QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
☒ | Accelerated Filer | ☐ | ||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||
Emerging growth company |
Page | ||
Part I | ||
Consolidated Balance Sheets - June 30, 2019 (Unaudited) and December 31, 2018 | ||
Consolidated Statements of Operations (Unaudited) - Three Months and Six Months Ended June 30, 2019 and 2018 | ||
Consolidated Statements of Comprehensive Income (Unaudited) -Three Months and Six Months Ended June 30, 2019 and 2018 | ||
Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) - Three Months and Six Months Ended June 30, 2019 and 2018 | ||
Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended June 30, 2019 and 2018 | ||
Part II | ||
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Balance Sheets | |||||||
(Amounts in millions, except shares and par values) | As of June 30, 2019 | As of December 31, 2018 | |||||
(Unaudited) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Short-term investments | |||||||
Accounts and notes receivable, net of allowances of $6.1 and $6.3 in 2019 and 2018, respectively | |||||||
Inventories, net | |||||||
Other assets | |||||||
Total current assets | |||||||
Property, plant and equipment, net of accumulated depreciation of $795.8 and $778.5 in 2019 and 2018, respectively | |||||||
Right-of-use assets from operating leases | |||||||
Goodwill | |||||||
Deferred income taxes | |||||||
Other assets, net | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Current Liabilities: | |||||||
Current maturities of long-term debt | $ | $ | |||||
Current operating lease liabilities | |||||||
Accounts payable | |||||||
Accrued expenses | |||||||
Income taxes payable | |||||||
Total current liabilities | |||||||
Long-term debt | |||||||
Long-term operating lease liabilities | |||||||
Pensions | |||||||
Other liabilities | |||||||
Total liabilities | |||||||
Commitments and contingencies | |||||||
Stockholders' deficit: | |||||||
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 | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Treasury stock, at cost, 48,144,394 shares and 47,312,248 shares for 2019 and 2018, respectively | ( | ) | ( | ) | |||
Total stockholders' deficit | ( | ) | ( | ) | |||
Total liabilities and stockholders' deficit | $ | $ |
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) | |||||||||||||||
(Amounts in millions, except per share data) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||
Cost of goods sold | |||||||||||||||
Gross profit | |||||||||||||||
Operating Expenses: | |||||||||||||||
Selling, general and administrative expenses | |||||||||||||||
Losses (gains) and other expenses, net | |||||||||||||||
Restructuring charges | ( | ) | |||||||||||||
Loss (gain) on sale of businesses and related property | ( | ) | ( | ) | |||||||||||
Loss on assets held for sale | |||||||||||||||
Insurance proceeds for lost profits | ( | ) | ( | ) | |||||||||||
Gain from insurance recoveries, net of losses incurred | ( | ) | ( | ) | |||||||||||
Income from equity method investments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Operating income | |||||||||||||||
Pension settlement | |||||||||||||||
Interest expense, net | |||||||||||||||
Other expense (income), net | |||||||||||||||
Income from continuing operations before income taxes | |||||||||||||||
Provision for income taxes | |||||||||||||||
Income from continuing operations | |||||||||||||||
Discontinued Operations: | |||||||||||||||
(Loss) income from discontinued operations before income taxes | ( | ) | ( | ) | |||||||||||
Income tax expense | |||||||||||||||
Loss from discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | $ | $ | $ | $ | |||||||||||
Earnings per share – Basic: | |||||||||||||||
Income from continuing operations | $ | $ | $ | $ | |||||||||||
Loss from discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | $ | $ | $ | $ | |||||||||||
Earnings per share – Diluted: | |||||||||||||||
Income from continuing operations | $ | $ | $ | $ | |||||||||||
Loss from discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | $ | $ | $ | $ | |||||||||||
Weighted Average Number of Shares Outstanding - Basic | |||||||||||||||
Weighted Average Number of Shares Outstanding - Diluted | |||||||||||||||
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Unaudited) | |||||||||||||||
(Amounts in millions) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive income: | |||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | |||||||||||
Reclassification of foreign currency translation adjustments into earnings | |||||||||||||||
Net change in pension and post-retirement liabilities | ( | ) | ( | ) | |||||||||||
Reclassification of pension and post-retirement benefit losses into earnings | |||||||||||||||
Pension settlement | |||||||||||||||
Change in available-for-sale marketable equity securities | ( | ) | |||||||||||||
Net change in fair value of cash flow hedges | ( | ) | ( | ) | ( | ) | |||||||||
Reclassification of cash flow hedge losses (gains) into earnings | ( | ) | ( | ) | |||||||||||
Other comprehensive income (loss) before income taxes | ( | ) | ( | ) | |||||||||||
Income tax (benefit) expense | ( | ) | ( | ) | ( | ) | |||||||||
Other comprehensive income (loss), net of tax | ( | ) | |||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' (Deficit) Equity | |||||||||||||||||||||||
(For the three months ended June 30, 2019) | Shares | Amount | ||||||||||||||||||||||||||
Balance as of March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||
Dividends, $0.77 per share | — | — | ( | ) | — | — | — | ( | ) | |||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | |||||||||||||||||||||||
Pension and post-retirement liability changes, net of tax expense of $16.4 | — | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||
Change in cash flow hedges, net of tax benefit of $0.8 | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Treasury shares reissued for common stock | — | — | — | — | ||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Balance as of June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' (Deficit) Equity | ||||||||||||||||||||||
(For the three months ended June 30, 2018) | Shares | Amount | |||||||||||||||||||||||||
Balance as of March 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standards (ASU 2016-16), (ASU 2018-02), (ASU2016-1) | — | — | — | — | — | ||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||
Dividends, $0.64 per share | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | ||||||||||||||||||||||
Pension and post-retirement liability changes | — | — | — | — | — | ||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||
Change in cash flow hedges, net of tax benefit of $0.8 | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Treasury shares reissued for common stock | — | — | — | — | |||||||||||||||||||||||
Treasury stock purchases | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Balance as of June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' (Deficit) Equity | |||||||||||||||||||||||
(For the six months ended June 30, 2019) | Shares | Amount | ||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
Effect on adjustment upon adoption of new accounting standards (ASC 842) | ( | ) | ( | ) | ||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||
Dividends, $1.41 per share | — | — | ( | ) | — | — | — | ( | ) | |||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | |||||||||||||||||||||||
Pension and post-retirement liability changes, net of tax expense of $16.4 | — | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||
Change in cash flow hedges, net of tax expense of $1.5 | — | — | — | — | — | |||||||||||||||||||||||
Treasury shares reissued for common stock | — | ( | ) | — | — | ( | ) | |||||||||||||||||||||
Treasury stock purchases | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Balance as of June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' (Deficit) Equity | |||||||||||||||||||||||
(For the six months ended June 30, 2018) | Shares | Amount | ||||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standards (ASU 2016-16), (ASU 2018-02), (ASU2016-1) | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||
Dividends, $1.15 per share | — | — | ( | ) | — | — | — | ( | ) | |||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | |||||||||||||||||||||||
Pension and post-retirement liability changes, net of tax expense of $0.1 | — | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||
Change in cash flow hedges, net of tax benefit of $2.5 | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Treasury shares reissued for common stock | — | ( | ) | — | — | ( | ) | |||||||||||||||||||||
Treasury stock purchases | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Balance as of June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) | |||||||
(Amounts in millions) | For the Six Months Ended June 30, | ||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Loss on sale of businesses | |||||||
Gain on sale of Australian Property | ( | ) | |||||
Loss on Brazil assets held for sale | |||||||
Gain from insurance recoveries, net of losses incurred | ( | ) | |||||
Income from equity method investments | ( | ) | ( | ) | |||
Dividend from Affiliates | |||||||
Restructuring charges, net of cash paid | ( | ) | |||||
Provision for bad debts | |||||||
Unrealized losses on derivative contracts | ( | ) | |||||
Stock-based compensation expense | |||||||
Depreciation and amortization | |||||||
Deferred income taxes | ( | ) | |||||
Pension expense | |||||||
Pension contributions | ( | ) | ( | ) | |||
Other items, net | ( | ) | |||||
Changes in assets and liabilities, net of effects of divestitures: | |||||||
Accounts and notes receivable | ( | ) | ( | ) | |||
Inventories | ( | ) | ( | ) | |||
Other current assets | ( | ) | |||||
Accounts payable | |||||||
Accrued expenses | ( | ) | |||||
Income taxes payable and receivable | ( | ) | |||||
Other | ( | ) | ( | ) | |||
Net cash used in operating activities | ( | ) | ( | ) | |||
Cash flows from investing activities: | |||||||
Proceeds from the disposal of property, plant and equipment | |||||||
Purchases of property, plant and equipment | ( | ) | ( | ) | |||
Net proceeds from sale of businesses | |||||||
Purchases of short-term investments | ( | ) | |||||
Insurance recoveries received for property damage incurred from natural disaster | |||||||
Net cash provided by investing activities | |||||||
Cash flows from financing activities: | |||||||
Short-term debt payments | ( | ) | ( | ) | |||
Short-term debt proceeds | |||||||
Asset securitization borrowings | |||||||
Asset securitization payments | ( | ) | ( | ) | |||
Long-term debt payments | ( | ) | ( | ) | |||
Borrowings from credit facility | |||||||
Payments on credit facility | ( | ) | ( | ) | |||
Proceeds from employee stock purchases | |||||||
Repurchases of common stock | ( | ) | ( | ) | |||
Repurchases of common stock to satisfy employee withholding tax obligations | ( | ) | ( | ) | |||
Cash dividends paid | ( | ) | ( | ) | |||
Net cash provided by (used in) financing activities | ( | ) | |||||
Decrease in cash and cash equivalents | ( | ) | ( | ) | |||
Effect of exchange rates on cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents, beginning of period | |||||||
Cash and cash equivalents, end of period | $ | $ | |||||
Supplemental disclosures of cash flow information: |
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) | |||||||
Interest paid | $ | $ | |||||
Income taxes paid (net of refunds) | $ | $ | |||||
Insurance recoveries received | $ | $ |
For the Three Months Ended June 30, 2019 | |||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||
United States | $ | $ | $ | $ | |||||||||||
Canada | |||||||||||||||
International | |||||||||||||||
Total | $ |
For the Three Months Ended June 30, 2018 | |||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||
United States | $ | $ | $ | $ | |||||||||||
Canada | |||||||||||||||
International | |||||||||||||||
Total | $ |
For the Six Months Ended June 30, 2019 | |||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||
United States | $ | $ | $ | $ | |||||||||||
Canada | |||||||||||||||
International | |||||||||||||||
Total | $ |
For the Six Months Ended June 30, 2018 | |||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||
United States | $ | $ | $ | $ | |||||||||||
Canada | |||||||||||||||
International | |||||||||||||||
Total | $ |
June 30, 2019 | December 31, 2018 | $ Change | % Change | |||||||||||
Contract assets | $ | $ | ( | ) | ( | )% | ||||||||
Contract liabilities - current | ( | ) | ( | ) | ( | )% | ||||||||
Contract liabilities - noncurrent | ( | ) | ( | ) | ( | ) | % | |||||||
Total | $ | ( | ) | $ | ( | ) | $ |
As of June 30, 2019 | As of December 31, 2018 | ||||||
Finished goods | $ | $ | |||||
Work in process | |||||||
Raw materials and parts | |||||||
Subtotal | |||||||
Excess of current cost over last-in, first-out cost | ( | ) | ( | ) | |||
Total inventories, net | $ | $ |
Balance at December 31, 2018 | Goodwill Reallocation (1) | Changes in foreign currency translation rates | Balance at June 30, 2019 | ||||||||||||
Residential Heating & Cooling | $ | $ | $ | $ | |||||||||||
Commercial Heating & Cooling | ( | ) | |||||||||||||
Refrigeration | |||||||||||||||
Total Goodwill | $ | $ | $ | $ |
As of June 30, 2019 | As of December 31, 2018 | ||||||
Unrealized losses on unsettled contracts | $ | $ | |||||
Income tax benefit | ( | ) | ( | ) | |||
Losses (gains) included in AOCL, net of tax (1) | $ | $ |
• | We elected the package of practical expedients available for transition which allow us to not reassess: |
◦ | Whether expired or existing contracts contain leases under the new definition of a lease; |
◦ | Lease classification for expired or existing leases; and |
◦ | Whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. |
• | We did not elect to use hindsight for transition when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset. |
• | We did not elect to reassess whether land easements meet the definition of a lease if they were not accounted for as leases under the former rules. |
• | For all asset classes, we elected to not recognize a right-of-use asset and lease liability for leases with a term of 12 months or less. |
• | For all asset classes, we elected to not separate non-lease components from lease components to which they relate and have accounted for the combined lease and non-lease components as a single lease component. |
For the Three Months Ended June 30, 2019 | For the Six Months Ended June 30, 2019 | ||||||
Finance lease cost: | |||||||
Amortization of right-of-use assets | $ | $ | |||||
Interest on lease liabilities | |||||||
Operating lease cost | |||||||
Short-term lease cost | |||||||
Variable lease cost | |||||||
Total lease cost | $ | $ | |||||
Other information | |||||||
Cash paid for amounts included in the measurement lease liabilities: | |||||||
Operating cash flows from operating leases | $ | $ | |||||
Financing cash flows from finance leases | $ | $ | |||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | $ | |||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ |
As of June 30, 2019 | ||
Finance lease right-of-use assets | ||
Operating lease right-of-use assets | ||
Finance lease liability, current | ||
Finance lease liability, non-current | ||
Operating lease liability, current | ||
Operating lease liability, non-current | ||
Weighted-average remaining lease term - finance leases | ||
Weighted-average remaining lease term - operating leases | ||
Weighted-average discount rate - finance leases | % | |
Weighted-average discount rate – operating leases | % |
Operating Leases | Finance Leases | ||||||
2019 (excluding the six months ended June 30, 2019) | $ | $ | |||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
2024 and thereafter | |||||||
Total minimum lease payments | $ | $ | |||||
Less imputed interest | ( | ) | ( | ) | |||
Lease liability | $ | $ |
Operating Leases | Capital Leases | ||||||
2019 | $ | $ | |||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
Thereafter | |||||||
Total minimum lease payments | $ | $ | |||||
Less amount representing interest | ( | ) | |||||
Present value of minimum payments | $ |
As of June 30, 2019 | As of December 31, 2018 | ||||||
Accrued expenses | $ | $ | |||||
Other liabilities | |||||||
Total warranty liability | $ | $ |
Total warranty liability as of December 31, 2018 | $ | ||
Warranty claims paid | ( | ) | |
Changes resulting from issuance of new warranties | |||
Changes in estimates associated with pre-existing liabilities | ( | ) | |
Changes in foreign currency translation rates and other | |||
Warranty liability from divestitures | ( | ) | |
Total warranty liability as of June 30, 2019 | $ |
(Amounts in millions) | For the Three months Ended June 30, 2019 | For the Six months Ended June 30, 2019 | |||||
Insurance recoveries received | $ | $ | |||||
Less losses and expenses incurred: | |||||||
Site clean-up and remediation | |||||||
Factory inefficiencies due to lower productivity | |||||||
Other | |||||||
Total losses and expenses | $ | $ | |||||
Total gain from insurance recoveries | $ | $ | |||||
Presentation in the Consolidated Statements of Operations: | |||||||
Insurance proceeds for lost profits | ( | ) | ( | ) | |||
Gain from insurance recoveries, net of losses incurred | ( | ) | ( | ) |
As of June 30, 2019 | As of December 31, 2018 | ||||||
Current maturities of long-term debt: | |||||||
Asset Securitization Program | $ | $ | |||||
Finance lease obligations | $ | $ | |||||
Domestic credit facility | |||||||
Debt issuance costs | ( | ) | ( | ) | |||
Total current maturities of long-term debt | $ | $ | |||||
Long-Term Debt: | |||||||
Finance lease obligations | |||||||
Domestic credit facility | |||||||
Senior unsecured notes | |||||||
Debt issuance costs | ( | ) | ( | ) | |||
Total long-term debt | $ | $ | |||||
Total debt | $ | $ |
As of June 30, 2019 | As of December 31, 2018 | ||||||
Eligible amount available under the ASP on qualified accounts receivable | $ | $ | |||||
Less: Beneficial interest transferred | ( | ) | ( | ) | |||
Remaining amount available | $ | $ |
As of June 30, 2019 | As of December 31, 2018 | ||||
Weighted average borrowing rate | % | % |
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 |
• | We fail to pay any principal or interest when due on any other indebtedness or receivables securitization of at least $ |
• | 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 $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Pension Benefits | Pension Benefits | ||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of prior service cost | |||||||||||||||
Recognized actuarial loss | |||||||||||||||
Settlements and curtailments | |||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2018 | 2017 | ||||||||||||
Stock-based compensation expense (1) | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | Affected Line Item(s) in the Consolidated Statements of Operations | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Gains/(Losses) on cash flow hedges: | ||||||||||||||||||
Commodity futures contracts/foreign exchange forward contracts | $ | ( | ) | $ | $ | ( | ) | $ | Cost of goods sold | |||||||||
Income tax benefit (expense) | ( | ) | ( | ) | Provision for income taxes | |||||||||||||
Net of tax | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||
Defined Benefit Plan items: | ||||||||||||||||||
Pension and post-retirement benefit costs | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | Cost of goods sold; Selling, general and administrative expenses | |||||
Pension settlement | ( | ) | ( | ) | Pension settlement | |||||||||||||
Income tax benefit | Provision for income taxes | |||||||||||||||||
Net of tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Foreign Currency Translation Adjustments: | ||||||||||||||||||
Foreign currency adjustments on sale of businesses | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | Loss (gain), net on sale of businesses and related property | |||||||
Net of tax | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Total reclassifications from AOCL | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Gains (Losses) on Cash Flow Hedges | Defined Benefit Pension Plan Items | Foreign Currency Translation Adjustments | Total AOCL | |||||||||||||
Balance as of December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive income (loss) before reclassifications | ||||||||||||||||
Amounts reclassified from AOCL | ||||||||||||||||
Net other comprehensive (loss) income | ||||||||||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(Amounts in millions) | For the Six Months Ended June 30, 2019 | ||
Cash received from the buyer | $ | ||
Net assets sold | ( | ) | |
AOCI reclassification adjustments, primarily foreign currency translation | ( | ) | |
Direct costs to sell | ( | ) | |
Loss on sale of business | $ | ( | ) |
(Amounts in millions) | For the Year Ended December 31, 2018 | ||
Cash received from the buyer | $ | ||
Net assets sold (1) | ( | ) | |
AOCI reclassification adjustments, primarily foreign currency translation | ( | ) | |
Direct costs to sell | ( | ) | |
Loss on sale of business | $ | ( | ) |
(Amounts in millions) | For the Year Ended December 31, 2018 | ||
Cash received from the buyer | $ | ||
Net assets sold (2) | ( | ) | |
AOCI reclassification adjustments, primarily foreign currency translation | ( | ) | |
Direct costs to sell | ( | ) | |
Loss on sale of business | $ | ( | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Add: Loss from discontinued operations | |||||||||||||||
Income from continuing operations | $ | $ | $ | $ | |||||||||||
Weighted-average shares outstanding – basic | |||||||||||||||
Add: Potential effect of dilutive securities attributable to stock-based payments | |||||||||||||||
Weighted-average shares outstanding – diluted | |||||||||||||||
Earnings per share – Basic: | |||||||||||||||
Income from continuing operations | $ | $ | $ | $ | |||||||||||
Loss from discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | $ | $ | $ | $ | |||||||||||
Earnings per share – Diluted: | |||||||||||||||
Income from continuing operations | $ | $ | $ | $ | |||||||||||
Loss from discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Weighted-average number of shares | |||||||||||||||
Price per share | $ | $ | $ | $ |
Segment | Product or Services | Markets Served | Geographic Areas | |||
Residential Heating & Cooling | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts | Residential Replacement; Residential New Construction | United States Canada | |||
Commercial Heating & Cooling | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment | Light Commercial | United States Canada Central America South America | |||
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(1) Asia Pacific(2) South America(2) Central America |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | |||||||||||||||
Residential Heating & Cooling | $ | $ | $ | $ | |||||||||||
Commercial Heating & Cooling | |||||||||||||||
Refrigeration | |||||||||||||||
$ | $ | $ | $ | ||||||||||||
Segment profit (loss) (1) | |||||||||||||||
Residential Heating & Cooling | $ | $ | $ | $ | |||||||||||
Commercial Heating & Cooling | |||||||||||||||
Refrigeration | |||||||||||||||
Corporate and other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total segment profit | |||||||||||||||
Reconciliation to Operating income: | |||||||||||||||
Special inventory write down | |||||||||||||||
Special product quality adjustment | ( | ) | ( | ) | |||||||||||
Loss (gain) on sale of businesses and related property | ( | ) | ( | ) | |||||||||||
Loss on assets held for sale | |||||||||||||||
Partial advance of insurance recoveries related to lost profits | ( | ) | ( | ) | |||||||||||
Gain from insurance recoveries, net of losses incurred | ( | ) | ( | ) | |||||||||||
Items in losses (gains) and other expenses, net that are excluded from segment profit (loss) (1) | |||||||||||||||
Restructuring charges | ( | ) | |||||||||||||
Operating income | $ | $ | $ | $ |
◦ | Net change in unrealized losses (gains) on unsettled futures contracts, |
◦ | Special legal contingency charges, |
◦ | Asbestos-related litigation, |
◦ | Environmental liabilities, |
◦ | Divestiture costs, |
◦ | Other items, net, |
• | Special inventory write down, |
• | Special product quality adjustment, |
• | Loss (gain) on sale of businesses and related property, |
• | Loss on assets held for sale, |
• | Partial advance of insurance recoveries related to lost profits, |
• | Gain from insurance recoveries, net of losses incurred, and, |
• | Restructuring charges. |
As of June 30, 2019 | As of December 31, 2018 | ||||||
Total Assets: | |||||||
Residential Heating & Cooling | $ | $ | |||||
Commercial Heating & Cooling | |||||||
Refrigeration | |||||||
Corporate and other | |||||||
Total assets | $ | $ |
As of June 30, 2019 | As of December 31, 2018 | ||||||
Senior unsecured notes | $ | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Short-term investments | — | $ | |||||||||||||||||
Accounts and notes receivable, net | |||||||||||||||||||
Inventories, net | ( | ) | |||||||||||||||||
Other assets | ( | ) | |||||||||||||||||
Total current assets | ( | ) | |||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||||
Right-of-use assets from operating leases | |||||||||||||||||||
Goodwill | |||||||||||||||||||
Investment in subsidiaries | ( | ) | |||||||||||||||||
Deferred income taxes | ( | ) | ( | ) | |||||||||||||||
Other assets, net | |||||||||||||||||||
Intercompany (payables) receivables, net | ( | ) | ( | ) | |||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | |||||||||||||||||||
Current operating lease liabilities | |||||||||||||||||||
Accounts payable | |||||||||||||||||||
Accrued expenses | |||||||||||||||||||
Income taxes (receivable) payable | ( | ) | ( | ) | |||||||||||||||
Total current liabilities | ( | ) | |||||||||||||||||
Long-term debt | |||||||||||||||||||
Long-term operating lease liabilities | |||||||||||||||||||
Pensions | |||||||||||||||||||
Other liabilities | |||||||||||||||||||
Total liabilities | ( | ) | |||||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Total stockholders' (deficit) equity | ( | ) | ( | ) | ( | ) | |||||||||||||
Total liabilities and stockholders' (deficit) equity | $ | $ | $ | $ | ( | ) | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Accounts and notes receivable, net | |||||||||||||||||||
Inventories, net | ( | ) | |||||||||||||||||
Other assets | ( | ) | |||||||||||||||||
Total current assets | ( | ) | |||||||||||||||||
Property, plant and equipment, net | ( | ) | |||||||||||||||||
Goodwill | |||||||||||||||||||
Investment in subsidiaries | ( | ) | ( | ) | |||||||||||||||
Deferred income taxes | ( | ) | |||||||||||||||||
Other assets, net | ( | ) | |||||||||||||||||
Intercompany (payables) receivables, net | ( | ) | ( | ) | |||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt | $ | $ | $ | $ | $ | ||||||||||||||
Current maturities of long-term debt | |||||||||||||||||||
Accounts payable | |||||||||||||||||||
Accrued expenses | |||||||||||||||||||
Income taxes (receivable) payable | ( | ) | ( | ) | |||||||||||||||
Total current liabilities | ( | ) | |||||||||||||||||
Long-term debt | |||||||||||||||||||
Pensions | |||||||||||||||||||
Other liabilities | |||||||||||||||||||
Total liabilities | ( | ) | |||||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Total stockholders' (deficit) equity | ( | ) | ( | ) | ( | ) | |||||||||||||
Total liabilities and stockholders' (deficit) equity | $ | $ | $ | $ | ( | ) | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net Sales | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Cost of goods sold | ( | ) | |||||||||||||||||
Gross profit | ( | ) | |||||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||
Losses (gains) and other expenses, net | ( | ) | |||||||||||||||||
Restructuring charges | ( | ) | ( | ) | |||||||||||||||
Loss on sale of business | |||||||||||||||||||
Insurance proceeds for lost profits | ( | ) | ( | ) | |||||||||||||||
Gain from insurance recoveries, net of losses incurred | ( | ) | ( | ) | |||||||||||||||
Income from equity method investments | ( | ) | ( | ) | ( | ) | |||||||||||||
Operating income | ( | ) | ( | ) | |||||||||||||||
Pension settlement | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||
Other (income) expense, net | ( | ) | |||||||||||||||||
Income (loss) from continuing operations before income taxes | ( | ) | ( | ) | |||||||||||||||
Provision for income tax (benefit) expense | ( | ) | |||||||||||||||||
Income (loss) from continuing operations | ( | ) | ( | ) | |||||||||||||||
Loss from discontinued operations, net of tax | |||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Other comprehensive income, net of tax | ( | ) | |||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | ( | ) | $ | ( | ) | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net Sales | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Cost of goods sold | ( | ) | |||||||||||||||||
Gross profit | ( | ) | |||||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||
Losses (gains) and other expenses, net | ( | ) | ( | ) | |||||||||||||||
Restructuring charges | |||||||||||||||||||
Loss on sale of business | |||||||||||||||||||
Insurance proceeds for lost profits | ( | ) | ( | ) | |||||||||||||||
Gain from insurance recoveries, net of losses incurred | ( | ) | ( | ) | |||||||||||||||
Income from equity method investments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Operating income | ( | ) | |||||||||||||||||
Pension settlement | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||
Other expense, net | |||||||||||||||||||
Income from continuing operations before income taxes | ( | ) | |||||||||||||||||
Provision for income tax (benefit) expense | ( | ) | ( | ) | |||||||||||||||
Income from continuing operations | ( | ) | |||||||||||||||||
Loss from discontinued operations, net of tax | ( | ) | ( | ) | |||||||||||||||
Net income | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( | ) | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net Sales | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Cost of goods sold | ( | ) | |||||||||||||||||
Gross profit | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling, general and administrative expenses | ( | ) | |||||||||||||||||
Losses (gains) and other expenses, net | ( | ) | ( | ) | |||||||||||||||
Restructuring charges | |||||||||||||||||||
(Gain) loss, net on sale of business and related property | ( | ) | ( | ) | ( | ) | |||||||||||||
Loss on asset held for sale | |||||||||||||||||||
Income from equity method investments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Operating income | ( | ) | |||||||||||||||||
Interest expense, net | |||||||||||||||||||
Other expense, net | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | ( | ) | |||||||||||||||||
Provision for income tax (benefit) expense | ( | ) | ( | ) | |||||||||||||||
Income (loss) from continuing operations | ( | ) | |||||||||||||||||
Loss from discontinued operations, net of tax | ( | ) | ( | ) | |||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Other comprehensive (loss) income, net of tax | ( | ) | ( | ) | |||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( | ) | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net Sales | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Cost of goods sold | ( | ) | |||||||||||||||||
Gross profit | ( | ) | |||||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling, general and administrative expenses | ( | ) | |||||||||||||||||
Losses (gains) and other expenses, net | ( | ) | |||||||||||||||||
Restructuring charges | |||||||||||||||||||
(Gain) loss, net on sale of business and related property | ( | ) | ( | ) | ( | ) | |||||||||||||
Loss on assets held for sale | |||||||||||||||||||
Income from equity method investments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Operating income | ( | ) | |||||||||||||||||
Interest expense, net | |||||||||||||||||||
Other expense, net | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | ( | ) | |||||||||||||||||
Provision for income tax (benefit) expense | ( | ) | |||||||||||||||||
Income (loss) from continuing operations | ( | ) | |||||||||||||||||
Loss from discontinued operations, net of tax | ( | ) | ( | ) | |||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Other comprehensive income (loss), net of tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( | ) | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Proceeds from the disposal of property, plant and equipment | |||||||||||||||||||
Purchases of property, plant and equipment | ( | ) | ( | ) | ( | ) | |||||||||||||
Net proceeds from sale of business | |||||||||||||||||||
Insurance recoveries received for property damage incurred from natural disaster | |||||||||||||||||||
Purchases of short-term investments | ( | ) | ( | ) | |||||||||||||||
Net cash provided by (used in) by investing activities | ( | ) | |||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Short-term debt payments | ( | ) | ( | ) | |||||||||||||||
Short-term debt proceeds | |||||||||||||||||||
Asset securitization borrowings | |||||||||||||||||||
Asset securitization payments | ( | ) | ( | ) | |||||||||||||||
Long-term debt payments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Borrowings from credit facility | |||||||||||||||||||
Payments on credit facility | ( | ) | ( | ) | |||||||||||||||
Proceeds from employee stock purchases | |||||||||||||||||||
Repurchases of common stock | ( | ) | ( | ) | |||||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | ( | ) | ( | ) | |||||||||||||||
Intercompany financing activity | ( | ) | |||||||||||||||||
Cash dividends paid | ( | ) | ( | ) | |||||||||||||||
Net cash (used in) provided by financing activities | ( | ) | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | ( | ) | ( | ) | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | |||||||||||||||||||
Cash and cash equivalents, beginning of period | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | $ | $ | $ | $ |
(Amounts in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash flows from operating activities | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Proceeds from the disposal of property, plant and equipment | |||||||||||||||||||
Purchases of property, plant and equipment | ( | ) | ( | ) | ( | ) | |||||||||||||
Proceeds from sale of businesses | |||||||||||||||||||
Net cash (used in) provided by investing activities | ( | ) | |||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Short-term debt payments | ( | ) | ( | ) | |||||||||||||||
Short-term debt proceeds | |||||||||||||||||||
Asset securitization borrowings | |||||||||||||||||||
Asset securitization payments | ( | ) | ( | ) | |||||||||||||||
Long-term debt payments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Borrowings from credit facility | |||||||||||||||||||
Payments on credit facility | ( | ) | ( | ) | |||||||||||||||
Proceeds from employee stock purchases | |||||||||||||||||||
Repurchases of common stock | ( | ) | ( | ) | |||||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | ( | ) | ( | ) | |||||||||||||||
Intercompany financing activity | ( | ) | ( | ) | |||||||||||||||
Cash dividends paid | ( | ) | ( | ) | |||||||||||||||
Net cash (used in) provided by financing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
Decrease in cash and cash equivalents | ( | ) | ( | ) | ( | ) | |||||||||||||
Effect of exchange rates on cash and cash equivalents | ( | ) | ( | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | $ | $ | $ | $ |
• | Net sales decreased $76 million, or 6%, to $1,099 million in the second quarter of 2019 primarily due to the sale of our Australia, New Zealand, Asia, Brazil and Kysor Warren businesses in prior quarters. |
• | Operating income in the second quarter of 2019 increased $19 million to $214 million due primarily to $26 million of insurance proceeds for lost profits. |
• | Net income for the second quarter of 2019 decreased $27 million to $111 million. |
• | Diluted earnings per share from continuing operations were $2.81 per share in the second quarter of 2019 compared to $3.39 per share in the second quarter of 2018. |
• | For the six months ended June 30, 2019, we returned $51 million to shareholders through dividend payments and have repurchased $250 million of common stock. |
For the Three Months Ended June 30, | ||||||||||||||||
Dollars (in millions) | Percent Change Fav/(Unfav) | Percent of Sales | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net sales | $ | 1,099.1 | $ | 1,175.4 | (6.5 | )% | 100.0 | % | 100.0 | % | ||||||
Cost of goods sold | 767.0 | 813.8 | 5.8 | 69.8 | 69.2 | |||||||||||
Gross profit | 332.1 | 361.6 | (8.2 | ) | 30.2 | 30.8 | ||||||||||
Selling, general and administrative expenses | 152.4 | 161.4 | 5.6 | 13.9 | 13.7 | |||||||||||
Losses (gains) and other expenses, net | 2.1 | 0.2 | (950.0 | ) | 0.2 | — | ||||||||||
Restructuring charges | (0.1 | ) | 0.5 | 120.0 | — | — | ||||||||||
Loss (gain), net on sale of businesses and related property | 0.4 | (22.1 | ) | N/A | — | (1.9 | ) | |||||||||
Loss on assets held for sale | — | 31.4 | N/A | — | 2.7 | |||||||||||
Insurance proceeds for lost profits | (26.0 | ) | — | N/A | (2.4 | ) | — | |||||||||
Gain from insurance recoveries, net of losses incurred | (5.9 | ) | — | N/A | (0.5 | ) | — | |||||||||
Income from equity method investments | (4.6 | ) | (4.9 | ) | (6.1 | ) | (0.4 | ) | (0.4 | ) | ||||||
Operating income | $ | 213.8 | $ | 195.1 | 9.6 | % | 19.5 | % | 16.6 | % |
For the Three Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Realized losses (gains) on settled future contracts | $ | 0.1 | $ | (0.2 | ) | ||
Foreign currency exchange gains | (0.2 | ) | (0.1 | ) | |||
(Gain) loss on disposal of fixed assets | (0.4 | ) | 0.1 | ||||
Net change in unrealized losses (gains) on unsettled futures contracts | 0.1 | 0.1 | |||||
Special legal contingency charges | (0.1 | ) | 1.5 | ||||
Asbestos-related litigation | 0.4 | (0.2 | ) | ||||
Environmental liabilities | 1.3 | 0.9 | |||||
Divestiture costs | — | (2.5 | ) | ||||
Other items, net | 0.9 | 0.6 | |||||
Losses (gains) and other expenses, net (pre-tax) | $ | 2.1 | $ | 0.2 |
For the Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | Difference | % Change | |||||||||||
Net sales | $ | 689.1 | $ | 716.0 | $ | (26.9 | ) | (3.8 | )% | |||||
Profit | $ | 153.4 | $ | 153.6 | $ | (0.2 | ) | (0.1 | )% | |||||
% of net sales | 22.3 | % | 21.5 | % |
For the Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | Difference | % Change | |||||||||||
Net sales | $ | 261.3 | $ | 252.1 | $ | 9.2 | 3.6 | % | ||||||
Profit | $ | 53.9 | $ | 50.8 | $ | 3.1 | 6.1 | % | ||||||
% of net sales | 20.6 | % | 20.2 | % |
For the Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | Difference | % Change | |||||||||||
Net sales | $ | 148.7 | $ | 207.3 | $ | (58.6 | ) | (28.3 | )% | |||||
Profit | $ | 19.1 | $ | 23.4 | $ | (4.3 | ) | (18.4 | )% | |||||
% of net sales | 12.8 | % | 11.3 | % |
For the Six Months Ended June 30, | ||||||||||||||||
Dollars (in millions) | Percent Change Fav/(Unfav) | Percent of Sales | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net sales | $ | 1,889.4 | $ | 2,010.2 | (6.0 | ) | 100.0 | % | 100.0 | % | ||||||
Cost of goods sold | 1,355.8 | 1,425.5 | 4.9 | 71.8 | 70.9 | |||||||||||
Gross profit | 533.6 | 584.7 | (8.7 | ) | 28.2 | 29.1 | ||||||||||
Selling, general and administrative expenses | 298.2 | 316.6 | 5.8 | 15.8 | 15.7 | |||||||||||
Losses (gains) and other expenses, net | 3.2 | 7.5 | 57.3 | 0.2 | 0.4 | |||||||||||
Restructuring charges | 0.4 | 1.3 | 69.2 | — | 0.1 | |||||||||||
Loss (gain), net sale of businesses and related property | 8.8 | (11.8 | ) | N/A | 0.5 | (0.6 | ) | |||||||||
Loss on assets held for sale | — | 31.4 | N/A | — | 1.6 | |||||||||||
Insurance proceeds for lost profits | (65.5 | ) | — | N/A | (3.5 | ) | — | |||||||||
Gain from insurance recoveries, net of losses incurred | (12.8 | ) | — | N/A | (0.7 | ) | — | |||||||||
Income from equity method investments | (7.2 | ) | (8.4 | ) | (14.3 | ) | (0.4 | ) | (0.4 | ) | ||||||
Operating income | $ | 308.5 | $ | 248.1 | 24.3 | 16.3 | % | 12.3 | % |
For the Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Realized losses (gains) on settled future contracts | $ | 0.2 | $ | (0.7 | ) | ||
Foreign currency exchange (gains) losses | (0.7 | ) | 1.2 | ||||
Gain (loss) on disposal of fixed assets | (0.2 | ) | 0.1 | ||||
Net change in unrealized losses (gains) on unsettled futures contracts | (0.3 | ) | 1.3 | ||||
Special legal contingency charges | 0.2 | 1.7 | |||||
Asbestos-related litigation | 1.8 | 1.9 | |||||
Environmental liabilities | 1.3 | 1.2 | |||||
Other items, net | 0.9 | 0.8 | |||||
Losses (gains) and other expenses, net (pre-tax) | $ | 3.2 | $ | 7.5 |
For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | Difference | % Change | |||||||||||
Net sales | $ | 1,154.6 | $ | 1,169.7 | $ | (15.1 | ) | (1.3 | )% | |||||
Profit | $ | 240.1 | $ | 204.9 | $ | 35.2 | 17.2 | % | ||||||
% of net sales | 20.8 | % | 17.5 | % |
For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | Difference | % Change | |||||||||||
Net sales | $ | 434.7 | $ | 431.2 | $ | 3.5 | 0.8 | % | ||||||
Profit | $ | 68.9 | $ | 72.8 | $ | (3.9 | ) | (5.4 | )% | |||||
% of net sales | 15.9 | % | 16.9 | % |
For the Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | Difference | % Change | |||||||||||
Net sales | $ | 300.1 | $ | 409.3 | $ | (109.2 | ) | (26.7 | )% | |||||
Profit | $ | 27.5 | $ | 32.1 | $ | (4.6 | ) | (14.3 | )% | |||||
% of net sales | 9.2 | % | 7.8 | % |
For the Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Net cash used in operating activities | $ | (111.0 | ) | $ | (35.0 | ) | |
Net cash provided by investing activities | 1.9 | 68.5 | |||||
Net cash provided by (used in) financing activities | 97.0 | (61.9 | ) |
Outstanding Borrowings | |||
Current maturities of long-term debt: | |||
Asset Securitization Program | $ | 290.0 | |
Capital lease obligations | $ | 6.6 | |
Domestic credit facility(1) | 15.0 | ||
Debt issuance costs | (0.6 | ) | |
Total current maturities of long-term debt | $ | 311.0 | |
Long-term debt: | |||
Asset Securitization Program (2) | — | ||
Capital lease obligations | 23.4 | ||
Domestic credit facility(1) | 785.0 | ||
Senior unsecured notes | 350.0 | ||
Debt issuance costs | (2.6 | ) | |
Total long-term debt | 1,155.8 | ||
Total debt | $ | 1,466.8 |
Total Number of Shares Purchased (1) | Average Price Paid per Share (including fees) | Total Number of Shares Purchased As Part of Publicly Announced Plans | Approximate Dollar Value of Shares that may yet be Purchased under our Share Repurchase Plans (in millions) (2) | |||||||||
April 1 through April 27 | 551,422 | $ | 271.88 | 551,827 | 195.8 | |||||||
April 27 through May 25 | 1,655 | 274.05 | — | 195.8 | ||||||||
May 26 through June 30 | 2,234 | 274.01 | — | 195.8 | ||||||||
555,311 | 551,827 |
3.1 | |
3.2 | |
4.1 | |
4.2 | |
4.3 | |
4.4 | |
4.5 | |
4.6 | |
10.1 | |
31.1 | |
31.2 | |
32.1 |
1. | I have reviewed this quarterly report on Form 10-Q of Lennox International Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Todd M. Bluedorn | |
Todd M. Bluedorn | |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Lennox International Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Joseph W. Reitmeier | |
Joseph W. Reitmeier | |
Chief Financial Officer |
(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 |
/s/ Joseph W. Reitmeier | |
Joseph W. Reitmeier | |
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances, accounts and notes receivable | $ 6.1 | $ 6.3 |
Accumulated depreciation | $ 795.8 | $ 778.5 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 87,170,197 | 87,170,197 |
Treasury stock, shares | 47,609,360 | 47,312,248 |
General |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General: References in this Quarterly Report on Form 10-Q to "we," "our," "us," "LII," or the "Company" refer to Lennox International Inc. and its subsidiaries, unless the context requires otherwise. Basis of Presentation The accompanying unaudited Consolidated Balance Sheet as of June 30, 2019, the accompanying unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018, the accompanying unaudited Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018, the accompanying unaudited Consolidated Statements of Stockholders' (Deficit) Equity for the three and six months ended June 30, 2019 and 2018, and the accompanying unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 should be read in conjunction with our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2018. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying consolidated financial statements contain all material adjustments, consisting principally of normal recurring adjustments, necessary for a fair presentation of our financial position, results of operations and cash flows. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to applicable rules and regulations, although we believe that the disclosures herein are adequate to make the information presented not misleading. The operating results for the interim periods are not necessarily indicative of the results that may be expected for a full year. Our fiscal quarterly periods are comprised of approximately 13 weeks, but the number of days per quarter may vary year-over-year. Our quarterly reporting periods usually end on the Saturday closest to the last day of March, June and September. Our fourth quarter and fiscal year ends on December 31, regardless of the day of the week on which December 31 falls. Use of Estimates The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation, among others. These estimates and assumptions are based on our best estimates and judgment. We evaluate these estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates and assumptions to be reasonable under the circumstances and will adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency and commodity markets combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. Reclassifications Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation. Recently Adopted Accounting Guidance In August 2018, the SEC issued Release No. 33-10532 that amends and clarifies certain financial reporting requirements. The principal change to our financial reporting is the inclusion of the annual disclosure requirement of changes in stockholders’ equity in Rule 3-04 of Regulation S-X to interim periods. We adopted other new accounting standards during the first quarter of 2019. The impact of these additional standards are discussed in their respective Notes to the Consolidated Financial Statements.
|
Revenue Recognition |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition: The following table disaggregates our revenue by business segment by geography which provides information as to the major source of revenue. See Note 16 for additional information on our reportable business segments and the products and services sold in each segment.
Residential Heating & Cooling - 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 sold under various brand names and are sold either through direct sales to a network of independent installing dealers, including through our network of Lennox stores or to independent distributors. For the segment, for the three months ended June 30, 2019 and 2018, direct sales represent approximately $515.2 million and $546.7 million of revenues, and sales to independent distributors represent approximately $173.9 million and $169.3 million of revenues, respectively. For the six months ended June 30, 2019 and 2018, direct sales represent approximately $849.8 million and $886.3 million of revenues, and sales to independent distributors represent approximately $304.8 million and $283.4 million of revenues, respectively. Given the nature of our business, customer product orders are fulfilled at a point in time and not over a period of time. Commercial Heating & Cooling - 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. These products are distributed primarily through commercial contractors and directly to national account customers in the planned replacement, emergency replacement and new construction markets. Revenue for the products sold is recognized at a point in time when control transfers to the customer, which is generally at time of shipment. Lennox National Account Services provides installation, service and preventive maintenance for HVAC national account customers in the United States and Canada. Revenue related to service contracts is recognized as the services are performed under the contract based on the relative fair value of the services provided. For the segment, for the three months ended June 30, 2019 and 2018, equipment sales represent approximately $226.6 million and $218.7 million of revenues while $34.7 million and $33.4 million of our revenue is generated from our service business, respectively. For the six months ended June 30, 2019 and 2018, equipment sales represent approximately $370.2 million and $370.2 million of revenues while $64.5 million and $61.0 million of our revenue is generated from our service business, respectively. Refrigeration - We manufacture and market equipment for the global commercial refrigeration markets under the Heatcraft Worldwide Refrigeration name. Our products are used in the food retail, food service, cold storage as well as non-food refrigeration markets. We sell these products to distributors, installing contractors, engineering design firms, original equipment manufacturers and end-users. In Europe, we also manufacture and sell unitary heating and cooling products and applied systems. Revenue for the products sold is $148.2 million and $205.5 million for the three months ended June 30, 2019 and 2018 and $297.1 million and $405.5 million for the six months ended June 30, 2019 and 2018, respectively and is recognized at a point in time when control transfers to the customer, which is generally at time of shipment. The remaining segment revenue relates to service revenues related to start-up and commissioning activities. Variable Consideration - 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. Other Judgments and Assumptions - We apply the practical expedient in ASC 606-10-50-14 and do not disclose information about remaining performance obligations that have original expected durations of one year or less. Applying the practical expedient in ASC 340-40-25-4, we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. These costs are included in SG&A expenses. ASC 606-10-32-18 allows us to not adjust the amount of consideration to be received in a contract for any significant financing component if we expect to receive payment within twelve months of transfer of control of goods or services. We have elected this expedient as we expect all consideration to be received in one year or less at contract inception. We have also elected not to provide the remaining performance obligations disclosures related to service contracts in accordance with the practical expedient in ASC 606-10-55-18. We recognize revenue in the amount to which the entity has a right to invoice and have adopted this election to not provide the remaining performance obligations related to service contracts. Contract Assets - We do not have material amounts of contract assets since revenue is recognized as control of goods is transferred or as services are performed. There are a small number of installation services that may occur over a period of time, but that period of time is generally very short in duration and right of payment does not exist until the installation is completed. Any contract assets that may arise are recorded in Other assets, net in our Consolidated Balance Sheet. Contract Liabilities - Our contract liabilities consist of advance payments and deferred revenue. Our contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify advance payments and deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. Generally all contract liabilities are expected to be recognized within one year and are included in Accrued expenses in our Consolidated Balance Sheet. The noncurrent portion of deferred revenue is included in Other liabilities in our Consolidated Balance Sheet. Net contract assets (liabilities) consisted of the following:
For the three months ended June 30, 2019 and 2018, we recognized revenue of $1.5 million and $1.3 million and for the six months ended June 30, 2019 and 2018, we recognized revenue of $2.6 million and $2.9 million related to our contract liabilities at January 1, 2019 and 2018, respectively. Impairment losses recognized in our receivables and contract assets were de minimis in the second quarter of 2019 and 2018.
|
Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories: The components of inventories are as follows (in millions):
|
Goodwill |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill: The changes in the carrying amount of goodwill for the first six months of 2019, in total and by segment, are summarized in the table below (in millions):
(1) In 2019, we reorganized our external financial reporting structure by moving our European Commercial HVAC business from our Commercial segment to our Refrigeration segment as we manage both our commercial HVAC and refrigeration operations in Europe together. See Note 16 for additional information. |
Derivatives |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives: Objectives and Strategies for Using Derivative Instruments Commodity Price Risk - We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes. Our hedging program includes the use of futures contracts to lock in prices, and as a result, we are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase. We utilize a dollar cost averaging strategy so that a higher percentage of commodity price exposures are hedged near-term and lower percentages are hedged at future dates. This strategy allows for protection against near-term price volatility while allowing us to adjust to market price movements over time. Interest Rate Risk - A portion of our debt bears interest at variable rates, and as a result, we are subject to variability in the cash paid for interest. To mitigate a portion of that risk, we may choose to engage in an interest rate swap hedging strategy to eliminate the variability of interest payment cash flows. We are not currently hedged against interest rate risk. Foreign Currency Risk - Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of assets and liabilities arising in foreign currencies. We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts. Cash Flow Hedges We have foreign exchange forward contracts and commodity futures contracts designated as cash flow hedges that are scheduled to mature through January 2020 and November 2020, respectively. Unrealized gains or losses from our cash flow hedges are included in Accumulated other comprehensive loss (“AOCL”) and are expected to be reclassified into earnings within the next 18 months based on the prices of the commodities and foreign currencies at the settlement dates. We recorded the following amounts in AOCL related to our cash flow hedges (in millions):
|
Income Taxes |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: As of June 30, 2019, we had no unrecognized tax benefits. We are currently under examination for our U.S. federal income taxes under the Internal Revenue Service's Compliance Assurance Program for 2018 and are subject to examination by numerous other taxing authorities in the U.S. and in foreign jurisdictions. We are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years prior to 2011. Since January 1, 2019, several states have enacted legislation effective for tax years beginning on or after January 1, 2019, including changes to tax rates and apportionment methods. The impact of these changes is immaterial.
|
Commitments and Contingencies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies: Leases On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). We adopted ASC 842 on January 1, 2019, using the effective date method, with the cumulative-effect adjustment to the opening balance sheet of retained earnings as of the effective date. The financial results reported in periods prior to January 1, 2019 are unchanged. Upon adoption, we recognized almost all of our leases greater than one year in duration on the balance sheet as right-of-use assets and lease liabilities. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification is based on criteria that are largely similar to those applied in current lease accounting standard, but without explicit bright lines. We have made certain assumptions in judgments when applying ASC 842. Those judgments of most significance are as follows:
We determine if an arrangement is a lease at inception. Operating leases are included in our Consolidated Balance Sheet as Right-of-use assets from operating leases, Current operating lease liabilities and Long-term operating lease liabilities. Finance leases are included in Property, plant and equipment, Current maturities of long-term debt and Long-term debt in our Consolidated Balance Sheet. Many of our lease agreements contain renewal options; however, we do not recognize right-of-use assets or lease liabilities for renewal periods unless it is determined that we are reasonably certain of renewing the lease at inception or when a triggering event occurs. 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 based on the fixed components of a lease arrangement. 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. Variable lease components represent amounts that are not fixed in nature and are not tied to an index or rate, and are recognized as incurred. Under certain of our third-party service agreements, we control a specific space or underlying asset used in providing the service by the third-party service provider. These arrangements meet the definition under ASC 842 and therefore are accounted for under ASC 842. In determining our right-of-use assets and lease liabilities, we apply a discount rate to the minimum lease payments within each lease agreement. ASC 842 requires us to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. When we cannot readily determine the discount rate implicit in the lease agreement, we utilize our incremental borrowing rate. To estimate our specific incremental borrowing rates over various tenors (ranging from 1-year through 30-years), a comparable market yield curve consistent with our credit quality was calibrated to our publicly outstanding debt instruments. We lease certain real and personal property under non-cancelable operating leases. Approximately 75% of our right-of-use assets and lease liabilities relate to our leases of real estate with the remaining amounts relating to our leases of IT equipment, fleet vehicles and manufacturing and distribution equipment. The components of lease expense were as follows (in millions):
Future annual minimum lease payments and finance lease commitments as of June 30, 2019 were as follows (in millions):
The Company adopted ASU 2016-02 on January 1, 2019 as noted above, and as required, the following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 31, 2018 were as follows (in millions):
On March 1, 2019, we entered into an agreement with a financial institution to renew the lease of our corporate headquarters in Richardson, Texas for a term of five years through March 1, 2024. The leased property consists of an office building of approximately 192,000 square feet, land and related improvements. During the lease term, we are obligated 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 of $41.2 million, we must pay any such deficit to the financial institution. Any such deficit payment cannot exceed 87% of the lease balance. The headquarters lease is classified as an operating lease and its future annual minimum lease payments are included in the table above. Our obligations under the headquarters lease are secured by a pledge of our interest in the leased property. The lease 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 existing credit facility agreement. We believe we were in compliance with these financial covenants as of June 30, 2019. Product Warranties and Product Related Contingencies We provide warranties to customers for some of our products and record liabilities for the estimated future warranty-related costs based on failure rates, cost experience and other factors. We periodically review the assumptions used to determine the product warranty liabilities and will adjust the liabilities in future periods for changes in assumptions, as necessary. Liabilities for estimated product warranty costs related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):
The changes in product warranty liabilities related to continuing operations for the six months ended June 30, 2019 were as follows (in millions):
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. Liabilities for such quality related issues are not material. 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 was isolated, the vendor is supplying corrected components, and we are manufacturing products with the corrected components. We incurred and recorded expenses associated with this product quality in 2017. In the second quarter of 2019, the vendor agreed to reimburse us for certain losses incurred due to this quality issue. These reimbursements will include cash payments in 2019 and price reductions on annual qualifying purchases from this vendor through 2024. The total reimbursements we receive from the vendor should off set the cost we have incurred related to this product quality matter. 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 these asbestos-related claims have been covered by insurance or other forms of indemnity or have been dismissed without payment. The remainder of our closed cases have been resolved for amounts that are not material, individually or in the aggregate. Our defense costs for asbestos-related claims are generally covered by insurance; however, our insurance coverage for settlements and judgments for asbestos-related claims varies depending on several factors and are subject to policy limits, so we may have greater financial exposure for future settlements and judgments. For the three months ended June 30, 2019 and 2018, expense for asbestos-related litigation was $0.4 million and $(0.2) million and for the six months ended June 30, 2019 and 2018, expense for asbestos-related litigation was $1.8 million and $1.9 million, respectively, net of probable insurance recoveries, for known and future asbestos-related litigation and is recorded in Losses (gains) and other expenses, net in the Consolidated Statements of Operations. It is management's opinion that none of these claims or lawsuits or any threatened litigation will have a material adverse effect on our financial condition, results of operations or cash flows. Claims and lawsuits, however, involve uncertainties and it is possible that their eventual outcome could adversely affect our results of operations for a particular period. Marshalltown Tornado and Recovery On July 19, 2018, our manufacturing facility in Marshalltown, Iowa was severely damaged by a tornado. We have insurance for the repair or replacement of our assets that suffered damage or loss, and we are working closely with our insurance carriers and claims adjusters to ascertain the amount of insurance recoveries due to us as a result of the damage and loss we suffered. Our insurance policies also provide business interruption coverage, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. These costs and insurance recoveries are shown in Gain from insurance recoveries, net of losses incurred and Insurance proceeds for lost profits in the Consolidated Statements of Operations. The following table summarizes the Gain from insurance recoveries, net of losses incurred:
|
Lines of Credit and Financing Arrangements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lines of Credit and Financing Arrangements | Lines of Credit and Financing Arrangements: The following table summarizes our outstanding debt obligations and their classification in the accompanying Consolidated Balance Sheets (in millions):
Short-Term Debt Foreign Obligations Through several of our foreign subsidiaries, we have facilities available to assist in financing seasonal borrowing needs for our foreign locations. We had no outstanding foreign obligations as of June 30, 2019 or December 31, 2018. There were no significant proceeds or repayments on these facilities for the six months ended June 30, 2019. Proceeds and repayments on these facilities were $21.3 million and $18.4 million, respectively, for the six months ended June 30, 2018. Asset Securitization Program Under the Asset Securitization Program (“ASP”), we are eligible to sell beneficial interests in a portion of our trade accounts receivable to a financial institution for cash. The ASP contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. As a result of the repurchase right, the transfer of the receivables under the ASP is not accounted for as a sale. Accordingly, the cash received from the transfer of the beneficial interests in our trade accounts receivable is 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. 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 transferred under the ASP. The ASP will expire in November 2019 and we intend to renew the ASP prior to its expiration. The ASP provides for a maximum securitization amount ranging 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):
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 June 30, 2019 and December 31, 2018 were 3.11% and 3.27%, respectively. The unused fee is based on 101% of the maximum available amount less the beneficial interest transferred and is 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. As of June 30, 2019, we believe we were in compliance with all covenant requirements. Long-Term Debt Domestic Credit Facility On January 22, 2019, we amended our credit facility with the Domestic Credit Facility to provide for a $350.0 million increase in revolving commitments. The Domestic Credit Facility currently consists of a $1,000.0 million unsecured revolving credit facility and a $190.0 million unsecured term loan that matures in August 2021 (the "Maturity Date"). Under our Domestic Credit Facility, we had outstanding borrowings of $800.0 million, of which $160.0 million was the term loan balance, as well as $2.5 million committed to standby letters of credit as of June 30, 2019. Subject to covenant limitations, $357.5 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. The revolving credit facility includes a subfacility for swingline loans of up to $65.0 million. Our weighted average borrowing rate on the facility was as follows:
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:
Our Domestic Credit Facility contains customary events of default. These events of default include nonpayment of principal or interest, breach of covenants or other restrictions or requirements, default on certain other indebtedness or receivables securitizations (cross default), and bankruptcy. A cross default under our Domestic Credit Facility could occur if:
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 June 30, 2019, we believe we were in compliance with all covenant requirements. Senior Unsecured Notes |
Pension and Post-Retirement Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Post-Retirement Benefit Plans | Pension and Post-Retirement Benefit Plans: 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 expense (income), net in the Statement of Operations. In addition, only the service cost component is eligible for capitalization as part of an asset such as inventory or property, plant and equipment. We elected the practical expedient to use the prior year's disclosure as a basis for the retroactive adoption of the ASU. The ASU did not have a material impact on our financial results. On April 3, 2019, we entered into an agreement with Pacific Life Insurance Company to purchase a group annuity contract and transfer $100.0 million of our pension plan assets and $105.6 million of related pension benefit obligations. In the second quarter of 2019, we recognized a $60.6 million pension settlement charge in the Statement of Operations and reclassified $5.6 million of pension benefit obligations to AOCL as a result of this transaction. The components of net periodic benefit cost were as follows (in millions):
In January 2018, we reduced our estimated long-term rate of return on plan assets for U.S. pension plans from 7.5% to 6.5%. A 25 basis point decrease in the long-term rate of return will result in a $0.4 million increase in net periodic benefit cost for U.S. pension plans.
|
Stock-Based Compensation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation: We issue various long-term incentive awards, including performance share units, restricted stock units and stock appreciation rights under the Lennox International Inc. 2010 Incentive Plan, as amended and restated. Stock-based compensation expense related to continuing operations is included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations as follows (in millions):
(1) All expense was recorded in our Corporate and Other business segment.
|
Stock Repurchases |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchases | Stock Repurchases: Our Board of Directors has authorized a total of $2.5 billion to repurchase shares of our common stock (collectively referred to as the "Share Repurchase Plans"), including a $500 million share repurchase authorization in March 2018. Under this program, we may repurchase shares from time to time in open market transactions and in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The repurchase program does not require the repurchase of a specific number of shares and may be terminated at any time. As of June 30, 2019, $196 million of shares may be repurchased under the Share Repurchase Plans. We repurchased 0.4 million shares for $100.0 million during the first quarter of 2019 and 0.6 million shares for $150.0 million during the second quarter of 2019, respectively, from open market transactions. We also repurchased 0.1 million shares for $14.5 million during the six months ended June 30, 2019 from employees who surrendered shares to satisfy minimum tax withholding obligations upon the exercise of long-term incentive awards.
|
Comprehensive Income |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income (Loss): The following table provides information on items not reclassified in their entirety from AOCL to Net income in the accompanying Consolidated Statements of Operations (in millions):
The following table provides information on changes in AOCL, by component (net of tax), for the six months ended June 30, 2019 (in millions):
|
Restructuring Charges |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges: We record restructuring charges associated with management-approved restructuring plans when we reorganize or remove duplicative headcount or 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 16. Restructuring activities in 2018 and 2019 were insignificant.
|
Divestitures |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures | : 2019 Divestiture: During the first quarter of 2019, we obtained Board of Directors' approval and signed an agreement with EPTA S.p.A., a private Italian company, for the sale of our Kysor Warren business. The sale was completed on March 29, 2019 with the post-completion adjustment being recorded in the second quarter of 2019. The following table summarizes the net loss recognized in connection with this divestiture:
2018 Divestitures: Australia, New Zealand and Asia Divestiture During the first quarter of 2018, we obtained Board of Directors' approval and signed an agreement with Beijer Ref AB, a Stockholm Stock Exchange-listed company, for the sale of our Australia, New Zealand and Asia business, except for the Milperra property that was sold during the second quarter of 2018. We completed the sale to Beijer Ref AB in the second quarter of 2018 with the final post-completion adjustment being recorded in the third quarter of 2018. The following table summarizes the net loss recognized in connection with this divestiture:
(1) Includes $10.3 million of net assets that were written down during the quarter ended March 31, 2018 based on the expected proceeds from the sale, net of selling costs for the sale for our Australia, New Zealand and Asia business. The Milperra property was sold during the quarter ended June 30, 2018. We received net cash proceeds of $37.2 million net of direct costs to sell of $1.5 million. The net gain recognized in connection with this sale was $23.8 million. South America Divestiture During the second quarter of 2018, we obtained Board of Directors' approval and signed an agreement with Elgin SA, a private Brazilian company, for the sale of our South America business. The sale was subject to Brazilian antitrust approval. We obtained antitrust approval and completed the sale to Elgin SA in the third quarter of 2018. The following table summarizes the net loss recognized in connection with this divestiture:
(2) Includes $1.2 million of net assets that were written down during the quarter ended June 30, 2018 based on the expected proceeds from the sale, net of selling costs for the sale for our Brazil business. The total Loss (gain), net on sale of businesses and related property in our Consolidated Statements of Operations for year ended December 31, 2018 of $27.0 million is comprised of the $13.3 million loss on the sale of our Australia, New Zealand and Asia business, the $23.8 million gain on the sale of our Milperra property, and the $37.5 million loss on the sale of our Brazil business.
|
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
The following stock appreciation rights and restricted stock units were outstanding but not included in the diluted earnings per share calculation because the assumed exercise of such rights would have been anti-dilutive (in millions, except for per share data):
|
Reportable Business Segments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Business Segments | Reportable Business Segments: We operate in three reportable business segments of the heating, ventilation, air conditioning and refrigeration (“HVACR”) industry. Our segments are organized primarily by the nature of the products and services we provide. The following table describes each segment:
(1)Effective January 1, 2019, we realigned our segment structure. We shifted financial reporting of the European Commercial HVAC business from our Commercial Heating & Cooling segment to our Refrigeration segment as we manage both our commercial HVAC and refrigeration operations in Europe together. We have revised our historical segment results to present them on a comparable basis. (2)Our businesses in the Asia Pacific and South America area were sold in the second and third quarters of 2018, respectively. Refer to Note 14 for details regarding the divestiture of these businesses. We use segment profit or loss as the primary measure of profitability to evaluate operating performance and to allocate capital resources. We define segment profit or loss as a segment’s income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding certain items. The reconciliation in the table below details the items excluded. Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Corporate costs also include the long-term share-based incentive awards provided to employees throughout LII. We record these share-based awards as corporate costs because they are determined at the discretion of the Board of Directors and based on the historical practice of doing so for internal reporting purposes. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations for the periods presented. Segment Data Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):
(1) We define segment profit (loss) as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding: The following items in Losses (gains) and other expenses, net:
Total Assets by Segment
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements: Fair Value Hierarchy The methodologies used to determine the fair value of our financial assets and liabilities at June 30, 2019 were the same as those used at December 31, 2018. Assets and Liabilities Carried at Fair Value on a Recurring Basis Derivatives were classified as Level 2 and primarily valued using estimated future cash flows based on observed prices from exchange-traded derivatives. We also considered the counterparty's creditworthiness, or our own creditworthiness, as appropriate. Adjustments were recorded to reflect the risk of credit default, however, they were insignificant to the overall value of the derivatives. Refer to Note 5 for more information related to our derivative instruments. Other Fair Value Disclosures The carrying amounts of Cash and cash equivalents, Accounts and notes receivable, net, Accounts payable, and Short-term debt approximate fair value due to the short maturities of these instruments. The carrying amount of our Domestic Credit Facility in Long-term debt also approximates fair value due to its variable-rate characteristics. The fair value of our senior unsecured notes in Long-term debt, classified as Level 2, was based on the amount of future cash flows using current market rates for debt instruments of similar maturities and credit risk. The following table presents their fair value (in millions):
|
Condensed Consolidating Financial Statements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 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 June 30, 2019 and December 31, 2018, and for the three and six months ended June 30, 2019 and 2018 are shown on the following pages. Lennox International Inc. and SubsidiariesCondensed Consolidating Balance Sheets As of June 30, 2019
Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2018
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended June 30, 2019
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2019
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2018
|
Subsequent Event |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event: |
General (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Balance Sheet as of June 30, 2019, the accompanying unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018, the accompanying unaudited Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018, the accompanying unaudited Consolidated Statements of Stockholders' (Deficit) Equity for the three and six months ended June 30, 2019 and 2018, and the accompanying unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 should be read in conjunction with our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2018. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying consolidated financial statements contain all material adjustments, consisting principally of normal recurring adjustments, necessary for a fair presentation of our financial position, results of operations and cash flows. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to applicable rules and regulations, although we believe that the disclosures herein are adequate to make the information presented not misleading. The operating results for the interim periods are not necessarily indicative of the results that may be expected for a full year. Our fiscal quarterly periods are comprised of approximately 13 weeks, but the number of days per quarter may vary year-over-year. Our quarterly reporting periods usually end on the Saturday closest to the last day of March, June and September. Our fourth quarter and fiscal year ends on December 31, regardless of the day of the week on which December 31 falls. |
||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation, among others. These estimates and assumptions are based on our best estimates and judgment. |
||||||||||||||||||||||||||||||||
Reclassifications | Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation.
|
||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | In August 2018, the SEC issued Release No. 33-10532 that amends and clarifies certain financial reporting requirements. The principal change to our financial reporting is the inclusion of the annual disclosure requirement of changes in stockholders’ equity in Rule 3-04 of Regulation S-X to interim periods. We adopted other new accounting standards during the first quarter of 2019. The impact of these additional standards are discussed in their respective Notes to the Consolidated Financial Statements.
|
||||||||||||||||||||||||||||||||
Leases | Leases On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). We adopted ASC 842 on January 1, 2019, using the effective date method, with the cumulative-effect adjustment to the opening balance sheet of retained earnings as of the effective date. The financial results reported in periods prior to January 1, 2019 are unchanged. Upon adoption, we recognized almost all of our leases greater than one year in duration on the balance sheet as right-of-use assets and lease liabilities. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification is based on criteria that are largely similar to those applied in current lease accounting standard, but without explicit bright lines. We have made certain assumptions in judgments when applying ASC 842. Those judgments of most significance are as follows:
We determine if an arrangement is a lease at inception. Operating leases are included in our Consolidated Balance Sheet as Right-of-use assets from operating leases, Current operating lease liabilities and Long-term operating lease liabilities. Finance leases are included in Property, plant and equipment, Current maturities of long-term debt and Long-term debt in our Consolidated Balance Sheet. Many of our lease agreements contain renewal options; however, we do not recognize right-of-use assets or lease liabilities for renewal periods unless it is determined that we are reasonably certain of renewing the lease at inception or when a triggering event occurs. 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 based on the fixed components of a lease arrangement. 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. Variable lease components represent amounts that are not fixed in nature and are not tied to an index or rate, and are recognized as incurred. Under certain of our third-party service agreements, we control a specific space or underlying asset used in providing the service by the third-party service provider. These arrangements meet the definition under ASC 842 and therefore are accounted for under ASC 842. In determining our right-of-use assets and lease liabilities, we apply a discount rate to the minimum lease payments within each lease agreement. ASC 842 requires us to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. When we cannot readily determine the discount rate implicit in the lease agreement, we utilize our incremental borrowing rate. To estimate our specific incremental borrowing rates over various tenors (ranging from 1-year through 30-years), a comparable market yield curve consistent with our credit quality was calibrated to our publicly outstanding debt instruments. We lease certain real and personal property under non-cancelable operating leases. Approximately 75% of our right-of-use assets and lease liabilities relate to our leases of real estate with the remaining amounts relating to our leases of IT equipment, fleet vehicles and manufacturing and distribution equipment.
|
Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table disaggregates our revenue by business segment by geography which provides information as to the major source of revenue. See Note 16 for additional information on our reportable business segments and the products and services sold in each segment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability [Table Text Block] | Net contract assets (liabilities) consisted of the following:
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventories | The components of inventories are as follows (in millions):
|
Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the first six months of 2019, in total and by segment, are summarized in the table below (in millions):
|
Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Amounts related to cash flow hedges | We recorded the following amounts in AOCL related to our cash flow hedges (in millions):
(1) Assuming commodity and foreign currency prices remain constant, we expect to reclassify $2.6 million of derivative losses into earnings within the next 12 months.
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Future annual minimum lease payments and finance lease commitments as of June 30, 2019 were as follows (in millions):
The Company adopted ASU 2016-02 on January 1, 2019 as noted above, and as required, the following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 31, 2018 were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of changes in the total warranty liabilities | Liabilities for estimated product warranty costs related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):
The changes in product warranty liabilities related to continuing operations for the six months ended June 30, 2019 were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of unusual or infrequent items, or both | The following table summarizes the Gain from insurance recoveries, net of losses incurred:
|
Lines of Credit and Financing Arrangements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of outstanding debt obligations | The following table summarizes our outstanding debt obligations and their classification in the accompanying Consolidated Balance Sheets (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eligible amounts available and beneficial interests sold | The eligible amounts available and beneficial interests sold were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of weighted average borrowing rate facility | Our weighted average borrowing rate on the facility was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of required ratios under the domestic credit facility | The required ratios under our Domestic Credit Facility are detailed below:
|
Pension and Post-Retirement Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | The components of net periodic benefit cost were as follows (in millions):
|
Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock -based compensation expense in operations | Stock-based compensation expense related to continuing operations is included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations as follows (in millions):
(1) All expense was recorded in our Corporate and Other business segment.
|
Comprehensive Income (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of accumulated other comprehensive income | The following table provides information on items not reclassified in their entirety from AOCL to Net income in the accompanying Consolidated Statements of Operations (in millions):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in AOCI by component (net of tax) | The following table provides information on changes in AOCL, by component (net of tax), for the six months ended June 30, 2019 (in millions):
|
Divestitures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | The following table summarizes the net loss recognized in connection with this divestiture:
(1) Includes $10.3 million of net assets that were written down during the quarter ended March 31, 2018 based on the expected proceeds from the sale, net of selling costs for the sale for our Australia, New Zealand and Asia business. The following table summarizes the net loss recognized in connection with this divestiture:
(2) Includes $1.2 million of net assets that were written down during the quarter ended June 30, 2018 based on the expected proceeds from the sale, net of selling costs for the sale for our Brazil business. The following table summarizes the net loss recognized in connection with this divestiture:
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock appreciation rights were outstanding, but not included in the diluted loss per share calculation | The following stock appreciation rights and restricted stock units were outstanding but not included in the diluted earnings per share calculation because the assumed exercise of such rights would have been anti-dilutive (in millions, except for per share data):
|
Reportable Business Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of segment description |
(1)Effective January 1, 2019, we realigned our segment structure. We shifted financial reporting of the European Commercial HVAC business from our Commercial Heating & Cooling segment to our Refrigeration segment as we manage both our commercial HVAC and refrigeration operations in Europe together. We have revised our historical segment results to present them on a comparable basis. (2)Our businesses in the Asia Pacific and South America area were sold in the second and third quarters of 2018, respectively. Refer to Note 14 for details regarding the divestiture of these businesses.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales and segment profit (loss) and reconciliation of segment profit (loss) to income from continuing operations before income taxes | Net sales and segment profit (loss) for each segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):
(1) We define segment profit (loss) as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding:
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Other fair value measurements | The following table presents their fair value (in millions):
|
Condensed Consolidating Financial Statements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of June 30, 2019
Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2019
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2018
|
Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Components of inventories | ||
Finished goods | $ 431.3 | $ 330.5 |
Work in process | 6.2 | 10.0 |
Raw materials and parts | 252.4 | 229.1 |
Subtotal | 689.9 | 569.6 |
Excess of current cost over last-in, first-out cost | (59.7) | (59.8) |
Total inventories, net | $ 630.2 | $ 509.8 |
Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 186.6 |
Changes in foreign currency translation rates | 0.0 |
Goodwill, Ending Balance | 186.6 |
Goodwill, Transfers | 0.0 |
Residential Heating & Cooling [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 26.1 |
Goodwill Reallocation (1) | 0.0 |
Changes in foreign currency translation rates | 0.0 |
Goodwill, Ending Balance | 26.1 |
Commercial Heating & Cooling [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 61.4 |
Goodwill Reallocation (1) | (0.3) |
Changes in foreign currency translation rates | 0.0 |
Goodwill, Ending Balance | 61.1 |
Refrigeration [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 99.1 |
Changes in foreign currency translation rates | 0.0 |
Goodwill, Ending Balance | 99.4 |
Goodwill, Transfers | $ 0.3 |
Derivatives (AOCL Related to Cash Flow Hedges) (Details) - Cash Flow Hedge [Member] - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized losses on unsettled contracts | $ 3.3 | $ 8.4 |
Losses included in AOCL, net of tax | 2.6 | 6.2 |
Accumulated Other Comprehensive Income (Loss) Cumulative, Changes In Net Gain (Loss) From Cash Flow Hedges Provision (Benefit) For Tax | (0.7) | $ (2.2) |
Cash flow hedge derivative losses expected to be reclassified into earnings within the next 12 months | $ 2.6 |
Income Taxes (Details) |
Jun. 30, 2019
USD ($)
|
---|---|
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Commitments and Contingencies (Liabilities for Estimated Product Warranty Costs) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Total liabilities for estimated warranty | ||
Accrued expenses | $ 37.6 | $ 37.9 |
Other liabilities | 76.3 | 73.7 |
Total warranty liability | $ 113.9 | $ 111.6 |
Commitments and Contingencies (Changes in Product Warranty Liabilities) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Loss Contingencies [Line Items] | |
Standard and Extended Product Warranty Accrual, Foreign Currency Translation Gain (Loss) | $ 0.1 |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |
Total warranty liability, beginning balance | (111.6) |
Warranty claims paid | (15.3) |
Changes resulting from issuance of new warranties | 22.2 |
Warranty liability from divestitures | 0.6 |
Total warranty liability, ending balance | (113.9) |
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | $ (4.1) |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 01, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Loss Contingencies [Line Items] | |||||
Operating Lease Term | 5 years | ||||
Expense for asbestos-related litigation | $ 0.4 | $ (0.2) | $ 1.8 | $ 1.9 |
Commitments and Contingencies Marshalltown Tornado and Recovery (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Site clean-up and remediation | $ 6.2 | $ 23.3 | ||
Insurance recoveries received | 52.0 | 128.0 | $ 0.0 | |
Factory inefficiencies | 4.5 | 8.0 | ||
Other | 9.4 | 18.4 | ||
Total expense | 20.1 | 49.7 | ||
Net Loss(gain) from natural disaster, net of Insurance recoveries | 31.9 | 78.3 | ||
Loss (gain) from natural disaster, net of Insurance recoveries | 5.9 | $ 0.0 | 12.8 | 0.0 |
Insurance proceeds for lost profits | $ (26.0) | $ 0.0 | $ (65.5) | $ 0.0 |
Lines of Credit and Financing Arrangements (Outstanding Debt Obligations) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Current maturities of long-term debt: | ||
Finance lease obligations | $ 6.6 | $ 3.5 |
Debt issuance costs | (0.6) | (0.7) |
Total current maturities of long-term debt | 311.0 | 300.8 |
Long-Term Debt: | ||
Finance lease obligations | 23.4 | 15.7 |
Debt issuance costs | (2.6) | (3.2) |
Total long-term debt | 1,155.8 | 740.5 |
Total debt | 1,466.8 | 1,041.3 |
Domestic Credit Facility [Member] | ||
Current maturities of long-term debt: | ||
Domestic credit facility and senior unsecured notes | 15.0 | 30.0 |
Long-Term Debt: | ||
Domestic credit facility and senior unsecured notes | 785.0 | 378.0 |
Asset Securitization [Member] | ||
Current maturities of long-term debt: | ||
Finance lease obligations | 290.0 | 268.0 |
Senior Unsecured Notes [Member] | ||
Long-Term Debt: | ||
Domestic credit facility and senior unsecured notes | $ 350.0 | $ 350.0 |
Lines of Credit and Financing Arrangements (Foreign Obligations) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Short-term Debt [Line Items] | |||
Proceeds from facilities | $ 2,100,000 | $ 21,300,000 | |
Repayments on facilities | 2,100,000 | $ 18,400,000 | |
Foreign Obligations [Member] | |||
Short-term Debt [Line Items] | |||
Proceeds from facilities | $ 21,300,000 | $ 0 | |
Repayments on facilities | $ 18,400,000 |
Lines of Credit and Financing Arrangements (Asset Securitization Program) (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Line of Credit Facility [Line Items] | ||
Asset Securitization Borrowing Capacity | $ 0 | $ 22,000,000.0 |
Maximum securitization as percentage of net pool balance | 100.00% | |
Program fee percentage | 0.70% | |
Average floating commercial paper rate (as a percent) | 3.11% | 3.27% |
Unused fee (as a percent) | 101.00% | |
Fixed rate of agreement (as a percent) | 0.35% | |
Senior Unsecured Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Minimum principal amount accelerated | $ 75,000,000.0 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Asset Securitization Borrowing Capacity | 225,000,000.0 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Asset Securitization Borrowing Capacity | $ 380,000,000.0 |
Lines of Credit and Financing Arrangements (Eligible Amounts Available and Beneficial Interest Sold) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Eligible amounts available and beneficial interests sold | ||
Eligible amount available under the ASP on qualified accounts receivable | $ 290.0 | $ 290.0 |
Less: Beneficial interest transferred | (290.0) | (268.0) |
Remaining amount available | $ 0.0 | $ 22.0 |
Lines of Credit and Financing Arrangements (Domestic Credit Facility) (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2019 |
Jan. 23, 2019 |
Nov. 13, 2014 |
|
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000.0 | ||
Subfacility for Swingline Loans [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 65,000,000.0 | ||
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Minimum principal amount accelerated | 75,000,000.0 | ||
Medium-term Notes [Member] | Domestic Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Face amount of debt | 160,000,000.0 | $ 350,000,000.0 | $ 190,000,000.0 |
Periodic payments | 7,500,000 | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | 800,000,000.0 | ||
Committed standby letters of credit | 2,500,000 | ||
Available for future borrowings | $ 357,500,000 |
Lines of Credit and Financing Arrangements (Weighted Average Borrowing Rate) (Details) |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Weighted average borrowing rate | 3.63% | 3.74% |
Lines of Credit and Financing Arrangements (Credit Facility Ratios) (Details) - Revolving Credit Facility [Member] |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
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 |
Lines of Credit and Financing Arrangements (Senior Unsecured Notes) (Details) - Senior Unsecured Notes [Member] - USD ($) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Nov. 01, 2016 |
|
Debt Instrument [Line Items] | |||
Senior unsecured notes | $ 350,000,000.0 | ||
Fixed interest rate for senior unsecured notes (as a percent) | 3.00% | ||
Maturity date of senior unsecured notes | Nov. 15, 2023 | ||
Minimum principal amount accelerated | $ 75,000,000.0 | ||
Notice period | 30 days |
Pension and Post-Retirement Benefit Plans (Narrative) (Details) - UNITED STATES - Pension Plan [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Effect of 25 Basis Point Decrease | $ 0.4 | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.50% | 6.50% |
Stock-Based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 6.1 | $ 8.8 | $ 11.4 | $ 13.6 |
Stock Repurchases (Details) - USD ($) shares in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Mar. 16, 2018 |
|
Stock repurchase program, authorized amount | $ 2,500,000,000 | $ 2,500,000,000 | $ 500,000,000 | ||
Stock repurchase program, remaining authorized amount | $ 196,000,000 | $ 196,000,000 | |||
Stock Repurchased During Period, Shares | 0.6 | 0.4 | |||
Stock Repurchased During Period, Value | $ 150,000,000.0 | $ 100,000,000.0 | |||
Shares repurchased from employees who surrendered shares to satisfy minimum tax withholding obligations | 0.1 | ||||
Shares repurchased from employees who surrendered shares to satisfy minimum tax withholding obligations, value | $ 14,500,000 | $ 18,600,000 |
Earnings Per Share (Excluded from Diluted Earnings Per Share Calculation) (Details) - $ / shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average number of shares | 0.0 | 0.2 | 0.0 | 0.2 |
Price range per share (in dollars per share) | $ 0 | $ 205.53 | $ 0 | $ 205.53 |
Fair Value Measurements (Other Fair Value Disclosures) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Level 2 [Member] | Senior Unsecured Notes [Member] | ||
Other Fair Value Measurements | ||
Senior unsecured notes | $ 326.7 | $ 302.9 |
Condensed Consolidating Financial Statements (Narrative) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Subsidiaries, ownership percentage | 100.00% |
Subsequent Event (Details) - USD ($) shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jul. 31, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
|
Subsequent Event [Line Items] | |||
Stock Repurchased During Period, Shares | 0.6 | 0.4 | |
Stock Repurchased During Period, Value | $ 150.0 | $ 100.0 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock Repurchased During Period, Shares | 0.5 | ||
Stock Repurchased During Period, Value | $ 150.0 |
9B?M[H$0!; X3B26:8Q\
MXWN$Q0507 #$B5$O3TS8ZR>:BX1)3TS28V+#GDP931D.0XEE LH]$(L+(3"
M0B!,I,8R5/TPDYHT0,V--Q?2-!4R2RH#5!QX$18VA\+F;0@>"&,<(((!(G!G
M1&HM(ST#( 4/V2E6MS>J"D@EH,RCWC^ 1S/;>4S,5_A2LH#P^9^!@E*AM7
M4@[6H9Y5?"I:O$Z[[.(^3C>W^YFV3> S@2^$0XS#ID Q\\_"B2(S.!(S];X7
MX8EW1^Y[4P9G;$6\\\E;[[T6=X>,78/.##E-$+Z"[!8$\^)+!+X5X<0_T/DV
M?;^9X#[2]VMZFFP+I)L":11(_U?A1PA/_ZV1K3JJP31QEBPI<>CB'*^\R[C>
M\_@B[_!IUK\)T\C.D@LZ_ZZQ^S6B Y]*%)DU([%3[WL1GGA_X-B;,CAC*^(=
MBG?HO13\>I^Q2R":8XY3#%_%O$
SGGW \NZ8#FQ38
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M?Q).Y*G!@9BQ]YT(3[PY>[+3"#!%K9
MF&X/HNF"UW(;J\P= J#B-C^02KD*#X'9* ;E6/S13@VV\0"@S&!Q)SJ;A!]
MMJ80H "T]@: R)HA$_ PQ[PE,!$%(*)RK/<$1HU84-$)C!HQ9V=+V,55'(;6
MR@+(*"&A[2_0A<)>$T.=BGS7Z,,D%("$RK%*D1@R
QM4_*#,:Z[?97_SZP=*M,.M-KY=K5=_ %!+ P04 " JB/9.
M"D3IZC(" #O!@ &0 'AL+W=O
SF#WJ.SK[["GPO6FIPBO9H9'ZPSB+#EW[
M)=)MXR*^5-W<-M\/&GL5_,!\7S?"VS"IFI)I'3O&)"B=P9-Z02IU^PP+ CNI
MIU,UY[8'VX5D;7^]H.&.*_X#4$L#!!0 ( "J(]DX]1VWJ@@( $8) 9
M >&PO=V]R:W-H965T
R^@YBR=)ZIU5(H.9=YCP
M!A/X%F8)8'J$)Q7T,D)(QCP