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Condensed Consolidating Financial Statements
 9 Months Ended
Sep. 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 September 30, 2019 and December 31, 2018, and for the three and nine months ended September 30, 2019 and 2018 are shown on the following pages.
Lennox International Inc. and Subsidiaries
Condensed Consolidating Balance Sheets
As of September 30, 2019
 (Unaudited)
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.4

 
$
26.0

 
$
18.7

 
$
—

 
$
46.1

Short-term investments
—

 
—

 
2.4

 
—

 
$
2.4

Accounts and notes receivable, net
—

 
72.0

 
550.2

 
—

 
622.2

Inventories, net
—

 
509.2

 
78.3

 
(2.2
)
 
585.3

Other assets
3.4

 
42.8

 
49.4

 
(34.3
)
 
61.3

Total current assets
4.8

 
650.0

 
699.0

 
(36.5
)
 
1,317.3

Property, plant and equipment, net
—

 
365.4

 
53.4

 
—

 
418.8

Right-of-use assets from operating leases

—

 
149.0

 
23.9

 
—

 
172.9

Goodwill
—

 
166.1

 
20.3

 
—

 
186.4

Investment in subsidiaries
1,651.7

 
422.1

 
50.2

 
(2,124.0
)
 
—

Deferred income taxes
(12.2
)
 
49.5

 
22.5

 
(12.2
)
 
47.6

Other assets, net
1.4

 
54.6

 
1.6

 
14.2

 
71.8

Intercompany (payables) receivables, net
(872.4
)
 
857.5

 
134.8

 
(119.9
)
 
—

Total assets
$
773.3

 
$
2,714.2

 
$
1,005.7

 
$
(2,278.4
)
 
$
2,214.8

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
21.9

 
5.8

 
366.6

 
—

 
394.3

Current operating lease liabilities
—

 
44.4

 
7.2

 
—

 
51.6

Accounts payable
29.7

 
317.6

 
45.7

 
—

 
393.0

Accrued expenses
11.2

 
219.1

 
40.7

 
—

 
271.0

Income taxes (receivable) payable
(45.7
)
 
52.3

 
44.2

 
(50.8
)
 
—

Total current liabilities
17.1

 
639.2

 
504.4

 
(50.8
)
 
1,109.9

Long-term debt
1,033.2

 
21.7

 
1.9

 
—

 
1,056.8

Long-term operating lease liabilities
—

 
106.1

 
16.9

 
—

 
123.0

Pensions
—

 
64.9

 
7.6

 
—

 
72.5

Other liabilities
0.3

 
122.7

 
6.9

 
—

 
129.9

Total liabilities
1,050.6

 
954.6

 
537.7

 
(50.8
)
 
2,492.1

Commitments and contingencies

 

 

 

 

Total stockholders' (deficit) equity
(277.3
)
 
1,759.6

 
468.0

 
(2,227.6
)
 
(277.3
)
Total liabilities and stockholders' (deficit) equity
$
773.3

 
$
2,714.2

 
$
1,005.7

 
$
(2,278.4
)
 
$
2,214.8


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:
 
 
 
 
 
 
 
 
 
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 September 30, 2019
 (Unaudited)
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
950.0

 
$
139.5

 
$
(56.6
)
 
$
1,032.9

Cost of goods sold
—

 
681.2

 
109.8

 
(56.4
)
 
734.6

Gross profit
—

 
268.8

 
29.7

 
(0.2
)
 
298.3

Operating expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
—

 
139.9

 
3.5

 
—

 
143.4

Losses (gains) and other expenses, net
0.2

 
1.5

 
0.6

 
(0.1
)
 
2.2

Restructuring charges
—

 
6.0

 
0.1

 
—

 
6.1

Loss on sale of business
—

 
0.2

 
—

 
—

 
0.2

Gain from insurance recoveries, net of losses incurred
—

 
(7.1
)
 
—

 
—

 
(7.1
)
Income from equity method investments
(116.4
)
 
(20.1
)
 
(2.3
)
 
135.5

 
(3.3
)
Operating income
116.2

 
148.4

 
27.8

 
(135.6
)
 
156.8

Interest expense, net
2.1

 
7.7

 
2.7

 
—

 
12.5

Other expense (income), net
—

 
0.5

 
0.1

 
—

 
0.6

Income from continuing operations before income taxes
114.1

 
140.2

 
25.0

 
(135.6
)
 
143.7

Provision for income tax (benefit) expense
(0.6
)
 
23.0

 
6.6

 
—

 
29.0

Income from continuing operations
114.7

 
117.2

 
18.4

 
(135.6
)
 
114.7

Net income (loss)
$
114.7

 
$
117.2

 
$
18.4

 
$
(135.6
)
 
$
114.7

Other comprehensive (loss) income, net of tax
(0.3
)
 
7.7

 
(5.0
)
 
—

 
2.4

Comprehensive income
$
114.4

 
$
124.9

 
$
13.4

 
$
(135.6
)
 
$
117.1


Lennox International Inc. and Subsidiaries
Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2019
 (Unaudited)
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
$
21.0

 
$
217.7

 
$
(114.2
)
 
$
—

 
$
124.5

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment
—

 
0.8

 
0.4

 
—

 
1.2

Purchases of property, plant and equipment
—

 
(71.6
)
 
(5.4
)
 
—

 
(77.0
)
Net proceeds from sale of business
—

 
42.9

 
0.6

 
—

 
43.5

Insurance recoveries received for property damage incurred from natural disaster
—

 
11.6

 
—

 
—

 
11.6

Purchases of short-term investments
—

 
—

 
(2.4
)
 
—

 
(2.4
)
Net cash used in investing activities
—

 
(16.3
)
 
(6.8
)
 
—

 
(23.1
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Short-term debt payments
—

 
—

 
(5.3
)
 
—

 
(5.3
)
Short-term debt proceeds
—

 
—

 
5.3

 
—

 
5.3

Asset securitization borrowings
—

 
—

 
155.5

 
—

 
155.5

Asset securitization payments
—

 
—

 
(58.0
)
 
—

 
(58.0
)
Long-term debt payments
(30.0
)
 
(3.0
)
 
(2.0
)
 
—

 
(35.0
)
Borrowings from credit facility
1,938.5

 
—

 
—

 
—

 
1,938.5

Payments on credit facility
(1,608.5
)
 
—

 
—

 
—

 
(1,608.5
)
Proceeds from employee stock purchases
2.5

 
—

 
—

 
—

 
2.5

Repurchases of common stock
(400.0
)
 
—

 
—

 
—

 
(400.0
)
Repurchases of common stock to satisfy employee withholding tax obligations
(16.9
)
 
—

 
—

 
—

 
(16.9
)
Intercompany financing activity
173.9

 
(188.2
)
 
14.3

 
—

 
—

Cash dividends paid
(80.9
)
 
—

 
—

 
—

 
(80.9
)
Net cash (used in) provided by financing activities
(21.4
)
 
(191.2
)
 
109.8

 
—

 
(102.8
)
(Decrease) increase in cash and cash equivalents
(0.4
)
 
10.2

 
(11.2
)
 
—

 
(1.4
)
Effect of exchange rates on cash and cash equivalents
—

 
0.4

 
0.8

 
—

 
1.2

Cash and cash equivalents, beginning of period
1.8

 
15.4

 
29.1

 
—

 
46.3

Cash and cash equivalents, end of period
$
1.4

 
$
26.0

 
$
18.7

 
$
—

 
$
46.1


Lennox International Inc. and Subsidiaries
Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2018
(Unaudited)
(Amounts in millions)
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
$
57.2

 
$
362.5

 
$
(188.4
)
 
$
—

 
$
231.3

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from the disposal of property, plant and equipment
—

 
—

 
0.1

 
—

 
0.1

Purchases of property, plant and equipment
—

 
(46.1
)
 
(14.8
)
 
—

 
(60.9
)
Net proceeds from sale of businesses and related property
—

 
4.0

 
111.9

 
—

 
115.9

Insurance recoveries received for property damage incurred from natural disaster
—

 
4.2

 
—

 
—

 
4.2

Net cash (used in) provided by investing activities
—

 
(37.9
)
 
97.2

 
—

 
59.3

Cash flows from financing activities:

 

 

 

 

Short-term debt payments
—

 
—

 
(41.1
)
 
—

 
(41.1
)
Short-term debt proceeds
—

 
—

 
39.6

 
—

 
39.6

Asset securitization borrowings
—

 
—

 
155.0

 
—

 
155.0

Asset securitization payments
—

 
—

 
(53.7
)
 
—

 
(53.7
)
Long-term debt payments
(30.0
)
 
(2.8
)
 
(0.1
)
 
—

 
(32.9
)
Long-term borrowings
—

 
—

 
—

 
—

 
—

Borrowings from credit facility
1,820.0

 
—

 
—

 
—

 
1,820.0

Payments on credit facility
(1,766.5
)
 
—

 
—

 
—

 
(1,766.5
)
Proceeds from employee stock purchases
2.5

 
—

 
—

 
—

 
2.5

Repurchases of common stock
(350.2
)
 
—

 
—

 
—

 
(350.2
)
Repurchases of common stock to satisfy employee withholding tax obligations
(21.1
)
 
—

 
—

 
—

 
(21.1
)
Intercompany financing activity
356.1

 
(323.0
)
 
(33.1
)
 
—

 
—

Cash dividends paid
(68.2
)
 
—

 
—

 
—

 
(68.2
)
Net cash (used in) provided by financing activities
(57.4
)
 
(325.8
)
 
66.6

 
—

 
(316.6
)
Decrease in cash and cash equivalents
(0.2
)
 
(1.2
)
 
(24.6
)
 
—

 
(26.0
)
Effect of exchange rates on cash and cash equivalents
—

 
(2.8
)
 
6.7

 
—

 
3.9

Cash and cash equivalents, beginning of period
1.6

 
28.0

 
38.6

 
—

 
68.2

Cash and cash equivalents, end of period
$
1.4

 
$
24.0

 
$
20.7

 
$
—

 
$
46.1