Condensed Consolidating Financial Statements (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2014

Dec. 31, 2014

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.3		$	12.5	$	21.3		$	—		$	35.1
Accounts and notes receivable, net	—			42.1		495.6			—			537.7
Inventories, net	—			376.1		119.6			(7.4		)	488.3
Deferred income taxes, net	3.3			27.4		6.3			(5.1		)	31.9
Other assets	3.3			48.7		65.7			(58.8		)	58.9
Total current assets	7.9			506.8		708.5			(71.3		)	1,151.9
Property, plant and equipment, net	—			268.3		77.0			—			345.3
Goodwill	—			140.4		59.4			—			199.8
Investment in subsidiaries	1,111.9			394.7		(0.6		)	(1,506.0		)	—
Deferred income taxes	2.4			91.4		13.7			(9.6		)	97.9
Other assets, net	4.5			59.8		23.8			(1.5		)	86.6
Intercompany receivables (payables), net	(360.7		)	357.6		3.1			—			—
Total assets	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.3		$	—		$	226.3
Current maturities of long-term debt	22.5			0.9		0.3			—			23.7
Accounts payable	16.2			255.9		65.6			—			337.7
Accrued expenses	15.7			181.8		54.4			—			251.9
Income taxes payable	(41.3		)	94.8		27.2			(66.9		)	13.8
Total current liabilities	13.1			533.4		373.8			(66.9		)	853.4
Long-term debt	653.0			14.8		0.2			—			668.0
Post-retirement benefits, other than pensions	—			2.9		—			—			2.9
Pensions	—			123.4		10.8			—			134.2
Other liabilities	2.4			125.6		10.4			(12.9		)	125.5
Total liabilities	668.5			800.1		395.2			(79.8		)	1,784.0
Commitments and contingencies
Total stockholders' equity	97.5			1,018.9		489.7			(1,508.6		)	97.5
Total liabilities and stockholders' equity	$	766.0		$	1,819.0	$	884.9		$	(1,588.4	)	$	1,881.5

Lennox International Inc. and Subsidiaries

Condensed Consolidating Balance Sheets

As of December 31, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	1.0		$	11.5	$	25.0		$	—		$	37.5
Accounts and notes receivable, net	—			12.3		409.1			—			421.4
Inventories, net	—			350.6		119.7			(7.0		)	463.3
Deferred income taxes, net	2.8			27.3		7.4			(5.0		)	32.5
Other assets	3.6			45.7		67.2			(57.2		)	59.3
Total current assets	7.4			447.4		628.4			(69.2		)	1,014.0
Property, plant and equipment, net	—			269.0		89.6			—			358.6
Goodwill	—			140.4		69.0			—			209.4
Investment in subsidiaries	978.1			263.5		(0.6		)	(1,241.0		)	—
Deferred income taxes	0.5			90.8		15.8			(9.6		)	97.5
Other assets, net	5.2			61.0		20.1			(1.5		)	84.8
Intercompany receivables (payables), net	(280.4		)	302.4		(22.0		)	—			—
Total assets	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—		$	—	$	226.6		$	—		$	226.6
Current maturities of long-term debt	22.5			1.2		0.3			—			24.0
Accounts payable	13.4			237.8		73.1			—			324.3
Accrued expenses	9.0			175.5		54.5			—			239.0
Income taxes payable	(3.7		)	34.7		47.5			(65.1		)	13.4
Total current liabilities	41.2			449.2		402.0			(65.1		)	827.3
Long-term debt	659.5			15.3		0.2			—			675.0
Post-retirement benefits, other than pensions	—			4.5		—			—			4.5
Pensions	—			117.6		12.3			—			129.9
Other liabilities	1.1			118.7		11.7			(12.9		)	118.6
Total liabilities	701.8			705.3		426.2			(78.0		)	1,755.3
Commitments and contingencies
Total stockholders' equity	9.0			869.2		374.1			(1,243.3		)	9.0
Total liabilities and stockholders' equity	$	710.8		$	1,574.5	$	800.3		$	(1,321.3	)	$	1,764.3

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	827.9		$	185.2		$	(58.1	)	$	955.0
Cost of goods sold	—			589.9			150.2			(58.5		)	681.6
Gross profit	—			238.0			35.0			0.4			273.4
Operating expenses:
Selling, general and administrative expenses	—			124.0			19.8			—			143.8
Losses (gains) and other expenses, net	0.6			2.7			2.7			—			6.0
Restructuring charges	—			(0.2		)	(0.2		)	—			(0.4		)
Income from equity method investments	(84.2		)	(2.7		)	(2.1		)	86.0			(3.0		)
Operational income from continuing operations	83.6			114.2			14.8			(85.6		)	127.0
Interest expense, net	5.4			(0.4		)	0.7			—			5.7
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	78.2			114.6			14.8			(85.6		)	122.0
Provision for income taxes	(2.1		)	39.0			4.6			0.2			41.7
Income from continuing operations	80.3			75.6			10.2			(85.8		)	80.3
Loss from discontinued operations	—			—			—						—
Net income	$	80.3		$	75.6		$	10.2		$	(85.8	)	$	80.3
Other comprehensive income (loss), net of tax	(4.3		)	(8.6		)	(16.2		)	(1.8		)	(30.9		)
Comprehensive income	$	76.0		$	67.0		$	(6.0	)	$	(87.6	)	$	49.4

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,268.6		$	520.7		$	(156.0	)	$	2,633.3
Cost of goods sold	—			1,650.7			418.2			(155.4		)	1,913.5
Gross profit	—			617.9			102.5			(0.6		)	719.8
Operating expenses:
Selling, general and administrative expenses	—			362.0			68.0			—			430.0
Losses (gains) and other expenses, net	1.1			7.7			6.2			(0.1		)	14.9
Restructuring charges	—			(0.5		)	2.3			—			1.8
Income from equity method investments	(187.2		)	(0.3		)	(9.3		)	185.0			(11.8		)
Operational income from continuing operations	186.1			249.0			35.3			(185.5		)	284.9
Interest expense, net	17.1			(1.5		)	2.3			—			17.9
Other expense, net	—			—			(0.7		)	—			(0.7		)
Income from continuing operations before income taxes	169.0			250.5			33.7			(185.5		)	267.7
Provision for income taxes	(6.3		)	87.2			11.2			(0.2		)	91.9
Income from continuing operations	175.3			163.3			22.5			(185.3		)	175.8
Loss from discontinued operations	—			—			(0.5		)	—			(0.5		)
Net income	$	175.3		$	163.3		$	22.0		$	(185.3	)	$	175.3
Other comprehensive income (loss), net of tax	(2.9		)	(13.8		)	(36.4		)	(3.2		)	(56.3		)
Comprehensive income	$	172.4		$	149.5		$	(14.4	)	$	(188.5	)	$	119.0

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Three Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	736.2		$	213.5		$	(51.3	)	$	898.4
Cost of goods sold	—			538.8			164.5			(52.0		)	651.3
Gross profit	—			197.4			49.0			0.7			247.1
Operating expenses:
Selling, general and administrative expenses	—			127.4			13.5			—			140.9
Losses (gains) and other expenses, net	(0.1		)	1.2			1.0			—			2.1
Restructuring charges	—			(0.1		)	1.1			—			1.0
Income from equity method investments	(69.7		)	(6.4		)	(2.7		)	75.3			(3.5		)
Operational income from continuing operations	69.8			75.3			36.1			(74.6		)	106.6
Interest expense, net	3.6			(0.7		)	1.1			—			4.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	66.2			76.0			35.0			(74.6		)	102.6
Provision for income taxes	(1.2		)	24.1			11.9			0.3			35.1
Income from continuing operations	67.4			51.9			23.1			(74.9		)	67.5
Loss from discontinued operations	—			—			(0.1		)	—			(0.1		)
Net income	$	67.4		$	51.9		$	23.0		$	(74.9	)	$	67.4
Other comprehensive income, net of tax	(1.1		)	(6.7		)	(17.2		)	(1.0		)	(26.0		)
Comprehensive income	$	66.3		$	45.2		$	5.8		$	(75.9	)	$	41.4

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	—		$	2,089.0		$	606.5		$	(140.9	)	$	2,554.6
Cost of goods sold	—			1,555.1			460.9			(139.3		)	1,876.7
Gross profit	—			533.9			145.6			(1.6		)	677.9
Operating expenses:
Selling, general and administrative expenses	—			362.9			62.6			—			425.5
Losses and other expenses, net	(0.3		)	2.3			1.5						3.5
Restructuring charges	—			—			1.3			—			1.3
Income from equity method investments	(167.6		)	(21.0		)	(9.8		)	186.4			(12.0		)
Operational income from continuing operations	167.9			189.7			90.0			(188.0		)	259.6
Interest expense, net	10.1			(2.2		)	3.1			—			11.0
Other expense, net	—			—			—			—			—
Income from continuing operations before income taxes	157.8			191.9			86.9			(188.0		)	248.6
Provision for income taxes	(3.4		)	60.0			30.5			(0.5		)	86.6
Income from continuing operations	161.2			131.9			56.4			(187.5		)	162.0
Loss from discontinued operations	—			—			(0.8		)	—			(0.8		)
Net income	$	161.2		$	131.9		$	55.6		$	(187.5	)	$	161.2
Other comprehensive income (loss), net of tax	(1.1		)	(1.8		)	(11.8		)	(1.1		)	(15.8		)
Comprehensive income	$	160.1		$	130.1		$	43.8		$	(188.6	)	$	145.4

Condensed Consolidating Statements of Cash Flows

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2015

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(27.3	)	$	138.2		$	(4.0	)	$	—	$	106.9
Cash flows from investing activities:
Purchases of property, plant and equipment	—			(40.3		)	(6.7		)	—		(47.0		)
Net cash used in investing activities	—			(40.3		)	(6.7		)	—		(47.0		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			0.8			—		0.8
Asset securitization borrowings	—			—			40.0			—		40.0
Asset securitization payments	—			—			(40.0		)	—		(40.0		)
Long-term debt payments	(22.5		)	(0.8		)	(0.2		)	—		(23.5		)
Borrowings from credit facility	1,401.0			—			—			—		1,401.0
Payments on credit facility	(1,385.0		)	—			—			—		(1,385.0		)
Proceeds from employee stock purchases	1.8			—			—			—		1.8
Repurchases of common stock	—			—			—			—		—
Repurchases of common stock to satisfy employee withholding tax obligations	(23.5		)	—			—			—		(23.5		)
Excess tax benefits related to share-based payments	18.6			—			—			—		18.6
Intercompany financing activity	(37.7		)	10.2			27.5			—		—
Intercompany investments	118.0			(106.3		)	(11.7		)	—		—
Cash dividends paid	(43.1		)	—			—			—		(43.1		)
Net cash provided by financing activities	27.6			(96.9		)	16.4			—		(52.9		)
Increase in cash and cash equivalents	0.3			1.0			5.7			—		7.0
Effect of exchange rates on cash and cash equivalents	—			—			(9.4		)	—		(9.4		)
Cash and cash equivalents, beginning of period	1.0			11.5			25.0			—		37.5
Cash and cash equivalents, end of period	$	1.3		$	12.5		$	21.3		$	—	$	35.1

Lennox International Inc. and Subsidiaries

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2014

(Amounts in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	13.4		$	72.1		$	(62.0	)	$	—	$	23.5
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	—			0.2			—			—		0.2
Purchases of property, plant and equipment	—			(45.5		)	(14.4		)	—		(59.9		)
Net cash used in investing activities	—			(45.3		)	(14.4		)	—		(59.7		)
Cash flows from financing activities:
Short-term borrowings, net	—			—			3.4			—		3.4
Asset securitization borrowings	—			—			60.0			—		60.0
Asset securitization payments	—			—			—			—		—
Long-term debt payments	—			(1.4		)	(0.3		)	—		(1.7		)
Borrowings from credit facility	1,483.0			—			—			—		1,483.0
Payments on credit facility	(1,351.0		)	—			—			—		(1,351.0		)
Proceeds from employee stock purchases	1.5			—			—			—		1.5
Repurchases of common stock	(100.3		)	—			—			—		(100.3		)
Repurchases of common stock to satisfy employee withholding tax obligations	(12.3		)	—			—			—		(12.3		)
Excess tax benefits related to share-based payments	5.3			—			—			—		5.3
Intercompany debt	(12.5		)	(0.8		)	13.3			—		—
Intercompany financing activity	11.5			(17.0		)	5.5			—		—
Intercompany investments	—			(3.0		)	3.0			—		—
Cash dividends paid	(38.2		)	—			—			—		(38.2		)
Net cash used in financing activities	(13.0		)	(22.2		)	84.9			—		49.7
Decrease in cash and cash equivalents	0.4			4.6			8.5			—		13.5
Effect of exchange rates on cash and cash equivalents	—			—			(3.4		)	—		(3.4		)
Cash and cash equivalents, beginning of period	1.1			10.5			26.4			—		38.0
Cash and cash equivalents, end of period	$	1.5		$	15.1		$	31.5		$	—	$	48.1