☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $0.01 par value per share | LII | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | |||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |||||||||||
Emerging growth company | ☐ | |||||||||||||
Page | ||||||||
Part I | ||||||||
Consolidated Balance Sheets - June 30, 2020 (Unaudited) and December 31, 2019
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Consolidated Statements of Operations (Unaudited) - Three Months and Six Months Months Ended June 30, 2020 and 2019
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Consolidated Statements of Comprehensive Income (Unaudited) - Three Months and Six Months Months Ended June 30, 2020 and 2019
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Consolidated Statements of Stockholders' Deficit (Unaudited) - Three Months and Six Months Months Ended June 30, 2020 and 2019
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Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended June 30, 2020 and 2019
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Part II | ||||||||
(Amounts in millions, except shares and par values) | As of June 30, 2020 | As of December 31, 2019 | |||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 44.8 | $ | 37.3 | |||||||
Short-term investments | 3.8 | 2.9 | |||||||||
Accounts and notes receivable, net of allowances of $7.2 and $6.1 in 2020 and 2019, respectively
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624.2 | 477.8 | |||||||||
Inventories, net | 499.7 | 544.1 | |||||||||
Other assets | 54.4 | 58.8 | |||||||||
Total current assets | 1,226.9 | 1,120.9 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $848.5 and $824.3 in 2020 and 2019, respectively
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441.2 | 445.4 | |||||||||
Right-of-use assets from operating leases | 177.1 | 181.6 | |||||||||
Goodwill | 186.5 | 186.5 | |||||||||
Deferred income taxes | 15.5 | 21.5 | |||||||||
Other assets, net | 77.1 | 79.0 | |||||||||
Total assets | $ | 2,124.3 | $ | 2,034.9 | |||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||
Current Liabilities: | |||||||||||
Current maturities of long-term debt | $ | 343.6 | $ | 321.9 | |||||||
Current operating lease liabilities
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52.0 | 52.7 | |||||||||
Accounts payable | 295.0 | 372.4 | |||||||||
Accrued expenses | 251.0 | 255.7 | |||||||||
Income taxes payable | 4.6 | — | |||||||||
Total current liabilities | 946.2 | 1,002.7 | |||||||||
Long-term debt | 1,047.2 | 849.3 | |||||||||
Long-term operating lease liabilities | 127.9 | 131.0 | |||||||||
Pensions | 91.8 | 87.4 | |||||||||
Other liabilities | 140.1 | 134.7 | |||||||||
Total liabilities | 2,353.2 | 2,205.1 | |||||||||
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
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0.9 | 0.9 | |||||||||
Additional paid-in capital | 1,102.4 | 1,093.5 | |||||||||
Retained earnings | 2,201.5 | 2,148.7 | |||||||||
Accumulated other comprehensive loss | (121.7) | (103.8) | |||||||||
Treasury stock, at cost, 48,919,279 shares and 48,575,901 shares for 2020 and 2019, respectively
|
(3,412.0) | (3,309.5) | |||||||||
Total stockholders' deficit | (228.9) | (170.2) | |||||||||
Total liabilities and stockholders' deficit | $ | 2,124.3 | $ | 2,034.9 |
(Amounts in millions, except per share data) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net sales | $ | 941.3 | $ | 1,099.1 | $ | 1,665.1 | $ | 1,889.4 | |||||||||||||||||||||||||||
Cost of goods sold | 665.6 | 767.0 | 1,223.7 | 1,355.8 | |||||||||||||||||||||||||||||||
Gross profit | 275.7 | 332.1 | 441.4 | 533.6 | |||||||||||||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 129.5 | 152.4 | 260.8 | 298.2 | |||||||||||||||||||||||||||||||
Losses (gains) and other expenses, net | 3.6 | 2.1 | 2.3 | 3.2 | |||||||||||||||||||||||||||||||
Restructuring charges | 10.0 | (0.1) | 10.5 | 0.4 | |||||||||||||||||||||||||||||||
Loss on sale of business | — | 0.4 | — | 8.8 | |||||||||||||||||||||||||||||||
Insurance proceeds for lost profits | — | (26.0) | — | (65.5) | |||||||||||||||||||||||||||||||
Loss (gain) from natural disaster, net of insurance recoveries | 1.0 | (5.9) | 2.7 | (12.8) | |||||||||||||||||||||||||||||||
Income from equity method investments | (4.4) | (4.6) | (7.2) | (7.2) | |||||||||||||||||||||||||||||||
Operating income | 136.0 | 213.8 | 172.3 | 308.5 | |||||||||||||||||||||||||||||||
Pension settlement | — | 60.6 | — | 60.6 | |||||||||||||||||||||||||||||||
Interest expense, net | 6.9 | 13.1 | 15.6 | 23.9 | |||||||||||||||||||||||||||||||
Other expense (income), net | 1.1 | 0.3 | 2.2 | 1.2 | |||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 128.0 | 139.8 | 154.5 | 222.8 | |||||||||||||||||||||||||||||||
Provision for income taxes | 27.4 | 28.8 | 41.4 | 42.4 | |||||||||||||||||||||||||||||||
Income from continuing operations | 100.6 | 111.0 | 113.1 | 180.4 | |||||||||||||||||||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||||||||||||||
Loss from discontinued operations before income taxes | (0.8) | (0.3) | (0.8) | (0.4) | |||||||||||||||||||||||||||||||
Income tax benefit | (0.2) | — | (0.6) | — | |||||||||||||||||||||||||||||||
Loss from discontinued operations | (0.6) | (0.3) | (0.2) | (0.4) | |||||||||||||||||||||||||||||||
Net income | $ | 100.0 | $ | 110.7 | $ | 112.9 | $ | 180.0 | |||||||||||||||||||||||||||
Earnings per share – Basic: | |||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.63 | $ | 2.84 | $ | 2.95 | $ | 4.58 | |||||||||||||||||||||||||||
Loss from discontinued operations | (0.01) | (0.01) | — | (0.01) | |||||||||||||||||||||||||||||||
Net income | $ | 2.62 | $ | 2.83 | $ | 2.95 | $ | 4.57 | |||||||||||||||||||||||||||
Earnings per share – Diluted: | |||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.62 | $ | 2.81 | $ | 2.93 | $ | 4.53 | |||||||||||||||||||||||||||
Loss from discontinued operations | (0.02) | (0.01) | — | (0.01) | |||||||||||||||||||||||||||||||
Net income | $ | 2.60 | $ | 2.80 | $ | 2.93 | $ | 4.52 | |||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding - Basic | 38.2 | 39.1 | 38.3 | 39.4 | |||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding - Diluted | 38.4 | 39.5 | 38.6 | 39.8 | |||||||||||||||||||||||||||||||
(Amounts in millions) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 100.0 | $ | 110.7 | $ | 112.9 | $ | 180.0 | |||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 2.4 | 3.4 | (17.8) | 3.9 | |||||||||||||||||||||||||||||||
Reclassification of foreign currency translation gains into earnings | — | — | — | 2.1 | |||||||||||||||||||||||||||||||
Net change in pension and post-retirement liabilities | (1.5) | 4.6 | (2.4) | 2.4 | |||||||||||||||||||||||||||||||
Reclassification of pension and post-retirement benefit losses into earnings | 1.4 | 1.0 | 3.0 | 3.0 | |||||||||||||||||||||||||||||||
Pension settlement | — | 60.6 | — | 60.6 | |||||||||||||||||||||||||||||||
Net change in fair value of cash flow hedges | 6.3 | (5.3) | (8.3) | 0.8 | |||||||||||||||||||||||||||||||
Reclassification of cash flow hedge losses into earnings | 5.8 | 2.0 | 7.0 | 4.3 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) before taxes | 14.4 | 66.3 | (18.5) | 77.1 | |||||||||||||||||||||||||||||||
Tax (expense) benefit | (3.0) | (15.7) | 0.6 | (17.9) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 11.4 | 50.6 | (17.9) | 59.2 | |||||||||||||||||||||||||||||||
Comprehensive income | $ | 111.4 | $ | 161.3 | $ | 95.0 | $ | 239.2 |
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' Deficit | |||||||||||||||||||||||||||||||||||||||||||||
(For the three months ended June 30, 2020)
|
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020
|
$ | 0.9 | $ | 1,095.2 | $ | 2,130.9 | $ | (133.1) | 48.9 | $ | (3,412.2) | $ | (318.3) | |||||||||||||||||||||||||||||||||||||
Net income | — | — | 100.0 | — | — | — | 100.0 | |||||||||||||||||||||||||||||||||||||||||||
Dividends, $0.77 per share
|
— | — | (29.4) | — | — | — | (29.4) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | 2.4 | — | — | 2.4 | |||||||||||||||||||||||||||||||||||||||||||
Pension and post-retirement liability changes, net of tax benefit of $0.1
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— | — | — | (0.1) | — | — | (0.1) | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 6.7 | — | — | — | — | 6.7 | |||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax expense of $3.1
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— | — | — | 9.1 | — | — | 9.1 | |||||||||||||||||||||||||||||||||||||||||||
Treasury shares reissued for common stock | — | 0.5 | — | — | — | 0.3 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | (0.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020
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$ | 0.9 | $ | 1,102.4 | $ | 2,201.5 | $ | (121.7) | 48.9 | $ | (3,412.0) | $ | (228.9) |
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' Deficit | |||||||||||||||||||||||||||||||||||||||||||||
(For the three months ended June 30, 2019)
|
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2019
|
$ | 0.9 | $ | 1,079.4 | $ | 1,898.7 | $ | (180.2) | 47.6 | $ | (3,003.6) | $ | (204.8) | |||||||||||||||||||||||||||||||||||||
Net income | — | — | 110.7 | — | — | — | 110.7 | |||||||||||||||||||||||||||||||||||||||||||
Dividends, $0.77 per share
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— | — | (30.0) | — | — | — | (30.0) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | 3.4 | — | — | 3.4 | |||||||||||||||||||||||||||||||||||||||||||
Pension and post-retirement liability changes, net of tax expense of $16.4
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— | — | — | 49.8 | — | — | 49.8 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 6.1 | — | — | — | — | 6.1 | |||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax benefit of $0.8
|
— | — | — | (2.6) | — | — | (2.6) | |||||||||||||||||||||||||||||||||||||||||||
Treasury shares reissued for common stock | — | 0.3 | — | — | — | 0.6 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | 0.5 | (151.0) | (151.0) | |||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019
|
$ | 0.9 | $ | 1,085.8 | $ | 1,979.4 | $ | (129.6) | 48.1 | $ | (3,154.0) | $ | (217.5) | |||||||||||||||||||||||||||||||||||||
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' Deficit | |||||||||||||||||||||||||||||||||||||||||||||
(For the six months ended June 30, 2020)
|
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
$ | 0.9 | $ | 1,093.5 | $ | 2,148.7 | $ | (103.8) | 48.6 | $ | (3,309.5) | $ | (170.2) | |||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-13) | — | — | (1.3) | — | — | — | (1.3) | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 112.9 | — | — | — | 112.9 | |||||||||||||||||||||||||||||||||||||||||||
Dividends, $1.54 per share
|
— | — | (58.8) | — | — | — | (58.8) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (17.8) | — | — | (17.8) | |||||||||||||||||||||||||||||||||||||||||||
Pension and post-retirement liability changes, net of tax expense of $0.1
|
— | — | — | 0.5 | — | — | 0.5 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 10.4 | — | — | — | — | 10.4 | |||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax benefit of $0.8
|
— | — | — | (0.6) | — | — | (0.6) | |||||||||||||||||||||||||||||||||||||||||||
Treasury shares reissued for common stock | — | (1.5) | — | — | (0.1) | 3.1 | 1.6 | |||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | 0.4 | (105.6) | (105.6) | |||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020
|
$ | 0.9 | $ | 1,102.4 | $ | 2,201.5 | $ | (121.7) | 48.9 | $ | (3,412.0) | $ | (228.9) |
Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Total Stockholders' Deficit | |||||||||||||||||||||||||||||||||||||||||||||
(For the six months ended June 30, 2019)
|
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018
|
$ | 0.9 | $ | 1,078.8 | $ | 1,855.0 | $ | (188.8) | 47.3 | $ | (2,895.5) | $ | (149.6) | |||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASC 842) | — | — | (0.3) | — | — | — | (0.3) | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 180.0 | — | — | — | 180.0 | |||||||||||||||||||||||||||||||||||||||||||
Dividends, $1.41 per share
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— | — | (55.3) | — | — | — | (55.3) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | 6.0 | — | — | 6.0 | |||||||||||||||||||||||||||||||||||||||||||
Pension and post-retirement liability changes, net of tax expense of $16.4
|
— | — | — | 49.6 | — | — | 49.6 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 11.4 | — | — | — | — | 11.4 | |||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax expense of $1.5
|
— | — | — | 3.6 | — | — | 3.6 | |||||||||||||||||||||||||||||||||||||||||||
Treasury shares reissued for common stock | — | (4.4) | — | — | (0.2) | 6.0 | 1.6 | |||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | — | — | 1.0 | (264.5) | (264.5) | |||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019
|
$ | 0.9 | $ | 1,085.8 | $ | 1,979.4 | $ | (129.6) | 48.1 | $ | (3,154.0) | $ | (217.5) |
(Amounts in millions) | For the Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 112.9 | $ | 180.0 | |||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Loss on sale of business | — | 8.8 | |||||||||||||||
Insurance recoveries received for property damage incurred from natural disaster
|
— | (12.8) | |||||||||||||||
Income from equity method investments | (7.2) | (7.2) | |||||||||||||||
Dividends from affiliates | 2.5 | 2.0 | |||||||||||||||
Restructuring charges, net of cash paid | 5.9 | (0.2) | |||||||||||||||
Provision for bad debts | 3.1 | 2.2 | |||||||||||||||
Unrealized losses (gains), net on derivative contracts | 1.1 | (0.2) | |||||||||||||||
Stock-based compensation expense | 10.4 | 11.4 | |||||||||||||||
Depreciation and amortization | 37.9 | 34.9 | |||||||||||||||
Deferred income taxes | 6.6 | 15.7 | |||||||||||||||
Pension expense | 4.9 | 64.2 | |||||||||||||||
Pension contributions | (1.2) | (1.0) | |||||||||||||||
Other items, net | 0.7 | (0.1) | |||||||||||||||
Changes in assets and liabilities, net of effects of divestitures: | |||||||||||||||||
Accounts and notes receivable | (151.5) | (270.0) | |||||||||||||||
Inventories | 43.1 | (149.9) | |||||||||||||||
Other current assets | (1.1) | 10.2 | |||||||||||||||
Accounts payable | (66.2) | 52.6 | |||||||||||||||
Accrued expenses | (11.9) | (21.0) | |||||||||||||||
Income taxes payable / receivable | 10.2 | (11.5) | |||||||||||||||
Other, net | 6.3 | (19.1) | |||||||||||||||
Net cash provided by (used in) operating activities | 6.5 | (111.0) | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Proceeds from the disposal of property, plant and equipment | 0.3 | 0.8 | |||||||||||||||
Purchases of property, plant and equipment | (43.5) | (53.5) | |||||||||||||||
Net proceeds from sale of business | — | 43.6 | |||||||||||||||
Purchases of short-term investments | (1.1) | (1.8) | |||||||||||||||
Insurance recoveries received for property damage incurred from natural disaster | — | 12.8 | |||||||||||||||
Net cash (used in) provided by investing activities | (44.3) | 1.9 | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Short-term debt payments | (1.9) | (2.1) | |||||||||||||||
Short-term debt proceeds | 1.9 | 2.1 | |||||||||||||||
Asset securitization borrowings | 91.0 | 65.5 | |||||||||||||||
Asset securitization payments | (70.0) | (43.5) | |||||||||||||||
Long-term debt borrowings | — | — | |||||||||||||||
Long-term debt payments | (2.6) | (33.3) | |||||||||||||||
Borrowings from credit facility | 1,060.5 | 1,459.5 | |||||||||||||||
Payments on credit facility | (863.5) | (1,037.5) | |||||||||||||||
Proceeds from employee stock purchases | 1.6 | 1.6 | |||||||||||||||
Repurchases of common stock | (100.0) | (250.0) | |||||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (5.6) | (14.5) | |||||||||||||||
Cash dividends paid | (59.1) | (50.8) | |||||||||||||||
Net cash provided by financing activities | 52.3 | 97.0 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | 14.5 | (12.1) | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | (7.0) | 2.2 | |||||||||||||||
Cash and cash equivalents, beginning of period | 37.3 | 46.3 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 44.8 | $ | 36.4 | |||||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||||||
Interest paid | $ | 16.9 | $ | 23.5 | |||||||||||||
Income taxes paid (net of refunds) | $ | 22.8 | $ | 54.2 | |||||||||||||
Insurance recoveries received | $ | — | $ | 128.0 |
Segment | Product or Services | Markets Served | Geographic Areas | |||||||||||||||||
Residential Heating & Cooling | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies |
Residential Replacement;
Residential New Construction |
United States
Canada |
|||||||||||||||||
Commercial Heating & Cooling | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, and variable refrigerant flow commercial products | Light Commercial |
United States
Canada |
|||||||||||||||||
Refrigeration | Condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, and compressorized racks |
Light Commercial;
Food Preservation; Non-Food/Industrial |
United States
Canada Europe |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net sales | |||||||||||||||||||||||||||||||||||
Residential Heating & Cooling | $ | 644.8 | $ | 689.1 | $ | 1,086.9 | $ | 1,154.6 | |||||||||||||||||||||||||||
Commercial Heating & Cooling | 188.3 | 261.3 | 366.7 | 434.7 | |||||||||||||||||||||||||||||||
Refrigeration | 108.2 | 148.7 | 211.5 | 300.1 | |||||||||||||||||||||||||||||||
$ | 941.3 | $ | 1,099.1 | $ | 1,665.1 | $ | 1,889.4 | ||||||||||||||||||||||||||||
Segment profit (loss) (1)
|
|||||||||||||||||||||||||||||||||||
Residential Heating & Cooling | $ | 127.3 | $ | 153.4 | $ | 159.8 | $ | 240.1 | |||||||||||||||||||||||||||
Commercial Heating & Cooling | 35.6 | 53.9 | 54.3 | 68.9 | |||||||||||||||||||||||||||||||
Refrigeration | 8.9 | 19.1 | 9.6 | 27.5 | |||||||||||||||||||||||||||||||
Corporate and other | (18.8) | (24.1) | (33.1) | (36.2) | |||||||||||||||||||||||||||||||
Total segment profit | 153.0 | 202.3 | 190.6 | 300.3 | |||||||||||||||||||||||||||||||
Reconciliation to Operating income: | |||||||||||||||||||||||||||||||||||
Special product quality adjustments | (1.0) | (0.5) | (1.0) | (0.5) | |||||||||||||||||||||||||||||||
Loss on sale of business | — | 0.4 | — | 8.8 | |||||||||||||||||||||||||||||||
Partial advance of insurance recoveries related to lost profits | — | (8.0) | — | (8.0) | |||||||||||||||||||||||||||||||
Loss (gain) from natural disaster, net of insurance recoveries | 1.0 | (5.9) | 2.7 | (12.8) | |||||||||||||||||||||||||||||||
Items in (Gains) losses and other expenses, net that are excluded from segment profit (loss) (1) | 7.0 | 2.6 | 6.1 | 3.9 | |||||||||||||||||||||||||||||||
Restructuring charges | 10.0 | (0.1) | 10.5 | 0.4 | |||||||||||||||||||||||||||||||
Operating income | $ | 136.0 | $ | 213.8 | $ | 172.3 | $ | 308.5 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 100.0 | $ | 110.7 | $ | 112.9 | $ | 180.0 | |||||||||||||||||||||||||||
Exclude: (Income) loss from discontinued operations | 0.6 | 0.3 | 0.2 | 0.4 | |||||||||||||||||||||||||||||||
Income from continuing operations | $ | 100.6 | $ | 111.0 | $ | 113.1 | $ | 180.4 | |||||||||||||||||||||||||||
Weighted-average shares outstanding – basic | 38.2 | 39.1 | 38.3 | 39.4 | |||||||||||||||||||||||||||||||
Add: Potential effect of dilutive securities attributable to stock-based payments | 0.2 | 0.4 | 0.2 | 0.4 | |||||||||||||||||||||||||||||||
Weighted-average shares outstanding – diluted | 38.4 | 39.5 | 38.6 | 39.8 | |||||||||||||||||||||||||||||||
Earnings per share – Basic: | |||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.63 | $ | 2.84 | $ | 2.95 | $ | 4.58 | |||||||||||||||||||||||||||
Income from discontinued operations | (0.01) | (0.01) | — | (0.01) | |||||||||||||||||||||||||||||||
Net income | $ | 2.62 | $ | 2.83 | $ | 2.95 | $ | 4.57 | |||||||||||||||||||||||||||
Earnings per share – Diluted: | |||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.62 | $ | 2.81 | $ | 2.93 | $ | 4.53 | |||||||||||||||||||||||||||
Income from discontinued operations | (0.02) | (0.01) | — | (0.01) | |||||||||||||||||||||||||||||||
Net income | $ | 2.60 | $ | 2.80 | $ | 2.93 | $ | 4.52 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Accrued expenses | $ | 37.5 | $ | 38.2 | |||||||
Other liabilities | 79.4 | 74.6 | |||||||||
Total warranty liability | $ | 116.9 | $ | 112.8 |
Total warranty liability as of December 31, 2019 | $ | 112.8 | |||
Warranty claims paid | (15.2) | ||||
Changes resulting from issuance of new warranties | 19.5 | ||||
Changes in estimates associated with pre-existing liabilities | 0.1 | ||||
Changes in foreign currency translation rates and other | (0.3) | ||||
Total warranty liability as of June 30, 2020
|
$ | 116.9 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Expense (gain) for asbestos-related litigation, net | $ | 1.2 | $ | 0.4 | $ | (0.5) | $ | 1.8 |
(Amounts in millions) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Insurance recoveries received | $ | — | $ | 52.0 | $ | — | $ | 128.0 | |||||||||||||||||||||||||||
Losses and expenses incurred: | |||||||||||||||||||||||||||||||||||
Site clean-up and remediation | — | 6.2 | — | 23.3 | |||||||||||||||||||||||||||||||
Factory inefficiencies due to lower productivity | — | 4.5 | — | 8.0 | |||||||||||||||||||||||||||||||
Other | 1.0 | 9.4 | 2.7 | 18.4 | |||||||||||||||||||||||||||||||
Total losses and expenses | $ | 1.0 | $ | 20.1 | $ | 2.7 | $ | 49.7 | |||||||||||||||||||||||||||
Presentation in the Consolidated Statements of Operations: | |||||||||||||||||||||||||||||||||||
Insurance proceeds for lost profits | — | (26.0) | — | (65.5) | |||||||||||||||||||||||||||||||
Loss (gain) from natural disaster, net of insurance recoveries | 1.0 | (5.9) | 2.7 | (12.8) |
(Amounts in millions) | For the Year Ended December 31, 2019 | ||||
Cash received from the buyer | $ | 49.0 | |||
Net assets sold | (52.0) | ||||
AOCI reclassification adjustments, primarily foreign currency translation | (2.1) | ||||
Direct costs to sell | (5.5) | ||||
Loss on sale of business | $ | (10.6) |
Incurred in 2020 | Incurred to Date | Total Expected to be Incurred | |||||||||||||||
Severance and related expense | $ | 4.7 | $ | 6.0 | $ | 6.5 | |||||||||||
Asset write-offs and accelerated depreciation | 1.5 | 3.2 | 3.2 | ||||||||||||||
Lease termination | 0.1 | 1.2 | 1.2 | ||||||||||||||
Other | 4.2 | 4.7 | 5.4 | ||||||||||||||
Total restructuring charges | $ | 10.5 | $ | 15.1 | $ | 16.3 |
Incurred in 2020 | Incurred to Date | Total Expected to be Incurred | |||||||||||||||
Residential Heating & Cooling | $ | 6.7 | $ | 9.6 | $ | 9.6 | |||||||||||
Commercial Heating & Cooling | 1.4 | 3.1 | 3.8 | ||||||||||||||
Refrigeration | 2.0 | 2.0 | 2.2 | ||||||||||||||
Corporate & Other | 0.4 | 0.4 | 0.7 | ||||||||||||||
Total restructuring charges | $ | 10.5 | $ | 15.1 | $ | 16.3 |
For the Three Months Ended June 30, 2020
|
|||||||||||||||||||||||||||||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||||||||||||||||||||||||||||
United States | $ | 603.8 | $ | 173.1 | $ | 61.3 | $ | 838.2 | |||||||||||||||||||||||||||||||||
Canada | 41.0 | 15.0 | — | 56.0 | |||||||||||||||||||||||||||||||||||||
Other international | — | 0.2 | 46.9 | 47.1 | |||||||||||||||||||||||||||||||||||||
Total | $ | 644.8 | $ | 188.3 | $ | 108.2 | $ | 941.3 |
For the Three Months Ended June 30, 2019
|
|||||||||||||||||||||||||||||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||||||||||||||||||||||||||||
United States | $ | 647.2 | $ | 239.1 | $ | 80.0 | $ | 966.3 | |||||||||||||||||||||||||||||||||
Canada | 41.9 | 21.9 | — | 63.8 | |||||||||||||||||||||||||||||||||||||
Other international | — | 0.3 | 68.7 | 69.0 | |||||||||||||||||||||||||||||||||||||
Total | $ | 689.1 | $ | 261.3 | $ | 148.7 | $ | 1,099.1 |
For the Six Months Ended June 30, 2020
|
|||||||||||||||||||||||||||||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||||||||||||||||||||||||||||
United States | $ | 1,016.2 | $ | 334.3 | $ | 120.8 | $ | 1,471.3 | |||||||||||||||||||||||||||||||||
Canada | 70.7 | 32.0 | — | $ | 102.7 | ||||||||||||||||||||||||||||||||||||
Other international | — | 0.4 | 90.7 | $ | 91.1 | ||||||||||||||||||||||||||||||||||||
Total | $ | 1,086.9 | $ | 366.7 | $ | 211.5 | $ | 1,665.1 |
For the Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Primary Geographic Markets | Residential Heating & Cooling | Commercial Heating & Cooling | Refrigeration | Consolidated | |||||||||||||||||||||||||||||||||||||
United States | $ | 1,080.3 | $ | 396.4 | $ | 171.6 | $ | 1,648.3 | |||||||||||||||||||||||||||||||||
Canada | 74.3 | 37.8 | 0.7 | 112.8 | |||||||||||||||||||||||||||||||||||||
International | — | 0.5 | 127.8 | 128.3 | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,154.6 | $ | 434.7 | $ | 300.1 | $ | 1,889.4 |
June 30, 2020 | December 31, 2019 | $ Change | % Change | ||||||||||||||||||||
Contract liabilities - current | $ | (6.8) | $ | (8.4) | $ | 1.6 | (19.0) | % | |||||||||||||||
Contract liabilities - noncurrent | (5.6) | (5.9) | 0.3 | (5.1) | % | ||||||||||||||||||
Total | $ | (12.4) | $ | (14.3) | $ | 1.9 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Finished goods | $ | 350.7 | $ | 402.9 | |||||||
Work in process | 5.8 | 6.0 | |||||||||
Raw materials and parts | 206.7 | 198.8 | |||||||||
Subtotal | 563.2 | 607.7 | |||||||||
Excess of current cost over last-in, first-out cost | (63.5) | (63.6) | |||||||||
Total inventories, net | $ | 499.7 | $ | 544.1 |
Balance at December 31, 2019
|
Changes in foreign currency translation rates |
Balance at June 30, 2020
|
|||||||||||||||||||||
Residential Heating & Cooling | $ | 26.1 | $ | — | $ | 26.1 | |||||||||||||||||
Commercial Heating & Cooling | 61.1 | — | 61.1 | ||||||||||||||||||||
Refrigeration | 99.3 | — | 99.3 | ||||||||||||||||||||
Total Goodwill | $ | 186.5 | $ | — | $ | 186.5 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Unrealized losses on unsettled contracts | $ | 1.5 | $ | 0.2 | |||||||
Income tax benefit | (0.9) | (0.2) | |||||||||
Losses (gains) included in AOCL, net of tax (1)
|
$ | 0.6 | $ | — |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense (1)
|
$ | 6.7 | $ | 6.1 | $ | 10.4 | $ | 11.4 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Service cost | $ | 1.4 | $ | 1.2 | $ | 2.8 | $ | 2.4 | |||||||||||||||||||||||||||
Interest cost | 1.6 | 1.9 | 3.3 | 5.4 | |||||||||||||||||||||||||||||||
Expected return on plan assets | (2.0) | (2.5) | (4.2) | (7.2) | |||||||||||||||||||||||||||||||
Amortization of prior service cost | — | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||||||||||||
Recognized actuarial loss | 1.4 | 0.9 | 2.9 | 2.9 | |||||||||||||||||||||||||||||||
Settlements and curtailments | — | 60.6 | — | 60.6 | |||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 2.4 | $ | 62.2 | $ | 4.9 | $ | 64.2 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Current maturities of long-term debt: | |||||||||||
Asset securitization program | $ | 306.0 | $ | 285.0 | |||||||
Finance lease obligations | 8.5 | 7.8 | |||||||||
Domestic credit facility | 30.0 | 30.0 | |||||||||
Debt issuance costs | (0.9) | (0.9) | |||||||||
Total current maturities of long-term debt
|
$ | 343.6 | $ | 321.9 | |||||||
Long-Term Debt: | |||||||||||
Finance lease obligations | 26.3 | 25.9 | |||||||||
Domestic credit facility | 672.5 | 475.5 | |||||||||
Senior unsecured notes | 350.0 | 350.0 | |||||||||
Debt issuance costs | (1.6) | (2.1) | |||||||||
Total long-term debt | $ | 1,047.2 | $ | 849.3 | |||||||
Total debt | $ | 1,390.8 | $ | 1,171.2 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Eligible amount available under the ASP on qualified accounts receivable | $ | 306.0 | $ | 320.0 | |||||||
Less: Beneficial interest transferred | (306.0) | (285.0) | |||||||||
Remaining amount available | $ | — | $ | 35.0 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Weighted average borrowing rate | 1.36 | % | 2.93 | % |
Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than |
3.5 : 1.0
|
||||
Cash Flow to Net Interest Expense Ratio no less than |
3.0 : 1.0
|
For the Three Months Ended June 30, | For the Six Months Ended June 30, | Affected Line Item(s) in the Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||
(Losses) Gains on Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives contracts | $ | (5.8) | $ | (2.0) | $ | (7.0) | $ | (4.3) | Cost of goods sold; Losses (gains) and other expenses, net | |||||||||||||||||||||||||||||||||||
Income tax benefit | 1.5 | 0.5 | 1.8 | 1.0 | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||
Net of tax | $ | (4.3) | $ | (1.5) | $ | (5.2) | $ | (3.3) | ||||||||||||||||||||||||||||||||||||
Defined Benefit Plan items: | ||||||||||||||||||||||||||||||||||||||||||||
Pension and post-retirement benefit costs | $ | (1.4) | $ | (1.0) | $ | (3.0) | $ | (3.0) | Cost of goods sold; Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||
Pension settlement | — | (60.6) | — | (60.6) | Pension settlement | |||||||||||||||||||||||||||||||||||||||
Income tax benefit | 0.3 | 15.3 | 0.7 | 15.8 | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||
Net of tax | $ | (1.1) | $ | (46.3) | $ | (2.3) | $ | (47.8) | ||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency adjustments on sale of business | — | — | — | (2.1) | Loss on sale of business | |||||||||||||||||||||||||||||||||||||||
Net of tax | $ | — | $ | — | $ | — | $ | (2.1) | ||||||||||||||||||||||||||||||||||||
Total reclassifications from AOCL | $ | (5.4) | $ | (47.8) | $ | (7.5) | $ | (53.2) |
Gains (Losses) on Cash Flow Hedges | Defined Benefit Pension Plan Items | Foreign Currency Translation Adjustments | Total AOCL | |||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
$ | — | $ | (81.5) | $ | (22.3) | $ | (103.8) | ||||||||||||||||||||||||
Other comprehensive loss before reclassifications | (5.8) | (1.8) | (17.8) | (25.4) | ||||||||||||||||||||||||||||
Amounts reclassified from AOCL | 5.2 | 2.3 | — | 7.5 | ||||||||||||||||||||||||||||
Net other comprehensive (loss) income | (0.6) | 0.5 | (17.8) | (17.9) | ||||||||||||||||||||||||||||
Balance as of June 30, 2020
|
$ | (0.6) | $ | (81.0) | $ | (40.1) | $ | (121.7) |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Senior unsecured notes | $ | 362.7 | $ | 356.8 |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars (in millions) |
Percent
Change Fav/(Unfav) |
Percent of Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 941.3 | $ | 1,099.1 | (14.4) | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Cost of goods sold | 665.6 | 767.0 | 13.2 | 70.7 | 69.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 275.7 | 332.1 | (17.0) | 29.3 | 30.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 129.5 | 152.4 | 15.0 | 13.8 | 13.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Losses (gains) and other expenses, net | 3.6 | 2.1 | (71.4) | 0.4 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges | 10.0 | (0.1) | (10,100.0) | 1.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss on sale of business | — | 0.4 | 100.0 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Insurance proceeds for lost profits | — | (26.0) | 100.0 | — | (2.4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss (gain) from natural disaster, net of insurance recoveries | 1.0 | (5.9) | (116.9) | 0.1 | (0.5) | ||||||||||||||||||||||||||||||||||||||||||||||||
Income from equity method investments | (4.4) | (4.6) | (4.3) | (0.5) | (0.4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 136.0 | $ | 213.8 | (36.4) | % | 14.4 | % | 19.5 | % |
For the Three Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Realized losses on settled futures contracts | $ | 0.1 | $ | 0.1 | |||||||||||||
Foreign currency exchange gains | (2.1) | (0.2) | |||||||||||||||
Gain on disposal of fixed assets | (0.2) | (0.4) | |||||||||||||||
Other operating income | (1.2) | — | |||||||||||||||
Net change in unrealized losses on unsettled futures contracts | 0.8 | 0.1 | |||||||||||||||
Special legal contingency charges | 0.7 | (0.1) | |||||||||||||||
Asbestos-related litigation | 1.2 | 0.4 | |||||||||||||||
Environmental liabilities | 1.1 | 1.3 | |||||||||||||||
Charges incurred related to COVID-19 pandemic | 3.4 | — | |||||||||||||||
Other items, net | (0.2) | 0.9 | |||||||||||||||
Losses (gains) and other expenses, net (pre-tax)
|
$ | 3.6 | $ | 2.1 |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Difference | % Change | ||||||||||||||||||||||||||
Net sales | $ | 644.8 | $ | 689.1 | $ | (44.3) | (6.4) | % | |||||||||||||||||||||
Profit | $ | 127.3 | $ | 153.4 | $ | (26.1) | (17.0) | % | |||||||||||||||||||||
% of net sales | 19.7 | % | 22.3 | % |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Difference | % Change | ||||||||||||||||||||||||||
Net sales | $ | 188.3 | $ | 261.3 | $ | (73.0) | (27.9) | % | |||||||||||||||||||||
Profit | $ | 35.6 | $ | 53.9 | $ | (18.3) | (34.0) | % | |||||||||||||||||||||
% of net sales | 18.9 | % | 20.6 | % |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Difference | % Change | ||||||||||||||||||||||||||
Net sales | $ | 108.2 | $ | 148.7 | $ | (40.5) | (27.2) | % | |||||||||||||||||||||
Profit | $ | 8.9 | $ | 19.1 | $ | (10.2) | (53.4) | % | |||||||||||||||||||||
% of net sales | 8.2 | % | 12.8 | % |
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars (in millions) |
Percent
Change Fav/(Unfav) |
Percent of Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,665.1 | $ | 1,889.4 | (11.9) | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Cost of goods sold | 1,223.7 | 1,355.8 | 9.7 | 73.5 | 71.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 441.4 | 533.6 | (17.3) | 26.5 | 28.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 260.8 | 298.2 | 12.5 | 15.7 | 15.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Losses (gains) and other expenses, net | 2.3 | 3.2 | 28.1 | 0.1 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges | 10.5 | 0.4 | (2,525.0) | 0.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss on sale of business | — | 8.8 | 100.0 | — | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Insurance proceeds for lost profits | — | (65.5) | 100.0 | — | (3.5) | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss (gain) from natural disaster, net of insurance recoveries | 2.7 | (12.8) | (121.1) | 0.2 | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||||||
Income from equity method investments | (7.2) | (7.2) | — | (0.4) | (0.4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 172.3 | $ | 308.5 | (44.1) | 10.3 | % | 16.3 | % |
For the Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Realized losses on settled futures contracts | $ | 0.2 | $ | 0.2 | |||||||||||||
Foreign currency exchange losses | (2.6) | (0.7) | |||||||||||||||
Gain on disposal of fixed assets | (0.1) | (0.2) | |||||||||||||||
Other operating income | (1.3) | — | |||||||||||||||
Net change in unrealized losses (gains) on unsettled futures contracts | 1.4 | (0.3) | |||||||||||||||
Special legal contingency charges | 0.7 | 0.2 | |||||||||||||||
Asbestos-related litigation | (0.5) | 1.8 | |||||||||||||||
Environmental liabilities | 1.3 | 1.3 | |||||||||||||||
Charges incurred related to COVID-19 pandemic | 3.4 | — | |||||||||||||||
Other items, net | (0.2) | 0.9 | |||||||||||||||
Losses (gains) and other expenses, net (pre-tax) | $ | 2.3 | $ | 3.2 |
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Difference | % Change | ||||||||||||||||||||||||||
Net sales | $ | 1,086.9 | $ | 1,154.6 | $ | (67.7) | (5.9) | % | |||||||||||||||||||||
Profit | $ | 159.8 | $ | 240.1 | $ | (80.3) | (33.4) | % | |||||||||||||||||||||
% of net sales | 14.7 | % | 20.8 | % |
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Difference | % Change | ||||||||||||||||||||||||||
Net sales | $ | 366.7 | $ | 434.7 | $ | (68.0) | (15.6) | % | |||||||||||||||||||||
Profit | $ | 54.3 | $ | 68.9 | $ | (14.6) | (21.2) | % | |||||||||||||||||||||
% of net sales | 14.8 | % | 15.9 | % |
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Difference | % Change | ||||||||||||||||||||||||||
Net sales | $ | 211.5 | $ | 300.1 | $ | (88.6) | (29.5) | % | |||||||||||||||||||||
Profit | $ | 9.6 | $ | 27.5 | $ | (17.9) | (65.1) | % | |||||||||||||||||||||
% of net sales | 4.5 | % | 9.2 | % |
For the Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 6.5 | $ | (111.0) | |||||||||||||
Net cash (used in) provided by investing activities | (44.3) | 1.9 | |||||||||||||||
Net cash provided by financing activities | 52.3 | 97.0 |
Outstanding Borrowings | |||||
Current maturities of long-term debt: | |||||
Asset securitization program (2)
|
$ | 306.0 | |||
Finance lease obligations | 8.5 | ||||
Domestic credit facility (1)
|
30.0 | ||||
Debt issuance costs | (0.9) | ||||
Total current maturities of long-term debt | $ | 343.6 | |||
Long-term debt: | |||||
Finance lease obligations | 26.3 | ||||
Domestic credit facility (1)
|
672.5 | ||||
Senior unsecured notes | 350.0 | ||||
Debt issuance costs | (1.6) | ||||
Total long-term debt | 1,047.2 | ||||
Total debt | $ | 1,390.8 |
As of June 30, 2020 | As of December 31, 2019 | ||||||||||
Current assets | $ | 540.9 | $ | 594.5 | |||||||
Non-current assets | $ | 2,513.0 | $ | 2,297.8 | |||||||
Current liabilities | $ | 528.4 | $ | 619.7 | |||||||
Non-current liabilities | $ | 1,375.1 | $ | 1,169.4 | |||||||
Amounts due to non-guarantor subsidiaries | $ | (299.2) | $ | (339.2) |
For the Three Months Ended June 30, 2020 | For the Six Months Ended June 30, 2020 | For the Year Ended December 31, 2019 | |||||||||||||||
Net sales | $ | 906.1 | $ | 1,571.1 | $ | 3,479.8 | |||||||||||
Gross profit | $ | 285.0 | $ | 431.3 | $ | 966.6 | |||||||||||
Income from continuing operations | $ | 199.5 | $ | 238.2 | $ | 828.4 | |||||||||||
Net income | $ | 199.5 | $ | 238.2 | $ | 828.4 | |||||||||||
Net sales to non-guarantor subsidiaries | $ | 78.8 | $ | 123.1 | $ | 228.3 |
Total Number of Shares Purchased (1)
|
Average Price Paid per Share (including fees) | Total Number of Shares Purchased As Part of Publicly Announced Plans |
Approximate Dollar Value of Shares that may yet be Purchased under our Share Repurchase Plans
(in millions) (2)
|
||||||||||||||||||||
April 1 through April 24 | — | $ | — | — | $ | 446.0 | |||||||||||||||||
April 24 through May 22 | 249 | $ | 188.9 | — | $ | 446.0 | |||||||||||||||||
May 22 through June 30 | 323 | $ | 228.2 | — | $ | 446.0 | |||||||||||||||||
572 | — |
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
4.4 | |||||
4.5 | |||||
4.6 | |||||
4.7 | |||||
22 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
101 | INS XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101 | SCH Inline XBRL Taxonomy Extension Schema Document | ||||
101 | CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101 | LAB Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101 | PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101 | DEF Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
104 |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
||||
By: |
/s/Richard A. Pelini
|
||||
Name: Richard A. Pelini | |||||
Title: Vice President and Treasurer |
LENNOX INTERNATIONAL INC.
|
||||||||
By: | Richard A. Pelini | |||||||
Name: Richard A. Pelini | ||||||||
Title: Vice President and Treasurer |
LII MEXICO HOLDINGS LTD.
|
||||||||
By: | /s/ Erik Eduard Hagethorn | |||||||
Name: Erik Eduard Hagethorn
|
||||||||
Title: Director
|
LENNOX SWITZERLAND GMBH
|
||||||||
By: |
/s/ Sarah Wood Braley | |||||||
Name: Sarah Wood Braley | ||||||||
Title: President of Management |
U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE
|
||||||||
By: | /s/ Kristel Richards Jech | |||||||
Name: Kristel Richards Jech | ||||||||
Title: Vice President |
Guarantor | State or Other Jurisdiction of Formation | ||||
Advanced Distributor Products LLC | Delaware | ||||
Allied Air Enterprises LLC | Delaware | ||||
Heatcraft Inc. | Delaware | ||||
Heatcraft Refrigeration Products LLC | Delaware | ||||
Lennox Global LLC | Delaware | ||||
Lennox Industries Inc. | Delaware | ||||
Lennox National Account Services LLC | Florida | ||||
LGL Australia (US) Inc. | Delaware | ||||
LGL Europe Holding Co. | Delaware | ||||
Lennox Switzerland GmbH | Switzerland |
/s/ Todd M. Bluedorn | |||||
Todd M. Bluedorn | |||||
Chief Executive Officer |
/s/ Joseph W. Reitmeier | |||||
Joseph W. Reitmeier | |||||
Chief Financial Officer |
/s/ Todd M. Bluedorn | |||||
Todd M. Bluedorn | |||||
Chief Executive Officer |
/s/ Joseph W. Reitmeier | |||||
Joseph W. Reitmeier | |||||
Chief Financial Officer |