| (Amounts in millions, except per share data) | For the Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| Net sales | $ | 930.5 | $ | 723.8 | |||||||
| Cost of goods sold | 674.0 | 558.1 | |||||||||
| Gross profit | 256.5 | 165.7 | |||||||||
| Operating Expenses: | |||||||||||
| Selling, general and administrative expenses | 145.3 | 131.1 | |||||||||
| Losses (gains) and other expenses, net | 0.3 | (1.0) | |||||||||
| Restructuring charges | 0.1 | 0.5 | |||||||||
| Loss from natural disasters, net of insurance recoveries | — | 1.6 | |||||||||
| Income from equity method investments | (3.3) | (2.9) | |||||||||
| Operating income | 114.1 | 36.4 | |||||||||
| Pension settlement | 0.7 | — | |||||||||
| Interest expense, net | 6.0 | 8.7 | |||||||||
| Other expense (income), net | 1.0 | 1.2 | |||||||||
| Income from continuing operations before income taxes | 106.4 | 26.5 | |||||||||
| Provision for income taxes | 22.2 | 14.0 | |||||||||
| Income from continuing operations | 84.2 | 12.5 | |||||||||
| Discontinued Operations: | |||||||||||
| Loss from discontinued operations before income taxes | — | — | |||||||||
| Income tax benefit | — | (0.4) | |||||||||
| Income from discontinued operations | — | 0.4 | |||||||||
| Net income | $ | 84.2 | $ | 12.9 | |||||||
| Earnings per share – Basic: | |||||||||||
| Income from continuing operations | $ | 2.22 | $ | 0.33 | |||||||
| Income from discontinued operations | — | 0.01 | |||||||||
| Net income | $ | 2.22 | $ | 0.34 | |||||||
| Earnings per share – Diluted: | |||||||||||
| Income from continuing operations | $ | 2.20 | $ | 0.32 | |||||||
| Income from discontinued operations | — | 0.01 | |||||||||
| Net income | $ | 2.20 | $ | 0.33 | |||||||
| Weighted Average Number of Shares Outstanding - Basic | 38.0 | 38.4 | |||||||||
| Weighted Average Number of Shares Outstanding - Diluted | 38.2 | 38.7 | |||||||||
| LENNOX INTERNATIONAL INC. AND SUBSIDIARIES | |||||||||||
| Segment Net Sales and Profit (Loss) | |||||||||||
| (Unaudited) | |||||||||||
| (Amounts in millions) | For the Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| Net Sales | |||||||||||
| Residential Heating & Cooling | $ | 606.3 | $ | 442.1 | |||||||
| Commercial Heating & Cooling | 199.2 | 178.4 | |||||||||
| Refrigeration | 125.0 | 103.3 | |||||||||
| $ | 930.5 | $ | 723.8 | ||||||||
Segment Profit (Loss) (1) | |||||||||||
| Residential Heating & Cooling | $ | 96.4 | $ | 32.5 | |||||||
| Commercial Heating & Cooling | 27.4 | 18.7 | |||||||||
| Refrigeration | 7.9 | 0.7 | |||||||||
| Corporate and other | (16.0) | (14.3) | |||||||||
| Total segment profit | 115.7 | 37.6 | |||||||||
| Reconciliation to Operating Income: | |||||||||||
| Loss from natural disasters, net of insurance recoveries | — | 1.6 | |||||||||
Items in Losses (gains) and other expenses, net which are excluded from segment profit (loss) (1) | 1.5 | (0.9) | |||||||||
| Restructuring charges | 0.1 | 0.5 | |||||||||
| Operating income | $ | 114.1 | $ | 36.4 | |||||||
| (Amounts in millions, except shares and par values) | As of March 31, 2021 | As of December 31, 2020 | |||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 35.5 | $ | 123.9 | |||||||
| Short-term investments | 4.5 | 5.1 | |||||||||
| Accounts and notes receivable, net of allowances of $9.2 and $9.6 in 2021 and 2020, respectively | 522.6 | 448.3 | |||||||||
| Inventories, net | 502.3 | 439.4 | |||||||||
| Other assets | 73.3 | 70.9 | |||||||||
| Total current assets | 1,138.2 | 1,087.6 | |||||||||
| Property, plant and equipment, net of accumulated depreciation of $891.6 and $880.6 in 2021 and 2020, respectively | 466.4 | 464.3 | |||||||||
| Right-of-use assets from operating leases | 190.7 | 194.4 | |||||||||
| Goodwill | 186.7 | 186.9 | |||||||||
| Deferred income taxes | 7.6 | 13.2 | |||||||||
| Other assets, net | 85.4 | 86.1 | |||||||||
| Total assets | $ | 2,075.0 | $ | 2,032.5 | |||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||
| Current Liabilities: | |||||||||||
| Current maturities of long-term debt | 165.0 | 9.9 | |||||||||
| Current operating lease liabilities | 54.9 | 55.0 | |||||||||
| Accounts payable | 372.9 | 340.3 | |||||||||
| Accrued expenses | 254.5 | 296.1 | |||||||||
| Income taxes payable | 1.8 | — | |||||||||
| Total current liabilities | 849.1 | 701.3 | |||||||||
| Long-term debt | 1,007.9 | 970.7 | |||||||||
| Long-term operating lease liabilities | 138.5 | 142.8 | |||||||||
| Pensions | 94.8 | 92.5 | |||||||||
| Other liabilities | 145.4 | 142.3 | |||||||||
| Total liabilities | 2,235.7 | 2,049.6 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' deficit: | |||||||||||
| Preferred stock, $0.01 par value, 25,000,000 shares authorized, no shares issued or outstanding | — | — | |||||||||
| Common stock, $0.01 par value, 200,000,000 shares authorized, 87,170,197 shares issued | 0.9 | 0.9 | |||||||||
| Additional paid-in capital | 1,090.3 | 1,113.2 | |||||||||
| Retained earnings | 2,440.9 | 2,385.8 | |||||||||
| Accumulated other comprehensive loss | (99.2) | (97.2) | |||||||||
| Treasury stock, at cost, 49,396,668 shares and 48,820,969 shares for 2021 and 2020, respectively | (3,593.6) | (3,419.8) | |||||||||
| Total stockholders' deficit | (160.7) | (17.1) | |||||||||
| Total liabilities and stockholders' deficit | $ | 2,075.0 | $ | 2,032.5 | |||||||
| (Amounts in millions) | For the Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 84.2 | $ | 12.9 | |||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
| Income from equity method investments | (3.3) | (2.9) | |||||||||
| Restructuring charges, net of cash paid | 0.3 | 0.1 | |||||||||
| Provision for credit losses | 2.0 | 1.2 | |||||||||
| Unrealized (gains) losses, net on derivative contracts | (0.2) | 1.5 | |||||||||
| Stock-based compensation expense | 8.5 | 3.7 | |||||||||
| Depreciation and amortization | 17.4 | 19.0 | |||||||||
| Deferred income taxes | 1.0 | 8.8 | |||||||||
| Pension expense | 3.0 | 2.7 | |||||||||
| Pension contributions | (0.4) | (0.6) | |||||||||
| Other items, net | (0.1) | 0.2 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts and notes receivable | (77.5) | (18.7) | |||||||||
| Inventories | (62.5) | (71.0) | |||||||||
| Other current assets | (9.5) | (0.7) | |||||||||
| Accounts payable | 41.2 | (8.7) | |||||||||
| Accrued expenses | (41.8) | (33.0) | |||||||||
| Income taxes payable / receivable, net | 14.0 | (17.3) | |||||||||
| Leases, net | (0.7) | 0.1 | |||||||||
| Other, net | 6.9 | 3.9 | |||||||||
| Net cash used in operating activities | (17.5) | (98.8) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Proceeds from the disposal of property, plant and equipment | 0.4 | 0.1 | |||||||||
| Purchases of property, plant and equipment | (24.7) | (24.7) | |||||||||
| Proceeds from (purchases of) short-term investments | 0.5 | (1.1) | |||||||||
| Net cash used in investing activities | (23.8) | (25.7) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Asset securitization borrowings | 155.0 | — | |||||||||
| Asset securitization payments | — | (70.0) | |||||||||
| Long-term debt payments | (2.9) | (2.6) | |||||||||
| Borrowings from credit facility | 202.0 | 682.5 | |||||||||
| Payments on credit facility | (165.0) | (342.5) | |||||||||
| Proceeds from employee stock purchases | 0.9 | 0.8 | |||||||||
| Repurchases of common stock | (200.0) | (100.0) | |||||||||
| Repurchases of common stock to satisfy employee withholding tax obligations | (6.0) | (5.5) | |||||||||
| Cash dividends paid | (29.5) | (29.7) | |||||||||
| Net cash (used in) provided by financing activities | (45.5) | 133.0 | |||||||||
| (Decrease) increase in cash and cash equivalents | (86.8) | 8.5 | |||||||||
| Effect of exchange rates on cash and cash equivalents | (1.6) | (6.7) | |||||||||
| Cash and cash equivalents, beginning of period | 123.9 | 37.3 | |||||||||
| Cash and cash equivalents, end of period | $ | 35.5 | $ | 39.1 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Interest paid | $ | 5.5 | $ | 6.8 | |||||||
| Income taxes paid (net of refunds) | $ | 8.2 | $ | 21.3 | |||||||
| LENNOX INTERNATIONAL INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| Reconciliation to U.S. GAAP (Generally Accepted Accounting Principles) Measures | |||||||||||||||||||||||
| (Unaudited, in millions, except per share and ratio data) | |||||||||||||||||||||||
| Use of Non-GAAP Financial Measures | |||||||||||||||||||||||
| To supplement the Company's consolidated financial statements and segment net sales and profit presented in accordance with U.S. GAAP, additional non-GAAP financial measures are provided and reconciled in the following tables. In addition to these non-GAAP measures, the Company also provides rates of revenue change at constant currency on a consolidated and segment basis if different than the reported measures. The Company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The Company believes that these non-GAAP financial measures enhance the ability of investors to analyze the Company's business trends and operating performance. | |||||||||||||||||||||||
| Reconciliation of Income from Continuing Operations, a GAAP measure, to Adjusted Income from Continuing Operations, a Non-GAAP measure | |||||||||||||||||||||||
| For the Three Months Ended March 31, | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| Pre-Tax | Tax Impact (d) | After Tax | Pre-Tax | Tax Impact (d) | After Tax | ||||||||||||||||||
| Income from continuing operations, a GAAP measure | $ | 106.4 | $ | (22.2) | $ | 84.2 | $ | 26.5 | $ | (14.0) | $ | 12.5 | |||||||||||
| Restructuring charges | 0.1 | (0.1) | — | 0.5 | (0.1) | 0.4 | |||||||||||||||||
| Pension settlement | 0.7 | (0.1) | 0.6 | — | — | — | |||||||||||||||||
| Items in Losses (gains) and other expenses, net which are excluded from segment profit (loss) (a) | 1.5 | (0.2) | 1.3 | (0.9) | 0.1 | (0.8) | |||||||||||||||||
| Excess tax benefits from share-based compensation (b) | — | (1.2) | (1.2) | — | 0.1 | 0.1 | |||||||||||||||||
| Other tax items, net (b) | — | 2.0 | 2.0 | — | 8.2 | 8.2 | |||||||||||||||||
| Loss from natural disasters, net of insurance recoveries (e) | — | — | — | 1.6 | (0.3) | 1.3 | |||||||||||||||||
| Adjusted income from continuing operations, a non-GAAP measure | $ | 108.7 | $ | (21.8) | $ | 86.9 | $ | 27.7 | $ | (6.0) | $ | 21.7 | |||||||||||
| Earnings per share from continuing operations - diluted, a GAAP measure | $ | 2.20 | $ | 0.32 | |||||||||||||||||||
| Restructuring charges | — | 0.01 | |||||||||||||||||||||
| Pension settlement | 0.02 | — | |||||||||||||||||||||
| Items in Losses (gains) and other expenses, net which are excluded from segment profit (loss) (a) | 0.03 | (0.02) | |||||||||||||||||||||
| Excess tax benefits from share-based compensation (b) | (0.03) | — | |||||||||||||||||||||
| Other tax items, net (b) | 0.05 | 0.21 | |||||||||||||||||||||
| Loss from natural disasters, net of insurance recoveries (e) | — | 0.04 | |||||||||||||||||||||
| Change in share counts from share-based compensation (c) | — | — | |||||||||||||||||||||
| Adjusted earnings per share from continuing operations - diluted, a non-GAAP measure | $ | 2.27 | $ | 0.56 | |||||||||||||||||||
| (a) Recorded in Losses (gains) and other expenses, net in the Consolidated Statements of Operations | |||||||||||||||||||||||
| (b) Recorded in Provision for income taxes in the Consolidated Statements of Operations | |||||||||||||||||||||||
| (c) The impact of excess tax benefits from the change in share-based compensation also impacts the Company's diluted share counts. The reconciliation of average outstanding diluted shares on a GAAP and non-GAAP basis is included in this amount.. | |||||||||||||||||||||||
| (d) Tax impact based on the applicable tax rate relevant to the location and nature of the adjustment. | |||||||||||||||||||||||
| (e) Recorded in Loss from natural disasters, net of insurance recoveries in the Consolidated Statement of Operations. | |||||||||||||||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
Components of Losses (gains) and other expenses, net (pre-tax): | |||||||||||
Realized (gains) losses on settled future contracts (a) | $ | (0.3) | $ | 0.1 | |||||||
Foreign currency exchange gains (a) | (0.3) | (0.5) | |||||||||
(Gain) loss on disposal of fixed assets (a) | (0.3) | 0.1 | |||||||||
Other operating (income) loss (a) | (0.3) | 0.2 | |||||||||
Net change in unrealized (gains) losses on unsettled futures contracts (b) | (0.2) | 0.6 | |||||||||
Special legal contingency charges (b) | 0.2 | — | |||||||||
Asbestos-related litigation (b) | 1.1 | (1.7) | |||||||||
Environmental liabilities (b) | 0.6 | 0.2 | |||||||||
Charges incurred related to COVID-19 pandemic (b) | 0.6 | — | |||||||||
Other items, net (b) | (0.8) | — | |||||||||
Losses (gains) and other expenses, net (pre-tax) | $ | 0.3 | $ | (1.0) | |||||||
| (a) Included in both segment profit (loss) and Adjusted income from continuing operations | |||||||||||||||||||||||
| (b) Excluded from both segment profit (loss) and Adjusted income from continuing operations | |||||||||||||||||||||||
| Reconciliation of Earnings per Share from Continuing Operations - Diluted, a GAAP measure, to Estimated Adjusted Earnings per Share from Continuing Operations - Diluted, a Non-GAAP measure | |||||||||||||||||||||||
| For the Year Ended December 31, 2021 ESTIMATED | |||||||||||||||||||||||
| Earnings per share from continuing operations - diluted, a GAAP measure | $11.33-$11.93 | ||||||||||||||||||||||
| Other non-core EBIT charges and other non-core tax items | (0.07) | ||||||||||||||||||||||
| Adjusted Earnings per share from continuing operations - diluted, a Non-GAAP measure | $11.40-$12.00 | ||||||||||||||||||||||
| Reconciliation of Average Shares Outstanding - Diluted, a GAAP measure, to Adjusted Average Shares Outstanding - Diluted, a Non-GAAP measure (shares in millions): | |||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Average shares outstanding - diluted, a GAAP measure | 38.2 | 38.7 | |||||||||
| Impact on diluted shares from excess tax benefits from share-based compensation | — | — | |||||||||
| Adjusted average shares outstanding - diluted, a Non-GAAP measure | 38.2 | 38.7 | |||||||||
| Reconciliation of Net Cash Used in Operating Activities, a GAAP measure, to Free Cash Flow, a Non-GAAP measure (dollars in millions) | |||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Net cash used in operating activities | $ | (17.5) | $ | (98.8) | |||||||
| Purchases of property, plant and equipment | (24.7) | (24.7) | |||||||||
| Proceeds from the disposal of property, plant and equipment | 0.4 | 0.1 | |||||||||
| Free cash flow, a Non-GAAP measure | $ | (41.8) | $ | (123.4) | |||||||
| Calculation of Debt to EBITDA Ratio (dollars in millions): | Trailing Twelve Months to March 31, 2021 | ||||||||||||||||||||||
| Adjusted EBIT (a) | $ | 584.8 | |||||||||||||||||||||
| Depreciation and amortization expense (b) | 69.1 | ||||||||||||||||||||||
| EBITDA (a + b) | $ | 653.9 | |||||||||||||||||||||
Total debt at March 31, 2021 (c) | $ | 1,172.9 | |||||||||||||||||||||
| Total Debt to EBITDA ratio ((c / (a + b)) | 1.8 | ||||||||||||||||||||||
| Reconciliation of Adjusted EBIT, a Non-GAAP measure, to Income From Continuing Operations Before Income Taxes, a GAAP measure (dollars in millions) | |||||||||||||||||||||||
Trailing Twelve Months to March 31, 2021 | |||||||||||||||||||||||
| Income from continuing operations before income taxes, a GAAP measure | $ | 525.1 | |||||||||||||||||||||
| Items in Losses (gains) and other expenses, net which are excluded from segment profit | 15.7 | ||||||||||||||||||||||
| Special product quality adjustments | 1.0 | ||||||||||||||||||||||
| Restructuring charges | 10.4 | ||||||||||||||||||||||
| Interest expense, net | 25.6 | ||||||||||||||||||||||
| Pension settlements | 1.3 | ||||||||||||||||||||||
| Loss from natural disasters, net of insurance recoveries | 1.5 | ||||||||||||||||||||||
| Other expense (income), net | 4.2 | ||||||||||||||||||||||
| Adjusted EBIT per above, a Non-GAAP measure | $ | 584.8 | |||||||||||||||||||||