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Condensed Consolidating Financial Statements
 3 Months Ended
Mar. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements:

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

The condensed consolidating financial statements reflect our investments in our subsidiaries using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Our condensed consolidating financial statements and our Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of March 31, 2019 and December 31, 2018, and for the three months ended March 31, 2019 and 2018 are shown on the following pages.Lennox International Inc. and Subsidiaries
Condensed Consolidating Balance Sheets
As of March 31, 2019
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
2.0

 
$
13.0

 
$
16.7

 
$
—

 
$
31.7

Accounts and notes receivable, net
—

 
64.2

 
438.4

 
—

 
502.6

Inventories, net
—

 
497.5

 
104.5

 
(1.9
)
 
600.1

Other assets
4.5

 
63.2

 
52.2

 
(33.4
)
 
86.5

Total current assets
6.5

 
637.9

 
611.8

 
(35.3
)
 
1,220.9

Property, plant and equipment, net
—

 
295.3

 
116.4

 
—

 
411.7

Right-of-use assets from operating leases

—

 
146.2

 
23.9

 
—

 
170.1

Goodwill
—

 
166.1

 
20.4

 
—

 
186.5

Investment in subsidiaries
1,367.2

 
454.9

 
50.2

 
(1,872.3
)
 
—

Deferred income taxes
(12.5
)
 
50.7

 
22.5

 
(12.2
)
 
48.5

Other assets, net
1.7

 
49.8

 
2.3

 
14.2

 
68.0

Intercompany (payables) receivables, net
(497.9
)
 
438.2

 
179.6

 
(119.9
)
 
—

Total assets
$
865.0

 
$
2,239.1

 
$
1,027.1

 
$
(2,025.5
)
 
$
2,105.7

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
6.9

 
5.6

 
225.1

 
—

 
237.6

Current operating lease liabilities
—

 
41.7

 
6.4

 
—

 
48.1

Accounts payable
25.6

 
276.6

 
109.7

 
—

 
411.9

Accrued expenses
7.5

 
175.0

 
37.3

 
—

 
219.8

Income taxes (receivable) payable
(7.2
)
 
19.8

 
38.0

 
(50.6
)
 
—

Total current liabilities
32.8

 
518.7

 
416.5

 
(50.6
)
 
917.4

Long-term debt
1,036.7

 
21.7

 
0.6

 
—

 
1,059.0

Long-term operating lease liabilities
—

 
105.0

 
17.6

 
—

 
122.6

Pensions
—

 
76.5

 
5.8

 
—

 
82.3

Other liabilities
0.3

 
122.0

 
6.9

 
—

 
129.2

Total liabilities
1,069.8

 
843.9

 
447.4

 
(50.6
)
 
2,310.5

Commitments and contingencies

 

 

 

 

Total stockholders' (deficit) equity
(204.8
)
 
1,395.2

 
579.7

 
(1,974.9
)
 
(204.8
)
Total liabilities and stockholders' (deficit) equity
$
865.0

 
$
2,239.1

 
$
1,027.1

 
$
(2,025.5
)
 
$
2,105.7

Lennox International Inc. and Subsidiaries
Condensed Consolidating Balance Sheets
As of December 31, 2018
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.8

 
$
15.4

 
$
29.1

 
$
—

 
$
46.3

Accounts and notes receivable, net
—

 
44.3

 
428.4

 
—

 
472.7

Inventories, net
—

 
411.4

 
103.9

 
(5.5
)
 
509.8

Other assets
3.3

 
36.2

 
54.7

 
(33.6
)
 
60.6

Total current assets
5.1

 
507.3

 
616.1

 
(39.1
)
 
1,089.4

Property, plant and equipment, net
—

 
293.3

 
118.6

 
(3.6
)
 
408.3

Goodwill
—

 
166.1

 
20.5

 
—

 
186.6

Investment in subsidiaries
1,311.9

 
357.8

 
(0.5
)
 
(1,669.2
)
 
—

Deferred income taxes
1.4

 
54.4

 
23.4

 
(12.2
)
 
67.0

Other assets, net
1.5

 
48.1

 
17.8

 
(1.5
)
 
65.9

Intercompany (payables) receivables, net
(715.5
)
 
675.8

 
142.6

 
(102.9
)
 
—

Total assets
$
604.4

 
$
2,102.8

 
$
938.5

 
$
(1,828.5
)
 
$
1,817.2

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Current maturities of long-term debt
29.4

 
2.8

 
268.6

 
—

 
300.8

Accounts payable
25.5

 
295.7

 
112.1

 
—

 
433.3

Accrued expenses
12.1

 
213.8

 
46.4

 
—

 
272.3

Income taxes (receivable) payable
(38.5
)
 
40.6

 
50.8

 
(50.8
)
 
2.1

Total current liabilities
28.5

 
552.9

 
477.9

 
(50.8
)
 
1,008.5

Long-term debt
724.9

 
15.0

 
0.6

 
—

 
740.5

Pensions
—

 
75.1

 
7.7

 
—

 
82.8

Other liabilities
0.6

 
126.4

 
8.0

 
—

 
135.0

Total liabilities
754.0

 
769.4

 
494.2

 
(50.8
)
 
1,966.8

Commitments and contingencies

 

 

 

 

Total stockholders' (deficit) equity
(149.6
)
 
1,333.4

 
444.3

 
(1,777.7
)
 
(149.6
)
Total liabilities and stockholders' (deficit) equity
$
604.4

 
$
2,102.8

 
$
938.5

 
$
(1,828.5
)
 
$
1,817.2

Lennox International Inc. and Subsidiaries
Condensed Consolidating Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 2019
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
$
—

 
$
722.9

 
$
121.2

 
$
(53.8
)
 
$
790.3

Cost of goods sold
—

 
530.8

 
51.1

 
6.8

 
588.7

Gross profit
—

 
192.1

 
70.1

 
(60.6
)
 
201.6

Operating expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
—

 
136.5

 
9.5

 
(0.2
)
 
145.8

Losses (gains) and other expenses, net
(0.6
)
 
1.7

 
0.1

 
(0.1
)
 
1.1

Restructuring charges
—

 
0.3

 
0.2

 
—

 
0.5

Loss on sale of business
—

 
0.8

 
7.7

 
—

 
8.5

Insurance proceeds for lost profits

—

 
(39.5
)
 
—

 
—

 
(39.5
)
Gain from insurance recoveries, net of losses incurred
—

 
(6.9
)
 
—

 
—

 
(6.9
)
Income from equity method investments
(70.6
)
 
(41.1
)
 
(2.0
)
 
111.1

 
(2.6
)
Operating income
71.2

 
140.3

 
54.6

 
(171.4
)
 
94.7

Interest expense, net
2.4

 
6.1

 
2.4

 
—

 
10.9

Other (income) expense, net
—

 
(5.8
)
 
6.6

 
—

 
0.8

Income (loss) from continuing operations before income taxes
68.8

 
140.0

 
45.6

 
(171.4
)
 
83.0

Provision for income tax (benefit) expense
(0.5
)
 
10.1

 
4.2

 
(0.2
)
 
13.6

Income (loss) from continuing operations
69.3

 
129.9

 
41.4

 
(171.2
)
 
69.4

Loss from discontinued operations, net of tax
—

 
—

 
0.1

 
—

 
0.1

Net income (loss)
$
69.3

 
$
129.9

 
$
41.3

 
$
(171.2
)
 
$
69.3

Other comprehensive income, net of tax
6.4

 
0.4

 
1.8

 
—

 
8.6

Comprehensive income (loss)
$
75.7

 
$
130.3

 
$
43.1

 
$
(171.2
)
 
$
77.9

Lennox International Inc. and Subsidiaries
Condensed Consolidating Statements of Cash Flows
For the Three Months Ended March 31, 2019
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows provided by (used in) operating activities
$
49.9

 
$
(258.3
)
 
$
67.4

 
$
—

 
$
(141.0
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment
—

 
0.3

 
—

 
—

 
0.3

Purchases of property, plant and equipment
—

 
(33.5
)
 
(3.7
)
 
—

 
(37.2
)
Net proceeds from sale of business
—

 
43.0

 
0.6

 
—

 
43.6

Insurance recoveries received for property damage incurred from natural disaster


 
6.9

 
—

 
—

 
6.9

Net cash provided by (used in) by investing activities
—

 
16.7

 
(3.1
)
 
—

 
13.6

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Asset securitization payments


 


 
(43.5
)
 
—

 
(43.5
)
Long-term debt payments
(30.0
)
 
(0.5
)
 
(1.2
)
 
—

 
(31.7
)
Long-term borrowings
—

 
2.7

 
0.6

 
—

 
3.3

Borrowings from credit facility
844.5

 


 


 
—

 
844.5

Payments on credit facility
(525.5
)
 


 


 
—

 
(525.5
)
Proceeds from employee stock purchases
0.8

 
—

 
—

 
—

 
0.8

Repurchases of common stock
(100.0
)
 
—

 
—

 
—

 
(100.0
)
Repurchases of common stock to satisfy employee withholding tax obligations
(13.5
)
 
—

 
—

 
—

 
(13.5
)
Intercompany debt
(7.9
)
 
(0.2
)
 
8.1

 
—

 
—

Intercompany financing activity
(192.6
)
 
237.2

 
(44.6
)
 
—

 
—

Cash dividends paid
(25.5
)
 
—

 
—

 
—

 
(25.5
)
Net cash (used in) provided by financing activities
(49.7
)
 
239.2

 
(80.6
)
 
—

 
108.9

Increase (decrease) in cash and cash equivalents
0.2

 
(2.4
)
 
(16.3
)
 
—

 
(18.5
)
Effect of exchange rates on cash and cash equivalents
—

 
—

 
3.9

 
—

 
3.9

Cash and cash equivalents, beginning of period
1.8

 
15.4

 
29.1

 
—

 
46.3

Cash and cash equivalents, end of period
$
2.0

 
$
13.0

 
$
16.7

 
$
—

 
$
31.7

Lennox International Inc. and Subsidiaries
Condensed Consolidating Statements of Cash Flows
For the Three Months Ended March 31, 2018
 
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows provided by (used in) operating activities
$
104.4

 
$
(158.6
)
 
$
(29.3
)
 
$
—

 
$
(83.5
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment
—

 
—

 
0.1

 
—

 
0.1

Purchases of property, plant and equipment
—

 
(17.3
)
 
(5.4
)
 
—

 
(22.7
)
Net cash used in investing activities
—

 
(17.3
)
 
(5.3
)
 
—

 
(22.6
)
Cash flows from financing activities:

 

 

 

 

Short-term borrowings, net
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Asset securitization payments
—

 
—

 
(51.0
)
 
—

 
(51.0
)
Long-term debt payments
(7.5
)
 
(2.7
)
 
—

 
—

 
(10.2
)
Borrowings from credit facility
790.0

 
—

 
—

 
—

 
790.0

Payments on credit facility
(444.1
)
 
—

 
—

 
—

 
(444.1
)
Proceeds from employee stock purchases
0.8

 
—

 
—

 
—

 
0.8

Repurchases of common stock
(150.0
)
 
—

 
—

 
—

 
(150.0
)
Repurchases of common stock to satisfy employee withholding tax obligations
(18.1
)
 
—

 
—

 
—

 
(18.1
)
Intercompany debt
(47.5
)
 
37.9

 
9.6

 
—

 
—

Intercompany financing activity
(206.9
)
 
127.7

 
79.2

 
—

 
—

Cash dividends paid
(21.3
)
 
—

 
—

 
—

 
(21.3
)
Net cash (used in) provided by financing activities
(104.6
)
 
162.9

 
37.7

 
—

 
96.0

(Decrease) increase in cash and cash equivalents
(0.2
)
 
(13.0
)
 
3.1

 
—

 
(10.1
)
Effect of exchange rates on cash and cash equivalents
—

 
—

 
(1.0
)
 
—

 
(1.0
)
Cash and cash equivalents, beginning of period
1.6

 
28.0

 
38.6

 
—

 
68.2

Cash and cash equivalents, end of period
$
1.4

 
$
15.0

 
$
40.7

 
$
—

 
$
57.1