Quarterly Financial Information (unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (unaudited)

Quarterly Financial Information (unaudited):

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



	Net Sales ⁽¹⁾				Gross Profit ⁽¹⁾				Net Income (Loss) ⁽¹⁾
	2013		2012		2013		2012		2013		2012
First Quarter	$	668.4	$	614.4	$	162.0	$	140.9	$	8.0	$	(6.1	)
Second Quarter	913.1		840.4		254.0		208.1		64.3		44.7
Third Quarter	868.0		809.7		237.4		204.9		64.3		29.4
Fourth Quarter	749.5		684.9		207.7		168.4		35.2		21.9



	Basic Earnings (Loss) per Share ⁽²⁾					Diluted Earnings (Loss) per Share ⁽²⁾					Cash Dividends per Common Share
	2013		2012			2013		2012			2013		2012
First Quarter	$	0.16	$	(0.12	)	$	0.16	$	(0.12	)	$	0.20	$	0.18
Second Quarter	1.28		0.88			1.26		0.87			0.24		0.18
Third Quarter	1.29		0.58			1.27		0.57			0.24		0.20
Fourth Quarter	0.72		0.44			0.70		0.43			0.24		0.20

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

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

Summary of 2013 Quarterly Results

The following unusual or infrequent pre-tax items were included in the 2013 quarterly results:

1st Quarter. On March 22, 2013, we sold our Service Experts business to a majority-owned entity of American Capital, Ltd. (the "Buyer") in an all-cash transaction for net proceeds of $10.4 million, excluding transaction costs. We recorded a $1.4 million gain on the sale of the business for the year ended December 31, 2013. Refer to Note 17 for more information.

2nd Quarter. We recorded restructuring charges of $2.4 million primarily related to the completion of the transition activities with our North American Parts Center in Des Moines, Iowa. Refer to Note 16 for more information related to our restructuring activities.

3rd Quarter. We recorded legal contingency charges of $0.8 million associated with ongoing patent litigation. Refer to Note 10 for more information on our legal contingencies.

4th Quarter. We recorded expenses of $6.3 million for asbestos-related litigation. Refer to Note 10 for more information. We also recorded restructuring charges of $1.8 million primarily related to anticipated severance charges associated with a relocation of certain Residential Heating & Cooling manufacturing operations to lower cost facilities.

Summary of 2012 Quarterly Results

The following unusual or infrequent pre-tax items were included in the 2012 quarterly results:

1st Quarter. We recorded a $6.3 million impairment charge for the write-down of net assets to their estimated fair value related to our Hearth business. Refer to Note 17 for more information. We also recognized $2.6 million primarily in lease termination charges related to the Regional Distribution Network restructuring plan. Refer to Note 16 for more details on this restructuring plan.

2nd Quarter. Related to the sale of our Hearth business, we recorded a $6.3 million settlement charge as a result of actuarial losses recognized upon transition of a pension obligation to the acquirer of the business. Partially offsetting this charge was a $3.5 million gain in the second quarter of 2012 related to realized foreign currency translation adjustments. Refer to Note 17 for more information.

3rd Quarter. We recorded a goodwill impairment of $20.5 million related to the Service Experts business. Partially offsetting this charge was a $2.9 million gain for a working capital adjustment to the net proceeds associated with the sale of the Hearth business. Refer to Note 17 for more information on these charges.

4th Quarter. No significant unusual or infrequent items.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details