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Condensed Consolidating Financial Statements | 6 Months Ended
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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 Subsidiaries Condensed Consolidating Balance Sheets As of June 30, 2019
(Amounts in millions) | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Current Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1.9 |  |  | $ | 22.3 |  |  | $ | 12.2 |  |  | $ | — |  |  | $ | 36.4 |
Short-term investments | — |  |  | — |  |  | 1.8 |  |  | — |  |  | $ | 1.8 |
Accounts and notes receivable, net | — |  |  | 75.9 |  |  | 642.9 |  |  | — |  |  | 718.8 |
Inventories, net | — |  |  | 552.3 |  |  | 80.0 |  |  | (2.1 | ) |  | 630.2 |
Other assets | 3.5 |  |  | 35.7 |  |  | 51.9 |  |  | (34.4 | ) |  | 56.7 |
Total current assets | 5.4 |  |  | 686.2 |  |  | 788.8 |  |  | (36.5 | ) |  | 1,443.9 |
Property, plant and equipment, net | — |  |  | 362.9 |  |  | 55.1 |  |  | — |  |  | 418.0 |
Right-of-use assets from operating leases | — |  |  | 142.2 |  |  | 24.0 |  |  | — |  |  | 166.2 |
Goodwill | — |  |  | 166.1 |  |  | 20.5 |  |  | — |  |  | 186.6 |
Investment in subsidiaries | 1,532.3 |  |  | 570.2 |  |  | 50.2 |  |  | (2,152.7 | ) |  | — |
Deferred income taxes | (11.1 | ) |  | 49.5 |  |  | 23.1 |  |  | (12.3 | ) |  | 49.2 |
Other assets, net | 1.7 |  |  | 54.2 |  |  | 6.4 |  |  | 14.2 |  |  | 76.5 |
Intercompany (payables) receivables, net | (587.0 | ) |  | 589.0 |  |  | 118.0 |  |  | (120.0 | ) |  | — |
Total assets | $ | 941.3 |  |  | $ | 2,620.3 |  |  | $ | 1,086.1 |  |  | $ | (2,307.3 | ) |  | $ | 2,340.4 |
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities: |  |  |  |  |  |  |  |  |
Current maturities of long-term debt | 14.4 |  |  | 5.7 |  |  | 290.9 |  |  | — |  |  | 311.0 |
Current operating lease liabilities | — |  |  | 42.9 |  |  | 6.7 |  |  | — |  |  | 49.6 |
Accounts payable | 30.0 |  |  | 393.3 |  |  | 50.3 |  |  | — |  |  | 473.6 |
Accrued expenses | 6.5 |  |  | 193.7 |  |  | 40.6 |  |  | — |  |  | 240.8 |
Income taxes (receivable) payable | (24.7 | ) |  | 34.1 |  |  | 41.4 |  |  | (50.8 | ) |  | — |
Total current liabilities | 26.2 |  |  | 669.7 |  |  | 429.9 |  |  | (50.8 | ) |  | 1,075.0 |
Long-term debt | 1,132.4 |  |  | 21.8 |  |  | 1.6 |  |  | — |  |  | 1,155.8 |
Long-term operating lease liabilities | — |  |  | 100.2 |  |  | 17.4 |  |  | — |  |  | 117.6 |
Pensions | — |  |  | 71.8 |  |  | 7.8 |  |  | — |  |  | 79.6 |
Other liabilities | 0.2 |  |  | 122.6 |  |  | 7.1 |  |  | — |  |  | 129.9 |
Total liabilities | 1,158.8 |  |  | 986.1 |  |  | 463.8 |  |  | (50.8 | ) |  | 2,557.9 |
Commitments and contingencies |  |  |  |  |  |  |  |  |
Total stockholders' (deficit) equity | (217.5 | ) |  | 1,634.2 |  |  | 622.3 |  |  | (2,256.5 | ) |  | (217.5 | )
Total liabilities and stockholders' (deficit) equity | $ | 941.3 |  |  | $ | 2,620.3 |  |  | $ | 1,086.1 |  |  | $ | (2,307.3 | ) |  | $ | 2,340.4 |
Lennox International Inc. and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2018
(Amounts in millions) | Parent |  | Guarantor Subsidiaries |  | Non- Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Current Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1.8 |  |  | $ | 15.4 |  |  | $ | 29.1 |  |  | $ | — |  |  | $ | 46.3 |
Accounts and notes receivable, net | — |  |  | 44.3 |  |  | 428.4 |  |  | — |  |  | 472.7 |
Inventories, net | — |  |  | 411.4 |  |  | 103.9 |  |  | (5.5 | ) |  | 509.8 |
Other assets | 3.3 |  |  | 36.2 |  |  | 54.7 |  |  | (33.6 | ) |  | 60.6 |
Total current assets | 5.1 |  |  | 507.3 |  |  | 616.1 |  |  | (39.1 | ) |  | 1,089.4 |
Property, plant and equipment, net | — |  |  | 293.3 |  |  | 118.6 |  |  | (3.6 | ) |  | 408.3 |
Goodwill | — |  |  | 166.1 |  |  | 20.5 |  |  | — |  |  | 186.6 |
Investment in subsidiaries | 1,311.9 |  |  | 357.8 |  |  | (0.5 | ) |  | (1,669.2 | ) |  | — |
Deferred income taxes | 1.4 |  |  | 54.4 |  |  | 23.4 |  |  | (12.2 | ) |  | 67.0 |
Other assets, net | 1.5 |  |  | 48.1 |  |  | 17.8 |  |  | (1.5 | ) |  | 65.9 |
Intercompany (payables) receivables, net | (715.5 | ) |  | 675.8 |  |  | 142.6 |  |  | (102.9 | ) |  | — |
Total assets | $ | 604.4 |  |  | $ | 2,102.8 |  |  | $ | 938.5 |  |  | $ | (1,828.5 | ) |  | $ | 1,817.2 |
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities: |  |  |  |  |  |  |  |  |
Short-term debt | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current maturities of long-term debt | 29.4 |  |  | 2.8 |  |  | 268.6 |  |  | — |  |  | 300.8 |
Accounts payable | 25.5 |  |  | 295.7 |  |  | 112.1 |  |  | — |  |  | 433.3 |
Accrued expenses | 12.1 |  |  | 213.8 |  |  | 46.4 |  |  | — |  |  | 272.3 |
Income taxes (receivable) payable | (38.5 | ) |  | 40.6 |  |  | 50.8 |  |  | (50.8 | ) |  | 2.1 |
Total current liabilities | 28.5 |  |  | 552.9 |  |  | 477.9 |  |  | (50.8 | ) |  | 1,008.5 |
Long-term debt | 724.9 |  |  | 15.0 |  |  | 0.6 |  |  | — |  |  | 740.5 |
Pensions | — |  |  | 75.1 |  |  | 7.7 |  |  | — |  |  | 82.8 |
Other liabilities | 0.6 |  |  | 126.4 |  |  | 8.0 |  |  | — |  |  | 135.0 |
Total liabilities | 754.0 |  |  | 769.4 |  |  | 494.2 |  |  | (50.8 | ) |  | 1,966.8 |
Commitments and contingencies |  |  |  |  |  |  |  |  |
Total stockholders' (deficit) equity | (149.6 | ) |  | 1,333.4 |  |  | 444.3 |  |  | (1,777.7 | ) |  | (149.6 | )
Total liabilities and stockholders' (deficit) equity | $ | 604.4 |  |  | $ | 2,102.8 |  |  | $ | 938.5 |  |  | $ | (1,828.5 | ) |  | $ | 1,817.2 |
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Operations and Comprehensive Income For the Three Months Ended June 30, 2019
(Amounts in millions) | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Net Sales | $ | — |  |  | $ | 1,019.2 |  |  | $ | 146.5 |  |  | $ | (66.6 | ) |  | $ | 1,099.1 |
Cost of goods sold | — |  |  | 723.6 |  |  | 169.6 |  |  | (126.2 | ) |  | 767.0 |
Gross profit | — |  |  | 295.6 |  |  | (23.1 | ) |  | 59.6 |  |  | 332.1 |
Operating expenses: |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses | — |  |  | 147.1 |  |  | 5.0 |  |  | 0.3 |  |  | 152.4 |
Losses (gains) and other expenses, net | 0.2 |  |  | 1.3 |  |  | 0.8 |  |  | (0.2 | ) |  | 2.1 |
Restructuring charges | — |  |  | (0.1 | ) |  | — |  |  | — |  |  | (0.1 | )
Loss on sale of business | — |  |  | 0.3 |  |  | 0.1 |  |  | — |  |  | 0.4 |
Insurance proceeds for lost profits | — |  |  | (26.0 | ) |  | — |  |  | — |  |  | (26.0 | )
Gain from insurance recoveries, net of losses incurred | — |  |  | (5.9 | ) |  | — |  |  | — |  |  | (5.9 | )
Income from equity method investments | (112.5 | ) |  | 24.0 |  |  | (3.8 | ) |  | 87.7 |  |  | (4.6 | )
Operating income | 112.3 |  |  | 154.9 |  |  | (25.2 | ) |  | (28.2 | ) |  | 213.8 |
Pension settlement | — |  |  | 60.6 |  |  | — |  |  | — |  |  | 60.6 |
Interest expense, net | 2.2 |  |  | 9.3 |  |  | 1.6 |  |  | — |  |  | 13.1 |
Other (income) expense, net | — |  |  | 6.8 |  |  | (6.5 | ) |  | — |  |  | 0.3 |
Income (loss) from continuing operations before income taxes | 110.1 |  |  | 78.2 |  |  | (20.3 | ) |  | (28.2 | ) |  | 139.8 |
Provision for income tax (benefit) expense | (0.6 | ) |  | 23.5 |  |  | 5.9 |  |  | — |  |  | 28.8 |
Income (loss) from continuing operations | 110.7 |  |  | 54.7 |  |  | (26.2 | ) |  | (28.2 | ) |  | 111.0 |
Loss from discontinued operations, net of tax | — |  |  | — |  |  | 0.3 |  |  | — |  |  | 0.3 |
Net income (loss) | $ | 110.7 |  |  | $ | 54.7 |  |  | $ | (26.5 | ) |  | $ | (28.2 | ) |  | $ | 110.7 |
Other comprehensive income, net of tax | (2.0 | ) |  | 50.0 |  |  | 2.6 |  |  | — |  |  | 50.6 |
Comprehensive income (loss) | $ | 108.7 |  |  | $ | 104.7 |  |  | $ | (23.9 | ) |  | $ | (28.2 | ) |  | $ | 161.3 |
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2019
(Amounts in millions) | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Cash flows provided by (used in) operating activities | $ | 33.2 |  |  | $ | (79.1 | ) |  | $ | (65.1 | ) |  | $ | — |  |  | $ | (111.0 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Proceeds from the disposal of property, plant and equipment | — |  |  | 0.6 |  |  | 0.2 |  |  | — |  |  | 0.8 |
Purchases of property, plant and equipment | — |  |  | (49.2 | ) |  | (4.3 | ) |  | — |  |  | (53.5 | )
Net proceeds from sale of business | — |  |  | 43.0 |  |  | 0.6 |  |  | — |  |  | 43.6 |
Insurance recoveries received for property damage incurred from natural disaster | — |  |  | 12.8 |  |  | — |  |  | — |  |  | 12.8 |
Purchases of short-term investments | — |  |  | — |  |  | (1.8 | ) |  | — |  |  | (1.8 | )
Net cash provided by (used in) by investing activities | — |  |  | 7.2 |  |  | (5.3 | ) |  | — |  |  | 1.9 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Short-term debt payments | — |  |  | — |  |  | (2.1 | ) |  | — |  |  | (2.1 | )
Short-term debt proceeds | — |  |  | — |  |  | 2.1 |  |  | — |  |  | 2.1 |
Asset securitization borrowings | — |  |  | — |  |  | 65.5 |  |  | — |  |  | 65.5 |
Asset securitization payments | — |  |  | — |  |  | (43.5 | ) |  | — |  |  | (43.5 | )
Long-term debt payments | (30.0 | ) |  | (1.9 | ) |  | (1.4 | ) |  | — |  |  | (33.3 | )
Borrowings from credit facility | 1,459.5 |  |  | — |  |  | — |  |  | — |  |  | 1,459.5 |
Payments on credit facility | (1,037.5 | ) |  | — |  |  | — |  |  | — |  |  | (1,037.5 | )
Proceeds from employee stock purchases | 1.6 |  |  | — |  |  | — |  |  | — |  |  | 1.6 |
Repurchases of common stock | (250.0 | ) |  | — |  |  | — |  |  | — |  |  | (250.0 | )
Repurchases of common stock to satisfy employee withholding tax obligations | (14.5 | ) |  | — |  |  | — |  |  | — |  |  | (14.5 | )
Intercompany financing activity | (111.4 | ) |  | 80.3 |  |  | 31.1 |  |  | — |  |  | — |
Cash dividends paid | (50.8 | ) |  | — |  |  | — |  |  | — |  |  | (50.8 | )
Net cash (used in) provided by financing activities | (33.1 | ) |  | 78.4 |  |  | 51.7 |  |  | — |  |  | 97.0 |
Increase (decrease) in cash and cash equivalents | 0.1 |  |  | 6.5 |  |  | (18.7 | ) |  | — |  |  | (12.1 | )
Effect of exchange rates on cash and cash equivalents | — |  |  | 0.4 |  |  | 1.8 |  |  | — |  |  | 2.2 |
Cash and cash equivalents, beginning of period | 1.8 |  |  | 15.4 |  |  | 29.1 |  |  | — |  |  | 46.3 |
Cash and cash equivalents, end of period | $ | 1.9 |  |  | $ | 22.3 |  |  | $ | 12.2 |  |  | $ | — |  |  | $ | 36.4 |
Lennox International Inc. and Subsidiaries Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2018
(Amounts in millions) | Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Cash flows from operating activities | $ | 87.2 |  |  | $ | (7.9 | ) |  | $ | (114.3 | ) |  | $ | — |  |  | $ | (35.0 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Proceeds from the disposal of property, plant and equipment | — |  |  | — |  |  | 0.1 |  |  | — |  |  | 0.1 |
Purchases of property, plant and equipment | — |  |  | (33.0 | ) |  | (10.4 | ) |  | — |  |  | (43.4 | )
Proceeds from sale of businesses | — |  |  | — |  |  | 111.8 |  |  | — |  |  | 111.8 |
Net cash (used in) provided by investing activities | — |  |  | (33.0 | ) |  | 101.5 |  |  | — |  |  | 68.5 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Short-term debt payments | — |  |  | — |  |  | (18.4 | ) |  | — |  |  | (18.4 | )
Short-term debt proceeds | — |  |  | — |  |  | 21.3 |  |  | — |  |  | 21.3 |
Asset securitization borrowings | — |  |  | — |  |  | 65.0 |  |  | — |  |  | 65.0 |
Asset securitization payments | — |  |  | — |  |  | (51.0 | ) |  | — |  |  | (51.0 | )
Long-term debt payments | (15.0 | ) |  | (2.7 | ) |  | (0.1 | ) |  | — |  |  | (17.8 | )
Borrowings from credit facility | 1,391.0 |  |  | — |  |  | — |  |  | — |  |  | 1,391.0 |
Payments on credit facility | (1,042.0 | ) |  | — |  |  | — |  |  | — |  |  | (1,042.0 | )
Proceeds from employee stock purchases | 1.2 |  |  | — |  |  | — |  |  | — |  |  | 1.2 |
Repurchases of common stock | (350.2 | ) |  | — |  |  | — |  |  | — |  |  | (350.2 | )
Repurchases of common stock to satisfy employee withholding tax obligations | (18.6 | ) |  | — |  |  | — |  |  | — |  |  | (18.6 | )
Intercompany financing activity | (11.2 | ) |  | 38.2 |  |  | (27.0 | ) |  | — |  |  | — |
Cash dividends paid | (42.4 | ) |  | — |  |  | — |  |  | — |  |  | (42.4 | )
Net cash (used in) provided by financing activities | (87.2 | ) |  | 35.5 |  |  | (10.2 | ) |  | — |  |  | (61.9 | )
Decrease in cash and cash equivalents | — |  |  | (5.4 | ) |  | (23.0 | ) |  | — |  |  | (28.4 | )
Effect of exchange rates on cash and cash equivalents | — |  |  | — |  |  | (0.4 | ) |  | — |  |  | (0.4 | )
Cash and cash equivalents, beginning of period | 1.6 |  |  | 28.0 |  |  | 38.6 |  |  | — |  |  | 68.2 |
Cash and cash equivalents, end of period | $ | 1.6 |  |  | $ | 22.6 |  |  | $ | 15.2 |  |  | $ | — |  |  | $ | 39.4 |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 + Details
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