was not more likely than not that the fair values of our reporting units, individually or collectively, were less than their carrying values. Accordingly, a quantitative impairment analysis was not performed for these segments. No indicators of goodwill impairment were identified during the current year. Also, we did not record any goodwill impairments related to continuing operations in 2016. During the fourth quarter of 2015 we performed a quantitative impairment analysis of our North American supermarket display cases and systems business. Based on the results of the quantitative impairment test, we recorded impairment of $5.5 million in "Goodwill impairment" in the Consolidated Statement of Operations.

Intangible Assets

As of December 31,2017 and 2016, there were $4.3 million and $4.3 million, respectively, of indefinite-lived intangible assets recorded in Other assets, net in the accompanying Consolidated Balance Sheets. These intangible assets consisted primarily of trademarks and are not subject to amortization.

Identifiable intangible and other assets subject to amortization were recorded in Other assets, net in the accompanying Consolidated Balance Sheets and were comprised of the following (in millions):

	As of December 31,
	2017							2016
	Gross Amount		Accumulated Amortization			Net Amount		Gross Amount		Accumulated Amortization			Net Amount
Customer relationships	15.8		(15.1		)	0.7		15.9		(14.9		)	1.0
Patents and others	14.3		(6.4		)	7.9		12.7		(6.4		)	6.3
Total	$	30.1	$	(21.5	)	$	8.6	$	28.6	$	(21.3	)	$	7.3

Amortization expense related to these intangible and other assets was as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Amortization expense (1)	$	0.5	$	0.4	$	2.7

⁽¹⁾ Included in the amortization expense in 2015 are amounts relating to customer relationships that were written off during the fourth quarter of 2015.

Estimated amortization expense for the next five years and thereafter is as follows (in millions):

Estimated Future Amortization Expense:
2018	$	0.5
2019	0.5
2020	0.4
2021	0.2
2022	0.2
Thereafter	6.8

During the fourth quarter of 2015, we completed a strategic review of our North American supermarket display cases and systems business. As a result, we performed an impairment analysis using a market approach and determined that intangible assets relating to the North American supermarket display case business trade name and its customer relationships were impaired and we recorded a charge of $21.2 million in "Asset impairment" in the Consolidated Statement of Operations. We did not have any impairments of intangible assets related to continuing operations in 2017 or 2016.

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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment:

Components of Property, plant and equipment, net were as follows (in millions):

	As of December 31,
	2017			2016
Land	$	35.7		$	33.9
Buildings and improvements	234.4			218.2
Machinery and equipment	804.4			742.1
Capital leases	27.5			27.3
Construction in progress and equipment not yet in service	70.0			57.1
Total	1,172.0			1,078.6
Less accumulated depreciation	(774.2		)	(717.2		)
Property, plant and equipment, net	$	397.8		$	361.4

During the fourth quarter of 2015, we completed a strategic review of our North American supermarket display cases and systems business. As a result, we performed an impairment analysis using a market approach and determined that property, plant and equipment relating to the North American supermarket display case business unit were impaired and we recorded a charge of $23.3 million in "Asset impairment" in the Consolidated Statement of Operations. No impairment charges were recorded in 2017 or 2016.

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Joint Ventures and Other Equity Investments

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Joint Ventures and Other Equity Investments

Joint Ventures and Other Equity Investments:

We participate in two joint ventures, the largest located in the U.S. and the other in Mexico, 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 respective 25% and 50% 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.

The combined balance of equity method investments included in Other assets, net totaled (in millions):

	As of December 31,
	2017		2016
Equity method investments	$	33.3	$	30.7

We purchase compressors from our U.S. joint venture for use in certain of our products. The amounts of purchases included in Cost of goods sold in the Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Purchases of compressors from joint venture	$	106.4	$	97.7	$	103.5

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Accrued Expenses

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses:

The significant components of Accrued expenses are presented below (in millions):

	As of December 31,
	2017		2016
Accrued compensation and benefits	$	80.7	$	89.8
Accrued rebates and promotions	70.3		64.6
Accrued warranties	34.8		30.0
Accrued sales, use, property and VAT taxes	21.6		20.2
Accrued asbestos reserves	8.5		9.8
Self insurance reserves	7.3		8.2
Deferred income	7.3		6.4
Derivative contracts	1.4		4.0
Other	38.4		32.9
Total Accrued expenses	$	270.3	$	265.9

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Derivatives

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives:

Objectives and Strategies for Using Derivative Instruments

Commodity Price Risk. We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes. Our hedging program includes the use of futures contracts to lock in prices, and as a result, we are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase. We utilize a dollar cost averaging strategy so that a higher percentage of commodity price exposures are hedged near-term with lower percentages hedged at future dates. This strategy allows for protection against near-term price volatility while allowing us to adjust to market price movements over time.

Interest Rate Risk. A portion of our debt bears interest at variable interest rates, and as a result, we are subject to variability in the cash paid for interest. To mitigate a portion of that risk, we may choose to engage in an interest rate swap hedging strategy to eliminate the variability of interest payment cash flows. We are not currently hedged against interest rate risk.

Foreign Currency Risk. Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of assets and liabilities arising in foreign currencies. We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts.

Cash Flow Hedges

We have commodity futures contracts and foreign exchange forward contracts designated as cash flows hedges that are scheduled to mature through May 2019 and December 2018, respectively. Unrealized gains or losses from our cash flow hedges are included in AOCI and are expected to be reclassified into earnings within the next 18 months based on the prices of the commodities at the settlement dates.

We recorded the following amounts related to our cash flow hedges in AOCI (in millions):

	As of December 31,
	2017			2016
Unrealized gains on unsettled contracts	$	(11.3	)	$	(8.9	)
Income tax expense	3.9			3.3
Gains included in AOCI, net of tax (1)	$	(7.4	)	$	(5.6	)

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $7.1 million of derivative gains into earnings within the next 12 months.

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

	As of December 31,
Notional Amounts	2017	2016
Copper	20.6	30.4

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

	As of December 31,
Notional Amounts (in local currency):	2017	2016
Mexican Peso	207.3	310.1
Canadian Dollar	68.6	24.9

Derivatives not Designated as Cash Flow Hedges

For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as derivatives designated as cash flow hedges, except that we elect not to designate them as cash flow hedges at the inception of the arrangement. We had

the following outstanding commodity futures contracts not designated as cash flow hedges (in millions of pounds):

	As of December 31,
	2017	2016
Copper	1.8	2.4
Aluminum	1.8	2.6

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

	As of December 31,
Notional amounts (in local currency):	2017	2016
Chinese Yuan	73.8	10.5
Mexican Peso	136.6	64.5
Euro	64.4	46.9
British Pound	4.5	1.3
Indian Rupee	39.8	584.6
Singapore Dollar	7.0	—
Australian Dollar	107.0	—
New Zealand Dollar	5.0	—
Canadian Dollar	27.3	—

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 as of December 31 (1)
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated  as Hedging Instruments
	2017		2016		2017		2016
Current Assets:
Other assets
Commodity futures contracts	$	11.0	$	8.7	$	1.2	$	0.7
Foreign currency forward contracts	0.1		0.5		0.9		0.2
Non-Current Assets:
Other assets, net
Commodity futures contracts	0.6		1.9		0.1		0.2
Foreign currency forward contracts	$	—	$	—	$	—	$	—
Total Assets	$	11.7	$	11.1	$	2.2	$	1.1
Current Liabilities:
Accrued expenses
Commodity futures contracts	$	—	$	—	$	—	$	—
Foreign currency forward contracts	0.3		0.8		1.1		3.2
Total Liabilities	$	0.3	$	0.8	$	1.1	$	3.2

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 19 for more information on fair value measurements.

Derivatives in Cash Flow Hedging Relationships
	For the Years Ended December 31,
	2017			2016			2015
Amount of (Gain) Loss Reclassified from AOCI into Income (Effective Portion):
Commodity futures contracts (1)	$	(13.7	)	$	12.3		$	12.5
Amount of Loss (Gain) Recognized in Income on Derivatives (Ineffective Portion):
Commodity futures contracts (2)	$	1.0		$	(1.6	)	$	0.1

Derivatives Not Designated as Hedging Instruments
	For the Years Ended December 31,
	2017			2016			2015
Amount of (Gain) Loss Recognized in Income on Derivatives:
Commodity futures contracts (2)	$	(1.9	)	$	(0.9	)	$	2.5
Foreign currency forward contracts (2)	(5.7		)	4.3			0.3
	$	(7.6	)	$	3.4		$	2.8

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

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

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Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes:

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) repeal of the domestic production activity deduction; and (6) limitations on the deductibility of certain executive compensation.

Our Provision for income taxes from continuing operations consisted of the following (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Current:
Federal	$	86.1		$	106.0		$	101.0
State	12.5			14.5			13.1
Foreign	15.0			9.7			3.6
Total current	113.6			130.2			117.7
Deferred:
Federal	43.8			(4.5		)	(21.4		)
State	0.9			(1.2		)	(0.6		)
Foreign	(1.4		)	(0.4		)	(0.3		)
Total deferred	43.3			(6.1		)	(22.3		)
Total provision for income taxes	$	156.9		$	124.1		$	95.4

Income from continuing operations before income taxes was comprised of the following (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Domestic	$	402.5	$	374.8	$	276.7
Foreign	61.5		27.9		5.9
Total	$	464.0	$	402.7	$	282.6

The difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Provision at the U.S. statutory rate of 35%	$	162.4		$	141.0		$	98.9
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	9.2			12.8			8.0
Domestic manufacturing deduction	(9.6		)	(9.2		)	(9.9		)
Tax credits, net of unrecognized tax benefits	(8.6		)	(27.9		)	(0.7		)
Change in unrecognized tax benefits	(0.1		)	(0.3		)	(0.9		)
Change in valuation allowance	6.4			(4.3		)	(0.6		)
Foreign taxes at rates other than 35%	(9.0		)	(1.3		)	0.3
Deemed inclusions	0.3			16.9			0.6
Change in rates from the Tax Act & other law changes	31.8			(0.6		)	0.8
Excess tax benefits from stock-based compensation	(23.6		)	—			—
Miscellaneous other	(2.3		)	(3.0		)	(1.1		)
Total provision for income taxes	$	156.9		$	124.1		$	95.4

The SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.

Our accounting for the following elements of the Tax Act is incomplete. However, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments as follows:

• The Tax Act reduced the corporate tax rate to 21 percent, effective January 1, 2018. For our net federal deferred tax assets ("DTA"), we have recorded a provisional decrease of $32.1 million, with a corresponding net adjustment to deferred income tax expense of $32.1 million for the year ended December 31, 2017. This adjustment is based on a reasonable estimate of the impact of the reduction in the corporate tax rate on our DTA's as of December 22, 2017. While we are able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, our DTA's may be affected by other analyses related to the Tax Act, including our calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences.

• The Deemed Repatriation Transition Tax (Transition Tax) is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries. To assess the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. We are able to make a reasonable estimate of the Transition Tax and currently estimate that we will not have a Transition Tax obligation. However, we are continuing to review additional information regarding our accumulated E&P and non-U.S. income taxes paid to more precisely compute the amount of the Transition Tax, if any. In addition, based on current state tax law, we estimate the state impact of the Transition Tax to be insignificant. This estimate will be revised based on a calculation of our final Transition Tax as well as any updated guidance on state treatment of the deemed repatriation.

• We must assess whether our valuation allowance analyses are affected by various aspects of the Tax Act (e.g., deemed repatriation of deferred foreign income, global intangible low-taxed income ("GILTI") inclusions, new categories of foreign tax credits ("FTCs"), and share-based compensation). Since, as discussed herein, we have recorded provisional amounts related to certain portions of the Tax Act, any corresponding determination of the need for or change in a valuation allowance is also provisional. Due to the limitation on the utilization of future foreign tax credits, we recorded a provisional valuation allowance against our FTC carryforwards of $4.3 million. While we believe this is a reasonable estimate, the realizability of deferred tax assets related to share-based compensation may also be impacted by the Tax Act.

• While we have not yet completed all of the computations necessary or completed a detailed inventory of our 2017 expenditures that qualify for immediate expensing, we have recorded a provisional benefit of $4.1 million based on our current intent to fully expense all qualifying expenditures. This resulted in a decrease of approximately $1.4 million to our current income tax payable and a corresponding increase in our deferred tax liabilities ("DTLs") of approximately $0.9 million (after considering the effects of the reduction in income tax rates). This provisional benefit will be refined as we complete the detailed analysis of qualifying expenditures.

Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. We are not currently able to reasonably estimate the effect of the new GILTI tax rules on future U.S. inclusions in taxable income as the expected future impact of this provision of the Tax Act depends on our current structure and business. Therefore, we have not made any adjustments related to potential GILTI tax in our financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI.

The effect of the tax rate change for items originally recognized in other comprehensive income was properly recorded in tax expense from continuing operations.  This results in stranded tax effects in accumulated other comprehensive income at December 31, 2017.  Companies can make a policy election to reclassify from accumulated other comprehensive income to retained earnings the stranded tax effects directly arising from the change in the federal corporate tax rate.  We will determine whether or not to make such a policy election in fiscal 2018.

Deferred income taxes reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their financial reporting basis and depending on the classification of the asset or liability generating the deferred tax. The deferred tax provision for the periods shown represents the effect of changes in the amounts of temporary differences during those periods.

Deferred tax assets (liabilities) were comprised of the following (in millions):

	As of December 31,
	2017			2016
Gross deferred tax assets:
Warranties	$	27.3		$	36.3
Loss carryforwards (foreign, U.S. and state)	21.0			19.8
Post-retirement and pension benefits	23.3			33.9
Inventory reserves	7.5			9.6
Receivables allowance	3.5			4.5
Compensation liabilities	11.1			20.6
Deferred income	0.7			1.5
Insurance liabilities	5.1			6.5
Legal reserves	7.6			12.0
Tax credits, net of federal effect	21.3			18.4
Other	7.5			5.4
Total deferred tax assets	135.9			168.5
Valuation allowance	(24.9		)	(17.1		)
Total deferred tax assets, net of valuation allowance	111.0			151.4
Gross deferred tax liabilities:
Depreciation	(5.9		)	(3.3		)
Hedges	(3.6		)	(3.2		)
Intangibles	(4.9		)	(4.9		)
Other	(2.2		)	(3.3		)
Total deferred tax liabilities	(16.6		)	(14.7		)
Net deferred tax assets	$	94.4		$	136.7

As of December 31, 2017 and 2016, we had $0.8 million and $ 1.6 million in tax-effected state net operating loss carryforwards, respectively, and $19.8 million and $16.8 million in tax-effected foreign net operating loss carryforwards, respectively. The state and foreign net operating loss carryforwards began expiring in 2014. The deferred tax asset valuation allowance relates primarily to the operating loss carryforwards European and Asian tax jurisdictions. The remainder of the valuation allowance relates to state tax credits.

In assessing whether a deferred tax asset will be realized, we consider whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. We consider the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not we will realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2017. To realize the net foreign deferred tax asset, we will need to generate future foreign taxable income of approximately $71.3 million during the periods in which those temporary differences become deductible.

As of December 31, 2017, we had foreign tax credit carryforwards in U.S. of $10.6 million. Due to the Tax Act, we no longer believe we will realize the full benefit of these credits due to the new limitation of utilizing foreign tax credits to reduce U.S. income tax. Therefore, we recorded a valuation allowance of $4.3 million.

No provision was made for income taxes which may become payable upon distribution of our foreign subsidiaries' earnings. These earnings were approximately $87.0 million as of December 31, 2017. An actual repatriation in the future from our non-U.S. subsidiaries could still be subject to foreign withholding taxes and U.S. state taxes.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

Balance as of December 31, 2015	$	0.5
Increases related to prior year tax positions	1.0
Increases related to current year tax positions	1.4
Settlement	(0.5		)
Balance as of December 31, 2016	2.4
Increases related to prior year tax positions	0.1
Decreases related to prior year tax positions	(2.5		)
Balance as of December 31, 2017	$	—

As of December 31, 2017, we no longer had any unrecognized tax benefits.

We are currently under examination for our U.S. federal income taxes for 2017 and 2016 and are subject to examination by numerous other taxing authorities in the U.S. and in jurisdictions such as France, Canada, India and Germany. We are generally no longer subject to U.S., state and local or non-U.S. income tax examinations by taxing authorities for years before 2011.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies:

Leases

We lease certain real and personal property under non-cancelable operating leases. Some of our lease agreements contain rent escalation clauses (including index-based escalations), rent holidays, capital improvement funding or other lease concessions. We recognize our minimum rental expense on a straight-line basis. We amortize this expense over the term of the lease beginning with the date of initial possession, which is the date we enter the leased space and begin to make improvements in preparation for its intended use.

Future annual minimum lease payments and capital lease commitments as of December 31, 2017 were as follows (in millions):

	Operating Leases		Capital Leases
2018	$	55.3	$	3.5
2019	42.4		0.6
2020	28.4		0.4
2021	18.3		0.1
2022	17.7		—
Thereafter	13.8		12.0
Total minimum lease payments	$	175.9	$	16.6
Less amount representing interest			0.2
Present value of minimum payments			$	16.4

On March 22, 2013, we entered into an agreement with a financial institution to renew the lease of our corporate headquarters in Richardson, Texas for a term of approximately six years through March 1, 2019 (the “Lake Park Renewal”). The leased property consists of an office building of approximately 192,000 square feet, land and related improvements. During the lease term, the Lake Park Renewal requires us to pay base rent in quarterly installments, payable in arrears. At the end of the lease term, we must do one of the following: (i) purchase the property for $41.2 million; (ii) vacate the property and return it in good condition; (iii) arrange for the sale of the leased property to a third party; or (iv) renew the lease under mutually agreeable terms. If we elect to sell the property to a third party and the sales proceeds are less than the lease balance, we must pay any such deficit to the financial institution. Any such deficit payment cannot exceed 86% of the lease balance. The Lake Park Renewal is classified as an operating lease and its future annual minimum lease payments are included in the table above.

Our obligations under the Lake Park Renewal are secured by a pledge of our interest in the leased property. The Lake Park Renewal contains customary lease covenants and events of default as well as events of default if (i) indebtedness of $75 million or more is not paid when due, (ii) there is a change of control or (iii) we fail to comply with certain covenants incorporated from our Sixth Amended and Restated Credit Facility Agreement. We believe we were in compliance with these financial covenants as of December 31, 2017.

Environmental

Environmental laws and regulations in the locations we operate can potentially impose obligations to remediate hazardous substances at our properties, properties formerly owned or operated by us, and facilities to which we have sent or send waste for treatment or disposal. We are aware of contamination at some facilities; however, we do not believe that any future remediation related to those facilities will be material to our results of operations. Total environmental accruals are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	3.5	$	1.2
Other liabilities	3.1		4.4
Total environmental accruals	$	6.6	$	5.6

Future environmental costs are estimates and may be subject to change due to changes in environmental remediation regulations, technology or site-specific requirements.

Product Warranties and Product Related Contingencies

We incur the risk of liability for claims related to the installation and service of heating and air conditioning products, and we maintain liabilities for those claims that we self-insure. We are involved in various claims and lawsuits related to our products. Our product liability insurance policies have limits that, if exceeded, may result in substantial costs that could have an adverse effect on our results of operations. In addition, warranty claims and certain product liability claims are not covered by our product liability insurance.

Total product warranty liabilities related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	34.8	$	30.0
Other liabilities	75.1		71.1
Total product warranty liabilities	$	109.9	$	101.1

The changes in product warranty liabilities related to continuing operations for the years ended December 31, 2017 and 2016 were as follows (in millions):

Total warranty liability as of December 31, 2015	$	92.3
Payments made in 2016	(24.7		)
Changes resulting from issuance of new warranties	36.2
Changes in estimates associated with pre-existing liabilities	(2.6		)
Changes in foreign currency translation rates and other	(0.1		)
Total warranty liability as of December 31, 2016	$	101.1
Payments made in 2017	(28.8		)
Changes resulting from issuance of new warranties	41.1
Changes in estimates associated with pre-existing liabilities	(4.8		)
Changes in foreign currency translation rates and other	1.3
Total warranty liability as of December 31, 2017	$	109.9

We have incurred, and will likely continue to incur, product costs not covered by insurance or our suppliers’ warranties, which are not included in the 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.

During the second quarter of 2017, we identified a product quality issue in a defective vendor-supplied component affecting a product line in the Residential Heating & Cooling segment. This defect has been isolated, the vendor is supplying corrected components, and we are manufacturing product with the corrected components. We have also implemented a program for our dealers to install corrected components in the field. We recorded an expense of $5.7 million for the twelve months ended December 31, 2017, relating to estimated repair costs. The expense related to this product quality issue has been classified in Cost of goods sold in the Consolidated Statements of Operations and the related liability is included in Accrued expenses on the Consolidated Balance Sheet.

Self-Insurance

We use a combination of third-party insurance and self-insurance plans to provide protection against claims relating to workers' compensation/employers' liability, general liability, product liability, auto liability, auto physical damage and other exposures. We use large deductible insurance plans, written through third-party insurance providers, for workers' compensation/employers' liability, general liability, product liability and auto liability. We also carry umbrella or excess liability insurance for all third-party and self-insurance plans, except for directors' and officers' liability, property damage and certain other insurance programs. For directors' and officers' liability, property damage and certain other exposures, we use third-party insurance plans that may include per occurrence and annual aggregate limits. We believe the deductibles and liability limits for all of our insurance policies are appropriate for our business and are adequate for companies of our size in our industry.

We maintain safety and manufacturing programs that are designed to remove risk, improve the effectiveness of our business processes and reduce the likelihood and significance of our various retained and insured risks. In recent years, our actual claims experience has collectively trended favorably and, as a result, both self-insurance expense and the related liability have decreased.

Total self-insurance liabilities were included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	7.3	$	8.2
Other liabilities	21.6		22.7
Total self-insurance liabilities	$	28.9	$	30.9

Litigation

We are involved in a number of claims and lawsuits incident to the operation of our businesses. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known.

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 vary depending on several factors, and are subject to policy limits, so we may have greater financial exposure for future settlements and judgments. We currently estimate our probable liability for known and future asbestos-related litigation cases to be between $28.5 million and $46.5 million before consideration of probable insurance recoveries with all amounts in that range equally likely. We have accrued $8.5 million in Accrued expenses and $20.0 million in Other liabilities in the Consolidated Balance at December 31, 2017. For the years ended December 31, 2017, 2016 and 2015, we recorded expense of $3.5 million, $6.3 million and $0.9 million, respectively, net of probable insurance recoveries, for known and future asbestos-related litigation and is recorded in Losses and other expenses, net in the Consolidated Statements of Operations.

In October 2016, we self-reported to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) an alleged payment in the amount of 30,000 rubles (approximately US $475) to a Russian customs broker or official. Under the oversight of our Audit Committee, we initiated an investigation into this matter with the assistance of external legal counsel and external forensic accountants.The scope of the investigation was later expanded to include our operations in Poland and Ukraine. The investigation raised questions regarding possible irregularities with respect to non-compliance with customs documents and procedures related to these operations. We continue to fully cooperate with the SEC and the DOJ regarding this matter. We do not anticipate any material adverse effect on our business or financial condition as a result of this matter.

It is management's opinion that none of these claims or lawsuits or any threatened litigation will have a material adverse effect, individually or in the aggregate, 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 in a future period.

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Lines of Credit and Financing Arrangements

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Lines of Credit and Financing Arrangements

Lines of Credit and Financing Arrangements:

The following tables summarize our outstanding debt obligations and the classification in the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017			2016
Short-Term Debt:
Asset Securitization Program	$	—		$	50.0
Foreign obligations	0.9			2.4
Total short-term debt	$	0.9		$	52.4
Current maturities of long-term debt:
Capital lease obligations	$	3.2		$	0.8
Domestic credit facility	30.0			—
Senior unsecured notes	—			200.0
Debt issuance costs	(0.6		)	(0.7		)
Total current maturities of long-term debt	$	32.6		$	200.1
Long-Term Debt:
Asset Securitization Program	$	276.0		$	—
Capital lease obligations	11.9			15.0
Domestic credit facility	337.0			256.0
Senior unsecured notes	350.0			350.0
Debt issuance costs	(4.4		)	(5.3		)
Total long-term debt	$	970.5		$	615.7
Total debt	$	1,004.0		$	868.2

As of December 31, 2017, the aggregate amounts of required principal payments on total debt were as follows (in millions):

2018	$	34.1
2019	306.3
2020	30.0
2021	277.0
2022	—
Thereafter	361.6

Short-Term Debt

Foreign Obligations

Through several of our foreign subsidiaries, we have available to us facilities to assist in financing seasonal borrowing needs for our foreign locations. We had $0.9 million and $2.4 million of foreign obligations as of December 31, 2017 and 2016, respectively, that were primarily borrowings under non-committed facilities. Proceeds on these facilities were $30.4 million, $28.4 million and $79.0 million during the years ended December 31, 2017, 2016 and 2015, respectively. Repayments on the facilities were $31.9 million, $30.8 million and $85.4 million during the years ended December 31, 2017, 2016 and 2015, 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 contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. Our continued involvement with the transferred assets includes servicing, collection and administration of the transferred beneficial interests. The accounts receivable securitized under the ASP are high-quality domestic customer accounts that have not aged significantly. The receivables represented by the retained interest that we service are exposed to the risk of loss for any uncollectible amounts in the pool of receivables sold under the ASP. The fair values assigned to the retained and transferred interests are based on the sold accounts receivable carrying value given the short term to maturity and low credit risk. The sale of the beneficial interests in our trade accounts receivable are reflected as secured borrowings in the accompanying Consolidated Balance Sheets and proceeds received are included in cash flows from financing activities in the accompanying Consolidated Statements of Cash Flows.

Prior to the amendment on November 13, 2017, the ASP provided for a maximum securitization amount ranging from $200.0 million to $325.0 million, depending on the period. The ASP was amended effective as of November 13, 2017 to increase the maximum securitization range from $225.0 million to $380.0 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 December 31,
	2017			2016
Eligible amount available under the ASP on qualified accounts receivable	$	290.0		$	250.0
Beneficial interest sold	(276.0		)	(50.0		)
Remaining amount available	$	14.0		$	200.0

We pay certain discount fees to use the ASP and to have the facility available to us. These fees relate to both the used and unused portions of the securitization. The used fee is based on the beneficial interest sold and calculated on either the average LIBOR rate or floating commercial paper rate determined by the purchaser of the beneficial interest, plus a program fee of 0.70%. The average rates as of December 31, 2017 and 2016 were 2.60% and 1.66%, respectively. The unused fee is based on 101% of the maximum available amount less the beneficial interest sold and calculated at a 0.35% fixed rate throughout the term of the agreement. We recorded these fees in Interest expense, net in the accompanying Consolidated Statements of Operations.

The ASP contains certain restrictive covenants relating to the quality of our accounts receivable and cross-default provisions with our Sixth Amended and Restated Credit Facility Agreement ("Domestic Credit Facility"), senior unsecured notes and any other indebtedness we may have over $75.0 million. The administrative agent under the ASP is also a participant in our Domestic Credit Facility. The participating financial institutions have investment grade credit ratings. We continue to evaluate their credit ratings and have no reason to believe they will not perform under the ASP. As of December 31, 2017, we believe we were in compliance with all covenant requirements.

Long-Term Debt

Domestic Credit Facility

On August 30, 2016, we replaced an earlier credit facility with the Domestic Credit Facility, which consists of a $650.0 million unsecured revolving credit facility and a $250.0 million unsecured term loan and matures in August 2021 (the "Maturity Date"). Under our Domestic Credit Facility, we had outstanding borrowings of $367.0 million, of which $220.0 million was the term loan balance, as well as $2.9 million committed to standby letters of credit as of December 31, 2017. Subject to covenant limitations, $500.1 million was available for future borrowings. The unsecured term loan also matures on the Maturity Date and requires quarterly principal repayments of $7.5 million beginning in March 2017; however, we made $30.0 million of required principal repayments for 2017 in November 2016. The revolving credit facility allows up to $100.0 million of letters of credit to be issued and also includes a subfacility for swingline loans of up to $65.0 million. Additionally, at our request and subject to certain conditions, the commitments under the Domestic Credit Facility may be increased by a maximum of $350.0 million as long as existing or new lenders agree to provide such additional commitments.

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

	As of December 31,
	2017		2016
Weighted average borrowing rate	2.76	%	2.00	%

Our Domestic Credit Facility is guaranteed by certain of our subsidiaries and contains financial covenants relating to leverage and interest coverage. Other covenants contained in the Domestic Credit Facility restrict, among other things, certain mergers, asset dispositions, guarantees, debt, liens, and affiliate transactions. The financial covenants require us to maintain a defined Consolidated Indebtedness to Adjusted EBITDA Ratio and a Cash Flow (defined as EBITDA minus capital expenditures) to Net Interest Expense Ratio. The required ratios under our Domestic Credit Facility are detailed below:

Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than	3.5 : 1.0
Cash Flow to Net Interest Expense Ratio no less than	3.0 : 1.0

Our Domestic Credit Facility contains customary events of default. These events of default include nonpayment of principal or other amounts, material inaccuracy of representations and warranties, breach of covenants or other restrictions or requirements, default on certain other indebtedness or receivables securitizations (cross default), certain voluntary and involuntary bankruptcy events and the occurrence of a change in control. A cross default under our Domestic Credit Facility could occur if:

• We fail to pay any principal or interest when due on any other indebtedness or receivables securitization of at least $75.0 million; or

• We are in default in the performance of, or compliance with any term of any other indebtedness or receivables securitization in an aggregate principal amount of at least $75.0 million or any other condition exists which would give the holders the right to declare such indebtedness due and payable prior to its stated maturity.

Each of our major debt agreements contains provisions by which a default under one agreement causes a default in the others (a cross default). If a cross default under the Domestic Credit Facility, our senior unsecured notes, our lease of our corporate headquarters in Richardson, Texas (recorded as an operating lease), or our ASP were to occur, it could have a wider impact on our liquidity than might otherwise occur from a default of a single debt instrument or lease commitment.

If any event of default occurs and is continuing, lenders with a majority of the aggregate commitments may require the administrative agent to terminate our right to borrow under our Domestic Credit Facility and accelerate amounts due under our Domestic Credit Facility (except for a bankruptcy event of default, in which case such amounts will automatically become due and payable and the lenders’ commitments will automatically terminate). As of December 31, 2017, we believe we were in compliance with all covenant requirements.

Senior Unsecured Notes

We issued $350.0 million of senior unsecured notes in November 2016 (the "Notes") which will mature on November 15, 2023 with interest being paid on May 15 and November 15 at 3.00% per annum semiannually. We also repaid $200.0 million of senior unsecured notes issued in 2010 which matured on May 15, 2017. The Notes are guaranteed, on a senior unsecured basis, by each of our domestic subsidiaries that guarantee 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; and enter into certain mergers, consolidations and transfers of substantially all of our assets. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date. As of December 31, 2017, we believe we were in compliance with all covenant requirements.

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans:

Over the past several years, we have frozen many of our defined benefit pension and profit sharing plans and replaced them with defined contribution plans. We have a liability for the benefits earned under these inactive plans prior to the date the benefits were frozen. We also have several active defined benefit plans that provide benefits based on years of service. Our defined contribution plans generally include both company and employee contributions which are based on predetermined percentages of compensation earned by the employee.

In addition to freezing the benefits of our defined benefit pension plans, we have also eliminated nearly all of our post-retirement medical benefits. In 2012, we amended the post-retirement benefit plan to shift pre-65 medical coverage for the employees of our largest manufacturing plant so that by 2016, retirees would pay 100% of the cost of post-retirement medical coverage. This change resulted in a significant reduction in the projected benefit obligation for post-retirement medical benefits in 2012.

Effective for fiscal year 2016, we adopted the full yield curve approach for estimating the service cost and interest cost components of expense for plans that use a yield curve to determine the discount rate. The new method applies the specific spot rates along the yield curve used in the most recent measurement of the benefit obligation, resulting in a more precise estimate of expense. The impact for fiscal year 2016 was a decrease in expense of approximately $3.2 million.

In 2016, we offered certain former employees with vested pension benefits a lump sum payout in an effort to reduce our long-term pension obligations. As a result, for 2016, the net periodic benefit cost for our pension plans included a non-cash settlement charge of $31.4 million and the projected benefit obligation decreased by $50.6 million. We did not have similar funding of pension buyout activity in 2017.

Defined Contribution Plans

We recorded the following expenses related to our contributions to the defined contribution plans (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Contributions to defined contribution plans	$	18.1	$	16.3	$	16.1

Pension and Post-retirement Benefit Plans

The following tables set forth amounts recognized in our financial statements and the plans' funded status for our pension and post-retirement benefit plans (dollars in millions):

	Pension Benefits						Other Benefits
	2017			2016			2017			2016
Accumulated benefit obligation	$	401.5		$	374.1		N/A			N/A
Changes in projected benefit obligation:
Benefit obligation at beginning of year	$	381.6		$	415.4		$	3.3		$	4.9
Service cost	5.0			4.4			—			—
Interest cost	12.6			15.3			0.1			0.1
Plan participants' contributions	—			—			0.3			0.3
Amendments	—			0.1			—			—
Actuarial (gain) loss	22.1			22.8			(0.1		)	(0.7		)
Effect of exchange rates	4.3			(3.8		)	—			—
Settlements and curtailments	(1.3		)	(50.6		)	—			—
Benefits paid	(18.8		)	(22.0		)	(0.5		)	(1.3		)
Benefit obligation at end of year	$	405.5		$	381.6		$	3.1		$	3.3
Changes in plan assets:
Fair value of plan assets at beginning of year	$	292.5		$	293.0		$	—		$	—
Actual gain (loss) return on plan assets	39.8			21.0			—			—
Employer contribution	3.5			53.9			0.3			1.0
Plan participants' contributions	—			—			0.2			0.3
Effect of exchange rates	2.9			(2.8		)	—			—
Plan settlements	(1.3		)	(50.6		)	—			—
Benefits paid	(18.8		)	(22.0		)	(0.5		)	(1.3		)
Fair value of plan assets at end of year	318.6			292.5			—			—
Funded status / net amount recognized	$	(86.9	)	$	(89.1	)	$	(3.1	)	$	(3.3	)
Net amount recognized consists of:
Noncurrent assets	$	1.6		$	—		$	—		$	—
Current liability	(4.0		)	(1.6		)	(0.5		)	(0.5		)
Non-current liability	(84.5		)	(87.5		)	(2.6		)	(2.8		)
Net amount recognized	$	(86.9	)	$	(89.1	)	$	(3.1	)	$	(3.3	)

	For the Years Ended December 31,
	2017		2016
Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$	394.4	$	370.2
Accumulated benefit obligation	390.4		362.9
Fair value of plan assets	305.9		280.8

Our U.S.-based pension plans comprised approximately 88% of the projected benefit obligation and 87% of plan assets as of December 31, 2017.

	Pension Benefits									Other Benefits
	2017			2016			2015			2017			2016			2015
Components of net periodic benefit cost as of December 31:
Service cost	$	5.0		$	4.4		$	4.8		$	—		$	—		$	—
Interest cost	12.6			15.3			17.2			0.1			0.1			0.2
Expected return on plan assets	(21.3		)	(21.5		)	(21.4		)	—			—			—
Amortization of prior service cost	0.2			0.3			0.2			(2.4		)	(3.0		)	(3.1		)
Recognized actuarial loss	8.1			7.6			9.5			1.4			1.4			1.5
Settlements and curtailments(1)	0.7			31.6			0.4			—			—			—
Net periodic benefit cost	$	5.3		$	37.7		$	10.7		$	(0.9	)	$	(1.5	)	$	(1.4	)

⁽¹⁾ The Consolidated Statements of Operations discloses $31.4 million related to pension settlement charges that represent the lump-sum payments made in the fourth quarter of 2016.

The following table sets forth amounts recognized in AOCI and Other comprehensive income (loss) in our financial statements for 2017 and 2016 (in millions):

	Pension Benefits						Other Benefits
	2017			2016			2017			2016
Amounts recognized in AOCI:
Prior service costs	$	(0.8	)	$	(0.9	)	$	9.5		$	12.0
Actuarial loss	(194.6		)	(197.3		)	(14.7		)	(16.3		)
Subtotal	(195.4		)	(198.2		)	(5.2		)	(4.3		)
Deferred taxes	71.2			71.0			1.9			1.6
Net amount recognized	$	(124.2	)	$	(127.2	)	$	(3.3	)	$	(2.7	)
Changes recognized in other comprehensive income (loss):
Current year prior service costs	0.1			0.1			—			—
Current year actuarial (gain) loss	3.7			23.3			(0.1		)	(0.7		)
Effect of exchange rates	1.7			(1.5		)	—			—
Amortization of prior service (costs) credits	(0.2		)	(0.3		)	2.4			3.1
Amortization of actuarial loss	(8.8		)	(39.2		)	(1.4		)	(1.4		)
Total recognized in other comprehensive income (loss)	$	(3.5	)	$	(17.6	)	$	0.9		$	1.0
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	1.8		$	20.1		$	—		$	(0.5	)

The estimated prior service (costs) credits and actuarial losses that will be amortized from AOCI in 2018 are $(0.1) million and (9.3) million, respectively, for pension benefits and $1.4 million and $(1.3) million, respectively, for other benefits.

The following tables set forth the weighted-average assumptions used to determine Benefit obligations and Net periodic benefit cost for the U.S.-based plans in 2017 and 2016:

	Pension Benefits				Other Benefits
	2017		2016		2017		2016
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	3.66	%	4.17	%	3.25	%	3.50	%
Rate of compensation increase	4.23	%	4.23	%	—		—

	Pension Benefits						Other Benefits
	2017		2016		2015		2017		2016		2015
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	3.96	%	4.30	%	3.97	%	4.61	%	4.95	%	3.23	%
Discount rate - interest cost	3.51	%	3.76	%	3.97	%	2.56	%	2.49	%	3.23	%
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%	—		—		—
Rate of compensation increase	4.23	%	4.23	%	4.23	%	—		—		—

The following tables set forth the weighted-average assumptions used to determine Benefit obligations and Net periodic benefit cost for the non-U.S.-based plans in 2017 and 2016:

	Pension Benefits
	2017		2016
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	2.58	%	2.83	%
Rate of compensation increase	3.63	%	3.78	%

	Pension Benefits
	2017		2016		2015
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	1.34	%	2.04	%	4.12	%
Discount rate - interest cost	2.75	%	3.45	%	4.12	%
Expected long-term return on plan assets	4.40	%	4.87	%	5.22	%
Rate of compensation increase	3.78	%	3.70	%	3.48	%

To develop the expected long-term rate of return on assets assumption for the U.S. plans, we considered the historical returns for each asset category, as well as the target asset allocation of the pension portfolio and the effect of periodic balancing. These results were adjusted for the payment of reasonable expenses of the plan from plan assets. This resulted in the selection of the 7.5% long-term rate of return on assets assumption. A similar process was followed for the non-U.S.-based plans.

To select a discount rate for the purpose of valuing the plan obligations for the U.S. plans, we performed an analysis in which the projected cash flows from defined benefit and retiree healthcare plans was matched with a yield curve based on the appropriate universe of high-quality corporate bonds that were available. We used the results of the yield curve analysis to select the discount rate for each plan. The analysis was completed separately for each U.S. pension and OPEB plan. A similar process was followed for the non-U.S.-based plans with sufficient corporate bond information. In other countries, the discount rate was selected based on the approximate duration of plan obligations.

Assumed health care cost trend rates have an effect on the amounts reported for our healthcare plan. The following table sets forth the healthcare trend rate assumptions used:

	2017		2016
Assumed health care cost trend rates as of December 31:
Health care cost trend rate assumed for next year	6.50	%	6.50	%
Rate to which the cost rate is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2021		2020

A one percentage-point change in assumed healthcare cost trend rates would have the following effects (in millions):

	1-Percentage-Point Increase		1-Percentage-Point Decrease
Effect on total of service and interest cost	$	—	$	—
Effect on the post-retirement benefit obligation	0.1		(0.1		)

Expected future benefit payments are shown in the table below (in millions):

	For the Years Ended December 31,
	2018		2019		2020		2021		2022		2023-2027
Pension benefits	$	21.8	$	19.3	$	19.9	$	26.0	$	20.4	$	146.4
Other benefits	0.5		0.5		0.4		0.3		0.3		0.9

Pension Plan Assets

We believe asset returns can be optimized at an acceptable level of risk by adequately diversifying the plan assets between equity and fixed income. In the second quarter of 2017, in order to decrease volatility, we changed the targeted allocations for our plan assets. The targeted allocation for fixed income, money market and cash investments was changed to 75%, and the targeted allocation for equity investments was changed to 25%. Our targeted exposure to International equity including emerging markets was changed to 12.5% of total assets and our exposure to domestic equity was changed to 12.5%. Our U.S. pension plan represents 87%, our Canadian pension plan 6%, and our United Kingdom (“U.K.”) pension plan 7% of the total fair value of our plan assets as of December 31, 2017.

Our U.S. pension plans' weighted-average asset allocations as of December 31, 2017 and 2016, by asset category, are as follows:

	Plan Assets as of December 31,
Asset Category:	2017		2016
U.S. equity	12.5	%	27.0	%
International equity	15.1	%	18.5	%
Fixed income	71.1	%	52.5	%
Money market/cash	1.3	%	2.0	%
Total	100.0	%	100.0	%

U.S. pension plan assets are invested according to the following targets:

Asset Category:	Target
U.S. equity	12.5	%
International equity	12.5	%
Fixed income	73.0	%
Money market/cash	2.0	%

Our Canadian pension plans were invested approximately 75% in Canadian bonds and 25% in international equities. Our U.K. pension plan was invested in a broad mix of assets consisting of U.K. and international equities, and U.K. fixed income securities, including corporate and government bonds.

The fair values of our pension plan assets, by asset category, are as follows (in millions):

	Fair Value Measurements as of December 31, 2017
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Asset Category:
Cash and cash equivalents	3.9	—	—	3.9
Commingled pools / Collective Trusts:
U.S. equity (1)	—	34.7	—	34.7
International equity (2)	—	42.2	—	42.2
Fixed income (3)	—	197.9	—	197.9
Balanced pension trust: (4)
International equity	—	4.6	—	4.6
Fixed income	—	13.6	—	13.6
Pension fund:
International equity (5)	—	3.3	—	3.3
Fixed income (6)	—	5.9	—	5.9
Blend (7)	—	12.5	—	12.5
Total	3.9	314.7	—	318.6

	Fair Value Measurements as of December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Asset Category:
Cash and cash equivalents	5.3	—	—	5.3
Commingled pools / Collective Trusts:
U.S. equity (1)	—	69.5	—	69.5
International equity (2)	—	47.6	—	47.6
Fixed income (3)	—	134.9	—	134.9
Balanced pension trust: (4)
International equity	—	4.7	—	4.7
Fixed income	—	11.9	—	11.9
Pension fund:
International equity (5)	—	13.5	—	13.5
Fixed income (6)	—	5.1	—	5.1
Total	5.3	287.2	—	292.5

Additional information about assets measured at Net Asset Value (“NAV”) per share (in millions):

	As of December 31, 2017
	Fair Value		Redemption Frequency  (if currently eligible)	Redemption Notice Period
Asset Category:
Commingled pools / Collective Trusts:
U.S. equity (1)	$	34.7	Daily	5 days
International equity (2)	42.2		Daily	5 days
Fixed income (3)	197.9		Daily	5-15 days
Balanced pension trust: (4)
International equity	4.6		Daily	3-5 days
Fixed income	13.6		Daily	3-5 days
Pension fund:
International equity (5)	3.3		Daily	1-3 days
Fixed income (6)	5.9		Daily	1-7 days
Blend (7)	12.5		Daily	1-3 days
Total	$	314.7

	As of December 31, 2016
	Fair Value		Redemption Frequency  (if currently eligible)	Redemption Notice Period
Asset Category:
Commingled pools / Collective Trusts:
U.S. equity (1)	$	69.5	Daily	5 days
International equity (2)	47.6		Daily	5 days
Fixed income (3)	134.9		Daily	5-15 days
Balanced pension trust: (4)
International equity	4.7		Daily	3-5 days
Fixed income	11.9		Daily	3-5 days
Pension fund:
International equity (5)	13.5		Daily	1-7 days
Fixed income (6)	5.1		Daily	1-7 days
Total	$	287.2

(1)	This category includes investments primarily in U.S. equity securities that include large, mid and small capitalization companies.
(2)	This category includes investments primarily in international equity securities that include large, mid and small capitalization companies in large developed markets as well as emerging markets equities.
(3)	This category includes investments in U.S. investment grade and high yield fixed income securities, international fixed income securities and emerging markets fixed income securities.
(4)	The investment objectives of the fund are to provide long-term capital growth and income by investing primarily in a well-diversified, balanced portfolio of Canadian common stocks, bonds and money market securities. The fund also holds a portion of its assets in international equities.
(5)	This category includes investments in international equity securities and aims to provide returns consistent with the markets in which it invests and provide broad exposure to countries around the world.
(6)	This category includes investments in U.K. government index-linked securities (index-linked gilts) that have maturity periods of 5 years or longer with a derivatives overlay and investment grade corporate bonds denominated in sterling.
(7)	This category includes investments in pooled funds where the fund manager has discretion for the asset allocation and can invest in a wide range of international and US asset classes including equity, credit markets, sovereign debt and alternative assets (including derivative-based strategies).

The majority of our commingled pool/collective trusts, mutual funds, balanced pension trusts and pension funds are managed by professional investment advisors. The NAVs per share are furnished in monthly and/or quarterly statements received from the investment advisors and reflect valuations based upon their pricing policies. We assessed the fair value classification of these investments as Level 2 for commingled pool/collective trusts, balanced pension trusts and pension funds based on an examination of their pricing policies and the related controls and procedures. The fair values we report are based on the pool, trust or fund's NAV per share. The NAVs per share are calculated periodically (daily or no less than one time per month) as the aggregate value of each pool or trust's underlying assets divided by the number of units owned. See Note 19 for information about our fair value hierarchies and valuation techniques.

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Comprehensive Income

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Comprehensive Income

Comprehensive Income:

The following table provides information on items not reclassified in their entirety from AOCI to Net Income in the accompanying Consolidated Statements of Operations (in millions):

	For the Years Ended December 31,
AOCI Component	2017			2016			Affected Line Item(s) in the Consolidated Statements of Operations
Gains/(Losses) on cash flow hedges:
Commodity derivative contracts	$	13.7		$	(12.3	)	Cost of goods sold
Income tax benefit	(5.0		)	4.3			Provision for income taxes
Net of tax	$	8.7		$	(8.0	)
Defined Benefit Plan Items:
Pension and Post-Retirement Benefits costs	$	(7.3	)	$	(6.3	)	Cost of goods sold; Selling, general and administrative expenses
Income tax benefit	2.8			2.2			Provision for income taxes
Net of tax	$	(4.5	)	$	(4.1	)
Total reclassifications from AOCI	$	4.2		$	(12.1	)

The following tables provide information on changes in AOCI, by component (net of tax), for the years ended December 31, 2017 and 2016 (in millions):

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Plan Items			Foreign Currency Translation Adjustments			Total AOCI
Balance as of December 31, 2016	$	5.6		$	2.3		$	(130.0	)	$	(73.0	)	$	(195.1	)
Other comprehensive income (loss) before reclassifications	10.5			(0.5		)	(2.0		)	33.9			41.9
Amounts reclassified from AOCI	(8.7		)	—			4.5			—			(4.2		)
Net other comprehensive income (loss)	1.8			(0.5		)	2.5			33.9			37.7
Balance as of December 31, 2017	$	7.4		$	1.8		$	(127.5	)	$	(39.1	)	$	(157.4	)

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Plan Items			Foreign Currency Translation Adjustments			Total AOCI
Balance as of December 31, 2015	$	(8.4	)	$	4.4		$	(139.3	)	$	(61.4	)	$	(204.7	)
Other comprehensive income (loss) before reclassifications	6.0			(2.1		)	5.2			(11.6		)	(2.5		)
Amounts reclassified from AOCI	8.0			—			4.1			—			12.1
Net other comprehensive income (loss)	14.0			(2.1		)	9.3			(11.6		)	9.6
Balance as of December 31, 2016	$	5.6		$	2.3		$	(130.0	)	$	(73.0	)	$	(195.1	)

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

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

Stock-Based Compensation

Stock-Based Compensation:

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

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense(1)	$	24.9	$	31.7	$	26.6

⁽¹⁾ Stock-based compensation expense was recorded in our Corporate and other business segment.

Incentive Plan

Under the Lennox International Inc. 2010 Incentive Plan, as amended and restated (the “2010 Incentive Plan”), we are authorized to issue awards for 24.3 million shares of common stock. The 2010 Incentive Plan provides for various long-term incentive awards, including performance share units, restricted stock units and stock appreciation rights. A description of these long-term incentive awards and related activity within each award category is provided below.

As of December 31, 2017, awards for 13.5 million shares of common stock had been granted, net of cancellations and repurchases, and there were 3.4 million shares available for future issuance.

Performance Share Units

Performance share units are granted to certain employees at the discretion of the Board of Directors with a three-year performance period beginning January 1^st of each year. Upon meeting the performance and vesting criteria, performance share units are converted to an equal number of shares of our common stock. Performance share units vest if, at the end of the three-year performance period, at least the threshold performance level has been attained. To the extent that the payout level attained is less than 100%, the difference between 100% and the units earned and distributed will be forfeited. Eligible participants may also earn additional units of our common stock, which would increase the potential payout up to 200% of the units granted, depending on LII's performance over the three-year performance period.

Performance share units are classified as equity awards. Compensation expense is recognized on an earnings curve over the period and is based on the expected number of units to be earned and the fair value of the stock at the date of grant. The fair value of units is calculated as the average of the high and low market price of the stock on the date of grant discounted by the expected dividend rate over the service period. The number of units expected to be earned will be adjusted in future periods as necessary to reflect changes in the estimated number of award to be issued and, upon vesting, the actual number of units awarded. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy performance share unit distributions.

The following table provides information on our performance share units:

	For the Years Ended December 31,
	2017			2016			2015
Compensation expense for performance share units (in millions)	$	12.2		$	18.1		$	13.6
Weighted-average fair value of grants, per share	$	197.54		$	150.21		$	126.31
Payout ratio for shares paid	185.9		%	200.0		%	200.0		%

A summary of the status of our undistributed performance share units as of December 31, 2017, and changes during the year then ended, is presented below (in millions, except per share data):

	Shares (2)		Weighted- Average Grant Date Fair Value per Share
Undistributed performance share units as of December 31, 2016	0.4		$	101.03
Granted	0.1		197.54
Adjustment to shares paid based on payout ratio	0.1		88.26
Distributed	(0.2	)	81.17
Forfeited	—		—
Undistributed performance share units as of December 31, 2017 (1)	0.3		$	123.80

⁽¹⁾ Undistributed performance share units include approximately 0.2 million units with a weighted-average grant date fair value of $154.90 per share that had not yet vested and 0.2 million units that have vested but were not yet distributed.

⁽²⁾ Share amounts are rounded but the balance of undistributed performance share units as of December 31, 2017 accurately reflects actual units undistributed.

As of December 31, 2017, we had $20.7 million of total unrecognized compensation cost related to non-vested performance share units that is expected to be recognized over a weighted-average period of 2.2 years. Our estimated forfeiture rate for these performance share units was 15.1% as of December 31, 2017.

The total fair value of performance share units distributed and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Fair value of performance share units distributed	$	64.3	$	39.4	$	44.9
Realized tax benefits from tax deductions	$	24.5	$	15.0	$	17.1

Restricted Stock Units

Restricted stock units are issued to attract and retain key employees. Generally, at the end of a three-year retention period, the units will vest and be distributed in shares of our common stock to the participant. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy restricted stock unit vestings. Restricted stock units are classified as equity awards. The fair value of units granted is the average of the high and low market price of the stock on the date of grant discounted by the expected dividend rate over the service period. Units are amortized to compensation expense ratably over the service period.

The following table provides information on our restricted stock units (in millions, except per share data):

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense for restricted stock units	$	8.3	$	9.0	$	8.3
Weighted-average fair value of grants, per share	$	197.54	$	150.14	$	126.15

A summary of our non-vested restricted stock units as of December 31, 2017 and changes during the year then ended is presented below (in millions, except per share data):

	Shares(2)		Weighted- Average Grant Date Fair Value per Share
Non-vested restricted stock units as of December 31, 2016	0.3		$	118.38
Granted	0.1		197.54
Distributed	(0.1	)	89.33
Forfeited	—		—
Non-vested restricted stock units as of December 31, 2017(1)	0.2		$	156.16

⁽¹⁾ As of December 31, 2017, we had $18.8 million of total unrecognized compensation cost related to non-vested restricted stock units that is expected to be recognized over a weighted-average period of 2.4 years. Our estimated forfeiture rate for restricted stock units was 18.2% as of December 31, 2017.

⁽²⁾ Share amounts are rounded but the balance of undistributed performance share units as of December 31, 2017 accurately reflects actual units undistributed.

The total fair value of restricted stock units vested and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Fair value of restricted stock units vested	$	19.0	$	17.0	$	19.7
Realized tax benefits from tax deductions	7.2		6.5		7.5

Stock Appreciation Rights

Stock appreciation rights are issued to certain key employees. Each recipient is given the “right” to receive compensation, paid in shares of our common stock, equal to the future appreciation of our common stock price. Stock appreciation rights generally vest in one-third increments beginning on the first anniversary date after the grant date and expire after seven years. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy the exercise of stock appreciation rights.

The following table provides information on our stock appreciation rights (in millions, except per share data):

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense for stock appreciation rights	$	4.4	$	4.6	$	4.7
Weighted-average fair value of grants, per share	32.32		22.93		22.74

Compensation expense for stock appreciation rights is based on the fair value on the date of grant, estimated using the Black-Scholes-Merton valuation model, and is recognized over the service period. We used historical stock price data to estimate the expected volatility. We determined that the recipients of stock appreciation rights can be combined into one employee group that has similar historical exercise behavior and we used our historical pattern of award exercises to estimate the expected life of the awards for the employee group. The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve with a maturity equal to the expected life of the awards at the time of grant.

The fair value of the stock appreciation rights granted in 2017, 2016 and 2015 were estimated on the date of grant using the following assumptions:

	2017		2016		2015
Expected dividend yield	1.47	%	1.62	%	1.61	%
Risk-free interest rate	2.02	%	1.66	%	1.36	%
Expected volatility	19.97	%	19.60	%	23.78	%
Expected life (in years)	3.95		3.99		4.00

A summary of our stock appreciation rights as of December 31, 2017, and changes during the year then ended, is presented below (in millions, except per share data):

	Shares		Weighted-Average Exercise Price per Share
Outstanding stock appreciation rights as of December 31, 2016	1.1		$	98.35
Granted	0.2		205.53
Exercised	(0.2	)	70.00
Forfeited	—		—
Outstanding stock appreciation rights as of December 31, 2017	1.1		$	121.63
Exercisable stock appreciation rights as of December 31, 2017	0.7		$	90.43

The following table summarizes information about stock appreciation rights outstanding as of December 31, 2017 (in millions, except per share data and years):

	Stock Appreciation Rights Outstanding				Stock Appreciation Rights Exercisable
Range of Exercise Prices	Shares	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value		Shares	Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
$34.06 to $81.14	0.3	2.21	$	49.3	0.3	2.21	$	49.3
$92.64 to $ 131.94	0.3	4.52	$	31.9	0.3	4.42	$	27.5
$156.94 to $205.53	0.4	6.45	$	12.1	0.1	6.00	$	3.9

As of December 31, 2017, we had $9.6 million of unrecognized compensation cost related to non-vested stock appreciation rights that is expected to be recognized over a weighted-average period of 2.40 years. Our estimated forfeiture rate for stock appreciation rights was 14.2% as of December 31, 2017.

The total intrinsic value of stock appreciation rights exercised and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Intrinsic value of stock appreciation rights exercised	$	25.1	$	36.9	$	27.3
Realized tax benefits from tax deductions	$	9.6	$	14.1	$	10.4

Employee Stock Purchase Plan

Under the 2012 Employee Stock Purchase Plan (“ESPP”), all employees who meet certain service requirements are eligible to purchase our common stock through payroll deductions at the end of three month offering periods. The purchase price for such shares is 95% of the fair market value of the stock on the last day of the offering period. A maximum of 2.5 million shares is authorized for purchase until the ESPP plan termination date of May 10, 2022, unless terminated earlier at the discretion of the Board of Directors. Employees purchased approximately 16,000 shares under the ESPP during the year ended December 31, 2017. Approximately 2.4 million shares remain available for purchase under the ESPP as of December 31, 2017.

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Stock Repurchases

12 Months Ended

Dec. 31, 2017

Stockholders' Equity Note [Abstract]

Stock Repurchases

Stock Repurchases:

Our Board of Directors has authorized a total of $2 billion towards the repurchase of shares of our common stock (collectively referred to as the "Share Repurchase Plans"), including a $550 million share repurchase authorization in 2016. The Share Repurchase Plans authorize open market repurchase transactions and do not have a stated expiration date. As of December 31, 2017, $396.0 million of shares may still be repurchased under the Share Repurchase Plans.

On February 9, 2017, the Company entered into a Fixed Dollar Accelerated Share Repurchase Transaction (the “ASR Agreement”) with Morgan Stanley, to effect an accelerated stock buyback of our common stock. Under the ASR Agreement, on February 9, 2017, we paid Morgan Stanley an initial purchase price of $75 million, and Morgan Stanley delivered to us common stock, representing approximately 85% of the shares expected to be purchased under the ASR Agreement. The ASR Agreement was completed in the second quarter and Morgan Stanley delivered additional shares for a total of 0.5 million shares of common stock repurchased as part of this ASR Agreement.

On April 28, 2017, we entered into another Fixed Dollar ASR Agreement (the "Second ASR Agreement") with J.P. Morgan Chase Bank to effect an accelerated stock buyback of common stock. Under the Second ASR Agreement, on April 28, 2017, we paid J.P. Morgan Chase Bank an initial purchase price of $100 million, and J.P. Morgan Chase Bank delivered to us common stock, representing approximately 85% of the shares expected to be purchased under the ASR Agreement. The ASR Agreement was completed in the third quarter and J.P. Morgan Chase Bank delivered additional shares for a total of 0.6 million shares of common stock repurchased as part of this ASR Agreement.

On July 27, 2017, we entered into another Fixed Dollar ASR Agreement (the "Third ASR Agreement") with Bank of America to effect an accelerated stock buyback of common stock. Under the Third ASR Agreement, on July 27, 2017, we paid Bank of America an initial purchase price of $75 million, and Bank of America delivered to us common stock, representing approximately 85% of the shares expected to be purchased under the third ASR Agreement. The ASR Agreement was completed in the fourth quarter and Bank of America delivered additional shares for a total of 0.4 million shares of common stock repurchased as part of this ASR Agreement.

We also repurchased 0.1 million shares for $26.1 million and 0.2 million shares for $33.3 million for the years ended December 31, 2017 and 2016, respectively, from employees who surrendered their shares to satisfy minimum tax withholding obligations upon the vesting of stock-based compensation awards.

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Restructuring Charges

12 Months Ended

Dec. 31, 2017

Restructuring Charges [Abstract]

Restructuring Charges

Restructuring Charges:

We record restructuring charges associated with management-approved restructuring plans to reorganize or to 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 18.

Restructuring Activities in 2017

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

	Incurred in 2017		Incurred to Date		Total Expected to be Incurred
Severance and related expense	$	2.0	$	11.3	$	11.5
Asset write-offs and accelerated depreciation	0.8		3.2		3.2
Equipment moves	—		—		—
Lease termination	—		0.2		0.2
Other	0.4		4.1		4.5
Total	$	3.2	$	18.8	$	19.4

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):

	Incurred in 2017		Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	0.5	$	1.4	$	1.4
Commercial Heating & Cooling	0.9		2.0		2.1
Refrigeration	1.2		13.1		13.1
Corporate & Other	0.6		2.3		2.8
Total	$	3.2	$	18.8	$	19.4

Restructuring accruals are included in Accrued expenses in the accompanying Consolidated Balance Sheets. The activity within the restructuring accruals is summarized in the tables below (in millions):

Description of Reserves:	Balance as of December 31, 2016		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2017
Severance and related expense	$	—	$	2.0	$	(1.8	)	$	—		$	0.2
Asset write-offs and accelerated depreciation	—		0.8		(0.2		)	(0.6		)	—
Equipment moves	—		—		—			—			—
Lease termination	—		—		—			—			—
Other	—		0.4		(0.4		)	—			—
Total restructuring reserves	$	—	$	3.2	$	(2.4	)	$	(0.6	)	$	0.2

Description of Reserves:	Balance as of December 31, 2015		Charged to Earnings			Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2016
Severance and related expense	$	0.7	$	(0.2	)	$	(0.5	)	$	—		$	—
Asset write-offs and accelerated depreciation	—		0.3			(0.2		)	(0.1		)	—
Equipment moves	—		—			—			—			—
Lease termination	0.2		—			(0.2		)	—			—
Other	—		1.7			(1.8		)	0.1			—
Total restructuring reserves	$	0.9	$	1.8		$	(2.7	)	$	—		$	—

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Earnings Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share:

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

The computations of basic and diluted earnings per share for Income from continuing operations were as follows (in millions, except per share data):

	For the Years Ended December 31,
	2017			2016			2015
Net income	$	305.7		$	277.8		$	186.6
Add: Loss from discontinued operations	1.4			0.8			0.6
Income from continuing operations	$	307.1		$	278.6		$	187.2
Weighted-average shares outstanding – basic	42.2			43.4			44.9
Add: Potential effect of diluted securities attributable to stock-based payments	0.6			0.6			0.7
Weighted-average shares outstanding – diluted	42.8			44.0			45.6
Earnings per share - Basic:
Income from continuing operations	$	7.28		$	6.41		$	4.17
Loss from discontinued operations	(0.03		)	(0.02		)	(0.01		)
Net income	$	7.25		$	6.39		$	4.16
Earnings per share - Diluted:
Income from continuing operations	$	7.17		$	6.34		$	4.11
Loss from discontinued operations	(0.03		)	(0.02		)	(0.02		)
Net income	$	7.14		$	6.32		$	4.09

An insignificant number of 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.

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Reportable Business Segments

12 Months Ended

Dec. 31, 2017

Segment Reporting, Measurement Disclosures [Abstract]

Reportable Business Segments

Reportable Business Segments:

Description of 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	Products 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 and supplies	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, variable refrigerant flow commercial products	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

Segment Data

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.

Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations included in the results presented in the table below.

Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Net Sales (1)
Residential Heating & Cooling	$	2,140.4		$	2,000.8		$	1,866.9
Commercial Heating & Cooling	973.8			917.9			887.2
Refrigeration	725.4			722.9			713.3
	$	3,839.6		$	3,641.6		$	3,467.4
Segment Profit (Loss) (2)
Residential Heating & Cooling	$	373.9		$	348.8		$	278.4
Commercial Heating & Cooling	157.3			149.3			130.4
Refrigeration	72.6			68.9			52.9
Corporate and other	(89.2		)	(97.4		)	(84.1		)
Subtotal segment profit	514.6			469.6			377.6
Reconciliation to Operating income:
Special product quality adjustments	5.4			(0.4		)	(2.2		)
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss) (2)	11.5			7.4			15.6
Restructuring charges	3.2			1.8			3.2
Pension settlement	—			31.4			—
Goodwill impairment	—			—			5.5
Asset impairment	—			—			44.5
One time inventory write down	—			—			5.6
Operating income	$	494.5		$	429.4		$	305.4

⁽¹⁾ On a consolidated basis, no revenue from transactions with a single customer were 10% or greater of our consolidated net sales for any of the periods presented.

⁽²⁾ The Company defines segment profit (loss) as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding:

• Special product quality adjustments;

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

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

◦ Special legal contingency charges,

◦ Asbestos-related litigation,

◦ Environmental liabilities,

◦ Contractor tax payments,

◦ Acquisition/disposition costs, and

◦ Other items, net;

• Restructuring charges;

• Pension settlement;

• Goodwill and asset impairments; and

• One time inventory write down.

Total assets by segment are shown below (in millions):

	As of December 31,
	2017		2016		2015
Total Assets:
Residential Heating & Cooling	$	771.3	$	673.4	$	628.3
Commercial Heating & Cooling	443.9		385.8		363.6
Refrigeration	506.9		442.8		444.9
Corporate and other	169.4		258.3		240.6
Total assets	$	1,891.5	$	1,760.3	$	1,677.4

The assets in the Corporate and other segment primarily consist of cash, short-term investments and deferred tax assets. Assets recorded in the operating segments represent those assets directly associated with those segments.

Total capital expenditures by segment are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Capital Expenditures:
Residential Heating & Cooling	$	38.9	$	36.7	$	28.1
Commercial Heating & Cooling	18.5		11.5		8.6
Refrigeration	8.0		12.1		11.4
Corporate and other	32.9		24.0		21.8
Total capital expenditures (1)	$	98.3	$	84.3	$	69.9

⁽¹⁾ Includes amounts recorded under capital leases. There were no significant new capital leases in 2017, 2016 or 2015.

Depreciation and amortization expenses by segment are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Depreciation and Amortization:
Residential Heating & Cooling	$	24.9	$	21.0	$	20.7
Commercial Heating & Cooling	10.1		9.8		9.7
Refrigeration	9.9		9.7		15.5
Corporate and other	19.7		17.6		16.9
Total depreciation and amortization	$	64.6	$	58.1	$	62.8

The equity method investments are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Income from Equity Method Investments:
Refrigeration	$	3.9	$	4.0	$	2.8
Residential	11.7		11.5		8.0
Commercial	2.8		2.9		2.6
Total income from equity method investments	$	18.4	$	18.4	$	13.4

Geographic Information

Net sales for each major geographic area in which we operate are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Net Sales to External Customers by Point of Shipment:
United States	$	3,128.7	$	2,966.8	$	2,793.4
Canada	237.8		218.8		217.7
International	473.1		456.0		456.3
Total net sales to external customers	$	3,839.6	$	3,641.6	$	3,467.4

Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):

	As of December 31,
	2017		2016		2015
Property, Plant and Equipment, net:
United States	$	257.6	$	237.6	$	224.8
Mexico	79.8		69.4		60.0
Canada	1.7		1.4		1.2
International	58.7		53.0		53.6
Total Property, plant and equipment, net	$	397.8	$	361.4	$	339.6

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Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities. Our framework for measuring fair value is based on the following three-level hierarchy for fair value measurements:

Level 1 -     Quoted prices for identical instruments in active markets at the measurement date.

Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date and for the anticipated term of the instrument.

Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Where available, the fair values were based upon quoted prices in active markets. However, if quoted prices were not available, then the fair values were based upon quoted prices for similar assets or liabilities or independently sourced market parameters, such as credit default swap spreads, yield curves, reported trades, broker/dealer quotes, interest rates and benchmark securities. For assets and liabilities without observable market activity, if any, the fair values were based upon discounted cash flow methodologies incorporating assumptions that, in our judgment, reflect the assumptions a marketplace participant would use. Valuation adjustments to reflect either party's creditworthiness and ability to pay were incorporated into our valuations, where appropriate, as of December 31, 2017 and 2016, the measurement dates. The methodologies used to determine the fair value of our financial assets and liabilities as of December 31, 2017 were the same as those used as of December 31, 2016.

Fair values are estimates and are not necessarily indicative of amounts for which we could settle such instruments currently nor indicative of our intent or ability to dispose of or liquidate them.

Assets and Liabilities Carried at Fair Value on a Recurring Basis

Derivatives

Derivatives, classified as Level 2, were 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, but they were insignificant to the overall value of the derivatives. Refer to Note 8 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, 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 December 31,
	2017		2016
Quoted Prices in Active Markets for Identical Assets (Level 1):
Investment in marketable equity securities	$	4.1	$	4.4

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 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 the fair value for our senior unsecured notes in Long-term debt (in millions):

	As of December 31,
	2017		2016
Quoted Prices in Active Markets for Similar Instruments (Level 2):
Senior unsecured notes	$	308.1	$	499.3

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Selected Quarterly Financial Information (unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Information (unaudited)

Selected Quarterly Financial Information (unaudited):

The following tables provide information on Net sales, Gross profit, Net income, Earnings per share and Cash dividends declared per share by quarter (in millions, except per share data):

	Net Sales (1)				Gross Profit (1)				Net Income (1)
	2017		2016		2017		2016		2017		2016
First Quarter	$	793.4	$	715.2	$	210.9	$	183.6	$	43.5	$	24.9
Second Quarter	1,102.1		1,019.2		340.8		315.0		115.5		110.7
Third Quarter	1,052.3		1,010.0		313.7		310.3		103.5		101.7
Fourth Quarter	891.8		897.3		259.8		267.6		43.1		40.4

	Basic Earnings per Share (2)				Diluted Earnings per Share (2)				Cash Dividends per Common Share
	2017		2016		2017		2016		2017		2016
First Quarter	$	1.02	$	0.57	$	1.00	$	0.56	$	0.43	$	0.36
Second Quarter	2.73		2.54		2.69		2.51		0.51		0.43
Third Quarter	2.47		2.35		2.44		2.33		0.51		0.43
Fourth Quarter	1.03		0.94		1.02		0.93		0.51		0.43

⁽¹⁾ The sum of the quarterly results for each of the four quarters may not equal the full year results due to rounding.

⁽²⁾ EPS for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while EPS for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the EPS for each of the four quarters may not equal the EPS for the fiscal year.

Summary of 2017 Quarterly Results

The following unusual or infrequent pre-tax items were included in the 2017 quarterly results:

1st Quarter. No significant unusual or infrequent items.

2nd Quarter. No significant unusual or infrequent items.

3rd Quarter. No significant unusual or infrequent items.

4th Quarter. As a result of recent tax legislation, we recorded a one-time charge of $31.8 million in the fourth quarter to revalue our deferred tax assets and liabilities.

Summary of 2016 Quarterly Results

The following unusual or infrequent pre-tax items were included in the 2016 quarterly results:

1st Quarter. No significant unusual or infrequent items.

2nd Quarter. No significant unusual or infrequent items.

3rd Quarter. No significant unusual or infrequent items.

4th Quarter. As part of our ongoing strategy to de-risk our pension plan obligations, we completed a one-time, lump sum pension buyout in the fourth quarter of 2016 for certain vested participants. As a result of the pension buy-out, we recorded a pension settlement charge of $31.4 million in the fourth quarter.

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Losses and Other Expenses, net

12 Months Ended

Dec. 31, 2017

Losses (Gains) and Other Expenses, net [Abstract]

Losses and Other Expenses, net

Losses and Other Expenses, net:

Losses and other expenses, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Realized (gains) losses on settled futures contracts	$	(1.7	)	$	1.1		$	1.9
Foreign currency exchange (gains) losses	(1.8		)	2.2			3.6
Losses on disposal of fixed assets	0.2			0.5			0.6
Net change in unrealized losses (gains) on unsettled futures contracts	0.9			(3.6		)	0.6
Asbestos-related litigation	3.5			6.3			3.0
Acquisition/disposition expenses	1.1			0.4			1.0
Special legal contingency charges	3.7			1.9			7.4
Environmental liabilities	2.2			1.9			1.0
Contractor tax payments	0.1			0.6			2.6
Losses and other expenses, net	$	8.2		$	11.3		$	21.7

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Supplemental Information

12 Months Ended

Dec. 31, 2017

Supplemental Information [Abstract]

Supplemental Information

Supplemental Information:

Below is information about expenses included in our Consolidated Statements of Operations (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Research and development	$	73.6	$	64.6	$	62.3
Advertising, promotions and marketing (1)	45.0		41.0		42.5
Cooperative advertising expenditures (2)	18.6		14.7		13.7
Rent expense	57.7		57.9		53.5

⁽¹⁾ Cooperative advertising expenditures were not included in these amounts.

⁽²⁾ Cooperative advertising expenditures were included in Selling, general and administrative expenses in the Consolidated Statements of Operations.

Interest Expense, net

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Interest expense, net of capitalized interest	$	32.1	$	28.1	$	25.2
Interest income	1.5		1.1		1.6
Interest expense, net	$	30.6	$	27.0	$	23.6

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Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements:

The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor

Subsidiaries”) and are not 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 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 December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015 are shown on the following pages.

Condensed Consolidating Balance Sheets

As of December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.6		$	28.0	$	38.6		$	—		$	68.2
Accounts and notes receivable, net	—			35.3		471.2			—			506.5
Inventories, net	—			355.7		131.9			(3.4		)	484.2
Other assets	16.2			23.1		67.5			(28.4		)	78.4
Total current assets	17.8			442.1		709.2			(31.8		)	1,137.3
Property, plant and equipment, net	—			257.6		144.4			(4.2		)	397.8
Goodwill	—			134.9		65.6			—			200.5
Investment in subsidiaries	1,257.7			365.8		(0.6		)	(1,622.9		)	—
Deferred income taxes	3.9			69.1		33.6			(12.2		)	94.4
Other assets, net	2.1			41.3		19.6			(1.5		)	61.5
Intercompany receivables (payables), net	(559.3		)	554.7		107.4			(102.8		)	—
Total assets	$	722.2		$	1,865.5	$	1,079.2		$	(1,775.4	)	$	1,891.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	0.9		$	—		$	0.9
Current maturities of long-term debt	29.4			2.9		0.3			—			32.6
Accounts payable	21.3			228.0		99.3			—			348.6
Accrued expenses	3.1			209.4		57.8			—			270.3
Income taxes payable	(64.5		)	56.5		60.9			(50.8		)	2.1
Total current liabilities	(10.7		)	496.8		219.2			(50.8		)	654.5
Long-term debt	682.8			11.7		276.0			—			970.5
Post-retirement benefits, other than pensions	—			2.6		—			—			2.6
Pensions	—			74.7		9.8			—			84.5
Other liabilities	—			120.6		8.7			—			129.3
Total liabilities	672.1			706.4		513.7			(50.8		)	1,841.4
Commitments and contingencies
Total stockholders' equity	50.1			1,159.1		565.5			(1,724.6		)	50.1
Total liabilities and stockholders' equity	$	722.2		$	1,865.5	$	1,079.2		$	(1,775.4	)	$	1,891.5

Condensed Consolidating Balance Sheets

As of December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.2		$	17.1	$	31.9		$	—		$	50.2
Accounts and notes receivable, net	—			30.6		439.2			—			469.8
Inventories, net	—			314.7		108.9			(5.1		)	418.5
Other assets	12.8			48.8		67.5			(61.7		)	67.4
Total current assets	14.0			411.2		647.5			(66.8		)	1,005.9
Property, plant and equipment, net	—			237.6		123.8			—			361.4
Goodwill	—			134.9		60.2			—			195.1
Investment in subsidiaries	1,166.9			524.7		(0.5		)	(1,691.1		)	—
Deferred income taxes	6.8			113.5		31.1			(14.7		)	136.7
Other assets, net	3.6			40.0		19.0			(1.4		)	61.2
Intercompany receivables (payables), net	(382.4		)	375.2		80.4			(73.2		)	—
Total assets	$	808.9		$	1,837.1	$	961.5		$	(1,847.2	)	$	1,760.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	52.4		$	—		$	52.4
Current maturities of long-term debt	199.3			0.4		0.4			—			200.1
Accounts payable	18.5			248.5		94.2			—			361.2
Accrued expenses	6.3			206.3		53.3			—			265.9
Income taxes payable	(54.0		)	89.8		52.5			(79.3		)	9.0
Total current liabilities	170.1			545.0		252.8			(79.3		)	888.6
Long-term debt	600.9			14.5		0.3			—			615.7
Post-retirement benefits, other than pensions	—			2.8		—			—			2.8
Pensions	—			75.5		12.0			—			87.5
Other liabilities	—			119.1		11.1			(2.5		)	127.7
Total liabilities	771.0			756.9		276.2			(81.8		)	1,722.3
Commitments and contingencies
Total stockholders' equity	37.9			1,080.2		685.3			(1,765.4		)	38.0
Total liabilities and stockholders' equity	$	808.9		$	1,837.1	$	961.5		$	(1,847.2	)	$	1,760.3

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	3,295.8		$	1,144.2		$	(600.4	)	$	3,839.6
Cost of goods sold	—			2,359.6			953.6			(598.8		)	2,714.4
Gross profit	—			936.2			190.6			(1.6		)	1,125.2
Operating expenses:
Selling, general and administrative expenses	—			553.6			85.0			(0.9		)	637.7
Losses (gains) and other expenses, net	2.0			4.4			1.9			(0.1		)	8.2
Restructuring charges	—			2.1			1.1			—			3.2
Goodwill impairment	—			—			—			—			—
Asset impairment	—			—			—			—			—
Pension settlement	—			—			—			—			—
(Income) loss from equity method investments	(324.3		)	(74.9		)	(14.5		)	395.3			(18.4		)
Operational income	322.3			451.0			117.1			(395.9		)	494.5
Interest expense, net	26.9			(2.7		)	6.4			—			30.6
Other income, net	—			—			(0.1		)	—			(0.1		)
Income from continuing operations before income taxes	295.4			453.7			110.8			(395.9		)	464.0
Provision for income taxes	(10.3		)	136.2			31.2			(0.2		)	156.9
Income from continuing operations	305.7			317.5			79.6			(395.7		)	307.1
Loss from discontinued operations	—			—			(1.4		)	—			(1.4		)
Net income	$	305.7		$	317.5		$	78.2		$	(395.7	)	$	305.7
Other comprehensive income (loss)	$	1.7		$	5.5		$	30.5		$	—		$	37.7
Comprehensive Income	$	307.4		$	323.0		$	108.7		$	(395.7	)	$	343.4

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	3,117.6		$	728.0		$	(204.0	)	$	3,641.6
Cost of goods sold	—			2,203.8			564.5			(203.2		)	2,565.1
Gross profit	—			913.8			163.5			(0.8		)	1,076.5
Operating expenses:
Selling, general and administrative expenses	—			524.3			96.7			—			621.0
Losses (gains) and other expenses, net	(3.3		)	9.7			5.1			(0.2		)	11.3
Restructuring charges	—			1.9			(0.1		)	—			1.8
Goodwill Impairment	—			—			—			—			—
Asset Impairment	—			—			—			—			—
Pension settlement	—			30.5			0.9			—			31.4
(Income) loss from equity method investments	(292.4		)	(40.7		)	(14.4		)	329.1			(18.4		)
Operational income	295.7			388.1			75.3			(329.7		)	429.4
Interest expense, net	24.4			(2.2		)	4.8			—			27.0
Other income, net	—			—			(0.3		)	—			(0.3		)
Income from continuing operations before income taxes	271.3			390.3			70.8			(329.7		)	402.7
Provision for income taxes	(6.5		)	108.2			22.6			(0.2		)	124.1
Income from continuing operations	277.8			282.1			48.2			(329.5		)	278.6
Loss from discontinued operations	—			—			(0.8		)	—			(0.8		)
Net income	$	277.8		$	282.1		$	47.4		$	(329.5	)	$	277.8
Other comprehensive income (loss)	$	14.0		$	8.5		$	(14.2	)	$	1.3		$	9.6
Comprehensive income	$	291.8		$	290.6		$	33.2		$	(328.2	)	$	287.4

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2015

(In millions)

(Amounts in millions)	Parent				Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—			$	2,950.6		$	701.8		$	(185.0	)	$	3,467.4
Cost of goods sold	—				2,150.9			556.4			(187.3		)	2,520.0
Gross profit	—				799.7			145.4			2.3			947.4
Operating expenses:
Selling, general and administrative expenses	—				485.6			94.9			—			580.5
Losses (gains) and other expenses, net	0.7				13.7			7.5			(0.2		)	21.7
Restructuring charges	—			—	(0.5		)	3.7			—			3.2
Goodwill impairment	—				5.5			—			—			5.5
Asset impairment	—				44.5			—			—			44.5
Pension settlement	—				—			—			—			—
(Income) loss from equity method investments	(201.8		)		(5.9		)	(10.5		)	204.8			(13.4		)
Operational income	201.1				256.8			49.8			(202.3		)	305.4
Interest expense, net	22.4				(2.0		)	3.2			—			23.6
Other income, net	—				—			(0.8		)	—			(0.8		)
Income from continuing operations before income taxes	178.7				258.8			47.4			(202.3		)	282.6
Provision for income taxes	(7.8		)		87.9			14.3			1.0			95.4
Income from continuing operations	186.5				170.9			33.1			(203.3		)	187.2
Loss from discontinued operations	—				—			(0.6		)	—			(0.6		)
Net income	$	186.5			$	170.9		$	32.5		$	(203.3	)	$	186.6
Other comprehensive income (loss)	$	(3.5	)		$	(3.3	)	$	(40.4	)	$	(4.0	)	$	(51.2	)
Comprehensive Income	$	183.0			$	167.6		$	(7.9	)	$	(207.3	)	$	135.4

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	467.4		$	31.1		$	(173.4	)	$	—	$	325.1
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.1			0.1			—		0.2
Purchases of property, plant and equipment	—			(70.7		)	(27.6		)	—		(98.3		)
Net cash used in investing activities	—			(70.6		)	(27.5		)	—		(98.1		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(1.5		)	—		(1.5		)
Asset securitization borrowings	—			—			315.0			—		315.0
Asset securitization payments	—			—			(89.0		)	—		(89.0		)
Long-term debt borrowings	—			—			—			—		—
Borrowings from credit facility	2,376.5			—			—			—		2,376.5
Long-term debt payments	(200.0		)	(0.3		)	(0.6		)	—		(200.9		)
Payments on credit facility	(2,265.5		)	—			—			—		(2,265.5		)
Payments of deferred financing costs	—			—			(0.2		)	—		(0.2		)
Proceeds from employee stock purchases	3.1			—			—			—		3.1
Repurchases of common stock to satisfy employee withholding tax obligations	(26.1		)	—			—			—		(26.1		)
Repurchases of common stock	(250.0		)	—			—			—		(250.0		)
Excess tax benefits related to share-based payments	—			—			—			—		—
Intercompany debt	56.4			(34.9		)	(21.5		)	—		—
Intercompany financing activity	(81.7		)	85.6			(3.9		)	—		—
Cash dividends paid	(79.7		)	—			—			—		(79.7		)
Net cash provided by (used in) financing activities	(467.0		)	50.4			198.3			—		(218.3		)
Increase (decrease) in cash and cash equivalents	0.4			10.9			(2.6		)	—		8.7
Effect of exchange rates on cash and cash equivalents	—			—			9.3			—		9.3
Cash and cash equivalents, beginning of year	1.2			17.1			31.9			—		50.2
Cash and cash equivalents, end of year	$	1.6		$	28.0		$	38.6		$	—	$	68.2

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	17.8		$	218.5		$	137.6		$	—	$	373.9
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			—			0.2			—		0.2
Purchases of property, plant and equipment	—			(71.5		)	(12.8		)	—		(84.3		)
Net cash used in investing activities	—			(71.5		)	(12.6		)	—		(84.1		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(2.4		)	—		(2.4		)
Asset securitization borrowings	—			—			145.0			—		145.0
Asset securitization payments	—			—			(295.0		)	—		(295.0		)
Long-term debt borrowings	350.0			—			—			—		350.0
Borrowings from credit facility	2,336.5			—			—			—		2,336.5
Long-term debt payments	(57.5		)	(0.9		)	(0.4		)	—		(58.8		)
Payments on credit facility	(2,346.0		)	—			—			—		(2,346.0		)
Payments of deferred financing costs	(4.2		)	—			—			—		(4.2		)
Proceeds from employee stock purchases	2.6			—			—			—		2.6
Repurchases of common stock to satisfy employee withholding tax obligations	(33.3		)	—			—			—		(33.3		)
Repurchases of common stock	(300.0		)	—			—			—		(300.0		)
Intercompany debt	30.0			(65.8		)	35.8			—		—
Intercompany financing activity	73.8			(71.0		)	(2.8		)	—		—
Cash dividends paid	(69.0		)	—			—			—		(69.0		)
Net cash provided by (used in) financing activities	(17.1		)	(137.7		)	(119.8		)	—		(274.6		)
Increase (decrease) in cash and cash equivalents	0.7			9.3			5.2			—		15.2
Effect of exchange rates on cash and cash equivalents	—			—			(3.9		)	—		(3.9		)
Cash and cash equivalents, beginning of year	0.5			7.8			30.6			—		38.9
Cash and cash equivalents, end of year	$	1.2		$	17.1		$	31.9		$	—	$	50.2

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2015

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	249.3		$	49.3		$	55.0		$	—	$	353.6
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.1			—			—		0.1
Purchases of property, plant and equipment	—			(60.2		)	(9.7		)	—		(69.9		)
Net cash used in investing activities	—			(60.1		)	(9.7		)	—		(69.8		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(1.7		)	—		(1.7		)
Asset securitization borrowings	—			—			40.0			—		40.0
Asset securitization payments	—			—			(60.0		)	—		(60.0		)
Long-term debt borrowings	—			—			—			—		—
Borrowings from revolving credit facility	1,671.0			—			—			—		1,671.0
Long-term debt payments	(22.5		)	(1.2		)	(0.3		)	—		(24.0		)
Payments on revolving credit facility	(1,807.5		)	—			—			—		(1,807.5		)
Payments of deferred financing costs	—			—			—			—		—
Proceeds from employee stock purchases	2.4			—			—			—		2.4
Repurchases of common stock to satisfy employee withholding tax obligations	(32.0		)	—			—			—		(32.0		)
Repurchases of common stock	—			—			—			—		—
Intercompany debt	(9.4		)	7.1			2.3			—		—
Intercompany financing activity	7.5			1.2			(8.7		)	—		—
Cash dividends paid	(59.3		)	—			—			—		(59.3		)
Net cash provided by (used in) financing activities	(249.8		)	7.1			(28.4		)	—		(271.1		)
Decrease in cash and cash equivalents	(0.5		)	(3.7		)	16.9			—		12.7
Effect of exchange rates on cash and cash equivalents	—			—			(11.3		)	—		(11.3		)
Cash and cash equivalents, beginning of year	1.0			11.5			25.0			—		37.5
Cash and cash equivalents, end of year	$	0.5		$	7.8		$	30.6		$	—	$	38.9

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Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Dec. 31, 2017

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

For the Years Ended December 31,2017, 2016 and 2015

(In millions)

	Balance at beginning of year		Additions charged to cost and expenses		Write-offs			Recoveries		Other			Balance at end of year
2015:
Allowance for doubtful accounts	$	7.9	$	2.8	$	(4.9	)	$	1.1	$	(0.6	)	$	6.3
2016
Allowance for doubtful accounts	$	6.3	$	2.4	$	(2.7	)	$	0.9	$	(0.2	)	$	6.7
2017
Allowance for doubtful accounts	$	6.7	$	3.9	$	(5.6	)	$	0.9	$	—		$	5.9

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of Lennox International Inc. and our majority-owned subsidiaries. All intercompany transactions, profits and balances have been eliminated.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid temporary investments with original maturity dates of three months or less to be cash equivalents. Cash and cash equivalents consisted primarily of bank deposits.

Accounts and Notes Receivable

Accounts and Notes Receivable

Accounts and notes receivable are shown in the accompanying Consolidated Balance Sheets, net of allowance for doubtful accounts. The allowance for doubtful accounts is generally established during the period in which receivables are recognized and is based on the age of the receivables and management's judgment on our ability to collect. Management considers the historical trends of write-offs and recoveries of previously written-off accounts, the financial strength of customers and projected economic and market conditions. We determine the delinquency status of receivables predominantly based on contractual terms and we write-off uncollectible receivables after management's review of our ability to collect, as noted above. We have no significant concentrations of credit risk within our accounts and notes receivable.

Inventories

Inventories

Inventory costs include material, labor, depreciation and plant overhead. Inventories of $274.5 million and $221.4 million as of December 31, 2017 and 2016, respectively, were valued at the lower of cost or market using the last-in, first-out (“LIFO”) cost method. The remainder of inventory is valued at the lower of cost or market with cost determined primarily using either the first-in, first-out (“FIFO”) or average cost methods.

We elected to use the LIFO cost method for our domestic manufacturing companies in 1974 and continued to elect the LIFO cost method for new operations through the late 1980s. The types of inventory costs that use LIFO include raw materials, purchased components, work-in-process, repair parts and finished goods. Since the late 1990s, we have adopted the FIFO cost method for all new domestic manufacturing operations (primarily acquisitions). Our operating entities with a previous LIFO election continue to use the LIFO cost method. We use the FIFO cost method for our foreign-based manufacturing facilities. See Note 3 for more information on our inventories.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation. Expenditures that increase the utility or extend the useful lives of fixed assets are capitalized while expenditures for maintenance and repairs are charged to expense as incurred.

Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings and improvements:
Buildings and improvements	2 to 33 years
Leasehold improvements	1 to 39 years
Machinery and equipment:
Computer hardware	3 to 5 years
Computer software	3 to 10 years
Factory machinery and equipment	1 to 15 years
Research and development equipment	3 to 10 years
Vehicles	2 to 8 years

We periodically review long-lived assets for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. To assess recoverability, we compare the estimated expected future undiscounted cash flows identified with each long-lived asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value. See Note 5 for additional information on our property, plant and equipment.

Goodwill

Goodwill

Goodwill represents the excess of cost over fair value of assets from acquired businesses. Goodwill is not amortized, but is reviewed for impairment annually and whenever events or changes in circumstances indicate the asset may be impaired (See Note 4 for additional information on our goodwill). The annual goodwill impairment test was performed during the fourth quarter of 2017.

The provisions of the accounting standard for goodwill allow us to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test. As part of our qualitative assessment, we monitor economic, legal, regulatory and other factors, industry trends, our market capitalization, recent and forecasted financial performance of our reporting units and the timing and nature of our restructuring activities for LII as a whole and for each reporting unit.

If a quantitative goodwill impairment test is determined to be necessary, we estimate reporting unit fair values using a combination of the discounted cash flow approach and a market approach. The discounted cash flows used to estimate fair value are based on assumptions regarding each reporting unit’s estimated projected future cash flows and the estimated weighted-average cost of capital that a market participant would use in evaluating the reporting unit in a purchase transaction. The estimated weighted-average cost of capital is based on the risk-free interest rate and other factors such as equity risk premiums and the ratio of total debt to equity capital. In performing these impairment tests, we take steps to ensure that appropriate and reasonable cash flow projections and assumptions are used. We reconcile our estimated enterprise value to our market capitalization and determine the reasonableness of the cost of capital used by comparing to market data. We also perform sensitivity analyses on the key assumptions used, such as the weighted-average cost of capital and terminal growth rates. The market approach is based on objective evidence of market values.

Intangible Assets

Intangible Assets

We amortize intangible assets and other assets with finite lives over their respective estimated useful lives to their estimated residual values, as follows:

Asset	Useful Life
Deferred financing costs	Effective interest method
Customer relationships	Straight-line method up to 12 years
Patents and others	Straight-line method up to 20 years

We periodically review intangible assets with estimable useful lives for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. We assess recoverability by comparing the estimated expected undiscounted future cash flows identified with each intangible asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value. In assessing the fair value of these intangible assets, we must make assumptions that a market participant would make regarding estimated future cash flows and other factors to determine the fair value of the respective assets. If these estimates or the related assumptions change, we may be required to record impairment charges for these assets in the future.

We review our indefinite-lived intangible assets for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate the asset may be impaired. The provisions of the accounting standard for indefinite-lived intangible assets allow us to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative impairment test. As part of our qualitative assessment, we monitor economic, legal, regulatory and other factors, industry trends, recent and forecasted financial performance of our reporting units and the timing and nature of our restructuring activities for LII as a whole and as they relate to the fair value of the assets. See Note 4 for additional information on our intangible assets.

Product Warranties

Product Warranties

For some of our heating, ventilation and air conditioning (“HVAC”) products, we provide warranty terms ranging from one to 20 years to customers for certain components such as compressors or heat exchangers. For select products, we also provide limited lifetime warranties. A liability for estimated warranty expense is recorded on the date that revenue is recognized. Our estimates of future warranty costs are determined by product line. The number of units we expect to repair or replace is determined by applying an estimated failure rate, which is generally based on historical experience, to the number of units that were sold and are still under warranty. The estimated units to be repaired under warranty are multiplied by the average cost to repair or replace such products to determine the estimated future warranty cost. We do not discount product warranty liabilities as the amounts are not fixed and the timing of future cash payments is neither fixed nor reliably determinable. We also provide for specifically-identified warranty obligations. Estimated future warranty costs are subject to adjustment depending on changes in actual failure rate and cost experience. Subsequent costs incurred for warranty claims serve to reduce the accrued product warranty liability. See Note 10 for more information on our estimated future warranty costs.

Pensions and Post-retirement Benefits

Pensions and Post-retirement Benefits

We provide pension and post-retirement medical benefits to eligible domestic and foreign employees and we recognize pension and post-retirement benefit costs over the estimated service life or average life expectancy of those employees. We also recognize the funded status of our benefit plans, as measured at year-end by the difference between plan assets at fair value and the benefit obligation, in the Consolidated Balance Sheets. Changes in the funded status are recognized in the year in which the changes occur through accumulated other comprehensive income (“AOCI”). Actuarial gains or losses are amortized into net period benefit cost over the estimated service life of covered employees or average life expectancy of participants depending on the plan.

The benefit plan assets and liabilities reflect assumptions about the long-range performance of our benefit plans. Should actual results differ from management's estimates, revisions to the benefit plan assets and liabilities would be required. See Note 12 for information regarding those estimates and additional disclosures on pension and post-retirement medical benefits.

Self Insurance

Self-Insurance

Self-insurance expense and liabilities were actuarially determined based primarily on our historical claims information and industry factors and trends. The self-insurance liabilities as of December 31, 2017 represent the best estimate of the future payments to be made on reported and unreported losses for 2017 and prior years. The amounts and timing of payments for claims reserved may vary depending on various factors, including the development and ultimate settlement of reported and unreported claims. To the extent actuarial assumptions change and claims experience rates differ from historical rates, our liabilities may change. See Note 10 for additional information on our self-insured risks and liabilities.

Derivatives

Derivatives

We use futures contracts, forward contracts and fixed forward contracts to mitigate our exposure to volatility in metal commodity prices and foreign exchange rates. We hedge only exposures in the ordinary course of business and do not hold or trade derivatives for profit. All derivatives are recognized in the Consolidated Balance Sheets at fair value and the classification of each derivative instrument is based upon whether the maturity of the instrument is less than or greater than 12 months. See Note 8 for more information on our derivatives.

Income Taxes

Income Taxes

We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Unrecognized tax benefits are accounted for as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740. See Note 9 for more information related to income taxes.

Revenue Recognition

Revenue Recognition

Our revenue recognition practices for the sale of goods depend upon the shipping terms for each transaction. Shipping terms are primarily FOB Shipping Point and, therefore, revenue is recognized for these transactions when products are shipped to customers and title passes. Certain customers in our smaller operations, primarily outside of North America, have shipping terms where title and risk of ownership do not transfer until the product is delivered to the customer. For these transactions, revenue is recognized on the date that the product is received and accepted by such customers. We experience returns for miscellaneous reasons and record a reserve for these returns at the time we recognize revenue based on historical experience. Our historical rates of return are insignificant as a percentage of sales. We also recognize revenue net of sales taxes.

For our businesses that provide services, revenue is recognized at the time services are completed. Our Commercial Heating & Cooling segment also provides sales, installation, maintenance and repair services under fixed-price contracts. Revenue for equipment sales is recognized in line with shipping terms, revenue for installation services is recognized when completed, and revenue related to maintenance and repair services is recognized when such services are performed.

We engage in cooperative advertising, customer rebate, and other miscellaneous programs that result in payments or credits being issued to our customers. We record these customer discounts and incentives as a reduction of sales when the sales are recorded. For certain cooperative advertising programs, we also receive an identifiable benefit (goods or services) in exchange for the consideration given, and, accordingly, record a ratable portion of the expenditure to Selling, general and administrative (“SG&A”) expenses. All other advertising, promotions and marketing costs are expensed as incurred. See Note 22 for more information on these costs.

Cost of Goods Sold

Cost of Goods Sold

The principal elements of cost of goods sold are components, raw materials, factory overhead, labor, estimated costs of warranty expense and freight and distribution costs.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses

SG&A expenses include payroll and benefit costs, advertising, commissions, research and development, information technology costs, and other selling, general and administrative related costs such as insurance, travel, non-production depreciation and rent.

Stock-Based Compensation

Stock-Based Compensation

We recognize compensation expense for stock-based arrangements over the required employee service periods. We measure stock-based compensation costs on the estimated grant-date fair value of the stock-based awards that are expected to ultimately vest and we adjust expected vesting rates to actual rates as additional information becomes known. For stock-based arrangements with performance conditions, we periodically adjust performance achievement rates based on our best estimates of those rates at the end of the performance period. See Note 14 for more information.

Translation of Foreign Currencies

Translation of Foreign Currencies

All assets and liabilities of foreign subsidiaries and joint ventures are translated into U.S. dollars using rates of exchange in effect at the balance sheet date. Revenue and expenses are translated at weighted average exchange rates during the year. Unrealized translation gains and losses are included in AOCI in the accompanying Consolidated Balance Sheets. Transaction gains and losses are included in Losses and other expenses, net in the accompanying Consolidated Statements of Operations.

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 revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, product warranties, 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 and uncertain future economic conditions combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Reclassifications

Reclassifications

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

Recent Accounting Pronouncements

Recently Adopted Accounting Guidance

On March 30, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the excess tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. This is in comparison to the prior requirement that these excess tax benefits be recognized in additional paid-in capital. The new guidance also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows rather than, as previously required, a financing activity.

We have adopted ASU 2016-09 effective January 1, 2017 on a prospective basis where permitted by the new standard. As a result of this adoption:

• We recognized discrete tax benefits of $23.6 million in the income taxes line item of our consolidated statements of operations for the twelve months ended December 31, 2017 related to excess tax benefits upon vesting or settlement in that period.

• We elected to adopt the cash flow presentation of the excess tax benefits retrospectively where these benefits are classified along with other income tax cash flows as operating cash flows.

• We have elected to continue to estimate the number of stock-based awards expected to vest, rather than electing to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period.

• We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended December 31, 2017.

Recent Accounting Pronouncements

On May 28, 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("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. We have substantially completed our evaluation of the effect that ASU 2014-09 will have on our Consolidated Financial Statements and related disclosures. The ASU will not have a material impact on the amount and timing of revenue recognition, but it will require us to enhance our disclosures to provide additional information relating to disaggregated revenue, contract assets and liabilities, and remaining performance obligations. We are currently in the process of preparing these additional disclosures, including updating our internal controls related to the additional data and disclosures to be provided upon adoption of the new standard. We will adopt the new standard using the modified retrospective approach.

On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). Lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. We will adopt the standard using the prospective approach and are still determining the effect of the standard on our ongoing financial reporting. As a result of the new standard, all of our leases greater than one year in duration will be recognized on our Consolidated Balance Sheets as both operating lease liabilities and right-of-use assets upon adoption of the standard.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU clarify the classification for eight different types of activities, including debt prepayment and extinguishment costs, proceeds from insurance claims and distributions from equity method investees. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2017. This standard is not expected to have a material impact on our consolidated financial statements.

On October 24, 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The new ASU eliminates the existing exception from recognition of the tax consequences of intercompany sales of assets other than inventory. Under the new standard, when an asset (other than inventory) is sold from one consolidated entity to another, the tax consequences to the seller will be recognized currently as a component of the current tax provision. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those years. In accordance with the ASU, our previously deferred tax costs and unrecognized deferred tax assets related to intra-entity asset transfers will need to be recognized at the date of transition through a cumulative effect adjustment to opening retained earnings upon adoption of the standard.

On March 10, 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating expense component is reported with similar compensation costs while the non-operating components are reported in Other Income, net. In addition, only the service cost component is eligible for capitalization as part of an asset such as inventory or property, plant and equipment. The ASU will not have a material impact on our financial results.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance in ASU 2017-12 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We intend to adopt this guidance in 2018 as it will allow us to designate certain aluminum commodity futures contracts as cash flow hedges.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Estimated useful lives of property, plant and equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings and improvements:
Buildings and improvements	2 to 33 years
Leasehold improvements	1 to 39 years
Machinery and equipment:
Computer hardware	3 to 5 years
Computer software	3 to 10 years
Factory machinery and equipment	1 to 15 years
Research and development equipment	3 to 10 years
Vehicles	2 to 8 years

Components of Property, plant and equipment, net were as follows (in millions):

	As of December 31,
	2017			2016
Land	$	35.7		$	33.9
Buildings and improvements	234.4			218.2
Machinery and equipment	804.4			742.1
Capital leases	27.5			27.3
Construction in progress and equipment not yet in service	70.0			57.1
Total	1,172.0			1,078.6
Less accumulated depreciation	(774.2		)	(717.2		)
Property, plant and equipment, net	$	397.8		$	361.4

Identifiable intangible and other assets that have finite lives are amortized over their estimated useful lives

We amortize intangible assets and other assets with finite lives over their respective estimated useful lives to their estimated residual values, as follows:

Asset	Useful Life
Deferred financing costs	Effective interest method
Customer relationships	Straight-line method up to 12 years
Patents and others	Straight-line method up to 20 years

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Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Components of inventories

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

	As of December 31,
	2017			2016
Finished goods	$	331.9		$	287.2
Work in process	5.5			5.1
Raw materials and parts	199.2			183.4
Total	536.6			475.7
Excess of current cost over last-in, first-out cost	(52.4		)	(57.2		)
Total inventories, net	$	484.2		$	418.5

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill in 2017 and 2016, in total and by segment, are summarized in the table below (in millions):

Segment:	Balance at December 31, 2015 (1)		Change in foreign currency translation rate			Balance at December 31, 2016		Change in foreign currency translation rate		Balance at December 31, 2017
Residential Heating & Cooling	$	26.1	$	—		$	26.1	$	—	$	26.1
Commercial Heating & Cooling	60.6		(0.5		)	60.1		2.1		62.2
Refrigeration	108.4		0.5			108.9		3.3		112.2
	$	195.1	$	—		$	195.1	$	5.4	$	200.5

⁽¹⁾ The goodwill balances in the table above are presented net of accumulated impairment charges of $21.2 million, all of which relate to impairments in periods prior to 2016.

Summary of amortization of intangible assets

Identifiable intangible and other assets subject to amortization were recorded in Other assets, net in the accompanying Consolidated Balance Sheets and were comprised of the following (in millions):

	As of December 31,
	2017							2016
	Gross Amount		Accumulated Amortization			Net Amount		Gross Amount		Accumulated Amortization			Net Amount
Customer relationships	15.8		(15.1		)	0.7		15.9		(14.9		)	1.0
Patents and others	14.3		(6.4		)	7.9		12.7		(6.4		)	6.3
Total	$	30.1	$	(21.5	)	$	8.6	$	28.6	$	(21.3	)	$	7.3

Amortization expense

Amortization expense related to these intangible and other assets was as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Amortization expense (1)	$	0.5	$	0.4	$	2.7

⁽¹⁾ Included in the amortization expense in 2015 are amounts relating to customer relationships that were written off during the fourth quarter of 2015.

Summary of estimated intangible amortization expense for the next five years

Estimated amortization expense for the next five years and thereafter is as follows (in millions):

Estimated Future Amortization Expense:
2018	$	0.5
2019	0.5
2020	0.4
2021	0.2
2022	0.2
Thereafter	6.8

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Components of property, plant and equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings and improvements:
Buildings and improvements	2 to 33 years
Leasehold improvements	1 to 39 years
Machinery and equipment:
Computer hardware	3 to 5 years
Computer software	3 to 10 years
Factory machinery and equipment	1 to 15 years
Research and development equipment	3 to 10 years
Vehicles	2 to 8 years

Components of Property, plant and equipment, net were as follows (in millions):

	As of December 31,
	2017			2016
Land	$	35.7		$	33.9
Buildings and improvements	234.4			218.2
Machinery and equipment	804.4			742.1
Capital leases	27.5			27.3
Construction in progress and equipment not yet in service	70.0			57.1
Total	1,172.0			1,078.6
Less accumulated depreciation	(774.2		)	(717.2		)
Property, plant and equipment, net	$	397.8		$	361.4

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Joint Ventures and Other Equity Investments (Tables)

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Summary of combined balance of equity method investments included in other assets, net

The combined balance of equity method investments included in Other assets, net totaled (in millions):

	As of December 31,
	2017		2016
Equity method investments	$	33.3	$	30.7

Summary of cost of goods sold in the consolidated statements of operations

The amounts of purchases included in Cost of goods sold in the Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Purchases of compressors from joint venture	$	106.4	$	97.7	$	103.5

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Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Components of accrued expenses

The significant components of Accrued expenses are presented below (in millions):

	As of December 31,
	2017		2016
Accrued compensation and benefits	$	80.7	$	89.8
Accrued rebates and promotions	70.3		64.6
Accrued warranties	34.8		30.0
Accrued sales, use, property and VAT taxes	21.6		20.2
Accrued asbestos reserves	8.5		9.8
Self insurance reserves	7.3		8.2
Deferred income	7.3		6.4
Derivative contracts	1.4		4.0
Other	38.4		32.9
Total Accrued expenses	$	270.3	$	265.9

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Derivatives (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Amounts related to cash flow hedges

We recorded the following amounts related to our cash flow hedges in AOCI (in millions):

	As of December 31,
	2017			2016
Unrealized gains on unsettled contracts	$	(11.3	)	$	(8.9	)
Income tax expense	3.9			3.3
Gains included in AOCI, net of tax (1)	$	(7.4	)	$	(5.6	)

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $7.1 million of derivative gains into earnings within the next 12 months.

Outstanding foreign currency forward contracts not designated as cash flow hedges

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

	As of December 31,
Notional Amounts	2017	2016
Copper	20.6	30.4

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

	As of December 31,
Notional Amounts (in local currency):	2017	2016
Mexican Peso	207.3	310.1
Canadian Dollar	68.6	24.9

Derivatives not Designated as Cash Flow Hedges

For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as derivatives designated as cash flow hedges, except that we elect not to designate them as cash flow hedges at the inception of the arrangement. We had

the following outstanding commodity futures contracts not designated as cash flow hedges (in millions of pounds):

	As of December 31,
	2017	2016
Copper	1.8	2.4
Aluminum	1.8	2.6

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

	As of December 31,
Notional amounts (in local currency):	2017	2016
Chinese Yuan	73.8	10.5
Mexican Peso	136.6	64.5
Euro	64.4	46.9
British Pound	4.5	1.3
Indian Rupee	39.8	584.6
Singapore Dollar	7.0	—
Australian Dollar	107.0	—
New Zealand Dollar	5.0	—
Canadian Dollar	27.3	—

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 as of December 31 (1)
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated  as Hedging Instruments
	2017		2016		2017		2016
Current Assets:
Other assets
Commodity futures contracts	$	11.0	$	8.7	$	1.2	$	0.7
Foreign currency forward contracts	0.1		0.5		0.9		0.2
Non-Current Assets:
Other assets, net
Commodity futures contracts	0.6		1.9		0.1		0.2
Foreign currency forward contracts	$	—	$	—	$	—	$	—
Total Assets	$	11.7	$	11.1	$	2.2	$	1.1
Current Liabilities:
Accrued expenses
Commodity futures contracts	$	—	$	—	$	—	$	—
Foreign currency forward contracts	0.3		0.8		1.1		3.2
Total Liabilities	$	0.3	$	0.8	$	1.1	$	3.2

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 19 for more information on fair value measurements.

Effect of Derivative Instruments on Consolidated Statements of Operations

Derivatives in Cash Flow Hedging Relationships
	For the Years Ended December 31,
	2017			2016			2015
Amount of (Gain) Loss Reclassified from AOCI into Income (Effective Portion):
Commodity futures contracts (1)	$	(13.7	)	$	12.3		$	12.5
Amount of Loss (Gain) Recognized in Income on Derivatives (Ineffective Portion):
Commodity futures contracts (2)	$	1.0		$	(1.6	)	$	0.1

Derivatives Not Designated as Hedging Instruments
	For the Years Ended December 31,
	2017			2016			2015
Amount of (Gain) Loss Recognized in Income on Derivatives:
Commodity futures contracts (2)	$	(1.9	)	$	(0.9	)	$	2.5
Foreign currency forward contracts (2)	(5.7		)	4.3			0.3
	$	(7.6	)	$	3.4		$	2.8

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

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

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of income tax provision (benefits) from continuing operations

Our Provision for income taxes from continuing operations consisted of the following (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Current:
Federal	$	86.1		$	106.0		$	101.0
State	12.5			14.5			13.1
Foreign	15.0			9.7			3.6
Total current	113.6			130.2			117.7
Deferred:
Federal	43.8			(4.5		)	(21.4		)
State	0.9			(1.2		)	(0.6		)
Foreign	(1.4		)	(0.4		)	(0.3		)
Total deferred	43.3			(6.1		)	(22.3		)
Total provision for income taxes	$	156.9		$	124.1		$	95.4

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Interest expense, net of capitalized interest	$	32.1	$	28.1	$	25.2
Interest income	1.5		1.1		1.6
Interest expense, net	$	30.6	$	27.0	$	23.6

Income from continuing operations before income taxes

Income from continuing operations before income taxes was comprised of the following (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Domestic	$	402.5	$	374.8	$	276.7
Foreign	61.5		27.9		5.9
Total	$	464.0	$	402.7	$	282.6

Summary of difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement provision for taxes

The difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Provision at the U.S. statutory rate of 35%	$	162.4		$	141.0		$	98.9
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	9.2			12.8			8.0
Domestic manufacturing deduction	(9.6		)	(9.2		)	(9.9		)
Tax credits, net of unrecognized tax benefits	(8.6		)	(27.9		)	(0.7		)
Change in unrecognized tax benefits	(0.1		)	(0.3		)	(0.9		)
Change in valuation allowance	6.4			(4.3		)	(0.6		)
Foreign taxes at rates other than 35%	(9.0		)	(1.3		)	0.3
Deemed inclusions	0.3			16.9			0.6
Change in rates from the Tax Act & other law changes	31.8			(0.6		)	0.8
Excess tax benefits from stock-based compensation	(23.6		)	—			—
Miscellaneous other	(2.3		)	(3.0		)	(1.1		)
Total provision for income taxes	$	156.9		$	124.1		$	95.4

Summary of deferred tax assets (liabilities)

Deferred tax assets (liabilities) were comprised of the following (in millions):

	As of December 31,
	2017			2016
Gross deferred tax assets:
Warranties	$	27.3		$	36.3
Loss carryforwards (foreign, U.S. and state)	21.0			19.8
Post-retirement and pension benefits	23.3			33.9
Inventory reserves	7.5			9.6
Receivables allowance	3.5			4.5
Compensation liabilities	11.1			20.6
Deferred income	0.7			1.5
Insurance liabilities	5.1			6.5
Legal reserves	7.6			12.0
Tax credits, net of federal effect	21.3			18.4
Other	7.5			5.4
Total deferred tax assets	135.9			168.5
Valuation allowance	(24.9		)	(17.1		)
Total deferred tax assets, net of valuation allowance	111.0			151.4
Gross deferred tax liabilities:
Depreciation	(5.9		)	(3.3		)
Hedges	(3.6		)	(3.2		)
Intangibles	(4.9		)	(4.9		)
Other	(2.2		)	(3.3		)
Total deferred tax liabilities	(16.6		)	(14.7		)
Net deferred tax assets	$	94.4		$	136.7

Summary of reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

Balance as of December 31, 2015	$	0.5
Increases related to prior year tax positions	1.0
Increases related to current year tax positions	1.4
Settlement	(0.5		)
Balance as of December 31, 2016	2.4
Increases related to prior year tax positions	0.1
Decreases related to prior year tax positions	(2.5		)
Balance as of December 31, 2017	$	—

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Summary of approximate minimum commitments under all non-cancelable leases outstanding

Future annual minimum lease payments and capital lease commitments as of December 31, 2017 were as follows (in millions):

	Operating Leases		Capital Leases
2018	$	55.3	$	3.5
2019	42.4		0.6
2020	28.4		0.4
2021	18.3		0.1
2022	17.7		—
Thereafter	13.8		12.0
Total minimum lease payments	$	175.9	$	16.6
Less amount representing interest			0.2
Present value of minimum payments			$	16.4

Summary of information related to our environmental reserve

Total environmental accruals are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	3.5	$	1.2
Other liabilities	3.1		4.4
Total environmental accruals	$	6.6	$	5.6

Summary of changes in the total warranty liabilities

Total product warranty liabilities related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	34.8	$	30.0
Other liabilities	75.1		71.1
Total product warranty liabilities	$	109.9	$	101.1

The changes in product warranty liabilities related to continuing operations for the years ended December 31, 2017 and 2016 were as follows (in millions):

Total warranty liability as of December 31, 2015	$	92.3
Payments made in 2016	(24.7		)
Changes resulting from issuance of new warranties	36.2
Changes in estimates associated with pre-existing liabilities	(2.6		)
Changes in foreign currency translation rates and other	(0.1		)
Total warranty liability as of December 31, 2016	$	101.1
Payments made in 2017	(28.8		)
Changes resulting from issuance of new warranties	41.1
Changes in estimates associated with pre-existing liabilities	(4.8		)
Changes in foreign currency translation rates and other	1.3
Total warranty liability as of December 31, 2017	$	109.9

Summary of self-insurance liabilities

Total self-insurance liabilities were included in the following captions on the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017		2016
Accrued expenses	$	7.3	$	8.2
Other liabilities	21.6		22.7
Total self-insurance liabilities	$	28.9	$	30.9

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Lines of Credit and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Outstanding debt obligations

The following tables summarize our outstanding debt obligations and the classification in the accompanying Consolidated Balance Sheets (in millions):

	As of December 31,
	2017			2016
Short-Term Debt:
Asset Securitization Program	$	—		$	50.0
Foreign obligations	0.9			2.4
Total short-term debt	$	0.9		$	52.4
Current maturities of long-term debt:
Capital lease obligations	$	3.2		$	0.8
Domestic credit facility	30.0			—
Senior unsecured notes	—			200.0
Debt issuance costs	(0.6		)	(0.7		)
Total current maturities of long-term debt	$	32.6		$	200.1
Long-Term Debt:
Asset Securitization Program	$	276.0		$	—
Capital lease obligations	11.9			15.0
Domestic credit facility	337.0			256.0
Senior unsecured notes	350.0			350.0
Debt issuance costs	(4.4		)	(5.3		)
Total long-term debt	$	970.5		$	615.7
Total debt	$	1,004.0		$	868.2

Aggregate amounts of required principal payments on total debt

As of December 31, 2017, the aggregate amounts of required principal payments on total debt were as follows (in millions):

2018	$	34.1
2019	306.3
2020	30.0
2021	277.0
2022	—
Thereafter	361.6

Eligible amounts available and beneficial interests sold

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

	As of December 31,
	2017			2016
Eligible amount available under the ASP on qualified accounts receivable	$	290.0		$	250.0
Beneficial interest sold	(276.0		)	(50.0		)
Remaining amount available	$	14.0		$	200.0

Summary of weighted average borrowing rate facility

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

	As of December 31,
	2017		2016
Weighted average borrowing rate	2.76	%	2.00	%

Required ratios under the domestic credit facility

The required ratios under our Domestic Credit Facility are detailed below:

Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than	3.5 : 1.0
Cash Flow to Net Interest Expense Ratio no less than	3.0 : 1.0

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Defined contribution plans

We recorded the following expenses related to our contributions to the defined contribution plans (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Contributions to defined contribution plans	$	18.1	$	16.3	$	16.1

Pension and postretirement benefit plans recognized in financial statements

The following tables set forth amounts recognized in our financial statements and the plans' funded status for our pension and post-retirement benefit plans (dollars in millions):

	Pension Benefits						Other Benefits
	2017			2016			2017			2016
Accumulated benefit obligation	$	401.5		$	374.1		N/A			N/A
Changes in projected benefit obligation:
Benefit obligation at beginning of year	$	381.6		$	415.4		$	3.3		$	4.9
Service cost	5.0			4.4			—			—
Interest cost	12.6			15.3			0.1			0.1
Plan participants' contributions	—			—			0.3			0.3
Amendments	—			0.1			—			—
Actuarial (gain) loss	22.1			22.8			(0.1		)	(0.7		)
Effect of exchange rates	4.3			(3.8		)	—			—
Settlements and curtailments	(1.3		)	(50.6		)	—			—
Benefits paid	(18.8		)	(22.0		)	(0.5		)	(1.3		)
Benefit obligation at end of year	$	405.5		$	381.6		$	3.1		$	3.3
Changes in plan assets:
Fair value of plan assets at beginning of year	$	292.5		$	293.0		$	—		$	—
Actual gain (loss) return on plan assets	39.8			21.0			—			—
Employer contribution	3.5			53.9			0.3			1.0
Plan participants' contributions	—			—			0.2			0.3
Effect of exchange rates	2.9			(2.8		)	—			—
Plan settlements	(1.3		)	(50.6		)	—			—
Benefits paid	(18.8		)	(22.0		)	(0.5		)	(1.3		)
Fair value of plan assets at end of year	318.6			292.5			—			—
Funded status / net amount recognized	$	(86.9	)	$	(89.1	)	$	(3.1	)	$	(3.3	)
Net amount recognized consists of:
Noncurrent assets	$	1.6		$	—		$	—		$	—
Current liability	(4.0		)	(1.6		)	(0.5		)	(0.5		)
Non-current liability	(84.5		)	(87.5		)	(2.6		)	(2.8		)
Net amount recognized	$	(86.9	)	$	(89.1	)	$	(3.1	)	$	(3.3	)

Schedule of non-current pension liability plan

	For the Years Ended December 31,
	2017		2016
Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$	394.4	$	370.2
Accumulated benefit obligation	390.4		362.9
Fair value of plan assets	305.9		280.8

Components of net periodic benefit cost

Our U.S.-based pension plans comprised approximately 88% of the projected benefit obligation and 87% of plan assets as of December 31, 2017.

	Pension Benefits									Other Benefits
	2017			2016			2015			2017			2016			2015
Components of net periodic benefit cost as of December 31:
Service cost	$	5.0		$	4.4		$	4.8		$	—		$	—		$	—
Interest cost	12.6			15.3			17.2			0.1			0.1			0.2
Expected return on plan assets	(21.3		)	(21.5		)	(21.4		)	—			—			—
Amortization of prior service cost	0.2			0.3			0.2			(2.4		)	(3.0		)	(3.1		)
Recognized actuarial loss	8.1			7.6			9.5			1.4			1.4			1.5
Settlements and curtailments(1)	0.7			31.6			0.4			—			—			—
Net periodic benefit cost	$	5.3		$	37.7		$	10.7		$	(0.9	)	$	(1.5	)	$	(1.4	)

⁽¹⁾ The Consolidated Statements of Operations discloses $31.4 million related to pension settlement charges that represent the lump-sum payments made in the fourth quarter of 2016.

Summary of amounts recognized in AOCI in our financial statements

The following table sets forth amounts recognized in AOCI and Other comprehensive income (loss) in our financial statements for 2017 and 2016 (in millions):

	Pension Benefits						Other Benefits
	2017			2016			2017			2016
Amounts recognized in AOCI:
Prior service costs	$	(0.8	)	$	(0.9	)	$	9.5		$	12.0
Actuarial loss	(194.6		)	(197.3		)	(14.7		)	(16.3		)
Subtotal	(195.4		)	(198.2		)	(5.2		)	(4.3		)
Deferred taxes	71.2			71.0			1.9			1.6
Net amount recognized	$	(124.2	)	$	(127.2	)	$	(3.3	)	$	(2.7	)
Changes recognized in other comprehensive income (loss):
Current year prior service costs	0.1			0.1			—			—
Current year actuarial (gain) loss	3.7			23.3			(0.1		)	(0.7		)
Effect of exchange rates	1.7			(1.5		)	—			—
Amortization of prior service (costs) credits	(0.2		)	(0.3		)	2.4			3.1
Amortization of actuarial loss	(8.8		)	(39.2		)	(1.4		)	(1.4		)
Total recognized in other comprehensive income (loss)	$	(3.5	)	$	(17.6	)	$	0.9		$	1.0
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	1.8		$	20.1		$	—		$	(0.5	)

Summary of health care cost trend rates

The following table sets forth the healthcare trend rate assumptions used:

	2017		2016
Assumed health care cost trend rates as of December 31:
Health care cost trend rate assumed for next year	6.50	%	6.50	%
Rate to which the cost rate is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2021		2020

Summary of one percentage-point change in assumed healthcare cost trend rate

A one percentage-point change in assumed healthcare cost trend rates would have the following effects (in millions):

	1-Percentage-Point Increase		1-Percentage-Point Decrease
Effect on total of service and interest cost	$	—	$	—
Effect on the post-retirement benefit obligation	0.1		(0.1		)

Summary of expected future benefit payments

Expected future benefit payments are shown in the table below (in millions):

	For the Years Ended December 31,
	2018		2019		2020		2021		2022		2023-2027
Pension benefits	$	21.8	$	19.3	$	19.9	$	26.0	$	20.4	$	146.4
Other benefits	0.5		0.5		0.4		0.3		0.3		0.9

Summary of weighted-average asset allocations

Our U.S. pension plans' weighted-average asset allocations as of December 31, 2017 and 2016, by asset category, are as follows:

	Plan Assets as of December 31,
Asset Category:	2017		2016
U.S. equity	12.5	%	27.0	%
International equity	15.1	%	18.5	%
Fixed income	71.1	%	52.5	%
Money market/cash	1.3	%	2.0	%
Total	100.0	%	100.0	%

Summary of target allocation percentage of assets

U.S. pension plan assets are invested according to the following targets:

Asset Category:	Target
U.S. equity	12.5	%
International equity	12.5	%
Fixed income	73.0	%
Money market/cash	2.0	%

Summary of fair value of pension plan asset, by asset category

The fair values of our pension plan assets, by asset category, are as follows (in millions):

	Fair Value Measurements as of December 31, 2017
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Asset Category:
Cash and cash equivalents	3.9	—	—	3.9
Commingled pools / Collective Trusts:
U.S. equity (1)	—	34.7	—	34.7
International equity (2)	—	42.2	—	42.2
Fixed income (3)	—	197.9	—	197.9
Balanced pension trust: (4)
International equity	—	4.6	—	4.6
Fixed income	—	13.6	—	13.6
Pension fund:
International equity (5)	—	3.3	—	3.3
Fixed income (6)	—	5.9	—	5.9
Blend (7)	—	12.5	—	12.5
Total	3.9	314.7	—	318.6

	Fair Value Measurements as of December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Asset Category:
Cash and cash equivalents	5.3	—	—	5.3
Commingled pools / Collective Trusts:
U.S. equity (1)	—	69.5	—	69.5
International equity (2)	—	47.6	—	47.6
Fixed income (3)	—	134.9	—	134.9
Balanced pension trust: (4)
International equity	—	4.7	—	4.7
Fixed income	—	11.9	—	11.9
Pension fund:
International equity (5)	—	13.5	—	13.5
Fixed income (6)	—	5.1	—	5.1
Total	5.3	287.2	—	292.5

Summary of additional information about asset measured at net asset value per share

Additional information about assets measured at Net Asset Value (“NAV”) per share (in millions):

	As of December 31, 2017
	Fair Value		Redemption Frequency  (if currently eligible)	Redemption Notice Period
Asset Category:
Commingled pools / Collective Trusts:
U.S. equity (1)	$	34.7	Daily	5 days
International equity (2)	42.2		Daily	5 days
Fixed income (3)	197.9		Daily	5-15 days
Balanced pension trust: (4)
International equity	4.6		Daily	3-5 days
Fixed income	13.6		Daily	3-5 days
Pension fund:
International equity (5)	3.3		Daily	1-3 days
Fixed income (6)	5.9		Daily	1-7 days
Blend (7)	12.5		Daily	1-3 days
Total	$	314.7

	As of December 31, 2016
	Fair Value		Redemption Frequency  (if currently eligible)	Redemption Notice Period
Asset Category:
Commingled pools / Collective Trusts:
U.S. equity (1)	$	69.5	Daily	5 days
International equity (2)	47.6		Daily	5 days
Fixed income (3)	134.9		Daily	5-15 days
Balanced pension trust: (4)
International equity	4.7		Daily	3-5 days
Fixed income	11.9		Daily	3-5 days
Pension fund:
International equity (5)	13.5		Daily	1-7 days
Fixed income (6)	5.1		Daily	1-7 days
Total	$	287.2

(1)	This category includes investments primarily in U.S. equity securities that include large, mid and small capitalization companies.
(2)	This category includes investments primarily in international equity securities that include large, mid and small capitalization companies in large developed markets as well as emerging markets equities.
(3)	This category includes investments in U.S. investment grade and high yield fixed income securities, international fixed income securities and emerging markets fixed income securities.
(4)	The investment objectives of the fund are to provide long-term capital growth and income by investing primarily in a well-diversified, balanced portfolio of Canadian common stocks, bonds and money market securities. The fund also holds a portion of its assets in international equities.
(5)	This category includes investments in international equity securities and aims to provide returns consistent with the markets in which it invests and provide broad exposure to countries around the world.
(6)	This category includes investments in U.K. government index-linked securities (index-linked gilts) that have maturity periods of 5 years or longer with a derivatives overlay and investment grade corporate bonds denominated in sterling.
(7)	This category includes investments in pooled funds where the fund manager has discretion for the asset allocation and can invest in a wide range of international and US asset classes including equity, credit markets, sovereign debt and alternative assets (including derivative-based strategies).

Domestic Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Weighted-average assumptions used to determine Benefit Obligations and Net Periodic Benefit Cost for the U.S. and Non-U.S.-based plans

The following tables set forth the weighted-average assumptions used to determine Benefit obligations and Net periodic benefit cost for the U.S.-based plans in 2017 and 2016:

	Pension Benefits				Other Benefits
	2017		2016		2017		2016
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	3.66	%	4.17	%	3.25	%	3.50	%
Rate of compensation increase	4.23	%	4.23	%	—		—

	Pension Benefits						Other Benefits
	2017		2016		2015		2017		2016		2015
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	3.96	%	4.30	%	3.97	%	4.61	%	4.95	%	3.23	%
Discount rate - interest cost	3.51	%	3.76	%	3.97	%	2.56	%	2.49	%	3.23	%
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%	—		—		—
Rate of compensation increase	4.23	%	4.23	%	4.23	%	—		—		—

Foreign Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Weighted-average assumptions used to determine Benefit Obligations and Net Periodic Benefit Cost for the U.S. and Non-U.S.-based plans

The following tables set forth the weighted-average assumptions used to determine Benefit obligations and Net periodic benefit cost for the non-U.S.-based plans in 2017 and 2016:

	Pension Benefits
	2017		2016
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	2.58	%	2.83	%
Rate of compensation increase	3.63	%	3.78	%

	Pension Benefits
	2017		2016		2015
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	1.34	%	2.04	%	4.12	%
Discount rate - interest cost	2.75	%	3.45	%	4.12	%
Expected long-term return on plan assets	4.40	%	4.87	%	5.22	%
Rate of compensation increase	3.78	%	3.70	%	3.48	%

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Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Items not reclassified in their entirety from Accumulated Other Comprehensive Income to Net Income

The following table provides information on items not reclassified in their entirety from AOCI to Net Income in the accompanying Consolidated Statements of Operations (in millions):

	For the Years Ended December 31,
AOCI Component	2017			2016			Affected Line Item(s) in the Consolidated Statements of Operations
Gains/(Losses) on cash flow hedges:
Commodity derivative contracts	$	13.7		$	(12.3	)	Cost of goods sold
Income tax benefit	(5.0		)	4.3			Provision for income taxes
Net of tax	$	8.7		$	(8.0	)
Defined Benefit Plan Items:
Pension and Post-Retirement Benefits costs	$	(7.3	)	$	(6.3	)	Cost of goods sold; Selling, general and administrative expenses
Income tax benefit	2.8			2.2			Provision for income taxes
Net of tax	$	(4.5	)	$	(4.1	)
Total reclassifications from AOCI	$	4.2		$	(12.1	)

Changes in AOCI by component (net of tax)

The following tables provide information on changes in AOCI, by component (net of tax), for the years ended December 31, 2017 and 2016 (in millions):

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Plan Items			Foreign Currency Translation Adjustments			Total AOCI
Balance as of December 31, 2016	$	5.6		$	2.3		$	(130.0	)	$	(73.0	)	$	(195.1	)
Other comprehensive income (loss) before reclassifications	10.5			(0.5		)	(2.0		)	33.9			41.9
Amounts reclassified from AOCI	(8.7		)	—			4.5			—			(4.2		)
Net other comprehensive income (loss)	1.8			(0.5		)	2.5			33.9			37.7
Balance as of December 31, 2017	$	7.4		$	1.8		$	(127.5	)	$	(39.1	)	$	(157.4	)

	Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for-Sale Securities			Defined Benefit Plan Items			Foreign Currency Translation Adjustments			Total AOCI
Balance as of December 31, 2015	$	(8.4	)	$	4.4		$	(139.3	)	$	(61.4	)	$	(204.7	)
Other comprehensive income (loss) before reclassifications	6.0			(2.1		)	5.2			(11.6		)	(2.5		)
Amounts reclassified from AOCI	8.0			—			4.1			—			12.1
Net other comprehensive income (loss)	14.0			(2.1		)	9.3			(11.6		)	9.6
Balance as of December 31, 2016	$	5.6		$	2.3		$	(130.0	)	$	(73.0	)	$	(195.1	)

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of stock -based compensation expense in operations

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

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense(1)	$	24.9	$	31.7	$	26.6

⁽¹⁾ Stock-based compensation expense was recorded in our Corporate and other business segment.

Summary of status of undistributed performance share units

A summary of the status of our undistributed performance share units as of December 31, 2017, and changes during the year then ended, is presented below (in millions, except per share data):

	Shares (2)		Weighted- Average Grant Date Fair Value per Share
Undistributed performance share units as of December 31, 2016	0.4		$	101.03
Granted	0.1		197.54
Adjustment to shares paid based on payout ratio	0.1		88.26
Distributed	(0.2	)	81.17
Forfeited	—		—
Undistributed performance share units as of December 31, 2017 (1)	0.3		$	123.80

⁽¹⁾ Undistributed performance share units include approximately 0.2 million units with a weighted-average grant date fair value of $154.90 per share that had not yet vested and 0.2 million units that have vested but were not yet distributed.

⁽²⁾ Share amounts are rounded but the balance of undistributed performance share units as of December 31, 2017 accurately reflects actual units undistributed.

Fair value of performance share units and tax deductions

The total fair value of performance share units distributed and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Fair value of performance share units distributed	$	64.3	$	39.4	$	44.9
Realized tax benefits from tax deductions	$	24.5	$	15.0	$	17.1

Summary of non vested restricted stock units

A summary of our non-vested restricted stock units as of December 31, 2017 and changes during the year then ended is presented below (in millions, except per share data):

	Shares(2)		Weighted- Average Grant Date Fair Value per Share
Non-vested restricted stock units as of December 31, 2016	0.3		$	118.38
Granted	0.1		197.54
Distributed	(0.1	)	89.33
Forfeited	—		—
Non-vested restricted stock units as of December 31, 2017(1)	0.2		$	156.16

Fair value of restricted stock units and tax deductions

The total fair value of restricted stock units vested and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Fair value of restricted stock units vested	$	19.0	$	17.0	$	19.7
Realized tax benefits from tax deductions	7.2		6.5		7.5

Summary of stock appreciation rights activity

A summary of our stock appreciation rights as of December 31, 2017, and changes during the year then ended, is presented below (in millions, except per share data):

	Shares		Weighted-Average Exercise Price per Share
Outstanding stock appreciation rights as of December 31, 2016	1.1		$	98.35
Granted	0.2		205.53
Exercised	(0.2	)	70.00
Forfeited	—		—
Outstanding stock appreciation rights as of December 31, 2017	1.1		$	121.63
Exercisable stock appreciation rights as of December 31, 2017	0.7		$	90.43

Summary of stock appreciation rights outstanding

The following table summarizes information about stock appreciation rights outstanding as of December 31, 2017 (in millions, except per share data and years):

	Stock Appreciation Rights Outstanding				Stock Appreciation Rights Exercisable
Range of Exercise Prices	Shares	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value		Shares	Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
$34.06 to $81.14	0.3	2.21	$	49.3	0.3	2.21	$	49.3
$92.64 to $ 131.94	0.3	4.52	$	31.9	0.3	4.42	$	27.5
$156.94 to $205.53	0.4	6.45	$	12.1	0.1	6.00	$	3.9

Schedule of total intrinsic value of stock appreciation rights exercised

The total intrinsic value of stock appreciation rights exercised and the resulting tax deductions to realize tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Intrinsic value of stock appreciation rights exercised	$	25.1	$	36.9	$	27.3
Realized tax benefits from tax deductions	$	9.6	$	14.1	$	10.4

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of share-based payment awards

The following table provides information on our performance share units:

	For the Years Ended December 31,
	2017			2016			2015
Compensation expense for performance share units (in millions)	$	12.2		$	18.1		$	13.6
Weighted-average fair value of grants, per share	$	197.54		$	150.21		$	126.31
Payout ratio for shares paid	185.9		%	200.0		%	200.0		%

Restricted Stock Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of share-based payment awards

The following table provides information on our restricted stock units (in millions, except per share data):

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense for restricted stock units	$	8.3	$	9.0	$	8.3
Weighted-average fair value of grants, per share	$	197.54	$	150.14	$	126.15

Stock Appreciation Rights [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of share-based payment awards

The following table provides information on our stock appreciation rights (in millions, except per share data):

	For the Years Ended December 31,
	2017		2016		2015
Compensation expense for stock appreciation rights	$	4.4	$	4.6	$	4.7
Weighted-average fair value of grants, per share	32.32		22.93		22.74

Schedule of assumptions used

The fair value of the stock appreciation rights granted in 2017, 2016 and 2015 were estimated on the date of grant using the following assumptions:

	2017		2016		2015
Expected dividend yield	1.47	%	1.62	%	1.61	%
Risk-free interest rate	2.02	%	1.66	%	1.36	%
Expected volatility	19.97	%	19.60	%	23.78	%
Expected life (in years)	3.95		3.99		4.00

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Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring Charges [Abstract]

Information regarding restructuring charges

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

	Incurred in 2017		Incurred to Date		Total Expected to be Incurred
Severance and related expense	$	2.0	$	11.3	$	11.5
Asset write-offs and accelerated depreciation	0.8		3.2		3.2
Equipment moves	—		—		—
Lease termination	—		0.2		0.2
Other	0.4		4.1		4.5
Total	$	3.2	$	18.8	$	19.4

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):

	Incurred in 2017		Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	0.5	$	1.4	$	1.4
Commercial Heating & Cooling	0.9		2.0		2.1
Refrigeration	1.2		13.1		13.1
Corporate & Other	0.6		2.3		2.8
Total	$	3.2	$	18.8	$	19.4

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	Products 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 and supplies	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, variable refrigerant flow commercial products	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 activity within the restructuring accruals is summarized in the tables below (in millions):

Description of Reserves:	Balance as of December 31, 2016		Charged to Earnings		Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2017
Severance and related expense	$	—	$	2.0	$	(1.8	)	$	—		$	0.2
Asset write-offs and accelerated depreciation	—		0.8		(0.2		)	(0.6		)	—
Equipment moves	—		—		—			—			—
Lease termination	—		—		—			—			—
Other	—		0.4		(0.4		)	—			—
Total restructuring reserves	$	—	$	3.2	$	(2.4	)	$	(0.6	)	$	0.2

Description of Reserves:	Balance as of December 31, 2015		Charged to Earnings			Cash Utilization			Non-Cash Utilization and Other			Balance as of December 31, 2016
Severance and related expense	$	0.7	$	(0.2	)	$	(0.5	)	$	—		$	—
Asset write-offs and accelerated depreciation	—		0.3			(0.2		)	(0.1		)	—
Equipment moves	—		—			—			—			—
Lease termination	0.2		—			(0.2		)	—			—
Other	—		1.7			(1.8		)	0.1			—
Total restructuring reserves	$	0.9	$	1.8		$	(2.7	)	$	—		$	—

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Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

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

The computations of basic and diluted earnings per share for Income from continuing operations were as follows (in millions, except per share data):

	For the Years Ended December 31,
	2017			2016			2015
Net income	$	305.7		$	277.8		$	186.6
Add: Loss from discontinued operations	1.4			0.8			0.6
Income from continuing operations	$	307.1		$	278.6		$	187.2
Weighted-average shares outstanding – basic	42.2			43.4			44.9
Add: Potential effect of diluted securities attributable to stock-based payments	0.6			0.6			0.7
Weighted-average shares outstanding – diluted	42.8			44.0			45.6
Earnings per share - Basic:
Income from continuing operations	$	7.28		$	6.41		$	4.17
Loss from discontinued operations	(0.03		)	(0.02		)	(0.01		)
Net income	$	7.25		$	6.39		$	4.16
Earnings per share - Diluted:
Income from continuing operations	$	7.17		$	6.34		$	4.11
Loss from discontinued operations	(0.03		)	(0.02		)	(0.02		)
Net income	$	7.14		$	6.32		$	4.09

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Reportable Business Segments (Tables)

12 Months Ended

Dec. 31, 2017

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):

	Incurred in 2017		Incurred to Date		Total Expected to be Incurred
Residential Heating & Cooling	$	0.5	$	1.4	$	1.4
Commercial Heating & Cooling	0.9		2.0		2.1
Refrigeration	1.2		13.1		13.1
Corporate & Other	0.6		2.3		2.8
Total	$	3.2	$	18.8	$	19.4

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	Products 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 and supplies	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, variable refrigerant flow commercial products	Light Commercial	United States Canada Europe
Refrigeration	Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems	Light Commercial; Food Preservation; Non-Food/Industrial	United States Canada Europe Asia Pacific South America

Net sales and segment profit (loss) with reconciliation of segment profit (loss)

Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Net Sales (1)
Residential Heating & Cooling	$	2,140.4		$	2,000.8		$	1,866.9
Commercial Heating & Cooling	973.8			917.9			887.2
Refrigeration	725.4			722.9			713.3
	$	3,839.6		$	3,641.6		$	3,467.4
Segment Profit (Loss) (2)
Residential Heating & Cooling	$	373.9		$	348.8		$	278.4
Commercial Heating & Cooling	157.3			149.3			130.4
Refrigeration	72.6			68.9			52.9
Corporate and other	(89.2		)	(97.4		)	(84.1		)
Subtotal segment profit	514.6			469.6			377.6
Reconciliation to Operating income:
Special product quality adjustments	5.4			(0.4		)	(2.2		)
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss) (2)	11.5			7.4			15.6
Restructuring charges	3.2			1.8			3.2
Pension settlement	—			31.4			—
Goodwill impairment	—			—			5.5
Asset impairment	—			—			44.5
One time inventory write down	—			—			5.6
Operating income	$	494.5		$	429.4		$	305.4

⁽¹⁾ On a consolidated basis, no revenue from transactions with a single customer were 10% or greater of our consolidated net sales for any of the periods presented.

⁽²⁾ The Company defines segment profit (loss) as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding:

• Special product quality adjustments;

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

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

◦ Special legal contingency charges,

◦ Asbestos-related litigation,

◦ Environmental liabilities,

◦ Contractor tax payments,

◦ Acquisition/disposition costs, and

◦ Other items, net;

• Restructuring charges;

• Pension settlement;

• Goodwill and asset impairments; and

• One time inventory write down.

Total assets by business segment

Total assets by segment are shown below (in millions):

	As of December 31,
	2017		2016		2015
Total Assets:
Residential Heating & Cooling	$	771.3	$	673.4	$	628.3
Commercial Heating & Cooling	443.9		385.8		363.6
Refrigeration	506.9		442.8		444.9
Corporate and other	169.4		258.3		240.6
Total assets	$	1,891.5	$	1,760.3	$	1,677.4

Summary of capital expenditures, depreciation and amortization, and income from equity method investments expense by business segment

Total capital expenditures by segment are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Capital Expenditures:
Residential Heating & Cooling	$	38.9	$	36.7	$	28.1
Commercial Heating & Cooling	18.5		11.5		8.6
Refrigeration	8.0		12.1		11.4
Corporate and other	32.9		24.0		21.8
Total capital expenditures (1)	$	98.3	$	84.3	$	69.9

⁽¹⁾ Includes amounts recorded under capital leases. There were no significant new capital leases in 2017, 2016 or 2015.

Depreciation and amortization expenses by segment are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Depreciation and Amortization:
Residential Heating & Cooling	$	24.9	$	21.0	$	20.7
Commercial Heating & Cooling	10.1		9.8		9.7
Refrigeration	9.9		9.7		15.5
Corporate and other	19.7		17.6		16.9
Total depreciation and amortization	$	64.6	$	58.1	$	62.8

The equity method investments are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Income from Equity Method Investments:
Refrigeration	$	3.9	$	4.0	$	2.8
Residential	11.7		11.5		8.0
Commercial	2.8		2.9		2.6
Total income from equity method investments	$	18.4	$	18.4	$	13.4

Summary of financial information relating to geographic area based operations

Net sales for each major geographic area in which we operate are shown below (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Net Sales to External Customers by Point of Shipment:
United States	$	3,128.7	$	2,966.8	$	2,793.4
Canada	237.8		218.8		217.7
International	473.1		456.0		456.3
Total net sales to external customers	$	3,839.6	$	3,641.6	$	3,467.4

Property, plant, and equipment, net for each major geographic area

Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):

	As of December 31,
	2017		2016		2015
Property, Plant and Equipment, net:
United States	$	257.6	$	237.6	$	224.8
Mexico	79.8		69.4		60.0
Canada	1.7		1.4		1.2
International	58.7		53.0		53.6
Total Property, plant and equipment, net	$	397.8	$	361.4	$	339.6

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the fair values of an investment in marketable equity securities, 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 December 31,
	2017		2016
Quoted Prices in Active Markets for Identical Assets (Level 1):
Investment in marketable equity securities	$	4.1	$	4.4

Other Fair Value Measurements

The following table presents the fair value for our senior unsecured notes in Long-term debt (in millions):

	As of December 31,
	2017		2016
Quoted Prices in Active Markets for Similar Instruments (Level 2):
Senior unsecured notes	$	308.1	$	499.3

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Selected Quarterly Financial Information (unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Summary of information on net sales, gross profit, net income, earnings per share and dividends per share

The following tables provide information on Net sales, Gross profit, Net income, Earnings per share and Cash dividends declared per share by quarter (in millions, except per share data):

	Net Sales (1)				Gross Profit (1)				Net Income (1)
	2017		2016		2017		2016		2017		2016
First Quarter	$	793.4	$	715.2	$	210.9	$	183.6	$	43.5	$	24.9
Second Quarter	1,102.1		1,019.2		340.8		315.0		115.5		110.7
Third Quarter	1,052.3		1,010.0		313.7		310.3		103.5		101.7
Fourth Quarter	891.8		897.3		259.8		267.6		43.1		40.4

	Basic Earnings per Share (2)				Diluted Earnings per Share (2)				Cash Dividends per Common Share
	2017		2016		2017		2016		2017		2016
First Quarter	$	1.02	$	0.57	$	1.00	$	0.56	$	0.43	$	0.36
Second Quarter	2.73		2.54		2.69		2.51		0.51		0.43
Third Quarter	2.47		2.35		2.44		2.33		0.51		0.43
Fourth Quarter	1.03		0.94		1.02		0.93		0.51		0.43

⁽¹⁾ The sum of the quarterly results for each of the four quarters may not equal the full year results due to rounding.

⁽²⁾ EPS for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while EPS for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the EPS for each of the four quarters may not equal the EPS for the fiscal year.

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Losses and Other Expenses, net (Tables)

12 Months Ended

Dec. 31, 2017

Losses (Gains) and Other Expenses, net [Abstract]

Summary of losses and other expenses, net

Losses and other expenses, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Realized (gains) losses on settled futures contracts	$	(1.7	)	$	1.1		$	1.9
Foreign currency exchange (gains) losses	(1.8		)	2.2			3.6
Losses on disposal of fixed assets	0.2			0.5			0.6
Net change in unrealized losses (gains) on unsettled futures contracts	0.9			(3.6		)	0.6
Asbestos-related litigation	3.5			6.3			3.0
Acquisition/disposition expenses	1.1			0.4			1.0
Special legal contingency charges	3.7			1.9			7.4
Environmental liabilities	2.2			1.9			1.0
Contractor tax payments	0.1			0.6			2.6
Losses and other expenses, net	$	8.2		$	11.3		$	21.7

Below is information about expenses included in our Consolidated Statements of Operations (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Research and development	$	73.6	$	64.6	$	62.3
Advertising, promotions and marketing (1)	45.0		41.0		42.5
Cooperative advertising expenditures (2)	18.6		14.7		13.7
Rent expense	57.7		57.9		53.5

⁽¹⁾ Cooperative advertising expenditures were not included in these amounts.

⁽²⁾ Cooperative advertising expenditures were included in Selling, general and administrative expenses in the Consolidated Statements of Operations.

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Supplemental Information (Tables)

12 Months Ended

Dec. 31, 2017

Supplemental Information [Abstract]

Summary of expenses in statements of operations

Losses and other expenses, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Realized (gains) losses on settled futures contracts	$	(1.7	)	$	1.1		$	1.9
Foreign currency exchange (gains) losses	(1.8		)	2.2			3.6
Losses on disposal of fixed assets	0.2			0.5			0.6
Net change in unrealized losses (gains) on unsettled futures contracts	0.9			(3.6		)	0.6
Asbestos-related litigation	3.5			6.3			3.0
Acquisition/disposition expenses	1.1			0.4			1.0
Special legal contingency charges	3.7			1.9			7.4
Environmental liabilities	2.2			1.9			1.0
Contractor tax payments	0.1			0.6			2.6
Losses and other expenses, net	$	8.2		$	11.3		$	21.7

Below is information about expenses included in our Consolidated Statements of Operations (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Research and development	$	73.6	$	64.6	$	62.3
Advertising, promotions and marketing (1)	45.0		41.0		42.5
Cooperative advertising expenditures (2)	18.6		14.7		13.7
Rent expense	57.7		57.9		53.5

⁽¹⁾ Cooperative advertising expenditures were not included in these amounts.

⁽²⁾ Cooperative advertising expenditures were included in Selling, general and administrative expenses in the Consolidated Statements of Operations.

Summary of components of interest expense

Our Provision for income taxes from continuing operations consisted of the following (in millions):

	For the Years Ended December 31,
	2017			2016			2015
Current:
Federal	$	86.1		$	106.0		$	101.0
State	12.5			14.5			13.1
Foreign	15.0			9.7			3.6
Total current	113.6			130.2			117.7
Deferred:
Federal	43.8			(4.5		)	(21.4		)
State	0.9			(1.2		)	(0.6		)
Foreign	(1.4		)	(0.4		)	(0.3		)
Total deferred	43.3			(6.1		)	(22.3		)
Total provision for income taxes	$	156.9		$	124.1		$	95.4

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):

	For the Years Ended December 31,
	2017		2016		2015
Interest expense, net of capitalized interest	$	32.1	$	28.1	$	25.2
Interest income	1.5		1.1		1.6
Interest expense, net	$	30.6	$	27.0	$	23.6

XML

Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed consolidating balance sheets

Condensed Consolidating Balance Sheets

As of December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.6		$	28.0	$	38.6		$	—		$	68.2
Accounts and notes receivable, net	—			35.3		471.2			—			506.5
Inventories, net	—			355.7		131.9			(3.4		)	484.2
Other assets	16.2			23.1		67.5			(28.4		)	78.4
Total current assets	17.8			442.1		709.2			(31.8		)	1,137.3
Property, plant and equipment, net	—			257.6		144.4			(4.2		)	397.8
Goodwill	—			134.9		65.6			—			200.5
Investment in subsidiaries	1,257.7			365.8		(0.6		)	(1,622.9		)	—
Deferred income taxes	3.9			69.1		33.6			(12.2		)	94.4
Other assets, net	2.1			41.3		19.6			(1.5		)	61.5
Intercompany receivables (payables), net	(559.3		)	554.7		107.4			(102.8		)	—
Total assets	$	722.2		$	1,865.5	$	1,079.2		$	(1,775.4	)	$	1,891.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	0.9		$	—		$	0.9
Current maturities of long-term debt	29.4			2.9		0.3			—			32.6
Accounts payable	21.3			228.0		99.3			—			348.6
Accrued expenses	3.1			209.4		57.8			—			270.3
Income taxes payable	(64.5		)	56.5		60.9			(50.8		)	2.1
Total current liabilities	(10.7		)	496.8		219.2			(50.8		)	654.5
Long-term debt	682.8			11.7		276.0			—			970.5
Post-retirement benefits, other than pensions	—			2.6		—			—			2.6
Pensions	—			74.7		9.8			—			84.5
Other liabilities	—			120.6		8.7			—			129.3
Total liabilities	672.1			706.4		513.7			(50.8		)	1,841.4
Commitments and contingencies
Total stockholders' equity	50.1			1,159.1		565.5			(1,724.6		)	50.1
Total liabilities and stockholders' equity	$	722.2		$	1,865.5	$	1,079.2		$	(1,775.4	)	$	1,891.5

Condensed Consolidating Balance Sheets

As of December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.2		$	17.1	$	31.9		$	—		$	50.2
Accounts and notes receivable, net	—			30.6		439.2			—			469.8
Inventories, net	—			314.7		108.9			(5.1		)	418.5
Other assets	12.8			48.8		67.5			(61.7		)	67.4
Total current assets	14.0			411.2		647.5			(66.8		)	1,005.9
Property, plant and equipment, net	—			237.6		123.8			—			361.4
Goodwill	—			134.9		60.2			—			195.1
Investment in subsidiaries	1,166.9			524.7		(0.5		)	(1,691.1		)	—
Deferred income taxes	6.8			113.5		31.1			(14.7		)	136.7
Other assets, net	3.6			40.0		19.0			(1.4		)	61.2
Intercompany receivables (payables), net	(382.4		)	375.2		80.4			(73.2		)	—
Total assets	$	808.9		$	1,837.1	$	961.5		$	(1,847.2	)	$	1,760.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	52.4		$	—		$	52.4
Current maturities of long-term debt	199.3			0.4		0.4			—			200.1
Accounts payable	18.5			248.5		94.2			—			361.2
Accrued expenses	6.3			206.3		53.3			—			265.9
Income taxes payable	(54.0		)	89.8		52.5			(79.3		)	9.0
Total current liabilities	170.1			545.0		252.8			(79.3		)	888.6
Long-term debt	600.9			14.5		0.3			—			615.7
Post-retirement benefits, other than pensions	—			2.8		—			—			2.8
Pensions	—			75.5		12.0			—			87.5
Other liabilities	—			119.1		11.1			(2.5		)	127.7
Total liabilities	771.0			756.9		276.2			(81.8		)	1,722.3
Commitments and contingencies
Total stockholders' equity	37.9			1,080.2		685.3			(1,765.4		)	38.0
Total liabilities and stockholders' equity	$	808.9		$	1,837.1	$	961.5		$	(1,847.2	)	$	1,760.3

Condensed consolidating statements of operations and comprehensive income

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	3,295.8		$	1,144.2		$	(600.4	)	$	3,839.6
Cost of goods sold	—			2,359.6			953.6			(598.8		)	2,714.4
Gross profit	—			936.2			190.6			(1.6		)	1,125.2
Operating expenses:
Selling, general and administrative expenses	—			553.6			85.0			(0.9		)	637.7
Losses (gains) and other expenses, net	2.0			4.4			1.9			(0.1		)	8.2
Restructuring charges	—			2.1			1.1			—			3.2
Goodwill impairment	—			—			—			—			—
Asset impairment	—			—			—			—			—
Pension settlement	—			—			—			—			—
(Income) loss from equity method investments	(324.3		)	(74.9		)	(14.5		)	395.3			(18.4		)
Operational income	322.3			451.0			117.1			(395.9		)	494.5
Interest expense, net	26.9			(2.7		)	6.4			—			30.6
Other income, net	—			—			(0.1		)	—			(0.1		)
Income from continuing operations before income taxes	295.4			453.7			110.8			(395.9		)	464.0
Provision for income taxes	(10.3		)	136.2			31.2			(0.2		)	156.9
Income from continuing operations	305.7			317.5			79.6			(395.7		)	307.1
Loss from discontinued operations	—			—			(1.4		)	—			(1.4		)
Net income	$	305.7		$	317.5		$	78.2		$	(395.7	)	$	305.7
Other comprehensive income (loss)	$	1.7		$	5.5		$	30.5		$	—		$	37.7
Comprehensive Income	$	307.4		$	323.0		$	108.7		$	(395.7	)	$	343.4

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	3,117.6		$	728.0		$	(204.0	)	$	3,641.6
Cost of goods sold	—			2,203.8			564.5			(203.2		)	2,565.1
Gross profit	—			913.8			163.5			(0.8		)	1,076.5
Operating expenses:
Selling, general and administrative expenses	—			524.3			96.7			—			621.0
Losses (gains) and other expenses, net	(3.3		)	9.7			5.1			(0.2		)	11.3
Restructuring charges	—			1.9			(0.1		)	—			1.8
Goodwill Impairment	—			—			—			—			—
Asset Impairment	—			—			—			—			—
Pension settlement	—			30.5			0.9			—			31.4
(Income) loss from equity method investments	(292.4		)	(40.7		)	(14.4		)	329.1			(18.4		)
Operational income	295.7			388.1			75.3			(329.7		)	429.4
Interest expense, net	24.4			(2.2		)	4.8			—			27.0
Other income, net	—			—			(0.3		)	—			(0.3		)
Income from continuing operations before income taxes	271.3			390.3			70.8			(329.7		)	402.7
Provision for income taxes	(6.5		)	108.2			22.6			(0.2		)	124.1
Income from continuing operations	277.8			282.1			48.2			(329.5		)	278.6
Loss from discontinued operations	—			—			(0.8		)	—			(0.8		)
Net income	$	277.8		$	282.1		$	47.4		$	(329.5	)	$	277.8
Other comprehensive income (loss)	$	14.0		$	8.5		$	(14.2	)	$	1.3		$	9.6
Comprehensive income	$	291.8		$	290.6		$	33.2		$	(328.2	)	$	287.4

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Year Ended December 31, 2015

(In millions)

(Amounts in millions)	Parent				Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—			$	2,950.6		$	701.8		$	(185.0	)	$	3,467.4
Cost of goods sold	—				2,150.9			556.4			(187.3		)	2,520.0
Gross profit	—				799.7			145.4			2.3			947.4
Operating expenses:
Selling, general and administrative expenses	—				485.6			94.9			—			580.5
Losses (gains) and other expenses, net	0.7				13.7			7.5			(0.2		)	21.7
Restructuring charges	—			—	(0.5		)	3.7			—			3.2
Goodwill impairment	—				5.5			—			—			5.5
Asset impairment	—				44.5			—			—			44.5
Pension settlement	—				—			—			—			—
(Income) loss from equity method investments	(201.8		)		(5.9		)	(10.5		)	204.8			(13.4		)
Operational income	201.1				256.8			49.8			(202.3		)	305.4
Interest expense, net	22.4				(2.0		)	3.2			—			23.6
Other income, net	—				—			(0.8		)	—			(0.8		)
Income from continuing operations before income taxes	178.7				258.8			47.4			(202.3		)	282.6
Provision for income taxes	(7.8		)		87.9			14.3			1.0			95.4
Income from continuing operations	186.5				170.9			33.1			(203.3		)	187.2
Loss from discontinued operations	—				—			(0.6		)	—			(0.6		)
Net income	$	186.5			$	170.9		$	32.5		$	(203.3	)	$	186.6
Other comprehensive income (loss)	$	(3.5	)		$	(3.3	)	$	(40.4	)	$	(4.0	)	$	(51.2	)
Comprehensive Income	$	183.0			$	167.6		$	(7.9	)	$	(207.3	)	$	135.4

Condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2017

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	467.4		$	31.1		$	(173.4	)	$	—	$	325.1
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.1			0.1			—		0.2
Purchases of property, plant and equipment	—			(70.7		)	(27.6		)	—		(98.3		)
Net cash used in investing activities	—			(70.6		)	(27.5		)	—		(98.1		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(1.5		)	—		(1.5		)
Asset securitization borrowings	—			—			315.0			—		315.0
Asset securitization payments	—			—			(89.0		)	—		(89.0		)
Long-term debt borrowings	—			—			—			—		—
Borrowings from credit facility	2,376.5			—			—			—		2,376.5
Long-term debt payments	(200.0		)	(0.3		)	(0.6		)	—		(200.9		)
Payments on credit facility	(2,265.5		)	—			—			—		(2,265.5		)
Payments of deferred financing costs	—			—			(0.2		)	—		(0.2		)
Proceeds from employee stock purchases	3.1			—			—			—		3.1
Repurchases of common stock to satisfy employee withholding tax obligations	(26.1		)	—			—			—		(26.1		)
Repurchases of common stock	(250.0		)	—			—			—		(250.0		)
Excess tax benefits related to share-based payments	—			—			—			—		—
Intercompany debt	56.4			(34.9		)	(21.5		)	—		—
Intercompany financing activity	(81.7		)	85.6			(3.9		)	—		—
Cash dividends paid	(79.7		)	—			—			—		(79.7		)
Net cash provided by (used in) financing activities	(467.0		)	50.4			198.3			—		(218.3		)
Increase (decrease) in cash and cash equivalents	0.4			10.9			(2.6		)	—		8.7
Effect of exchange rates on cash and cash equivalents	—			—			9.3			—		9.3
Cash and cash equivalents, beginning of year	1.2			17.1			31.9			—		50.2
Cash and cash equivalents, end of year	$	1.6		$	28.0		$	38.6		$	—	$	68.2

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2016

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	17.8		$	218.5		$	137.6		$	—	$	373.9
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			—			0.2			—		0.2
Purchases of property, plant and equipment	—			(71.5		)	(12.8		)	—		(84.3		)
Net cash used in investing activities	—			(71.5		)	(12.6		)	—		(84.1		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(2.4		)	—		(2.4		)
Asset securitization borrowings	—			—			145.0			—		145.0
Asset securitization payments	—			—			(295.0		)	—		(295.0		)
Long-term debt borrowings	350.0			—			—			—		350.0
Borrowings from credit facility	2,336.5			—			—			—		2,336.5
Long-term debt payments	(57.5		)	(0.9		)	(0.4		)	—		(58.8		)
Payments on credit facility	(2,346.0		)	—			—			—		(2,346.0		)
Payments of deferred financing costs	(4.2		)	—			—			—		(4.2		)
Proceeds from employee stock purchases	2.6			—			—			—		2.6
Repurchases of common stock to satisfy employee withholding tax obligations	(33.3		)	—			—			—		(33.3		)
Repurchases of common stock	(300.0		)	—			—			—		(300.0		)
Intercompany debt	30.0			(65.8		)	35.8			—		—
Intercompany financing activity	73.8			(71.0		)	(2.8		)	—		—
Cash dividends paid	(69.0		)	—			—			—		(69.0		)
Net cash provided by (used in) financing activities	(17.1		)	(137.7		)	(119.8		)	—		(274.6		)
Increase (decrease) in cash and cash equivalents	0.7			9.3			5.2			—		15.2
Effect of exchange rates on cash and cash equivalents	—			—			(3.9		)	—		(3.9		)
Cash and cash equivalents, beginning of year	0.5			7.8			30.6			—		38.9
Cash and cash equivalents, end of year	$	1.2		$	17.1		$	31.9		$	—	$	50.2

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 31, 2015

(In millions)

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:	$	249.3		$	49.3		$	55.0		$	—	$	353.6
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.1			—			—		0.1
Purchases of property, plant and equipment	—			(60.2		)	(9.7		)	—		(69.9		)
Net cash used in investing activities	—			(60.1		)	(9.7		)	—		(69.8		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			(1.7		)	—		(1.7		)
Asset securitization borrowings	—			—			40.0			—		40.0
Asset securitization payments	—			—			(60.0		)	—		(60.0		)
Long-term debt borrowings	—			—			—			—		—
Borrowings from revolving credit facility	1,671.0			—			—			—		1,671.0
Long-term debt payments	(22.5		)	(1.2		)	(0.3		)	—		(24.0		)
Payments on revolving credit facility	(1,807.5		)	—			—			—		(1,807.5		)
Payments of deferred financing costs	—			—			—			—		—
Proceeds from employee stock purchases	2.4			—			—			—		2.4
Repurchases of common stock to satisfy employee withholding tax obligations	(32.0		)	—			—			—		(32.0		)
Repurchases of common stock	—			—			—			—		—
Intercompany debt	(9.4		)	7.1			2.3			—		—
Intercompany financing activity	7.5			1.2			(8.7		)	—		—
Cash dividends paid	(59.3		)	—			—			—		(59.3		)
Net cash provided by (used in) financing activities	(249.8		)	7.1			(28.4		)	—		(271.1		)
Decrease in cash and cash equivalents	(0.5		)	(3.7		)	16.9			—		12.7
Effect of exchange rates on cash and cash equivalents	—			—			(11.3		)	—		(11.3		)
Cash and cash equivalents, beginning of year	1.0			11.5			25.0			—		37.5
Cash and cash equivalents, end of year	$	0.5		$	7.8		$	30.6		$	—	$	38.9

XML

Nature of Operations (Details)	12 Months Ended
	Dec. 31, 2017 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable business segments	3

XML

Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Inventories	$ 274.5	$ 221.4

XML

Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details)	12 Months Ended
	Dec. 31, 2017
Building and Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	2 years
Building and Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	33 years
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	1 year
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	39 years
Computer Hardware [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	3 years
Computer Hardware [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	5 years
Computer Software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	3 years
Computer Software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	10 years
Factory Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	1 year
Factory Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	15 years
Research and Development Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	3 years
Research and Development Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	10 years
Vehicles [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	2 years
Vehicles [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	8 years

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Summary of Significant Accounting Policies (Intangible Assets) (Details) - Maximum [Member]	12 Months Ended
	Dec. 31, 2017
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life	12 years
Patents and Others [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life	20 years

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Summary of Significant Accounting Policies (Product Warranties) (Details)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Minimum product warranty term	1 year
Maximum product warranty term	20 years

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Excess tax benefits from stock-based compensation	$ 23.6	$ 0.0	$ 0.0

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Inventories (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 331.9	$ 287.2
Work in process	5.5	5.1
Raw materials and repair parts	199.2	183.4
Total	536.6	475.7
Excess of current cost over last-in, first-out cost	(52.4)	(57.2)
Total inventories, net	484.2	418.5
Pre-tax income (loss) from LIFO inventory liquidations	0.0	0.2	$ 0.2
Reserve balance obsolete and slow moving inventories	$ 20.1	$ 19.7

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Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill
Beginning Balance	$ 195.1	$ 195.1
Other	(5.4)	0.0
Ending Balance	200.5	195.1	$ 195.1
Goodwill, accumulated impairment losses			21.2
Impairment	0.0	0.0	5.5
Residential Heating & Cooling [Member]
Goodwill
Beginning Balance	26.1	26.1
Other	0.0	0.0
Ending Balance	26.1	26.1	26.1
Commercial Heating & Cooling [Member]
Goodwill
Beginning Balance	60.1	60.6
Other	(2.1)	0.5
Ending Balance	62.2	60.1	60.6
Refrigeration [Member]
Goodwill
Beginning Balance	108.9	108.4
Other	(3.3)	(0.5)
Ending Balance	$ 112.2	$ 108.9	$ 108.4

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Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 30.1	$ 28.6
Accumulated Amortization	(21.5)	(21.3)
Net Amount	8.6	7.3
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	15.8	15.9
Accumulated Amortization	(15.1)	(14.9)
Net Amount	0.7	1.0
Patents and Others [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	14.3	12.7
Accumulated Amortization	(6.4)	(6.4)
Net Amount	$ 7.9	$ 6.3

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Goodwill and Intangible Assets (Intangible Assets, Amortization Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.5	$ 0.4	$ 2.7

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Goodwill and Intangible Assets (Intangible Assets, Estimated Amortization Expense) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Estimated Future Amortization Expense:
2018	$ 0.5
2019	0.5
2020	0.4
2021	0.2
2022	0.2
Thereafter	$ 6.8

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Goodwill and Intangible Assets (Intangible Assets Textuals) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived intangible assets, primarily consisting of trademarks	$ 4,300,000	$ 4,300,000
Impairment of intangible assets	$ 0	$ 0	$ 21,200,000

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Property, Plant and Equipment (Components) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Land	$ 35.7	$ 33.9
Buildings and improvements	234.4	218.2
Machinery and equipment	804.4	742.1
Capital leases	27.5	27.3
Construction in progress and equipment not yet in service	70.0	57.1
Total	1,172.0	1,078.6
Less accumulated depreciation	(774.2)	(717.2)
Property, plant and equipment, net	$ 397.8	$ 361.4	$ 339.6

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Property, Plant and Equipment (Textuals) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Impairment charges	$ 0.0	$ 0.0
North America [Member]
Property, Plant and Equipment [Line Items]
Impairment charges	$ 23.3

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Joint Ventures and Other Equity Investments Joint Ventures and Other Equity Investments (Textuals) (Details)	Dec. 31, 2017 joint_venture
Schedule of Equity Method Investments [Line Items]
Number of joint ventures	2
United States [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in joint ventures	25.00%
Mexico [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in joint ventures	50.00%

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Joint Ventures and Other Equity Investments (Combined Balance of Equity Method Investments) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 33.3	$ 30.7

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Joint Ventures and Other Equity Investments (Purchases of Compressors) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Purchases of compressors from joint venture	$ 106.4	$ 97.7	$ 103.5

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Accrued Expenses (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accrued compensation and benefits	$ 80.7	$ 89.8
Accrued rebates and promotions	70.3	64.6
Accrued warranties	34.8	30.0
Accrued sales, use, property and VAT taxes	21.6	20.2
Accrued asbestos reserves	8.5	9.8
Self insurance reserves	7.3	8.2
Deferred income	7.3	6.4
Derivative contracts	1.4	4.0
Other	38.4	32.9
Total Accrued expenses	270.3	$ 265.9
Accrued Liabilities [Member]
Accrued asbestos reserves	$ 8.5

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Derivatives (Cash Flow Hedges in AOCI) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge derivative gains (losses) expected to be reclassified into earnings within the next 12 months	$ 7.1
Commodity Price Hedges [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gains on unsettled contracts	(11.3)	$ (8.9)
Income tax expense	3.9	3.3
Losses included in AOCI, net of tax	$ (7.4)	$ (5.6)

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Derivatives (Outstanding Commodity Futures Contracts) (Details) - lb lb in Millions	Dec. 31, 2017	Dec. 31, 2016
Copper [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amounts	1.8	2.4
Copper [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Notional Amounts	20.6	30.4
Aluminum [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amounts	1.8	2.6

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Derivatives (Outstanding Foreign Currency Forward Contracts) (Details) - Foreign Currency Forward Contracts [Member] € in Millions, ₨ in Millions, MXN in Millions, CAD in Millions, BRL in Millions, $ in Millions	Dec. 31, 2017 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 MXN	Dec. 31, 2017 CAD	Dec. 31, 2017 INR (₨)	Dec. 31, 2017 BRL	Dec. 31, 2016 EUR (€)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 MXN	Dec. 31, 2016 CAD	Dec. 31, 2016 INR (₨)	Dec. 31, 2016 BRL
China, Yuan Renminbi | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency) | BRL						BRL 73.8						BRL 10.5
Mexico, Pesos | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency)			MXN 136.6						MXN 64.5
Mexico, Pesos | Cash Flow Hedging [Member]
Derivative [Line Items]
Notional amounts (in local currency)			MXN 207.3						MXN 310.1
Canada, Dollars | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency) | CAD				CAD 68.6						CAD 24.9
Canada, Dollars | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency)		$ 27.3									₨ 0.0
Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency) | €	€ 64.4						€ 46.9
United Kingdom, Pounds | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency) | $		4.5						$ 1.3
India, Rupees | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency) | ₨					₨ 39.8						584.6
Singapore, Dollars | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency)		7.0									0.0
Australia, Dollars | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency)		107.0									0.0
New Zealand, Dollars | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amounts (in local currency)		$ 5.0									₨ 0.0

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Derivatives (Locations and Amounts of Derivative Fair Values) (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total Assets	$ 11.7	$ 11.1
Total Liabilities	0.3	0.8
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	11.0	8.7
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Non-Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	0.6	1.9
Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liabilities	0.0	0.0
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	0.1	0.5
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Non-Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	0.0	0.0
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liabilities	0.3	0.8
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total Assets	2.2	1.1
Total Liabilities	1.1	3.2
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	1.2	0.7
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Non-Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	0.1	0.2
Not Designated as Hedging Instrument [Member] | Commodity Futures Contracts [Member] | Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liabilities	0.0	0.0
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	0.9	0.2
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Non-Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	0.0	0.0
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liabilities	$ 1.1	$ 3.2

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Derivatives (Derivatives in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Not Designated as Hedging Instrument [Member]
Effect of Derivative Instruments on Consolidated Statements of Operations
Amount of Loss (Gain) Recognized in Income on Derivatives	$ (7.6)	$ 3.4	$ 2.8
Not Designated as Hedging Instrument [Member] | Losses and Other Expenses, Net [Member] | Commodity Futures Contracts [Member]
Effect of Derivative Instruments on Consolidated Statements of Operations
Amount of Loss (Gain) Recognized in Income on Derivatives	(1.9)	(0.9)	2.5
Not Designated as Hedging Instrument [Member] | Losses and Other Expenses, Net [Member] | Foreign Currency Forward Contracts [Member]
Effect of Derivative Instruments on Consolidated Statements of Operations
Amount of Loss (Gain) Recognized in Income on Derivatives	(5.7)	4.3	0.3
Cash Flow Hedging [Member] | Cost of Goods Sold [Member] | Commodity Futures Contracts [Member]
Effect of Derivative Instruments on Consolidated Statements of Operations
Amount of Loss (Gain) Reclassified from AOCI into Income (Effective Portion)	(13.7)	12.3	12.5
Cash Flow Hedging [Member] | Losses and Other Expenses, Net [Member] | Commodity Futures Contracts [Member]
Effect of Derivative Instruments on Consolidated Statements of Operations
Amount of Loss (Gain) Recognized in Income on Derivatives (Ineffective Portion)	$ 1.0	$ (1.6)	$ 0.1

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Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ 86.1	$ 106.0	$ 101.0
State	12.5	14.5	13.1
Foreign	15.0	9.7	3.6
Total current	113.6	130.2	117.7
Deferred:
Federal	43.8	(4.5)	(21.4)
State	0.9	(1.2)	(0.6)
Foreign	(1.4)	(0.4)	(0.3)
Total deferred	43.3	(6.1)	(22.3)
Total provision for income taxes	$ 156.9	$ 124.1	$ 95.4

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Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
Domestic	$ 402.5	$ 374.8	$ 276.7
Foreign	61.5	27.9	5.9
Income from continuing operations before income taxes	$ 464.0	$ 402.7	$ 282.6

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Income Taxes (Reconciliation of Income Tax Rate) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Provision at the U.S. statutory rate of 35%	$ 162.4	$ 141.0	$ 98.9
U.S. statutory rate (as a percent)	35.00%	35.00%	35.00%
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	$ 9.2	$ 12.8	$ 8.0
Domestic manufacturing deduction	(9.6)	(9.2)	(9.9)
Tax credits, net of unrecognized tax benefits	(8.6)	(27.9)	(0.7)
Change in unrecognized tax benefits	(0.1)	(0.3)	(0.9)
Change in valuation allowance	6.4	(4.3)	(0.6)
Foreign taxes at rates other than 35%	(9.0)	(1.3)	0.3
Deemed inclusions	0.3	16.9	0.6
Change in rates from the Tax Act & other law changes	31.8	(0.6)	0.8
Excess tax benefits from stock-based compensation	(23.6)	0.0	0.0
Miscellaneous other	(2.3)	(3.0)	(1.1)
Total provision for income taxes	$ 156.9	$ 124.1	$ 95.4

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Income Taxes (Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Gross deferred tax assets:
Warranties	$ 27.3	$ 36.3
Loss carryforwards (foreign, U.S. and state)	21.0	19.8
Post-retirement and pension benefits	23.3	33.9
Inventory reserves	7.5	9.6
Receivables allowance	3.5	4.5
Compensation liabilities	11.1	20.6
Deferred income	0.7	1.5
Insurance liabilities	5.1	6.5
Legal reserves	7.6	12.0
Tax credits, net of federal effect	21.3	18.4
Other	7.5	5.4
Total deferred tax assets	135.9	168.5
Valuation allowance	(24.9)	(17.1)
Total deferred tax assets, net of valuation allowance	111.0	151.4
Gross deferred tax liabilities:
Depreciation	(5.9)	(3.3)
Hedges	(3.6)	(3.2)
Intangibles	(4.9)	(4.9)
Other	(2.2)	(3.3)
Total deferred tax liabilities	(16.6)	(14.7)
Net deferred tax assets	$ 94.4	$ 136.7

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Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	$ 10.6
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance as of beginning of period	2.4	$ 0.5
Increases related to prior year tax positions	0.1	1.0
Decreases related to prior year tax positions	(2.5)
Increases related to current year tax positions		1.4
Settlement		(0.5)
Balance as of end of period	$ 0.0	$ 2.4

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Income Taxes (Textuals) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$ 32.1
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	10.6
Valuation Allowances and Reserves, Balance	4.3
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax Expense(Benefit)	4.1
Increase (Decrease) in Deferred Income Taxes	0.9
Increase (Decrease) in Income Taxes Payable	1.4
Tax effected in state net operating loss carryforwards	0.8	$ 1.6
Tax effected in foreign net operating loss carryforwards	19.8	$ 16.8
Future foreign taxable income	71.3
Undistributed earnings of foreign subsidiaries	$ 87.0

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Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Operating Leases
2018	$ 55.3
2019	42.4
2020	28.4
2021	18.3
2022	17.7
Thereafter	13.8
Total minimum lease payments	175.9
Capital Leases
2018	3.5
2019	0.6
2020	0.4
2021	0.1
2022	0.0
Thereafter	12.0
Total minimum lease payments	16.6
Less amount representing interest	0.2
Present value of minimum payments	$ 16.4

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Commitments and Contingencies (Environmental Accruals) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Accrued expenses	$ 3.5	$ 1.2
Other liabilities	3.1	4.4
Total environmental accruals	$ 6.6	$ 5.6

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Commitments and Contingencies (Product Warranty Liabilties) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Accrued expenses	$ 34.8	$ 30.0
Other liabilities	75.1	71.1
Total product warranty liabilities	109.9	$ 101.1	$ 92.3
Cost of Goods Sold, Maintenance Costs	$ 5.7

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Commitments and Contingencies (Change in Product Warranty Liabilities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in the total warranty liabilities
Total warranty liability as of beginning of period	$ 101.1	$ 92.3
Payments made	(28.8)	(24.7)
Changes resulting from issuance of new warranties	41.1	36.2
Changes in estimates associated with pre-existing liabilities	(4.8)	(2.6)
Changes in foreign currency translation rates and other	1.3	(0.1)
Total warranty liability as of end of period	$ 109.9	$ 101.1

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Commitments and Contingencies (Self-insurance Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Accrued expenses	$ 7.3	$ 8.2
Other liabilities	21.6	22.7
Total self-insurance liabilities	$ 28.9	$ 30.9

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Commitments and Contingencies (Textuals) (Details) ft² in Thousands, RUB in Thousands		12 Months Ended
	Mar. 22, 2013 USD ($) ft²	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2016 RUB
Loss Contingencies [Line Items]
Accrued asbestos reserves		$ 8,500,000	$ 9,800,000
Number of years of lease of corporate headquarters	6 years
Area of leased office building (in square feet) | ft²	192
Purchase price of property at end of lease term	$ 41,200,000.0
Percentage of lease balance as final payment end of lease term	86.00%
Debt covenant, debt not paid when due	$ 75,000,000
Expense for known and future asbestos-related litigation		3,500,000	$ 6,300,000	$ 900,000
Maximum [Member]
Loss Contingencies [Line Items]
Accrued asbestos reserves		46,500,000
Minimum [Member]
Loss Contingencies [Line Items]
Accrued asbestos reserves		28,500,000
Unfavorable Regulatory Action [Member]
Loss Contingencies [Line Items]
Loss Contingency, Alleged Unauthorized Payment					$ 475	RUB 30
Current Liabilities [Member]
Loss Contingencies [Line Items]
Accrued asbestos reserves		8,500,000
Other Noncurrent Liabilities [Member]
Loss Contingencies [Line Items]
Accrued asbestos reserves		$ 20,000,000

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Lines of Credit and Financing Arrangements (Outstanding Debt Obligations) (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Nov. 01, 2016	May 31, 2010
Short-Term Debt:
Total short-term debt	$ 900,000	$ 52,400,000
Current maturities of long-term debt:
Capital lease obligations	3,200,000	800,000
Domestic credit facility	32,600,000	200,100,000
Long-Term Debt:
Capital lease obligations	11,900,000	15,000,000
Total long-term debt	970,500,000	615,700,000
Debt Issuance Cost, Gross, Noncurrent	(4,400,000)	(5,300,000)
Total debt	1,004,000,000	868,200,000
Domestic Credit Facility [Member]
Current maturities of long-term debt:
Domestic credit facility	30,000,000	0
Debt Issuance Costs, Gross, Current	(600,000)	(700,000)
Long-Term Debt:
Total long-term debt	337,000,000	256,000,000
Asset Securitization [Member]
Long-Term Debt:
Total long-term debt	276,000,000	0
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount			$ 350,000,000.0	$ 200,000,000.0
Current maturities of long-term debt:
Domestic credit facility	0	200,000,000
Long-Term Debt:
Total long-term debt	350,000,000	350,000,000
Asset Securitization [Member]
Short-Term Debt:
Total short-term debt	0	50,000,000
Foreign Obligations [Member]
Short-Term Debt:
Total short-term debt	$ 900,000	$ 2,400,000

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Lines of Credit and Financing Arrangements (Principal Payments on Total Debt) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Debt Disclosure [Abstract]
2016	$ 34.1
2017	306.3
2018	30.0
2019	277.0
2020	0.0
Thereafter	$ 361.6

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Lines of Credit and Financing Arrangements (Short Term Facility) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Short-term debt	$ 0.9	$ 52.4
Foreign Line of Credit [Member]
Short-term Debt [Line Items]
Short-term debt	0.9	2.4
Proceeds from Short-term Debt	30.4	28.4
Repayments of Short-term Debt	$ 31.9	$ 30.8

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Lines of Credit and Financing Arrangements (Foreign Obligations) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Short-term debt		$ 0.9	$ 52.4
Proceeds from the facilities	$ 79.0
Repayments on the facilities	$ 85.4
Foreign Obligations [Member]
Short-term Debt [Line Items]
Short-term debt		$ 0.9	$ 2.4

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Lines of Credit and Financing Arrangements (Asset Securitization Program) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Eligible amounts available and beneficial interests sold
Eligible amount available under the ASP on qualified accounts receivable	$ 290.0	$ 250.0
Beneficial interest sold	(276.0)	(50.0)
Remaining amount available	$ 14.0	$ 200.0

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Lines of Credit and Financing Arrangements (Asset Securitization Program, Textuals) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Nov. 13, 2017	Dec. 31, 2016	Jul. 05, 2016
Line of Credit Facility [Line Items]
Maximum securitization, amount				$ 325,000,000
Maximum securitization as percentage of net pool balance	100.00%
Program fee (as a percent)	0.70%
Average floating commercial paper rate (as a percent)	2.60%		1.66%
Unused fee (as a percent)	101.00%
Fixed rate of agreement (as a percent)	0.35%
Line of Credit [Member]
Line of Credit Facility [Line Items]
Minimum amount of principal or interest due on indebtedness or receivable securitization	$ 75,000,000.0
Maximum [Member]
Line of Credit Facility [Line Items]
Amount Available Under Asset Securitization		$ 380,000,000
Minimum [Member]
Line of Credit Facility [Line Items]
Amount Available Under Asset Securitization		$ 225,000,000		$ 200,000,000

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Lines of Credit and Financing Arrangements (Domestic Credit Facility) (Details) - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2016	Dec. 31, 2017	Dec. 31, 2015	Nov. 13, 2014
Line of Credit Facility [Line Items]
Proceeds from the facilities			$ 79,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity				$ 650,000,000
Domestic Credit Facility [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings		$ 367,000,000
Standby letters of credit		2,900,000
Line of credit, available for future borrowings		500,100,000
Maximum increase in credit facility		350,000,000
Domestic Credit Facility [Member] | Medium-term Notes [Member]
Line of Credit Facility [Line Items]
Debt instrument, face amount				$ 250,000,000
Outstanding borrowings		220,000,000
Quarterly principal repayments		7,500,000
Proceeds from the facilities	$ 30,000,000
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		100,000,000
Subfacility for Swingline Loans [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		65,000,000
Line of Credit [Member]
Line of Credit Facility [Line Items]
Minimum amount of principal or interest due on indebtedness or receivable securitization		$ 75,000,000.0

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Lines of Credit and Financing Arrangements (Weighted Average Borrowing Rate) (Details)	Dec. 31, 2017	Dec. 31, 2016
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Weighted average borrowing rate (as a percent)	2.76%	2.00%

XML

Lines of Credit and Financing Arrangements (Required Ratios Under the Domestic Credit Facility) (Details) - Revolving Credit Facility [Member]	12 Months Ended
	Dec. 31, 2017
Maximum [Member]
Line of Credit Facility [Line Items]
Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than	3.5
Minimum [Member]
Line of Credit Facility [Line Items]
Cash Flow to Net Interest Expense Ratio no less than	3.0

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Lines of Credit and Financing Arrangements (Senior Unsecured Notes) (Details) - Senior Unsecured Notes [Member] - USD ($)		3 Months Ended	12 Months Ended
	May 15, 2017	Dec. 31, 2016	Dec. 31, 2017	Nov. 01, 2016	May 31, 2010
Debt Instrument [Line Items]
Debt issued				$ 350,000,000.0	$ 200,000,000.0
Fixed interest rate for senior unsecured notes				3.00%
Maturity date of senior unsecured notes	May 15, 2017	Nov. 15, 2023
Minimum amount of principal or interest due on indebtedness or receivable securitization			$ 75,000,000
Number of days within notice date acceleration is not rescinded			30 days

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Employee Benefit Plans (Contributions to Defined Contribution Plans) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contributions to defined contribution plans	$ 18,100,000	$ 16,300,000	$ 16,100,000
Discontinued Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contributions to defined contribution plans	$ 18,100,000.0

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Employee Benefit Plans (Plans' Funded Status) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in projected benefit obligation:
Amendments		$ 3.2
Changes in plan assets:
Fair value of plan assets at beginning of year	$ 292.5
Fair value of plan assets at end of year	318.6	292.5
Pension Benefits [Member]
Pension and Postretirement Benefit Plans recognized in financial statements
Accumulated benefit obligation	401.5	374.1
Changes in projected benefit obligation:
Benefit obligation at beginning of year	381.6	415.4
Service cost	5.0	4.4	$ 4.8
Interest cost	12.6	15.3	17.2
Plan participants' contributions	0.0	0.0
Amendments	0.0	0.1
Actuarial (gain) loss	22.1	22.8
Effect of exchange rates	4.3	(3.8)
Settlements and curtailments	(1.3)	(50.6)
Benefits paid	(18.8)	(22.0)
Benefit obligation at end of year	405.5	381.6	415.4
Changes in plan assets:
Fair value of plan assets at beginning of year	292.5	293.0
Actual gain return on plan assets	39.8	21.0
Employer contribution	3.5	53.9
Plan participants' contributions	0.0	0.0
Effect of exchange rates	2.9	(2.8)
Plan settlements	(1.3)	(50.6)
Benefits paid	(18.8)	(22.0)
Fair value of plan assets at end of year	318.6	292.5	293.0
Funded status / net amount recognized	(86.9)	(89.1)
Net amount recognized consists of:
Noncurrent assets	(1.6)	0.0
Current liability	(4.0)	(1.6)
Non-current liability	(84.5)	(87.5)
Net amount recognized	(86.9)	(89.1)
Other Benefits [Member]
Changes in projected benefit obligation:
Benefit obligation at beginning of year	3.3	4.9
Service cost	0.0	0.0	0.0
Interest cost	0.1	0.1	0.2
Plan participants' contributions	0.3	0.3
Amendments	0.0	0.0
Actuarial (gain) loss	(0.1)	(0.7)
Effect of exchange rates	0.0	0.0
Settlements and curtailments	0.0	0.0
Benefits paid	(0.5)	(1.3)
Benefit obligation at end of year	3.1	3.3	4.9
Changes in plan assets:
Fair value of plan assets at beginning of year	0.0	0.0
Actual gain return on plan assets	0.0	0.0
Employer contribution	0.3	1.0
Plan participants' contributions	0.2	0.3
Effect of exchange rates	0.0	0.0
Plan settlements	0.0	0.0
Benefits paid	(0.5)	(1.3)
Fair value of plan assets at end of year	0.0	0.0	$ 0.0
Funded status / net amount recognized	(3.1)	(3.3)
Net amount recognized consists of:
Noncurrent assets	0.0	0.0
Current liability	(0.5)	(0.5)
Non-current liability	(2.6)	(2.8)
Net amount recognized	$ (3.1)	$ (3.3)

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Employee Benefit Plans (Pensions Plans with Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$ 394.4	$ 370.2
Accumulated benefit obligation	390.4	362.9
Fair value of plan assets	$ 305.9	$ 280.8

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Employee Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of net periodic benefit cost
Pension settlement	$ 0	$ 31,400,000	$ 0
Discontinued Operations [Member]
Components of net periodic benefit cost
Total net periodic benefit cost	4,400,000.0
Pension Benefits [Member]
Components of net periodic benefit cost
Service cost	5,000,000	4,400,000	4,800,000
Interest cost	12,600,000	15,300,000	17,200,000
Expected return on plan assets	(21,300,000)	(21,500,000)	(21,400,000)
Amortization of prior service cost	200,000	300,000	200,000
Amortization of net loss	8,100,000	7,600,000	9,500,000
Settlements or curtailments	700,000	31,600,000	400,000
Total net periodic benefit cost	5,300,000	37,700,000	10,700,000
Other Benefits [Member]
Components of net periodic benefit cost
Service cost	0	0	0
Interest cost	100,000	100,000	200,000
Expected return on plan assets	0	0	0
Amortization of prior service cost	(2,400,000)	(3,000,000)	(3,100,000)
Amortization of net loss	1,400,000	1,400,000	1,500,000
Settlements or curtailments	0	0	0
Total net periodic benefit cost	$ (900,000)	$ (1,500,000)	$ (1,400,000)

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Employee Benefit Plans (Amounts Recognized in AOCI and Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes recognized in other comprehensive income (loss):
Total recognized in other comprehensive income	$ (7.3)	$ (6.3)	$ (9.7)
Pension Benefits [Member]
Amounts recognized in other comprehensive income (loss):
Prior service costs	(0.8)	(0.9)
Actuarial loss	(194.6)	(197.3)
Subtotal	(195.4)	(198.2)
Deferred taxes	71.2	71.0
Net amount recognized	(124.2)	(127.2)
Changes recognized in other comprehensive income (loss):
Current year prior service costs	0.1	0.1
Current year actuarial loss	3.7	23.3
Effect of exchange rates	1.7	(1.5)
Amortization of prior service (costs) credits	(0.2)	(0.3)
Amortization of actuarial loss	(8.8)	(39.2)
Total recognized in other comprehensive income	(3.5)	(17.6)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	1.8	20.1
Estimated prior service (cost) credits	(0.1)
Estimated actuarial gains (losses)	(9.3)
Other Benefits [Member]
Amounts recognized in other comprehensive income (loss):
Prior service costs	9.5	12.0
Actuarial loss	(14.7)	(16.3)
Subtotal	(5.2)	(4.3)
Deferred taxes	1.9	1.6
Net amount recognized	(3.3)	(2.7)
Changes recognized in other comprehensive income (loss):
Current year prior service costs	0.0	0.0
Current year actuarial loss	(0.1)	(0.7)
Effect of exchange rates	0.0	0.0
Amortization of prior service (costs) credits	2.4	3.1
Amortization of actuarial loss	(1.4)	(1.4)
Total recognized in other comprehensive income	0.9	1.0
Total recognized in net periodic benefit cost and other comprehensive income (loss)	0.0	$ (0.5)
Estimated prior service (cost) credits	1.4
Estimated actuarial gains (losses)	$ (1.3)

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Employee Benefit Plans (Weighted-average Assumptions Used) (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Benefits [Member]
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	3.66%	4.17%
Rate of compensation increase	4.23%	4.23%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	3.96%	4.30%	3.97%
Discount rate - interest cost	3.51%	3.76%	3.97%
Expected long-term return on plan assets	7.50%	7.50%	7.50%
Rate of compensation increase	4.23%	4.23%	4.23%
Other Benefits [Member]
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	3.25%	3.50%
Rate of compensation increase	0.00%	0.00%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	4.61%	4.95%	3.23%
Discount rate - interest cost	2.56%	2.49%	3.23%
Expected long-term return on plan assets	0.00%	0.00%	0.00%
Rate of compensation increase	0.00%	0.00%	0.00%
Foreign Plan [Member]
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	2.58%	2.83%
Rate of compensation increase	3.63%	3.78%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	1.34%	2.04%	4.12%
Discount rate - interest cost	2.75%	3.45%	4.12%
Expected long-term return on plan assets	4.40%	4.87%	5.22%
Rate of compensation increase	3.78%	3.70%	3.48%

XML

Employee Benefit Plans (Healthcare Trend Rate Assumptions Used) (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assumed Health Care Cost Trend Rates
Health care cost trend rate assumed for next year	6.50%	6.50%
Rate to which the cost rate is assumed to decline (the ultimate trend rate)	5.00%	5.00%
Year that the rate reaches the ultimate trend rate	2021	2020

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Employee Benefit Plans (One Percentage-Point Change Effects) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Summary of one percentage-point change in assumed healthcare cost trend rate
Effect of one percentage point increase on total of service and interest cost	$ 0.0
Effect of one percentage point decrease on total of service and interest cost	0.0
Effect of one percentage point increase on the postretirement benefit obligation	0.1
Effect of one percentage point decrease on the postretirement benefit obligation	$ (0.1)

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Employee Benefit Plans (Expected Future Benefit Payments) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Pension Benefits [Member]
Summary of expected future benefit payments
2018	$ 21.8
2019	19.3
2020	19.9
2021	26.0
2022	20.4
2023-2027	146.4
Other Benefits [Member]
Summary of expected future benefit payments
2018	0.5
2019	0.5
2020	0.4
2021	0.3
2022	0.3
2023-2027	$ 0.9

XML

Employee Benefit Plans (Pension Plan's Weighted-average Asset Allocations) (Details)	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	100.00%	100.00%
U.S. Equity [Member]
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	12.50%	27.00%
International Equity [Member]
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	15.10%	18.50%
Fixed Income [Member]
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	71.10%	52.50%
Money Market
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	1.30%	2.00%

XML

Employee Benefit Plans (Pension Plans' Range Targets) (Details)	Dec. 31, 2017
Equity Securities [Member]
Summary of target allocation percentage of assets
Target	25.00%
U.S. Equity [Member]
Summary of target allocation percentage of assets
Target	12.50%
International Equity [Member]
Summary of target allocation percentage of assets
Target	12.50%
Fixed Income, Money Market, Cash and Guaranteed Investment Contracts [Member]
Summary of target allocation percentage of assets
Target	75.00%
Fixed Income [Member]
Summary of target allocation percentage of assets
Target	73.00%
Money Market/Cash/Guaranteed Investments Contracts [Member]
Summary of target allocation percentage of assets
Target	2.00%

XML

Employee Benefit Plans (Fair Values of Pension Plan Assets by Category) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 318.6	$ 292.5
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3.9	5.3
Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	314.7	287.2
Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3.9	5.3
Cash and Cash Equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3.9	5.3
Cash and Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Cash and Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
U.S. Equity [Member] | Commingled Pools / Collective Trusts [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	34.7	69.5
U.S. Equity [Member] | Commingled Pools / Collective Trusts [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
U.S. Equity [Member] | Commingled Pools / Collective Trusts [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	34.7	69.5
U.S. Equity [Member] | Commingled Pools / Collective Trusts [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
International Equity [Member] | Commingled Pools / Collective Trusts [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	42.2	47.6
International Equity [Member] | Commingled Pools / Collective Trusts [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
International Equity [Member] | Commingled Pools / Collective Trusts [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	42.2	47.6
International Equity [Member] | Commingled Pools / Collective Trusts [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
International Equity [Member] | Trust for Benefit of Employees [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4.6	4.7
International Equity [Member] | Trust for Benefit of Employees [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
International Equity [Member] | Trust for Benefit of Employees [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4.6	4.7
International Equity [Member] | Trust for Benefit of Employees [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
International Equity [Member] | Pension Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3.3	13.5
International Equity [Member] | Pension Fund [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
International Equity [Member] | Pension Fund [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3.3	13.5
International Equity [Member] | Pension Fund [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Fixed Income [Member] | Commingled Pools / Collective Trusts [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	197.9	134.9
Fixed Income [Member] | Commingled Pools / Collective Trusts [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Fixed Income [Member] | Commingled Pools / Collective Trusts [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	197.9	134.9
Fixed Income [Member] | Commingled Pools / Collective Trusts [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Fixed Income [Member] | Trust for Benefit of Employees [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	13.6	11.9
Fixed Income [Member] | Trust for Benefit of Employees [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Fixed Income [Member] | Trust for Benefit of Employees [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	13.6	11.9
Fixed Income [Member] | Trust for Benefit of Employees [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Fixed Income [Member] | Pension Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	5.9	5.1
Fixed Income [Member] | Pension Fund [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Fixed Income [Member] | Pension Fund [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	5.9	5.1
Fixed Income [Member] | Pension Fund [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	$ 0.0
Blend [Domain] | Pension Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	12.5
Blend [Domain] | Pension Fund [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 12.5

XML

Employee Benefit Plans (Assets Measured at NAV) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assets Category:
Fair Value	$ 318.6	$ 292.5
NAV [Member]
Assets Category:
Fair Value	$ 314.7	287.2
Fixed Income [Member] | United Kingdom Pension Plans [Member]
Assets Category:
Weighted average maturity period	5 years
Commingled Pools / Collective Trusts [Member] | U.S. Equity [Member]
Assets Category:
Fair Value	$ 34.7	$ 69.5
Redemption Frequency (if currently eligible)	Daily	Daily
Redemption Notice Period	5 days	5 days
Commingled Pools / Collective Trusts [Member] | International Equity [Member]
Assets Category:
Fair Value	$ 42.2	$ 47.6
Redemption Frequency (if currently eligible)	Daily	Daily
Redemption Notice Period	5 days	5 days
Commingled Pools / Collective Trusts [Member] | Fixed Income [Member]
Assets Category:
Fair Value	$ 197.9	$ 134.9
Redemption Frequency (if currently eligible)	Daily	Daily
Balanced pension trusts [Member] | International Equity [Member]
Assets Category:
Fair Value	$ 4.6	$ 4.7
Redemption Frequency (if currently eligible)	Daily	Daily
Balanced pension trusts [Member] | Fixed Income [Member]
Assets Category:
Fair Value	$ 13.6	$ 11.9
Redemption Frequency (if currently eligible)	Daily	Daily
Pension Funds [Member] | International Equity [Member]
Assets Category:
Fair Value	$ 3.3	$ 13.5
Redemption Frequency (if currently eligible)	Daily	Daily
Pension Funds [Member] | Fixed Income [Member]
Assets Category:
Fair Value	$ 5.9	$ 5.1
Redemption Frequency (if currently eligible)	Daily	Daily
Pension Fund Member | Fixed Income [Member]
Assets Category:
Fair Value	$ 5.9	$ 5.1
Pension Fund Member | Blend [Domain]
Assets Category:
Fair Value	$ 12.5
Minimum [Member] | Commingled Pools / Collective Trusts [Member] | Fixed Income [Member]
Assets Category:
Redemption Notice Period	5 years	5 years
Minimum [Member] | Balanced pension trusts [Member] | International Equity [Member]
Assets Category:
Redemption Notice Period	3 days	3 days
Minimum [Member] | Balanced pension trusts [Member] | Fixed Income [Member]
Assets Category:
Redemption Notice Period	3 days	3 days
Minimum [Member] | Pension Funds [Member] | International Equity [Member]
Assets Category:
Redemption Notice Period	1 day	1 day
Minimum [Member] | Pension Funds [Member] | Fixed Income [Member]
Assets Category:
Redemption Notice Period	1 day	1 day
Maximum [Member] | Commingled Pools / Collective Trusts [Member] | Fixed Income [Member]
Assets Category:
Redemption Notice Period	15 days	15 days
Maximum [Member] | Balanced pension trusts [Member] | International Equity [Member]
Assets Category:
Redemption Notice Period	5 years	5 years
Maximum [Member] | Balanced pension trusts [Member] | Fixed Income [Member]
Assets Category:
Redemption Notice Period	5 years	5 years
Maximum [Member] | Pension Funds [Member] | International Equity [Member]
Assets Category:
Redemption Notice Period	7 days	7 days
Maximum [Member] | Pension Funds [Member] | Fixed Income [Member]
Assets Category:
Redemption Notice Period	7 days	7 days
Fair Value, Inputs, Level 2 [Member]
Assets Category:
Fair Value	$ 314.7	$ 287.2
Fair Value, Inputs, Level 2 [Member] | Commingled Pools / Collective Trusts [Member] | Fixed Income [Member]
Assets Category:
Fair Value	197.9	134.9
Fair Value, Inputs, Level 2 [Member] | Balanced pension trusts [Member] | Fixed Income [Member]
Assets Category:
Fair Value	13.6	11.9
Fair Value, Inputs, Level 2 [Member] | Pension Fund Member | Fixed Income [Member]
Assets Category:
Fair Value	5.9	$ 5.1
Fair Value, Inputs, Level 2 [Member] | Pension Fund Member | Blend [Domain]
Assets Category:
Fair Value	$ 12.5
Redemption Frequency (if currently eligible)	Daily

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Employee Benefit Plans (Textuals) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Percentage of medical coverage cost payable by participants	100.00%
Amendments		$ 3.2
Decrease in projected benefit obligation		50.6
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Amendments	$ 0.0	$ 0.1
Estimated prior service (cost) credits	0.1
Estimated actuarial gains (losses)	$ 9.3
Long-term rate of return on assets assumption (as a percent)	7.50%	7.50%	7.50%
Discount rate (as a percent)	3.66%	4.17%
Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Amendments	$ 0.0	$ 0.0
Estimated prior service (cost) credits	(1.4)
Estimated actuarial gains (losses)	$ 1.3
Long-term rate of return on assets assumption (as a percent)	0.00%	0.00%	0.00%
Discount rate (as a percent)	3.25%	3.50%
Fixed Income, Money Market, Cash and Guaranteed Investment Contracts [Member]
Defined Benefit Plan Disclosure [Line Items]
Target (as a percent)	75.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target (as a percent)	25.00%
International Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Target (as a percent)	12.50%
U.S. Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Target (as a percent)	12.50%
UNITED KINGDOM
Defined Benefit Plan Disclosure [Line Items]
Components of fair value in our plan assets	7.00%
Domestic Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation (as a percent)	88.00%
Plan assets (as a percent)	87.00%
Long-term rate of return on assets assumption (as a percent)	7.50%
Components of fair value in our plan assets	87.00%
Canada [Member]
Defined Benefit Plan Disclosure [Line Items]
Components of fair value in our plan assets	6.00%

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Comprehensive Income (Items Not Reclassified from AOCI to Net Income) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold; Selling, general and administrative expenses	$ (2,714.4)	$ (2,565.1)	$ (2,520.0)
Provision for income taxes	(156.9)	(124.1)	$ (95.4)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax	4.2	(12.1)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Losses on Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Provision for income taxes	(5.0)	4.3
Net of tax	8.7	(8.0)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Losses on Cash Flow Hedges [Member] | Commodity Derivative Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold; Selling, general and administrative expenses	13.7	(12.3)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold; Selling, general and administrative expenses	(7.3)	(6.3)
Provision for income taxes	2.8	2.2
Net of tax	$ (4.5)	$ (4.1)

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Comprehensive Income (Changes in AOCI) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	$ (195.1)	$ (204.7)
Other comprehensive income (loss) before reclassifications	41.9	(2.5)
Amounts reclassified from AOCI	(4.2)	12.1
Net other comprehensive income (loss)	37.7	9.6
Ending balance	(157.4)	(195.1)
Gains (Losses) on Cash Flow Hedges [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	5.6	(8.4)
Other comprehensive income (loss) before reclassifications	10.5	6.0
Amounts reclassified from AOCI	(8.7)	8.0
Net other comprehensive income (loss)	1.8	14.0
Ending balance	7.4	5.6
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	2.3	4.4
Other comprehensive income (loss) before reclassifications	(0.5)	(2.1)
Amounts reclassified from AOCI	0.0	0.0
Net other comprehensive income (loss)	(0.5)	(2.1)
Ending balance	1.8	2.3
Defined Benefit Plan Items [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	(130.0)	(139.3)
Other comprehensive income (loss) before reclassifications	(2.0)	5.2
Amounts reclassified from AOCI	4.5	4.1
Net other comprehensive income (loss)	2.5	9.3
Ending balance	(127.5)	(130.0)
Foreign Currency Translation Adjustments [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	(73.0)	(61.4)
Other comprehensive income (loss) before reclassifications	33.9	(11.6)
Amounts reclassified from AOCI	0.0	0.0
Net other comprehensive income (loss)	33.9	(11.6)
Ending balance	$ (39.1)	$ (73.0)

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Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation expense	$ 24.9	$ 31.7	$ 26.6

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Stock-Based Compensation (Incentive Plan) (Details) shares in Millions	Dec. 31, 2017 shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of common stock shares which are authorized to issue awards	24.3
Common Stock, Capital Shares Reserved for Future Issuance	13.5
Shares available for future issuance	3.4

XML

Stock-Based Compensation (Performance Share Units) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 24.9	$ 31.7	$ 26.6
Payout ratio for shares paid (as a percent)	100.00%
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 12.2	$ 18.1	$ 13.6
Weighted-average fair value of grants, per share (in usd per share)	$ 197.54	$ 150.21	$ 126.31
Payout ratio for shares paid (as a percent)	185.90%	200.00%	200.00%

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Stock-based Compensation (Changes in Undistributed Performance Share Units) (Details) - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Weighted- Average Grant Date Fair Value per Share
Undistributed performance share units (in shares)	0.2
Weighted-average grant date fair value of undistributed performance share units (in usd per share)	$ 154.90
Undistributed and vested performance share units (in shares)	0.2
Performance Shares [Member]
Shares (2)
Undistributed as of beginning of period (in shares)	0.4
Granted (in shares)	0.1
Adjustments to shares paid based on payout ratio (in shares)	0.1
Distributed (in shares)	(0.2)
Forfeited (in shares)	0.0
Undistributed as of end of period (in shares)	0.3	0.4
Weighted- Average Grant Date Fair Value per Share
Undistributed as of beginning of period (in usd per share)	$ 101.03
Granted (in usd per share)	197.54	$ 150.21	$ 126.31
Adjustments to shares paid based on payout ratio (in usd per share)	88.26
Distributed (in usd per share)	81.17
Forfeited (in usd per share)	0.00
Undistributed as of end of period (in usd per share)	$ 123.80	$ 101.03

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Stock-based Compensation (Fair Value and Tax Deductions of Performance Share Units Distributed) (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Undistributed And Unvested Performance Share Units	0.2
Realized tax benefits from tax deductions	$ 23.6	$ 0.0	$ 0.0
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares or units distributed	64.3	39.4	44.9
Realized tax benefits from tax deductions	$ 24.5	$ 15.0	$ 17.1

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Stock-based Compensation (Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 24.9	$ 31.7	$ 26.6
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 8.3	$ 9.0	$ 8.3
Weighted-average fair value of grants, per share (in usd per share)	$ 197.54	$ 150.14	$ 126.15

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Stock-based Compensation (Changes in Non-vested Restricted Stock Units) (Details) - Restricted Stock Units [Member] - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shares (2)
Undistributed as of beginning of period (in shares)	0.3
Granted (in shares)	0.1
Distributed (in shares)	(0.1)
Forfeited (in shares)	0.0
Undistributed as of end of period (in shares)	0.2	0.3
Weighted- Average Grant Date Fair Value per Share
Undistributed as of beginning of period (in usd per share)	$ 118.38
Granted (in usd per share)	197.54	$ 150.14	$ 126.15
Distributed (in usd per share)	89.33
Forfeited (in usd per share)	0.00
Undistributed as of end of period (in usd per share)	$ 156.16	$ 118.38

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Stock-Based Compensation (Fair Value and Tax Deductions of Restricted Stock Units Vested) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Realized tax benefits from tax deductions	$ 23.6	$ 0.0	$ 0.0
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares or units distributed	19.0	17.0	19.7
Realized tax benefits from tax deductions	$ 7.2	$ 6.5	$ 7.5

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Stock-based Compensation (Stock Appreciation Rights) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 24.9	$ 31.7	$ 26.6
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 4.4	$ 4.6	$ 4.7
Weighted-average fair value of grants, per share (in usd per share)	$ 32.32	$ 22.93	$ 22.74

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Stock-Based Compensation (Stock Appreciation Rights, Fair Value Assumptions) (Details) - Stock Appreciation Rights [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	1.47%	1.62%	1.61%
Risk-free interest rate	2.02%	1.66%	1.36%
Expected volatility	19.97%	19.60%	23.78%
Expected life (in years)	3 years 11 months 12 days	3 years 11 months 26 days	4 years

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Stock-Based Compensation (Changes in Stock Appreciation Rights) (Details) - Stock Appreciation Rights [Member] $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 9.6
Shares (2)
Outstanding awards as of beginning of period (in shares) | shares	1.1
Granted (in shares) | shares	0.2
Exercised (in shares) | shares	(0.2)
Forfeited (in shares) | shares	0.0
Outstanding awards as of end of period (in shares) | shares	1.1
Exercisable at end of period (in shares) | shares	0.7
Weighted-Average Exercise Price per Share
Outstanding awards as of beginning of period (in usd per share) | $ / shares	$ 98.35
Granted (in usd per share) | $ / shares	205.53
Exercised (in usd per share) | $ / shares	70.00
Forfeited (in usd per share) | $ / shares	0.00
Outstanding as of end of period (in shares) | $ / shares	121.63
Exercisable at end of period, Weighted-Average Exercise Price per Share (in usd per share) | $ / shares	$ 90.43

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Stock-Based Compensation (Stock Appreciation Rights Outstanding and Exercisable) (Details) - Stock Appreciation Rights [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 4 months 24 days
Stock Appreciation Rights Outstanding, Shares	1.1	1.1
Stock Appreciation Rights Exercisable, Shares	0.7
$34.06 to $46.78 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices per Share, lower range limit	$ 34.06
Range of Exercise Prices per Share, upper range limit	$ 81.14
Stock Appreciation Rights Outstanding, Shares	0.3
Stock Appreciation Rights Outstanding, Weighted-Average Remaining Contractual Term (in years)	2 years 2 months 15 days
Stock Appreciation Rights Outstanding, Aggregate Intrinsic Value	$ 49.3
Stock Appreciation Rights Exercisable, Shares	0.3
Stock Appreciation Rights Exercisable, Weighted-Average Remaining Contractual Life (in years)	2 years 2 months 15 days
Stock Appreciation Rights Exercisable, Aggregate Intrinsic Value	$ 49.3
$51.11 to $81.14 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices per Share, lower range limit	$ 92.64
Range of Exercise Prices per Share, upper range limit	$ 131.94
Stock Appreciation Rights Outstanding, Shares	0.3
Stock Appreciation Rights Outstanding, Weighted-Average Remaining Contractual Term (in years)	4 years 6 months 7 days
Stock Appreciation Rights Outstanding, Aggregate Intrinsic Value	$ 31.9
Stock Appreciation Rights Exercisable, Shares	0.3
Stock Appreciation Rights Exercisable, Weighted-Average Remaining Contractual Life (in years)	4 years 5 months 1 day
Stock Appreciation Rights Exercisable, Aggregate Intrinsic Value	$ 27.5
$92.64 to $126.31 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices per Share, lower range limit	$ 156.94
Range of Exercise Prices per Share, upper range limit	$ 205.53
Stock Appreciation Rights Outstanding, Shares	0.4
Stock Appreciation Rights Outstanding, Weighted-Average Remaining Contractual Term (in years)	6 years 5 months 12 days
Stock Appreciation Rights Outstanding, Aggregate Intrinsic Value	$ 12.1
Stock Appreciation Rights Exercisable, Shares	0.1
Stock Appreciation Rights Exercisable, Weighted-Average Remaining Contractual Life (in years)	6 years
Stock Appreciation Rights Exercisable, Aggregate Intrinsic Value	$ 3.9

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Stock-Based Compensation (Intrinsic Value and Tax Deductions of Stock Appreciation Rights) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Realized tax benefits from tax deductions	$ 23.6	$ 0.0	$ 0.0
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeiture Rate	14.20%
Instrinsic value of stock appreciation rights exercised	$ 25.1	36.9	27.3
Realized tax benefits from tax deductions	$ 9.6	$ 14.1	$ 10.4

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Stock-Based Compensation (Employee Stock Purchase Plan) (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares authorized	24,300
Shares available for future issuance	3,400
2012 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Offering periods	3 months
Purchase price (as a percent)	95.00%
Maximum shares authorized	2,500
Employee purchased shares	16
Shares available for future issuance	2,400

XML

Stock-Based Compensation (Textuals) (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of common stock shares which are authorized to issue awards	24.3
Common Stock, Capital Shares Reserved for Future Issuance	13.5
Shares available for future issuance	3.4
Payout Percentage	100.00%
Maximum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Potential increase for payout percentage	200.00%
Performance Shares [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award service period	3 years
Payout Percentage	185.90%	200.00%	200.00%
Total unrecognized compensation cost	$ 20.7
Weighted average period of recognition	2 years 2 months 24 days
Estimated forfeiture rate	15.10%
Restricted Stock Units [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award service period	3 years
Total unrecognized compensation cost	$ 18.8
Weighted average period of recognition	2 years 5 months
Estimated forfeiture rate	18.20%
Stock Appreciation Rights [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized compensation cost	$ 9.6
Weighted average period of recognition	2 years 4 months 24 days
Estimated forfeiture rate	14.20%
Award vesting rights (as a percent)	33.33%
Award expiration period	7 years

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Stock Repurchases (Details) - USD ($) shares in Millions				12 Months Ended
	Jul. 27, 2017	Apr. 28, 2017	Feb. 09, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Authorized amount for share repurchase				$ 2,000,000,000	$ 550,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount				$ 396,000,000
Accelerated Share Repurchases, Initial Price Paid	$ 75,000,000	$ 100,000,000	$ 75,000,000
Accelerated Share Repurchases, Percentages of Shares to be Repurchased	85.00%	85.00%	85.00%
Accelerated Share Repurchases, Number	0.4	0.6	0.5
Repurchased shares to satisfy minimum withholding obligations (in shares)				0.1	0.2
Repurchased shares to satisfy employee withholding tax obligations				$ 26,100,000	$ 33,300,000	$ 32,000,000

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Restructuring Charges (Restructuring Charges for Ongoing Activities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	$ 3.2	$ 1.8
Incurred to Date	18.8
Total Expected to be Incurred	19.4
Residential Heating and Cooling [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	0.5
Incurred to Date	1.4
Total Expected to be Incurred	1.4
Commercial Heating and Cooling [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	0.9
Incurred to Date	2.0
Total Expected to be Incurred	2.1
Refrigeration [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	1.2
Incurred to Date	13.1
Total Expected to be Incurred	13.1
Corporate and Other [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	0.6
Incurred to Date	2.3
Total Expected to be Incurred	2.8
Severance and Related Expense [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	2.0	(0.2)
Incurred to Date	11.3
Total Expected to be Incurred	11.5
Asset Write-offs and Accelerated Depreciation [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	0.8	0.3
Incurred to Date	3.2
Total Expected to be Incurred	3.2
Equipment Moves [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	0.0	0.0
Incurred to Date	0.0
Total Expected to be Incurred	0.0
Lease Termination [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	0.0	0.0
Incurred to Date	0.2
Total Expected to be Incurred	0.2
Other [Member]
Restructuring Cost and Reserve [Line Items]
Incurred in 2017	0.4	$ 1.7
Incurred to Date	4.1
Total Expected to be Incurred	$ 4.5

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Restructuring Charges (Description of Reserves) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details activity within the restructuring reserves
Beginning Balance	$ 0.0	$ 0.9
Incurred in 2017	3.2	1.8
Cash Utilization	(2.4)	(2.7)
Non-Cash Utilization and Other	(0.6)	0.0
Ending Balance	0.2	0.0
Severance and Related Expense [Member]
Details activity within the restructuring reserves
Beginning Balance	0.0	0.7
Incurred in 2017	2.0	(0.2)
Cash Utilization	(1.8)	(0.5)
Non-Cash Utilization and Other	0.0	0.0
Ending Balance	0.2	0.0
Asset Write-offs and Accelerated Depreciation [Member]
Details activity within the restructuring reserves
Beginning Balance	0.0	0.0
Incurred in 2017	0.8	0.3
Cash Utilization	(0.2)	(0.2)
Non-Cash Utilization and Other	(0.6)	(0.1)
Ending Balance	0.0	0.0
Equipment Moves [Member]
Details activity within the restructuring reserves
Beginning Balance	0.0	0.0
Incurred in 2017	0.0	0.0
Cash Utilization	0.0	0.0
Non-Cash Utilization and Other	0.0	0.0
Ending Balance	0.0	0.0
Lease Termination [Member]
Details activity within the restructuring reserves
Beginning Balance	0.0	0.2
Incurred in 2017	0.0	0.0
Cash Utilization	0.0	(0.2)
Non-Cash Utilization and Other	0.0	0.0
Ending Balance	0.0	0.0
Other [Member]
Details activity within the restructuring reserves
Beginning Balance	0.0	0.0
Incurred in 2017	0.4	1.7
Cash Utilization	(0.4)	(1.8)
Non-Cash Utilization and Other	0.0	0.1
Ending Balance	$ 0.0	$ 0.0

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Discontinued Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax operating income (loss)	$ (2.2)	$ (1.3)	$ (1.0)

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Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 43.1	$ 103.5	$ 115.5	$ 43.5	$ 40.4	$ 101.7	$ 110.7	$ 24.9	$ 305.7	$ 277.8	$ 186.6
Net loss from discontinued operations									1.4	0.8	0.6
Income from continuing operations									$ 307.1	$ 278.6	$ 187.2
Weighted-average shares outstanding - basic (in shares)									42.2	43.4	44.9
Add: Potential effect of diluted securities attributable to stock-based payments									0.6	0.6	0.7
Weighted-average shares outstanding - diluted (in shares)									42.8	44.0	45.6
Earnings per share – Basic:
Income from continuing operations (in usd per share)									$ 7.28	$ 6.41	$ 4.17
Loss from discontinued operations (in usd per share)									(0.03)	(0.02)	(0.01)
Net income (in usd per share)	$ 1.03	$ 2.47	$ 2.73	$ 1.02	$ 0.94	$ 2.35	$ 2.54	$ 0.57	7.25	6.39	4.16
Earnings per share – Diluted:
Income from continuing operations (in usd per share)									7.17	6.34	4.11
Loss from discontinued operations (in usd per share)									(0.03)	(0.02)	(0.02)
Net income (in usd per share)	$ 1.02	$ 2.44	$ 2.69	$ 1.00	$ 0.93	$ 2.33	$ 2.51	$ 0.56	$ 7.14	$ 6.32	$ 4.09

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Reportable Business Segments (Description of Segments) (Details)	12 Months Ended
	Dec. 31, 2017 Segment
Segment Reporting, Measurement Disclosures [Abstract]
Number of reportable business segments	3
Residential Heating & Cooling [Member] | United States [Member]
Summary of nature of operations of reportable segment
Product or Services	Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies
Markets Served	Residential Replacement; Residential New Construction
Residential Heating & Cooling [Member] | Canada [Member]
Summary of nature of operations of reportable segment
Product or Services	Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies
Markets Served	Residential Replacement; Residential New Construction
Commercial Heating & Cooling [Member] | United States [Member]
Summary of nature of operations of reportable segment
Product or Services	Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products
Markets Served	Light Commercial
Commercial Heating & Cooling [Member] | Canada [Member]
Summary of nature of operations of reportable segment
Product or Services	Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products
Markets Served	Light Commercial
Commercial Heating & Cooling [Member] | Europe [Member]
Summary of nature of operations of reportable segment
Product or Services	Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment
Markets Served	Light Commercial
Refrigeration [Member] | United States [Member]
Summary of nature of operations of reportable segment
Product or Services	Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems
Markets Served	Light Commercial; Food Preservation; Non-Food/Industrial
Refrigeration [Member] | Canada [Member]
Summary of nature of operations of reportable segment
Product or Services	Condensing units, unit coolers, fluid coolers, aircooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems
Markets Served	Light Commercial; Food Preservation; Non-Food/Industrial
Refrigeration [Member] | Europe [Member]
Summary of nature of operations of reportable segment
Product or Services	Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems
Markets Served	Light Commercial Food Preservation; Non-Food/Industrial
Refrigeration [Member] | Asia Pacific [Member]
Summary of nature of operations of reportable segment
Product or Services	Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems
Markets Served	Light Commercial Food Preservation; Non-Food/Industrial
Refrigeration [Member] | South America [Member]
Summary of nature of operations of reportable segment
Product or Services	Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, supermarket display cases and systems
Markets Served	Light Commercial Food Preservation; Non-Food/Industrial

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Reportable Business Segments (Net Sales and Segment Profit (Loss) and Reconciliation to Income from Continuing Operations) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net Sales
Net Sales	$ 891,800,000	$ 1,052,300,000	$ 1,102,100,000	$ 793,400,000	$ 897,300,000	$ 1,010,000,000	$ 1,019,200,000	$ 715,200,000	$ 3,839,600,000	$ 3,641,600,000	$ 3,467,400,000
Segment Profit (Loss)
Subtotal segment profit									(514,600,000)	(469,600,000)	(377,600,000)
Reconciliation to Operating income:
Special product quality adjustments									5,400,000	(400,000)	(2,200,000)
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss)									11,500,000	7,400,000	15,600,000
Restructuring charges									3,200,000	1,800,000	3,200,000
Pension settlement									0	31,400,000	0
Goodwill impairment									0	0	5,500,000
Asset impairment									0	0	44,500,000
One time inventory write down									0	0	5,600,000
Operating income									494,500,000	429,400,000	305,400,000
Revenue from transactions with major customers									$ 0	$ 0	$ 0
Minimum percentage of consolidated net sales from single customer									10.00%	10.00%	10.00%
Residential Heating & Cooling [Member]
Net Sales
Net Sales									$ 2,140,400,000	$ 2,000,800,000	$ 1,866,900,000
Segment Profit (Loss)
Subtotal segment profit									(373,900,000)	(348,800,000)	(278,400,000)
Commercial Heating & Cooling [Member]
Net Sales
Net Sales									973,800,000	917,900,000	887,200,000
Segment Profit (Loss)
Subtotal segment profit									(157,300,000)	(149,300,000)	(130,400,000)
Refrigeration [Member]
Net Sales
Net Sales									725,400,000	722,900,000	713,300,000
Segment Profit (Loss)
Subtotal segment profit									(72,600,000)	(68,900,000)	(52,900,000)
Corporate & other [Member]
Segment Profit (Loss)
Subtotal segment profit									$ (89,200,000)	$ (97,400,000)	$ (84,100,000)

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Reportable Business Segments (Assets by Segment) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total assets	$ 1,891.5	$ 1,760.3	$ 1,677.4
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total assets	771.3	673.4	628.3
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total assets	443.9	385.8	363.6
Refrigeration [Member]
Segment Reporting Information [Line Items]
Total assets	506.9	442.8	444.9
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total assets	$ 169.4	$ 258.3	$ 240.6

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Reportable Business Segments (Capital Expenditures by Segment) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total capital expenditures	$ 98,300,000	$ 84,300,000	$ 69,900,000
New capital leases	0	0	0
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total capital expenditures	38,900,000	36,700,000	28,100,000
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total capital expenditures	18,500,000	11,500,000	8,600,000
Refrigeration [Member]
Segment Reporting Information [Line Items]
Total capital expenditures	8,000,000	12,100,000	11,400,000
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total capital expenditures	$ 32,900,000	$ 24,000,000	$ 21,800,000

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Reportable Business Segments (Depreciation and Amortization Expense by Segment) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 64.6	$ 58.1	$ 62.8
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	24.9	21.0	20.7
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	10.1	9.8	9.7
Refrigeration [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	9.9	9.7	15.5
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 19.7	$ 17.6	$ 16.9

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Reportable Business Segments (Equity Method Investments) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total income from equity method investments	$ 18.4	$ 18.4	$ 13.4
Refrigeration [Member]
Segment Reporting Information [Line Items]
Total income from equity method investments	3.9	4.0	2.8
Residential [Member]
Segment Reporting Information [Line Items]
Total income from equity method investments	11.7	11.5	8.0
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total income from equity method investments	$ 2.8	$ 2.9	$ 2.6

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Reportable Business Segments (Geographic Information) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total net sales to external customers	$ 891.8	$ 1,052.3	$ 1,102.1	$ 793.4	$ 897.3	$ 1,010.0	$ 1,019.2	$ 715.2	$ 3,839.6	$ 3,641.6	$ 3,467.4
Total property, plant and equipment, net	397.8				361.4				397.8	361.4	339.6
United States [Member]
Segment Reporting Information [Line Items]
Total net sales to external customers									3,128.7	2,966.8	2,793.4
Total property, plant and equipment, net	257.6				237.6				257.6	237.6	224.8
Mexico [Member]
Segment Reporting Information [Line Items]
Total property, plant and equipment, net	79.8				69.4				79.8	69.4	60.0
Canada [Member]
Segment Reporting Information [Line Items]
Total net sales to external customers									237.8	218.8	217.7
Total property, plant and equipment, net	1.7				1.4				1.7	1.4	1.2
International [Member]
Segment Reporting Information [Line Items]
Total net sales to external customers									473.1	456.0	456.3
Total property, plant and equipment, net	$ 58.7				$ 53.0				$ 58.7	$ 53.0	$ 53.6

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Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in marketable equity securities	$ 4.1	$ 4.4
Quoted Prices in Active Markets for Identical Assets (Level 2) [Member] | Senior Unsecured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior unsecured notes	$ 308.1	$ 499.3

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Selected Quarterly Financial Information (unaudited) (Quarterly Information) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Net Sales	$ 891.8	$ 1,052.3	$ 1,102.1	$ 793.4	$ 897.3	$ 1,010.0	$ 1,019.2	$ 715.2	$ 3,839.6	$ 3,641.6	$ 3,467.4
Gross Profit	259.8	313.7	340.8	210.9	267.6	310.3	315.0	183.6	1,125.2	1,076.5	947.4
Net Income (Loss)	$ 43.1	$ 103.5	$ 115.5	$ 43.5	$ 40.4	$ 101.7	$ 110.7	$ 24.9	$ 305.7	$ 277.8	$ 186.6
Basic Earnings (Loss) per Share (in usd per share)	$ 1.03	$ 2.47	$ 2.73	$ 1.02	$ 0.94	$ 2.35	$ 2.54	$ 0.57	$ 7.25	$ 6.39	$ 4.16
Diluted Earnings (Loss) per Share (in usd per share)	1.02	2.44	2.69	1.00	0.93	2.33	2.51	0.56	7.14	6.32	4.09
Cash Dividends per Common Share (in usd per share)	$ 0.51	$ 0.51	$ 0.51	$ 0.43	$ 0.43	$ 0.43	$ 0.43	$ 0.36	$ 1.96	$ 1.65	$ 1.38

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Selected Quarterly Financial Information (unaudited) (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
One-time charge to revalue deferred tax assets and liabilities	$ 31.8
Pension settlement charge		$ 31.4

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Losses and Other Expenses, net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Losses (Gains) and Other Expenses, net [Abstract]
Realized (gains) losses on settled futures contracts	$ (1.7)	$ 1.1	$ 1.9
Foreign currency exchange (gains) losses	(1.8)	2.2	3.6
Losses on disposal of fixed assets	0.2	0.5	0.6
Net change in unrealized losses (gains) on unsettled futures contracts	0.9	(3.6)	0.6
Asbestos-related litigation	3.5	6.3	3.0
Acquisition/disposition expenses	1.1	0.4	1.0
Special legal contingency charges	3.7	1.9	7.4
Environmental liabilities	2.2	1.9	1.0
Contractor tax payments	0.1	0.6	2.6
Losses and other expenses, net	$ 8.2	$ 11.3	$ 21.7

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Supplemental Information (Expenses) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of expenses in statements of operations
Research and development	$ 73.6	$ 64.6	$ 62.3
Advertising, promotions and marketing	45.0	41.0	42.5
Cooperative advertising expenditures	18.6	14.7	13.7
Rent expense	$ 57.7	$ 57.9	$ 53.5

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Supplemental Information (Components of Interest Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of components of interest expense
Interest expense, net of capitalized interest	$ 32.1	$ 28.1	$ 25.2
Interest income	1.5	1.1	1.6
Interest expense, net	$ 30.6	$ 27.0	$ 23.6

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Condensed Consolidating Financial Statements (Textuals) (Details)	Dec. 31, 2017
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Ownership percentage	100.00%

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Condensed Consolidating Financial Statements (Balance Sheet) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 68.2	$ 50.2	$ 38.9	$ 37.5
Accounts and notes receivable, net	506.5	469.8
Inventories, net	484.2	418.5
Other assets	78.4	67.4
Total current assets	1,137.3	1,005.9
Property, plant and equipment, net of accumulated depreciation of $774.2 and $717.2 in 2017 and 2016, respectively	397.8	361.4	339.6
Goodwill	200.5	195.1	195.1
Investment in subsidiaries	0.0	0.0
Deferred income taxes	94.4	136.7
Other assets, net	61.5	61.2
Intercompany receivables (payables), net	0.0	0.0
Total assets	1,891.5	1,760.3	1,677.4
Current Liabilities:
Short-term debt	0.9	52.4
Current maturities of long-term debt	32.6	200.1
Accounts payable	348.6	361.2
Accrued expenses	270.3	265.9
Income taxes payable	2.1	9.0
Total current liabilities	654.5	888.6
Long-term debt	970.5	615.7
Post-retirement benefits, other than pensions	2.6	2.8
Pensions	84.5	87.5
Other liabilities	129.3	127.7
Total liabilities	1,841.4	1,722.3
Commitments and contingencies
Total stockholders’ equity	50.1	38.0	101.6	9.0
Total liabilities and stockholders' equity	1,891.5	1,760.3
Parent [Member]
Current assets:
Cash and cash equivalents	1.6	1.2	0.5	1.0
Accounts and notes receivable, net	0.0	0.0
Inventories, net	0.0	0.0
Other assets	16.2	12.8
Total current assets	17.8	14.0
Property, plant and equipment, net of accumulated depreciation of $774.2 and $717.2 in 2017 and 2016, respectively	0.0	0.0
Goodwill	0.0	0.0
Investment in subsidiaries	1,257.7	1,166.9
Deferred income taxes	3.9	6.8
Other assets, net	2.1	3.6
Intercompany receivables (payables), net	(559.3)	(382.4)
Total assets	722.2	808.9
Current Liabilities:
Short-term debt	0.0	0.0
Current maturities of long-term debt	29.4	199.3
Accounts payable	21.3	18.5
Accrued expenses	3.1	6.3
Income taxes payable	(64.5)	(54.0)
Total current liabilities	(10.7)	170.1
Long-term debt	682.8	600.9
Post-retirement benefits, other than pensions	0.0	0.0
Pensions	0.0	0.0
Other liabilities	0.0	0.0
Total liabilities	672.1	771.0
Commitments and contingencies
Total stockholders’ equity	50.1	37.9
Total liabilities and stockholders' equity	722.2	808.9
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	28.0	17.1	7.8	11.5
Accounts and notes receivable, net	35.3	30.6
Inventories, net	355.7	314.7
Other assets	23.1	48.8
Total current assets	442.1	411.2
Property, plant and equipment, net of accumulated depreciation of $774.2 and $717.2 in 2017 and 2016, respectively	257.6	237.6
Goodwill	134.9	134.9
Investment in subsidiaries	365.8	524.7
Deferred income taxes	69.1	113.5
Other assets, net	41.3	40.0
Intercompany receivables (payables), net	554.7	375.2
Total assets	1,865.5	1,837.1
Current Liabilities:
Short-term debt	0.0	0.0
Current maturities of long-term debt	2.9	0.4
Accounts payable	228.0	248.5
Accrued expenses	209.4	206.3
Income taxes payable	56.5	89.8
Total current liabilities	496.8	545.0
Long-term debt	11.7	14.5
Post-retirement benefits, other than pensions	2.6	2.8
Pensions	74.7	75.5
Other liabilities	120.6	119.1
Total liabilities	706.4	756.9
Commitments and contingencies
Total stockholders’ equity	1,159.1	1,080.2
Total liabilities and stockholders' equity	1,865.5	1,837.1
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	38.6	31.9	30.6	25.0
Accounts and notes receivable, net	471.2	439.2
Inventories, net	131.9	108.9
Other assets	67.5	67.5
Total current assets	709.2	647.5
Property, plant and equipment, net of accumulated depreciation of $774.2 and $717.2 in 2017 and 2016, respectively	144.4	123.8
Goodwill	65.6	60.2
Investment in subsidiaries	(0.6)	(0.5)
Deferred income taxes	33.6	31.1
Other assets, net	19.6	19.0
Intercompany receivables (payables), net	107.4	80.4
Total assets	1,079.2	961.5
Current Liabilities:
Short-term debt	0.9	52.4
Current maturities of long-term debt	0.3	0.4
Accounts payable	99.3	94.2
Accrued expenses	57.8	53.3
Income taxes payable	60.9	52.5
Total current liabilities	219.2	252.8
Long-term debt	276.0	0.3
Post-retirement benefits, other than pensions	0.0	0.0
Pensions	9.8	12.0
Other liabilities	8.7	11.1
Total liabilities	513.7	276.2
Commitments and contingencies
Total stockholders’ equity	565.5	685.3
Total liabilities and stockholders' equity	1,079.2	961.5
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	(3.4)	(5.1)
Other assets	(28.4)	(61.7)
Total current assets	(31.8)	(66.8)
Property, plant and equipment, net of accumulated depreciation of $774.2 and $717.2 in 2017 and 2016, respectively	(4.2)	0.0
Goodwill	0.0	0.0
Investment in subsidiaries	(1,622.9)	(1,691.1)
Deferred income taxes	(12.2)	(14.7)
Other assets, net	(1.5)	(1.4)
Intercompany receivables (payables), net	(102.8)	(73.2)
Total assets	(1,775.4)	(1,847.2)
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	(50.8)	(79.3)
Total current liabilities	(50.8)	(79.3)
Long-term debt	0.0	0.0
Post-retirement benefits, other than pensions	0.0	0.0
Pensions	0.0	0.0
Other liabilities	0.0	(2.5)
Total liabilities	(50.8)	(81.8)
Commitments and contingencies
Total stockholders’ equity	(1,724.6)	(1,765.4)
Total liabilities and stockholders' equity	$ (1,775.4)	$ (1,847.2)

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Condensed Consolidating Financial Statements (Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Income Statements, Captions [Line Items]
Net sales	$ 891.8	$ 1,052.3	$ 1,102.1	$ 793.4	$ 897.3	$ 1,010.0	$ 1,019.2	$ 715.2	$ 3,839.6	$ 3,641.6	$ 3,467.4
Cost of goods sold									2,714.4	2,565.1	2,520.0
Gross profit	259.8	313.7	340.8	210.9	267.6	310.3	315.0	183.6	1,125.2	1,076.5	947.4
Operating expenses:
Selling, general and administrative expenses									637.7	621.0	580.5
Losses (gains) and other expenses, net									8.2	11.3	21.7
Restructuring charges									3.2	1.8	3.2
Goodwill impairment									0.0	0.0	5.5
Asset impairment									0.0	0.0	44.5
Pension settlement									0.0	31.4	0.0
Income from equity method investments									(18.4)	(18.4)	(13.4)
Operating income									494.5	429.4	305.4
Interest expense, net									30.6	27.0	23.6
Other income, net									(0.1)	(0.3)	(0.8)
Income from continuing operations before income taxes									464.0	402.7	282.6
Provision for income taxes									156.9	124.1	95.4
Income from continuing operations									307.1	278.6	187.2
Loss from discontinued operations									(1.4)	(0.8)	(0.6)
Net income	$ 43.1	$ 103.5	$ 115.5	$ 43.5	$ 40.4	$ 101.7	$ 110.7	$ 24.9	305.7	277.8	186.6
Other comprehensive income (loss), net of tax									37.7	9.6	(51.2)
Comprehensive income									343.4	287.4	135.4
Parent [Member]
Condensed Income Statements, Captions [Line Items]
Net sales									0.0	0.0	0.0
Cost of goods sold									0.0	0.0	0.0
Gross profit									0.0	0.0	0.0
Operating expenses:
Selling, general and administrative expenses									0.0	0.0	0.0
Losses (gains) and other expenses, net									2.0	(3.3)	0.7
Restructuring charges									0.0	0.0	0.0
Goodwill impairment									0.0	0.0	0.0
Asset impairment									0.0	0.0	0.0
Pension settlement									0.0	0.0	0.0
Income from equity method investments									(324.3)	(292.4)	(201.8)
Operating income									322.3	295.7	201.1
Interest expense, net									26.9	24.4	22.4
Other income, net									0.0	0.0	0.0
Income from continuing operations before income taxes									295.4	271.3	178.7
Provision for income taxes									(10.3)	(6.5)	(7.8)
Income from continuing operations									305.7	277.8	186.5
Loss from discontinued operations									0.0	0.0	0.0
Net income									305.7	277.8	186.5
Other comprehensive income (loss), net of tax									1.7	14.0	(3.5)
Comprehensive income									307.4	291.8	183.0
Guarantor Subsidiaries [Member]
Condensed Income Statements, Captions [Line Items]
Net sales									3,295.8	3,117.6	2,950.6
Cost of goods sold									2,359.6	2,203.8	2,150.9
Gross profit									936.2	913.8	799.7
Operating expenses:
Selling, general and administrative expenses									553.6	524.3	485.6
Losses (gains) and other expenses, net									4.4	9.7	13.7
Restructuring charges									2.1	1.9	(0.5)
Goodwill impairment									0.0	0.0	5.5
Asset impairment									0.0	0.0	44.5
Pension settlement									0.0	30.5	0.0
Income from equity method investments									(74.9)	(40.7)	(5.9)
Operating income									451.0	388.1	256.8
Interest expense, net									(2.7)	(2.2)	(2.0)
Other income, net									0.0	0.0	0.0
Income from continuing operations before income taxes									453.7	390.3	258.8
Provision for income taxes									136.2	108.2	87.9
Income from continuing operations									317.5	282.1	170.9
Loss from discontinued operations									0.0	0.0	0.0
Net income									317.5	282.1	170.9
Other comprehensive income (loss), net of tax									5.5	8.5	(3.3)
Comprehensive income									323.0	290.6	167.6
Non-Guarantor Subsidiaries [Member]
Condensed Income Statements, Captions [Line Items]
Net sales									1,144.2	728.0	701.8
Cost of goods sold									953.6	564.5	556.4
Gross profit									190.6	163.5	145.4
Operating expenses:
Selling, general and administrative expenses									85.0	96.7	94.9
Losses (gains) and other expenses, net									1.9	5.1	7.5
Restructuring charges									1.1	(0.1)	3.7
Goodwill impairment									0.0	0.0	0.0
Asset impairment									0.0	0.0	0.0
Pension settlement									0.0	0.9	0.0
Income from equity method investments									(14.5)	(14.4)	(10.5)
Operating income									117.1	75.3	49.8
Interest expense, net									6.4	4.8	3.2
Other income, net									(0.1)	(0.3)	(0.8)
Income from continuing operations before income taxes									110.8	70.8	47.4
Provision for income taxes									31.2	22.6	14.3
Income from continuing operations									79.6	48.2	33.1
Loss from discontinued operations									(1.4)	(0.8)	(0.6)
Net income									78.2	47.4	32.5
Other comprehensive income (loss), net of tax									30.5	(14.2)	(40.4)
Comprehensive income									108.7	33.2	(7.9)
Eliminations [Member]
Condensed Income Statements, Captions [Line Items]
Net sales									(600.4)	(204.0)	(185.0)
Cost of goods sold									(598.8)	(203.2)	(187.3)
Gross profit									(1.6)	(0.8)	2.3
Operating expenses:
Selling, general and administrative expenses									(0.9)	0.0	0.0
Losses (gains) and other expenses, net									(0.1)	(0.2)	(0.2)
Restructuring charges									0.0	0.0	0.0
Goodwill impairment									0.0	0.0	0.0
Asset impairment									0.0	0.0	0.0
Pension settlement									0.0	0.0	0.0
Income from equity method investments									395.3	329.1	204.8
Operating income									(395.9)	(329.7)	(202.3)
Interest expense, net									0.0	0.0	0.0
Other income, net									0.0	0.0	0.0
Income from continuing operations before income taxes									(395.9)	(329.7)	(202.3)
Provision for income taxes									(0.2)	(0.2)	1.0
Income from continuing operations									(395.7)	(329.5)	(203.3)
Loss from discontinued operations									0.0	0.0	0.0
Net income									(395.7)	(329.5)	(203.3)
Other comprehensive income (loss), net of tax									0.0	1.3	(4.0)
Comprehensive income									$ (395.7)	$ (328.2)	$ (207.3)

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Condensed Consolidating Financial Statements (Statements of Cash Flows) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows from operating activities:	$ 325.1	$ 373.9	$ 353.6
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.2	0.2	0.1
Purchases of property, plant and equipment	(98.3)	(84.3)	(69.9)
Net cash used in investing activities	(98.1)	(84.1)	(69.8)
Cash flows from financing activities:
Short-term borrowings, net	(1.5)	(2.4)	(1.7)
Asset securitization borrowings	315.0	145.0	40.0
Asset securitization payments	(89.0)	(295.0)	(60.0)
Long-term debt borrowings	0.0	350.0	0.0
Borrowings from credit facility	2,376.5	2,336.5	1,671.0
Long-term debt payments	(200.9)	(58.8)	(24.0)
Payments on credit facility	(2,265.5)	(2,346.0)	(1,807.5)
Payments of deferred financing costs	(0.2)	(4.2)	0.0
Proceeds from employee stock purchases	3.1	2.6	2.4
Repurchases of common stock to satisfy employee withholding tax obligations	(26.1)	(33.3)	(32.0)
Repurchases of common stock	(250.0)	(300.0)	0.0
Excess tax benefits related to share-based payments	0.0
Intercompany debt	0.0	0.0	0.0
Intercompany financing activity	0.0	0.0	0.0
Cash dividends paid	(79.7)	(69.0)	(59.3)
Net cash used in financing activities	(218.3)	(274.6)	(271.1)
Increase (decrease) in cash and cash equivalents	8.7	15.2	12.7
Effect of exchange rates on cash and cash equivalents	9.3	(3.9)	(11.3)
Cash and cash equivalents, beginning of year	50.2	38.9	37.5
Cash and cash equivalents, end of year	68.2	50.2	38.9
Parent [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows from operating activities:	467.4	17.8	249.3
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.0	0.0	0.0
Purchases of property, plant and equipment	0.0	0.0	0.0
Net cash used in investing activities	0.0	0.0	0.0
Cash flows from financing activities:
Short-term borrowings, net	0.0	0.0	0.0
Asset securitization borrowings	0.0	0.0	0.0
Asset securitization payments	0.0	0.0	0.0
Long-term debt borrowings	0.0	350.0	0.0
Borrowings from credit facility	2,376.5	2,336.5	1,671.0
Long-term debt payments	(200.0)	(57.5)	(22.5)
Payments on credit facility	(2,265.5)	(2,346.0)	(1,807.5)
Payments of deferred financing costs	0.0	(4.2)	0.0
Proceeds from employee stock purchases	3.1	2.6	2.4
Repurchases of common stock to satisfy employee withholding tax obligations	(26.1)	(33.3)	(32.0)
Repurchases of common stock	(250.0)	(300.0)	0.0
Excess tax benefits related to share-based payments	0.0
Intercompany debt	56.4	30.0	(9.4)
Intercompany financing activity	(81.7)	73.8	7.5
Cash dividends paid	(79.7)	(69.0)	(59.3)
Net cash used in financing activities	(467.0)	(17.1)	(249.8)
Increase (decrease) in cash and cash equivalents	0.4	0.7	(0.5)
Effect of exchange rates on cash and cash equivalents	0.0	0.0	0.0
Cash and cash equivalents, beginning of year	1.2	0.5	1.0
Cash and cash equivalents, end of year	1.6	1.2	0.5
Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows from operating activities:	31.1	218.5	49.3
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.1	0.0	0.1
Purchases of property, plant and equipment	(70.7)	(71.5)	(60.2)
Net cash used in investing activities	(70.6)	(71.5)	(60.1)
Cash flows from financing activities:
Short-term borrowings, net	0.0	0.0	0.0
Asset securitization borrowings	0.0	0.0	0.0
Asset securitization payments	0.0	0.0	0.0
Long-term debt borrowings	0.0	0.0
Borrowings from credit facility	0.0	0.0	0.0
Long-term debt payments	(0.3)	(0.9)	(1.2)
Payments on credit facility	0.0	0.0	0.0
Payments of deferred financing costs	0.0	0.0	0.0
Proceeds from employee stock purchases	0.0	0.0	0.0
Repurchases of common stock to satisfy employee withholding tax obligations	0.0	0.0	0.0
Repurchases of common stock	0.0	0.0	0.0
Excess tax benefits related to share-based payments	0.0
Intercompany debt	(34.9)	(65.8)	7.1
Intercompany financing activity	85.6	(71.0)	1.2
Cash dividends paid	0.0	0.0	0.0
Net cash used in financing activities	50.4	(137.7)	7.1
Increase (decrease) in cash and cash equivalents	10.9	9.3	(3.7)
Effect of exchange rates on cash and cash equivalents	0.0	0.0	0.0
Cash and cash equivalents, beginning of year	17.1	7.8	11.5
Cash and cash equivalents, end of year	28.0	17.1	7.8
Non-Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows from operating activities:	(173.4)	137.6	55.0
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.1	0.2	0.0
Purchases of property, plant and equipment	(27.6)	(12.8)	(9.7)
Net cash used in investing activities	(27.5)	(12.6)	(9.7)
Cash flows from financing activities:
Short-term borrowings, net	(1.5)	(2.4)	(1.7)
Asset securitization borrowings	315.0	145.0	40.0
Asset securitization payments	(89.0)	(295.0)	(60.0)
Long-term debt borrowings	0.0	0.0
Borrowings from credit facility	0.0	0.0	0.0
Long-term debt payments	(0.6)	(0.4)	(0.3)
Payments on credit facility	0.0	0.0	0.0
Payments of deferred financing costs	(0.2)	0.0	0.0
Proceeds from employee stock purchases	0.0	0.0	0.0
Repurchases of common stock to satisfy employee withholding tax obligations	0.0	0.0	0.0
Repurchases of common stock	0.0	0.0	0.0
Excess tax benefits related to share-based payments	0.0
Intercompany debt	(21.5)	35.8	2.3
Intercompany financing activity	(3.9)	(2.8)	(8.7)
Cash dividends paid	0.0	0.0	0.0
Net cash used in financing activities	198.3	(119.8)	(28.4)
Increase (decrease) in cash and cash equivalents	(2.6)	5.2	16.9
Effect of exchange rates on cash and cash equivalents	9.3	(3.9)	(11.3)
Cash and cash equivalents, beginning of year	31.9	30.6	25.0
Cash and cash equivalents, end of year	38.6	31.9	30.6
Eliminations [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows from operating activities:	0.0	0.0	0.0
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.0	0.0	0.0
Purchases of property, plant and equipment	0.0	0.0	0.0
Net cash used in investing activities	0.0	0.0	0.0
Cash flows from financing activities:
Short-term borrowings, net	0.0	0.0	0.0
Asset securitization borrowings	0.0	0.0	0.0
Asset securitization payments	0.0	0.0	0.0
Long-term debt borrowings	0.0	0.0
Borrowings from credit facility	0.0	0.0	0.0
Long-term debt payments	0.0	0.0	0.0
Payments on credit facility	0.0	0.0	0.0
Payments of deferred financing costs	0.0	0.0	0.0
Proceeds from employee stock purchases	0.0	0.0	0.0
Repurchases of common stock to satisfy employee withholding tax obligations	0.0	0.0	0.0
Repurchases of common stock	0.0	0.0	0.0
Excess tax benefits related to share-based payments	0.0
Intercompany debt	0.0	0.0	0.0
Intercompany financing activity	0.0	0.0	0.0
Cash dividends paid	0.0	0.0	0.0
Net cash used in financing activities	0.0	0.0	0.0
Increase (decrease) in cash and cash equivalents	0.0	0.0	0.0
Effect of exchange rates on cash and cash equivalents	0.0	0.0	0.0
Cash and cash equivalents, beginning of year	0.0	0.0	0.0
Cash and cash equivalents, end of year	$ 0.0	$ 0.0	$ 0.0

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Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at end of year	$ 4.3
Allowance for Doubtful Accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of year	6.7	$ 6.3	$ 7.9
Additions charged to cost and expenses	3.9	2.4	2.8
Write-offs	(5.6)	(2.7)	(4.9)
Recoveries	0.9	0.9	1.1
Other	0.0	(0.2)	(0.6)
Balance at end of year	$ 5.9	$ 6.7	$ 6.3