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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2010	Feb. 07, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	LENNOX INTERNATIONAL INC
Entity Central Index Key	0001069202
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,219,266,287
Entity Common Stock, Shares Outstanding		53,720,904

Consolidated Balance Sheets - USD ($) $ in Millions	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
CURRENT ASSETS:
Cash and cash equivalents	$ 160.0	$ 124.3
Restricted cash	12.2	0.0
Accounts and notes receivable, net of allowances of $12.8 and $15.6 in 2010 and 2009, respectively	384.8	357.0
Inventories, net	286.2	250.2
Deferred income taxes	36.7	34.9
Other assets	67.0	67.5
Total current assets	946.9	833.9
PROPERTY, PLANT AND EQUIPMENT, net	324.3	329.6
GOODWILL	271.8	257.4
DEFERRED INCOME TAXES	87.2	74.6
OTHER ASSETS, net	61.8	48.4
TOTAL ASSETS	1,692.0	1,543.9
CURRENT LIABILITIES:
Short-term debt	1.4	2.2
Current maturities of long-term debt	0.6	35.5
Accounts payable	273.8	238.2
Accrued expenses	334.5	317.9
Income taxes payable	5.3	0.0
Total current liabilities	615.6	593.8
LONG-TERM DEBT	317.0	193.8
POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS	15.9	13.4
PENSIONS	88.1	66.7
OTHER LIABILITIES	65.7	71.8
Total liabilities	$ 1,102.3	$ 939.5
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares issued or outstanding	$ 0.0	$ 0.0
Common stock, $.01 par value, 200,000,000 shares authorized, 86,480,816 shares and 85,567,485 shares issued for 2010 and 2009, respectively	0.9	0.9
Additional paid-in capital	863.5	839.1
Retained earnings	642.2	558.6
Accumulated other comprehensive income (loss)	30.2	(0.8)
Treasury stock, at cost, 32,784,503 shares and 29,292,512 shares for 2010 and 2009, respectively	(947.1)	(793.4)
Total stockholders' equity	589.7	604.4
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,692.0	$ 1,543.9

Consolidated Statements of Operations	12 Months Ended
Consolidated Statements of Operations	Dec. 31, 2010 USD ($) $ / shares shares	Dec. 31, 2009 USD ($) $ / shares shares	Dec. 31, 2008 shares	Dec. 31, 2008 USD ($) $ / shares
Consolidated Statements of Operations [Abstract]
NET SALES	$ 3,096,400,000	$ 2,847,500,000		$ 3,441,100,000
COST OF GOODS SOLD	2,204,600,000	2,059,400,000		2,506,600,000
Gross profit	891,800,000	788,100,000		934,500,000
OPERATING EXPENSES:
Selling, general and administrative expenses	685,700,000	644,900,000		686,900,000
Losses (Gains) and Other Expenses, net	10,200,000	(6,600,000)		(1,900,000)
Restructuring charges	15,600,000	41,500,000		30,400,000
Impairment of assets		6,400,000		9,100,000
Income from equity method investments	(10,100,000)	(7,300,000)		(8,600,000)
Operational income from continuing operations	190,400,000	109,200,000		218,600,000
INTEREST EXPENSE, net	12,800,000	8,200,000		14,200,000
OTHER EXPENSE, net	1,000,000	100,000		100,000
Income from continuing operations before income taxes	176,600,000	100,900,000		204,300,000
PROVISION FOR INCOME TAXES	59,500,000	39,100,000		80,500,000
Income from continuing operations	117,100,000	61,800,000		123,800,000
DISCONTINUED OPERATIONS:
Loss from discontinued operations	1,100,000	13,100,000		1,800,000
Income tax benefit	(200,000)	(2,400,000)		(800,000)
Loss from discontinued operations	900,000	10,700,000		1,000,000
Net income	$ 116,200,000	$ 51,100,000		$ 122,800,000
EARNINGS PER SHARE - BASIC:
Income from continuing operations \| $ / shares	$ 2.14	$ 1.11		$ 2.18
Loss from discontinued operations \| $ / shares	(0.01)	(0.19)		(0.01)
Net income \| $ / shares	2.13	0.92		2.17
EARNINGS PER SHARE - DILUTED:
Income from continuing operations \| $ / shares	2.1	1.09		2.12
Loss from discontinued operations \| $ / shares	(0.02)	(0.19)		(0.01)
Net income \| $ / shares	$ 2.08	$ 0.9		$ 2.11
AVERAGE SHARES OUTSTANDING:
Basic \| shares	54,600,000	55,600,000	56,700,000
Diluted \| shares	55,800,000	56,600,000	58,300,000
CASH DIVIDENDS DECLARED PER SHARE \| (per share)	$ 0.6	$ 0.56	shares 0.56	$ 0.56

Consolidated Statements of Stockholders Equity and Comprehensive (Loss) Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Beginning balance	$ 604.4	$ 458.6	$ 808.5
Net income	116.2	51.1	122.8
Dividends, ($0.56, $0.56,$0.60 per share in 2008, 2009, 2010 respectively)	(32.6)	(31.3)	(31.4)
Foreign currency translation adjustments, net	28.2	59.5	(84.9)
Pension and postretirement liability changes, net of tax (benefit) provision of ($35.1), $6.4, ($8.7) in 2008, 2009, 2010 respectively	(13.3)	8.1	(55.9)
Change in fair value of available-for-sale marketable equity securities changes	12.5
Stock-based compensation expense	15.4	12.8	11.8
Derivatives and other, net of tax (benefit) provision of ($12.3), $15.4 in 2008, 2009 respectively		30.4	(21.6)
Derivatives, net of tax provision of $2.1	3.6
Common stock issued	3.5	9.4	19.7
Treasury stock purchases	(153.7)	(5.6)	(323.8)
Tax benefits of stock-based compensation	5.5	6.0	13.4
Other tax related items		5.4
Ending balance	589.7	604.4	458.6
Common Stock Issued
Statement [Line Items]
Beginning balance	$ 0.9	$ 0.8	$ 0.8
Beginning balance, shares	85.6	84.2	81.9
Common stock issued		$ 0.1
Common stock issued, shares	0.9	1.4	2.3
Ending balance	$ 0.9	$ 0.9	$ 0.8
Ending balance, shares	86.5	85.6	84.2
Additional Paid-In Capital
Statement [Line Items]
Beginning balance	$ 839.1	$ 805.6	$ 760.7
Stock-based compensation expense	15.4	12.8	11.8
Common stock issued	3.5	9.3	19.7
Tax benefits of stock-based compensation	5.5	6.0	13.4
Other tax related items		5.4
Ending balance	863.5	839.1	805.6
Retained Earnings
Statement [Line Items]
Beginning balance	558.6	538.8	447.4
Net income	116.2	51.1	122.8
Dividends, ($0.56, $0.56,$0.60 per share in 2008, 2009, 2010 respectively)	(32.6)	(31.3)	(31.4)
Ending balance	642.2	558.6	538.8
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Beginning balance	(0.8)	(98.8)	63.6
Foreign currency translation adjustments, net	28.2	59.5	(84.9)
Pension and postretirement liability changes, net of tax (benefit) provision of ($35.1), $6.4, ($8.7) in 2008, 2009, 2010 respectively	(13.3)	8.1	(55.9)
Change in fair value of available-for-sale marketable equity securities changes	12.5
Derivatives and other, net of tax (benefit) provision of ($12.3), $15.4 in 2008, 2009 respectively		30.4	(21.6)
Derivatives, net of tax provision of $2.1	3.6
Ending balance	30.2	(0.8)	(98.8)
Treasury Stock at Cost
Statement [Line Items]
Beginning balance	(793.4)	(787.8)	(464.0)
Treasury stock purchases	(153.7)	(5.6)	(323.8)
Ending balance	(947.1)	(793.4)	(787.8)
Comprehensive (Loss) Income
Statement [Line Items]
Net income	116.2	51.1	122.8
Foreign currency translation adjustments, net	28.2	59.5	(84.9)
Pension and postretirement liability changes, net of tax (benefit) provision of ($35.1), $6.4, ($8.7) in 2008, 2009, 2010 respectively	(13.3)	8.1	(55.9)
Change in fair value of available-for-sale marketable equity securities changes	12.5
Derivatives and other, net of tax (benefit) provision of ($12.3), $15.4 in 2008, 2009 respectively		30.4	(21.6)
Derivatives, net of tax provision of $2.1	3.6
Comprehensive income (loss)	$ 147.2	$ 149.1	$ (39.6)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 116.2	$ 51.1	$ 122.8
Adjustments to reconcile net income to net cash provided by operating activities:
Income from equity method investments	(10.1)	(7.3)	(8.6)
Dividends from affiliates	12.3	11.3	14.3
Restructuring expenses, net of cash paid	(11.0)	18.6	0.6
Impairment of assets		6.4	9.1
Provision for bad debts	6.3	12.6	17.0
Unrealized (gain) loss on derivative contracts	(0.7)	(7.0)	5.1
Return (posting) of collateral for hedges		37.9	(37.9)
Stock-based compensation expense	15.4	12.8	11.8
Depreciation and amortization	53.5	52.9	50.6
(Repayments) proceeds from sales of accounts receivable under asset securitization		(30.0)	30.0
Deferred income taxes	(9.5)	6.7	25.0
Pension costs in excess of (less than) contributions	4.5	(25.4)	(19.5)
Other items, net	2.4	7.7	(12.8)
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
Accounts and notes receivable	(29.3)	41.2	53.5
Inventories	(31.1)	51.8	14.7
Other current assets	(5.5)	10.8	0.7
Accounts payable	33.6	(5.4)	(44.0)
Accrued expenses	31.8	3.8	(41.5)
Income taxes payable and receivable	18.8	(7.0)	(1.7)
Other	(11.8)	(18.0)	(6.0)
Net cash provided by operating activities	185.8	225.5	183.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the disposal of property, plant and equipment	0.2	0.6	5.8
Purchases of property, plant and equipment	(45.8)	(58.8)	(62.1)
Proceeds from sale of businesses	3.6	10.0
Acquisition of business	(7.2)		(4.7)
Return of investment		0.9
Restricted cash	(12.2)
Purchases of short-term investments		(16.9)	(64.2)
Proceeds from sales and maturities of short-term investments		50.2	58.7
Net cash used in investing activities	(61.4)	(14.0)	(66.5)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term (payments) borrowings, net	(0.8)	(4.3)	1.4
Proceeds from capital lease			15.3
Long-term payments	(35.9)	(1.7)	(36.4)
Issuance of senior unsecured notes	199.8
Revolver credit facility (payments) borrowings, net	(76.5)	(183.3)	213.5
Additional investments in affiliates	(1.0)
Proceeds from stock option exercises	3.5	9.4	19.7
Payments of deferred financing costs	(1.8)		(0.3)
Repurchases of common stock	(153.7)	(5.6)	(323.8)
Excess tax benefits related to share-based payments	5.3	4.9	11.0
Cash dividends paid	(32.4)	(31.1)	(32.4)
Net cash used in financing activities	(93.5)	(211.7)	(132.0)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	30.9	(0.2)	(15.3)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	4.8	2.4	(8.1)
CASH AND CASH EQUIVALENTS, beginning of year	124.3	122.1	145.5
CASH AND CASH EQUIVALENTS, end of year	160.0	124.3	122.1
Cash paid during the year for:
Interest	12.4	8.4	17.6
Income taxes (net of refunds)	$ 45.5	$ 32.1	$ 41.9

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies


2.	Summary of Significant Accounting Policies:

Principles of Consolidation

The consolidated financial statements include the accounts of Lennox International Inc. and the accounts of our majority-owned subsidiaries. All intercompany transactions, profits and balances have been eliminated.

Cash and Cash Equivalents

We consider all highly liquid temporary investments with original maturity dates of three months or less to be cash equivalents. Cash and cash equivalents consisted primarily of bank deposits and US Treasury money market securities.

During the first quarter of 2010, our captive insurance subsidiary entered into an agreement in which cash was placed into a trust for the benefit of a third-party insurance provider. The purpose of the trust is to pay workers compensation claims for policy years 2003 — 2009 until the liabilities are fully extinguished. These policies were written by the third-party insurance provider, and then reinsured by our captive insurance subsidiary. This transaction was classified as restricted cash on the accompanying Consolidated Balance Sheets. The balance at December 31, 2010 was $12.2 million.

Accounts and Notes Receivable

Accounts and notes receivable are shown in the accompanying Consolidated Balance Sheets, net of allowance for doubtful accounts. The allowance for doubtful accounts is generally established during the period in which receivables are recognized and is maintained at a level deemed appropriate based on historical and other factors that affect collectability. Such factors include the historical trends of write-offs and recovery of previously written-off accounts, the financial strength of the customer and projected economic and market conditions. We determine the delinquency status of receivables predominantly based on contractual terms and write off uncollectible receivables after management’s review of factors that affect collectability as noted above, among other considerations. We have no significant concentrations of credit risk within our accounts and notes receivable.

Inventories

Inventory costs include material, labor, depreciation and plant overhead. Inventories of $123.8 million and $100.8 million as of December 31, 2010 and 2009, respectively, were valued at the lower of cost or market using the last-in, first-out (“LIFO”) cost method. The remaining portion of the inventory is valued at the lower of cost or market with cost being determined either on the first-in, first-out (“FIFO”) basis or average cost. We elected to use the LIFO cost method for our domestic manufacturing companies in 1974 and continued to elect the LIFO cost method for new operations through the late 1980s. The types of inventory include raw materials, purchased components, work-in-process, repair parts and finished goods. Starting in the late 1990s, we began adopting the FIFO cost method for all new domestic manufacturing operations (primarily acquisitions). Our operating entities with a previous LIFO election continue to use the LIFO cost method. We also use the FIFO cost method for all of our foreign-based manufacturing facilities as well as our Service Experts segment, whose inventory is limited to service parts and finished goods.

Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation. Expenditures that increase the utility or extend the useful lives of fixed assets are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives:


Buildings and improvements			2 to 40 years
Machinery and equipment			1 to 15 years

We periodically review long-lived assets for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. In order to assess recoverability, we compare the estimated expected future undiscounted cash flows identified with each long-lived asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value.

Goodwill

Goodwill represents the excess of cost over fair value of assets of acquired businesses. Goodwill and intangible assets determined to have an indefinite useful life are not amortized, but are instead tested for impairment at least annually. We complete our annual goodwill impairment tests in the first quarter of each fiscal year and continuously monitor our operations for indicators of goodwill impairment based on current market conditions.

We assign goodwill to the reporting units that benefit from the synergies of our acquisitions, which are the reporting units that report the results of such acquisitions. If we reorganize our management structure, the related goodwill is allocated to the affected reporting units based upon the relative fair values of those reporting units. Assets and liabilities, including deferred income taxes, are generally directly assigned to the reporting units through our segment reporting system as part of our financial closing process. However, certain assets and liabilities, including information technology assets and pension, self-insurance, and environmental liabilities, are commonly managed and are not allocated to the segments in the normal course of our financial reporting process and therefore must be assigned to the reporting units based upon appropriate methods.

Reporting units that we test are generally equivalent to our business segments, or in some cases, one level below. We review our reporting unit structure each year as part of our annual goodwill impairment testing and reporting units are determined based upon a review of the periodic financial information supplied to and reviewed by our Chief Executive Officer (the chief operating decision maker). We aggregate operating units reviewed into reporting units when those operating units share similar economic characteristics.

We estimate reporting unit fair values using standard business valuation techniques such as discounted cash flows and reference to comparable business transactions and observable fair values of comparable entities. The discounted cash flow approach is the principal technique we use. We use comparable business transactions and observable fair values of comparable entities as a reasonableness test of our principal technique as we believe that the discounted cash flow approach provides greater detail and opportunity to reflect specific facts, circumstances and economic conditions for each reporting unit. Comparable business transactions are often limited in number, the information can be dated, and may require significant adjustments due to differences in the size of the business, markets served, product offered, and other factors. We therefore believe that in our circumstances, this makes comparisons to comparable business transactions less reliable than the discounted cash flows method.

The discounted cash flows used to estimate fair value are based on assumptions regarding each reporting unit’s estimated projected future cash flows and the estimated weighted-average cost of capital that a market participant would use in evaluating the reporting unit in a purchase transaction. The estimated weighted-average cost of capital is based on the risk-free interest rate and other factors such as equity risk premiums and the ratio of total debt to equity capital. In performing these impairment tests, we take steps to ensure that appropriate and reasonable cash flow projections and assumptions are used. We reconcile our estimated enterprise value to our market capitalization and determine the reasonableness of the cost of capital used by comparing to market data. We also perform sensitivity analyses on the key assumptions used, such as the weighted-average cost of capital and terminal growth rates.

We also monitor economic, legal, regulatory and other factors for LII as a whole and for each reporting unit between annual impairment tests to ensure that there are no indicators that make it more likely than not that there has been a decline in the fair value of any reporting unit below its carrying value. Specifically, we monitor industry trends, our market capitalization, recent and forecasted financial performance of our reporting units, and the timing and nature of our restructuring activities. While our recent financial performance is below historical levels, we determined that no impairment of our goodwill existed as of December 31, 2010, 2009 or 2008. If these estimates or the related assumptions change, we may be required to record non-cash impairment charges for these assets in the future. For additional disclosures on goodwill, see Note 5.

Intangible and Other Assets

We amortize intangible assets with finite lives over their respective estimated useful lives to their estimated residual values.

Identifiable intangible and other assets that have finite lives are amortized over their estimated useful lives as follows:


Asset		Useful Life

Deferred financing costs		Effective interest method
Customer relationships		Straight-line method up to 10 years

We periodically review intangible assets with estimable useful lives for impairment as events or changes in circumstances indicate that the carrying amount of such assets might not be recoverable. In order to assess recoverability, we compare the estimated expected undiscounted future cash flows identified with each intangible asset or related asset group to the carrying amount of such assets. If the expected future cash flows do not exceed the carrying value of the asset or assets being reviewed, an impairment loss is recognized based on the excess of the carrying amount of the impaired assets over their fair value.

In assessing the fair value of our other intangibles, we must make assumptions that a market participant would make regarding estimated future cash flows and other factors to determine the fair value of the respective assets. If these estimates or the related assumptions change, we may be required to record impairment charges for these assets in the future.

Product Warranties

For some of our heating, ventilation and air conditioning (“HVAC”) products, we provide warranty terms ranging from one to 20 years to customers for certain components such as compressors or heat exchangers. For select products, we also provide lifetime warranties for heat exchangers. A liability for estimated warranty expense is recorded on the date that revenue is recognized. Our estimates of future warranty costs are determined for each product line. The number of units that we expect to repair or replace is determined by applying the estimated failure rate, which is generally based on historical experience, to the number of units that have been sold and are still under warranty. The estimated units to be repaired under warranty are multiplied by the average cost to repair or replace such products to determine the estimated future warranty cost. We do not discount product warranty liabilities as the amounts are not fixed and the timing of future cash payments is neither fixed nor reliably determinable. We also provide for specifically identified warranty obligations. Estimated future warranty costs are subject to adjustment from time to time depending on changes in actual failure rate and cost experience. Subsequent costs incurred for warranty claims serve to reduce the accrued product warranty liability.

Pensions and Postretirement Benefits

We provide pension and postretirement medical benefits to eligible domestic and foreign employees and recognize pension and postretirement benefit costs over the estimated service life or average life expectancy of those employees. We also recognize the funded status of our benefit plans, as measured at year-end by the difference between plan assets at fair value and the benefit obligation, in the Consolidated Balance Sheets. Changes in the funded status are recognized in the year in which the changes occur through accumulated other comprehensive income (“AOCI”). Actuarial gains or losses are amortized into net period benefit cost over the estimated service life of covered employees or average life expectancy of participants depending on the plan.

The benefit plan assets and liabilities reflect assumptions about the long-range performance of our benefit plans. Should actual results differ from management’s estimates, revisions to the benefit plan assets and liabilities would be required. For additional disclosures on pension and postretirement medical benefits, including how we determine the assumptions used, see Note 12.

Self-Insurance

Self-insurance expense and liabilities, calculated on an undiscounted basis, are actuarially determined based primarily on our historical claims information, as well as industry factors and trends. As of December 31, 2010, self-insurance and captive reserves represent the best estimate of the future payments to be made on losses reported and unreported for 2010 and prior years. The majority of our self-insured risks (excluding auto liability and physical damage) will be paid over an extended period of time.

Actual payments for claims reserved as of December 31, 2010 may vary depending on various factors, including the development and ultimate settlement of reported and unreported claims. To the extent actuarial assumptions change and claims experience rates differ from historical rates, our liability may change. For additional disclosures on self-insured risks and reserves, see Note 10.

Derivatives

We use futures contracts and fixed forward contracts to mitigate the exposure to volatility in commodity prices and foreign exchange rates, and we use an interest rate swap to hedge changes in the benchmark interest rate related to our revolving credit facility. We hedge only exposures in the ordinary course of business and do not hold or trade derivatives for profit. All derivatives are recognized in the Consolidated Balance Sheets at fair value. Classification of each hedging instrument is based upon whether the maturity of the instrument is less than or greater than 12 months. For more information, see Note 8.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

Unrecognized tax benefits are accounted for as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740. For more information, see Note 9.

Revenue Recognition

Our Residential Heating & Cooling, Commercial Heating & Cooling and Refrigeration segments’ revenue recognition practices depend upon the shipping terms for each transaction. Shipping terms are primarily FOB Shipping Point and, therefore, revenues are recognized for these transactions when products are shipped to customers and title passes. However, certain customers in our smaller operations, primarily outside of North America, have shipping terms where title and risk of ownership do not transfer until the product is delivered to the customer. For these transactions, revenues are recognized on the date that the product is received and accepted by such customers. We have experienced returns for miscellaneous reasons and we record a reserve for these returns based on historical experience at the time we recognize revenue. Our historical rate of returns are insignificant as a percentage of sales.

Our Service Experts segment recognizes sales, installation, maintenance and repair revenues at the time the services are completed. The Service Experts segment also provides HVAC system design and installation services under fixed-price contracts, which may extend up to one year. Revenue for these services is recognized using the percentage-of-completion method, based on the percentage of incurred contract costs-to-date in relation to total estimated contract costs, after giving effect to the most recent estimates of total cost. The effect of changes to total estimated contract revenue or cost is recognized in the period such changes are determined. Provisions for estimated losses on individual contracts are made in the first period in which the loss becomes probable.

We engage in cooperative advertising, customer rebate, cash discount and other miscellaneous programs that result in payments or credits being issued to our customers. Our policy is to record the discounts and incentives as a reduction of sales when the sales are recorded, with the exception of certain cooperative advertising expenditures that are charged to Selling, General and Administrative (“SG&A”) Expenses. Under these cooperative advertising programs, we receive, or will receive, an identifiable benefit (goods or services) in exchange for the consideration given.

Cost of Goods Sold

The principal components of cost of goods sold in our manufacturing operations are component costs, raw materials, factory overhead, labor, estimated costs of warranty expense, and freight and distribution costs. In our Service Experts segment, the principal components of cost of goods sold are equipment, vehicle costs, parts and supplies, and labor.

Selling, General and Administrative Expenses

SG&A expenses include all other payroll and benefit costs, advertising, commissions, research and development, information technology costs, and other selling, general and administrative related costs such as insurance, travel, non-production depreciation and rent.

Stock-Based Compensation

We recognize compensation expense for stock-based arrangements over the required employee service periods. We base stock-based compensation costs on the estimated grant-date fair value of the stock-based awards that are expected to ultimately vest and adjust expected vesting rates to actual rates as additional information becomes known. We also adjust performance achievement rates based on our best estimates of those rates at the end of the performance period.

Translation of Foreign Currencies

All assets and liabilities of foreign subsidiaries and joint ventures are translated into U.S. dollars using rates of exchange in effect at the balance sheet date. Revenues and expenses are translated at weighted average exchange rates during the year. The unrealized translation gains and losses are included in AOCI in the accompanying Consolidated Balance Sheets. Transaction gains and losses are included in Losses (Gains) and Other Expenses, net in the accompanying Consolidated Statements of Operations.

Use of Estimates

The preparation of financial statements requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets, and other long-lived assets, contingencies, guarantee obligations, indemnifications, and assumptions used in the calculation of income taxes, pension and postretirement medical benefits, among others. These estimates and assumptions are based on our best estimates and judgment.

We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates and assumptions to be reasonable under the circumstances and adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency, and commodity markets, have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Reclassifications

Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation.

Derivatives

12 Months Ended

Dec. 31, 2010

Derivatives [Abstract]

Derivatives


8.	Derivatives:

General

Our earnings and cash flows are subject to fluctuations due to changes in commodity prices, interest rates, and foreign currency exchange rates, and we seek to mitigate a portion of these risks by entering into derivative contracts. The derivatives we use are commodity futures contracts, interest rate swaps, and currency forward contracts. We do not use derivatives for speculative purposes.

The derivatives we enter into may be, but are not always, accounted for as hedges. To qualify for hedge accounting, the derivatives must be highly effective in reducing the risk exposure that they are designed to hedge, and it must be probable that the underlying transaction will occur. For instruments designated as cash flow hedges, we must formally document, at inception, the relationship between the derivative and the hedged item, the risk management objective, the hedging strategy for use of the hedged instrument, and how hedge effectiveness is, and will be, assessed. This documentation also includes linking the derivatives that are designated as cash flow hedges to forecasted transactions. We assess hedge effectiveness at inception and at least quarterly throughout the hedge designation period.

We recognize all derivatives as either assets or liabilities at fair value in the Consolidated Balance Sheets, regardless of whether or not hedge accounting is applied. For more information on the fair value of these derivative instruments, see Note 20. We report cash flows arising from our hedging instruments consistent with the classification of cash flows from the underlying hedged items. Accordingly, cash flows associated with our derivative programs are classified as operating activities in the accompanying Consolidated Statements of Cash Flows.

We monitor our derivative positions and credit ratings of our counterparties and do not anticipate losses due to counterparty non-performance.

Hedge Accounting

The derivatives that we use as hedges of commodity prices and movements in interest rates are accounted for as cash flow hedges. The effective portion of the gain or loss on the derivatives accounted for as hedges is recorded, net of applicable taxes, in AOCI, a component of Stockholders’ Equity in the accompanying Consolidated Balance Sheets. When earnings are affected by the variability of the underlying cash flow, the applicable offsetting amount of the gain or loss from the derivatives that is deferred in AOCI is reclassified into earnings in the same financial statement line item that the hedged item is recorded in. Ineffectiveness, if any, is recorded in earnings each period. If the hedging relationship ceases to be highly effective, the net gain or loss shall remain in AOCI and will be reclassified into earnings when earnings are affected by the variability of the underlying cash flow. If it becomes probable that the forecasted transaction will not occur by the end of the originally specified period or within two months thereafter, the net gain or loss remaining in AOCI will be reclassified to earnings immediately.

Accounting for Derivatives When Hedge Accounting is Not Applied

We may also enter into derivatives that economically hedge certain of our risks, even though hedge accounting does not apply or we elect not to apply hedge accounting to these instruments. The changes in fair value of the derivatives act as an economic offset to changes in the fair value of the underlying items. Changes in the fair value of instruments not designated as cash flow hedges are recorded in earnings throughout the term of the derivative instrument and are reported in Losses (Gains) and Other Expenses, net in the accompanying Consolidated Statements of Operations.

Objectives and Strategies for Using Derivative Instruments

Commodity Price Risk

We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities we use in our production processes. The hedging program includes the use of futures contracts, and we enter into these contracts based on our hedging strategy. We use a dollar cost averaging strategy for our hedge program. As part of this strategy, a higher percentage of commodity price exposures are hedged near term with lower percentages hedged at future dates. This strategy provides us with protection against near-term price volatility caused by market speculators and market forces, such as supply variation, while allowing us to adjust to market price movements over time. Upon entering into futures contracts, we lock in prices and are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase.

Interest Rate Risk

A portion of our debt bears interest at variable interest rates and therefore, we are subject to variability in the cash paid for interest expense. In order to mitigate a portion of this risk, we use a hedging strategy to eliminate the variability of cash flows in the interest payments associated with the first $100 million of the total variable-rate debt outstanding under our revolving credit facility that is solely due to changes in the benchmark interest rate. This strategy allows us to fix a portion of our interest payments.

On June 12, 2009, we entered into a $100 million pay-fixed, receive-variable interest rate swap with a large financial institution at a fixed interest rate of 2.66%. The variable portion of the interest rate swap is tied to the 1-Month LIBOR (the benchmark interest rate). The interest rates under both the interest rate swap and the underlying debt are reset, the swap is settled with the counterparty, and interest is paid, on a monthly basis. The interest rate swap expires October 12, 2012. We account for the interest rate swap as a cash flow hedge.

Foreign Currency Risk

Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of assets and liabilities arising in foreign currencies. Our objective for entering into foreign currency forward contracts is to mitigate the impact of short-term currency exchange rate movements on certain short-term intercompany transactions. In order to meet that objective, we periodically enter into foreign currency forward contracts that act as economic hedges against changes in foreign currency exchange rates. These forward contracts are not designated as hedges and generally expire during the quarter that we entered into them.

Cash Flow Hedges

We include (gains) losses in AOCI in connection with our commodity cash flow hedges. The (gains) losses related to commodity price hedges are expected to be reclassified into earnings within the next 18 months based on the prices of the commodities at settlement date. Assuming that commodity prices remain constant, $10.9 million of derivative gains are expected to be reclassified into earnings within the next 12 months. Commodity futures contracts that are designated as cash flow hedges and are in place as of December 31, 2010 are scheduled to mature through May 2012.

The (gains) losses related to our interest rate swap are expected to be reclassified into earnings within the next 22 months based on the term of the swap. Assuming that the benchmark interest rate remains constant, $1.4 million of derivative losses are expected to be reclassified into earnings within the next 12 months.

We recorded the following amounts related to our cash flow hedges (in millions):


	As of December 31,
	2010			2009

Commodity Price Hedges:
Gains included in AOCI, net of tax	$	(11.7	)	$	(7.2	)
Provision for income taxes		6.7			4.1
Interest Rate Swap:
Losses included in AOCI, net of tax	$	2.3		$	1.4
Benefit from income taxes		(1.3	)		(0.8	)

We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions):


	As of December 31,
	2010		2009
	(Pounds)		(Pounds)

Copper		18.5		12.6

Derivatives not Designated as Cash Flow Hedges

For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as for derivatives designated as cash flow hedges. We elect not to designate these derivatives as cash flow hedges at inception of the arrangement. We had the following outstanding commodity futures contracts not designated as cash flow hedges (in millions):


	As of December 31,
	2010		2009
	(Pounds)		(Pounds)

Copper		1.4		0.9
Aluminum		1.4		0.9

During 2010, we entered into foreign currency forward contracts with notional amounts of $217.0 million and £16.5 million, of which $35.0 million and £2.0 million were outstanding at December 31, 2010. During 2009, we entered into foreign currency forward contracts with notional amounts of $123.6 million, of which $12.2 million were outstanding at December 31, 2009.

Information About the Location and Amounts of Derivative Instruments

For information on the location and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations, see the tabular information presented below (in millions):

Fair Values of Derivative Instruments


	As of December 31,
	2010			2009
	Balance Sheet			Balance Sheet
Asset Derivatives	Location	Fair Value		Location	Fair Value

Derivatives designated as hedging instruments under FASB ASC Topic 815
Commodity futures contracts	Other Assets (Current)	$	17.4	Other Assets (Current)	$	11.1
Commodity futures contracts	Other Assets (Non-current)		1.3	Other Assets (Non-current)		0.3

			18.7			11.4

Derivatives not designated as hedging instruments under FASB ASC Topic 815
Commodity futures contracts	Other Assets (Current)		1.4	Other Assets (Current)		1.1
Commodity futures contracts	Other Assets (Non-Current)		0.1	Other Assets (Non-Current)		—
Foreign currency forward contracts	Other Assets (Current)		0.2	Other Assets (Current)		—

			1.7			1.1

Total Asset for Derivatives		$	20.4		$	12.5

Liability Derivatives
Derivatives designated as hedging instruments under FASB ASC Topic 815
Interest rate swap	Accrued Expenses		2.2	Accrued Expenses		2.0
Interest rate swap	Other Liabilities		1.4	Other Liabilities		0.3

Total Liability for Derivatives		$	3.6		$	2.3

The Effect of Derivative Instruments on the Consolidated Statements of Operations


		Amount of Loss or (Gain) Reclassified
		from AOCI into Income
Derivatives in FASB ASC	Location of Loss or (Gain)	(Effective Portion)
Topic 815 Cash Flow	Reclassified from AOCI into Income	For the Years Ended December 31,
Hedging Relationships	(Effective Portion)	2010			2009		2008

Commodity futures contracts	Cost of Goods Sold	$	(11.2	)	$	19.6	$	(7.0	)
Interest rate swap	Interest Expense, net		2.4			1.3		—

		$	(8.8	)	$	20.9	$	(7.0	)

Amount of Loss or

(Gain) Recognized

Location of Loss or (Gain)

in Income on Derivatives

Derivatives in FASB ASC

Recognized in Income on

(Ineffective Portion)

Topic 815 Cash Flow

Derivatives

For the Years Ended December 31,

Hedging Relationships

(Ineffective Portion)

2010

2009

2008

Commodity futures contracts

Losses (Gains) and Other Expenses, net

(0.4

)

(0.1

)

0.3


		Amount of Loss or (Gain)
		Recognized in Income on
Derivatives Not Designated	Location of (Gain) or Loss	Derivatives
as Hedging Instruments under	Recognized in Income on	For the Years Ended December 31,
FASB ASC Topic 815	Derivatives	2010			2009			2008

Commodity futures contracts	Losses (Gains) and Other Expenses, net	$	(1.7	)	$	(3.4	)	$	5.7
Foreign currency forward contracts	Losses (Gains) and Other Expenses, net		(0.2	)		3.1			—

		$	(1.9	)	$	(0.3	)	$	5.7

For more information on the valuation of these derivative instruments, see Note 20.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes [Abstract]

Income Taxes


9.	Income Taxes:

Our income tax provision (benefits) from continuing operations consisted of the following (in millions):


	For the Years Ended December 31,
	2010			2009			2008

Current:
Federal	$	54.7		$	17.5		$	32.4
State		6.0			5.0			5.8
Foreign		7.3			8.1			11.0

Total current		68.0			30.6			49.2

Deferred:
Federal		(6.9	)		9.9			27.1
State		(1.6	)		3.0			4.2
Foreign		—			(4.4	)		—

Total deferred		(8.5	)		8.5			31.3

Total income tax provision	$	59.5		$	39.1		$	80.5

Income from continuing operations before income taxes was comprised of the following (in millions):


	For the Years Ended December 31,
	2010		2009		2008

Domestic	$	157.2	$	99.7	$	186.9
Foreign		19.4		1.2		17.4

Total	$	176.6	$	100.9	$	204.3

The difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement provision for taxes is summarized as follows (in millions):


	For the Years Ended December 31,
	2010			2009			2008

Provision at the U.S. statutory rate of 35%	$	61.8		$	35.3		$	71.5
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit		2.5			3.8			7.7
Other permanent items		(2.3	)		(2.8	)		(1.2	)
Research tax credit		(0.5	)		(0.6	)		—
Decrease in tax audit reserves		(0.2	)		(1.6	)		—
Change in valuation allowance		(1.8	)		4.5			1.1
Foreign taxes at rates other than 35% and miscellaneous other		—			0.5			1.4

Total income tax provision	$	59.5		$	39.1		$	80.5

Deferred income taxes reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their financial reporting basis and are reflected as current or non-current depending on the classification of the asset or liability generating the deferred tax. The deferred tax provision for the periods shown represents the effect of changes in the amounts of temporary differences during those periods.

Deferred tax assets (liabilities) were comprised of the following (in millions):


	For the Years Ended
	December 31,
	2010			2009

Gross deferred tax assets:
Warranties	$	32.0		$	36.0
Net operating losses (foreign and U.S. state)		42.2			48.3
Postretirement and pension benefits		42.6			30.2
Inventory reserves		4.1			6.3
Receivables allowance		6.4			4.3
Compensation liabilities		17.3			20.3
Deferred income		7.8			8.0
Insurance liabilities		15.4			2.4
Other		10.6			10.5

Total deferred tax assets		178.4			166.3
Valuation allowance		(24.3	)		(30.9	)

Total deferred tax assets, net of valuation allowance		154.1			135.4
Gross deferred tax liabilities:
Depreciation		(11.1	)		(14.6	)
Intangibles		(6.6	)		(4.1	)
Other		(12.5	)		(7.2	)

Total deferred tax liabilities		(30.2	)		(25.9	)

Net deferred tax assets	$	123.9		$	109.5

As of December 31, 2010 and 2009, we had $6.5 million and $9.6 million in tax effected state net operating loss carryforwards, respectively, and $35.8 million and $38.7 million in tax effected foreign net operating loss carryforwards, respectively. The state and foreign net operating loss carryforwards begin expiring in 2011. The deferred tax asset valuation allowance relates primarily to the operating loss carryforwards in various states in the U.S., European and Asian tax jurisdictions. The decrease in the valuation allowance is primarily the result of foreign and state losses which were not previously benefited and currency fluctuation.

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider the reversal of existing taxable temporary differences, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2010.

In order to realize the net deferred tax asset, we will need to generate future foreign taxable income of approximately $98.5 million during the periods in which those temporary differences become deductible. We also will need to generate U.S. federal income of approximately $46.8 million in addition to our carryback capacity to fully realize the federal deferred tax asset. U.S. taxable income for the years ended December 31, 2010 and 2009 was $150.5 million and $36.7 million, respectively.

A limited provision has been made for income taxes which may become payable upon distribution of our foreign subsidiaries’ earnings related to the Czech Republic. It is not practicable to estimate the amount of tax that might be payable with regard to any other distribution of foreign subsidiary earnings because our intent is to permanently reinvest these earnings or to repatriate earnings when it is tax effective to do so.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):


Balance as of December 31, 2008	$	14.9
Increases related to prior year tax positions		0.1
Decreases related to prior year tax positions		(7.2	)
Increases related to current year tax positions		0.1
Settlements		(6.4	)

Balance as of December 31, 2009	$	1.5
Decreases related to prior year tax positions		(0.4	)
Settlements		(0.1	)

Balance as of December 31, 2010	$	1.0

Included in the balance of unrecognized tax benefits as of December 31, 2010 are potential benefits of $0.7 million that, if recognized, would affect the effective tax rate on income from continuing operations. As of December 31, 2010, we had recognized $0.1 million (net of federal tax benefits) in interest and penalties in income tax expense.

The Internal Revenue Service (“IRS”) completed its examination of our consolidated tax returns for the years 1999 — 2003 and issued a Revenue Agent’s Report (“RAR”) on April 6, 2006. We reached a settlement with the IRS in December 2008 that resulted in an immaterial impact to the Consolidated Statements of Operations.

The IRS completed its examination of our consolidated tax returns for the years 2004-2005 and issued an RAR on July 31, 2008. We reached a settlement with the IRS in the fourth quarter of 2009 that resulted in an immaterial impact to the Consolidated Statements of Operations.

The IRS completed its examination of our consolidated tax returns for the years 2006-2007 and issued an RAR on June 1, 2009. We reached a settlement with the IRS in the third quarter of 2009 that resulted in an immaterial impact to the Consolidated Statements of Operations.

We are currently under examination for our U.S. federal income taxes for 2008, 2009 and 2010. We are subject to examination by numerous other taxing authorities in jurisdictions such as Australia, Belgium, France, Canada, and Germany. We are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years before 2004.

During 2010, numerous states, including Colorado, Maine, Utah, the District of Columbia, California and Connecticut, enacted legislation effective for tax years beginning on or after January 1, 2010, including requirements for combined reporting, changes to apportionment methods and changes to nexus requirements. We determined the impact of these changes to be immaterial.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies [Abstract]

Commitments and Contingencies


10.	Commitments and Contingencies:

Leases

The approximate minimum commitments under all non-cancelable leases outstanding as of December 31, 2010 are as follows (in millions):


	Operating		Capital
	Leases		Leases

2011	$	54.2	$	1.1
2012		40.4		1.0
2013		27.7		0.9
2014		17.4		0.7
2015		11.9		0.6
Thereafter		19.8		14.8

Total minimum lease payments	$	171.4		19.1

Less amount representing interest				1.5

Present value of minimum payments			$	17.6

On June 22, 2006, we entered into an agreement with a financial institution to lease our corporate headquarters in Richardson, Texas for a term of seven years (the “Lake Park Lease”). The leased property consists of an office building of approximately 192,000 square feet, land and related improvements. During the term, the Lake Park Lease requires us to pay base rent in quarterly installments, payable in arrears. At the end of the term, we must do one of the following: (i) purchase the property for approximately $41.2 million; (ii) make a final payment under the lease equal to approximately 82% of the Lease Balance and return the property to the financial institution in good condition; (iii) arrange for the sale of the leased property to a third party; or (iv) renew the lease under mutually agreeable terms. If we elect to sell the property to a third party and the sales proceeds are less than the Lease Balance, we must pay any such deficit to the financial institution. Any such payment cannot exceed 82% of the Lease Balance.

Our obligations under the Lake Park Lease are secured by a pledge of our interest in the leased property and are also guaranteed by us and certain of our subsidiaries. The Lake Park Lease, as amended, contains restrictive covenants that are consistent with those of our revolving credit facility. We were in compliance with these financial covenants as of December 31, 2010. The Lake Park Lease is accounted for as an operating lease.

Environmental

Applicable environmental laws can potentially impose obligations to remediate hazardous substances at our properties, at properties formerly owned or operated by us and at facilities to which we have sent or send waste for treatment or disposal. We are aware of contamination at some facilities; however, we do not presently believe that any future remediation costs at such facilities will be material to our results of operations.

The amount and timing of cash payments are reliably determinable and, therefore, we have recorded environmental reserves at their present values.

The following information relates to our environmental reserve (in millions except percentages):


	For the Years Ended
	December 31,
	2010			2009

Discounted liabilities recorded in:
Accrued Expenses	$	1.1		$	1.3
Other Long-Term Liabilities		3.3			3.0

	$	4.4		$	4.3

Undiscounted liabilities	$	4.8		$	5.8
Discount rate		1.3%-7.9	%		3.3%-9.9	%

Estimates of future costs are subject to change due to changing environmental remediation regulations and/or site-specific requirements.

Product Warranties

Total liabilities for estimated warranty are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):


	For the Years Ended
	December 31,
	2010		2009

Accrued Expenses	$	31.2	$	31.5
Other Liabilities		44.3		50.0

	$	75.5	$	81.5

The changes in the total warranty liabilities for the years ended December 31, 2010 and 2009 were as follows (in millions):


Total warranty liability as of December 31, 2008	$	94.1
Payments made in 2009		(27.3	)
Changes resulting from issuance of new warranties		25.7
Changes in estimates associated with pre-existing liabilities		(12.7	)
Changes in foreign currency translation rates		1.7

Total warranty liability as of December 31, 2009	$	81.5
Payments made in 2010		(27.6	)
Changes resulting from issuance of new warranties		27.6
Changes in estimates associated with pre-existing liabilities		(6.2	)
Changes in foreign currency translation rates		0.2

Total warranty liability as of December 31, 2010	$	75.5


	As of December 31,
	2010		2009

Accrued product quality issue (not covered under warranty)	$	16.0	$	21.6

At the end of each accounting period, we evaluate our warranty liabilities and during the second quarter of each year, we perform a complete reevaluation of our HVAC warranty liabilities. As a result of our annual evaluation, we recorded a reduction in warranty liabilities in the second quarter of 2010 that is the principal amount contained within the changes in estimates associated with pre-existing liabilities of $6.2 million above.

We incur the risk of liability claims for the installation and service of heating and air conditioning products, and we maintain liabilities for those claims that we self-insure. We are involved in various claims and lawsuits related to our products. Our product liability insurance policies have limits that, if exceeded, may result in substantial costs that could have an adverse effect on our results of operations. In addition, warranty claims are not covered by our product liability insurance and certain product liability claims may also not be covered by our product liability insurance. There have been no material changes in the circumstances since our latest fiscal year-end.

We also may incur costs related to our products that may not be covered under our warranties and are not covered by insurance, and we may, from time to time, repair or replace installed products experiencing quality issues in order to satisfy our customers and to protect our brand. These product quality issues may be caused by vendor-supplied components that fail to meet required specifications.

We have identified a product quality issue in a heating and cooling product line produced in 2006 and 2007 that we believe results from a vendor-supplied materials quality issue. We have recorded an expense of $24.4 million in 2009 for the portion of the issue that was probable and reasonably estimable. There were no material charges recorded in 2010. As of December 31, 2010 and 2009, $16.0 million and $21.6 million, respectively, was accrued for this matter. We may incur additional charges in the future as more information becomes available. The expense for this product quality issue, and the related liability, has not been included in the tables related to our estimated warranty liabilities. The expense related to this product quality issue was classified in Cost of Goods Sold in the Consolidated Statements of Operations and the related liability is included in Accrued Expenses in the accompanying Consolidated Balance Sheets.

Self Insurance

We use a combination of third-party insurance and self-insurance plans (large deductible or captive) to provide protection against claims relating to workers’ compensation/employers’ liability, general liability, product liability, auto liability, auto physical damage and other exposures. Prior to the third quarter of 2009, these policies were written by a third-party insurance provider, which was then reinsured by our captive insurance subsidiary. Starting with the third quarter of 2009, we use large deductible insurance plans for workers’ compensation/employers’ liability, general liability, product liability, and auto liability. These policies are written through third-party insurance providers. We also carry umbrella or excess liability insurance for all third-party and self-insurance plans, except for directors’ and officers’ liability, property damage and various other insurance programs. We believe the limit within our excess policy is adequate for companies of our size in our industry. We believe that the deductibles and liability limits retained by LII and the captive are customary for companies of our size in our industry and are appropriate for our business.

In addition, we use third-party insurance plans for property damage, aviation liability, directors’ and officers’ liability, and other exposures. Each of these policies may include per occurrence and annual aggregate limits. However, we believe these limits are customary for companies of our size in our industry and are appropriate for our business.

We maintain safety and manufacturing programs that are designed to improve the safety and effectiveness of our business processes and, as a result, reduce the level and severity of our various self-insurance risks. In recent years, our actual claims experience has been trending favorably and therefore, both self-insurance expense and the related liability have decreased.

Since we have a captive insurance company, we are required to maintain specified levels of liquid assets from which we must pay claims. The majority of our self-insured risks (excluding auto liability and physical damage) will be paid over an extended period of time. To the extent actuarial assumptions change and claims experience rates differ from historical rates, our liability may change.

The self-insurance liabilities recorded in Accrued Expenses in the accompanying Consolidated Balance Sheets were $61.3 million and $60.4 million as of December 31, 2010 and 2009, respectively.

Litigation

We are involved in a number of claims and lawsuits incident to the operation of our businesses. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits. It is management’s opinion that none of these claims or lawsuits will have a material adverse effect on our financial position, results of operations or cash flows. Costs related to such matters were not material to the periods presented.

We estimate the costs to settle pending litigation based on experience involving similar claims and specific facts known. We do not believe that any current or pending or threatened litigation with have a material adverse effect on our financial position. Litigation and arbitration, however, involve uncertainties and it is possible that the eventual outcome of litigation could adversely affect our results of operations for a particular period. We are the defendant in a class action lawsuit related to certain hearth products we produced and sold that claims such products are hazardous and that consumers were not adequately warned. On August 23, 2010, the Company and the plaintiffs entered into a binding Memorandum of Understanding (“MOU”) and have reached tentative terms for settlement of the case. At the parties’ request, the court stayed the lawsuit shortly after the MOU was signed. On January 11, 2011, the court granted preliminary approval of the settlement. The court set June 2, 2011 as the date for the final approval hearing. Total charges related to this matter recorded in 2010 were $9.3 million. These charges are included in Selling, General and Administrative Expenses and Losses (Gains) and Other Expenses, Net in the accompanying Consolidated Statement of Operations.

Long Term Debt, Lines of Credit and Asset Securitization

12 Months Ended

Dec. 31, 2010

Long-Term Debt, Lines of Credit and Asset Securitization [Abstract]

Long-Term Debt, Lines of Credit and Asset Securitization


11.	Long-Term Debt, Lines of Credit and Asset Securitization:

Long-Term Debt and Lines of Credit

The following tables summarize our outstanding debt obligations and the classification in the accompanying Consolidated Balance Sheet (in millions):


Description of Obligation
As of December 31, 2010	Short-Term Debt		Current Maturities		Long-Term Maturities		Total

Domestic revolving credit facility	$	—	$	—	$	100.0	$	100.0
Senior unsecured notes		—		—		200.0		200.0
Capital lease obligations		—		0.6		17.0		17.6
Other obligations		1.4		—		—		1.4

Total debt	$	1.4	$	0.6	$	317.0	$	319.0


Description of Obligation
As of December 31, 2009	Short-Term Debt		Current Maturities		Long-Term Maturities		Total

Domestic promissory notes(1)	$	—	$	35.0	$	—	$	35.0
Domestic revolving credit facility		—		—		176.5		176.5
Capital lease obligations		—		0.4		17.1		17.5
Other obligations		2.2		0.1		0.2		2.5

Total debt	$	2.2	$	35.5	$	193.8	$	231.5


(1)		The domestic promissory notes matured on June 1, 2010 and were prepaid during the first quarter of 2010.

As of December 31, 2010, the aggregate amounts of required principal payments on long-term debt are as follows (in millions):


2011	$	0.6
2012		100.7
2013		0.7
2014		0.6
2015		0.6
Thereafter		214.4

As of December 31, 2010, we had outstanding borrowings of $100.0 million under our $650.0 million domestic revolving credit facility and $69.5 million was committed to standby letters of credit. The remaining $480.5 million was available for future borrowings subject to covenant limitations. The facility matures in October 2012. As of December 31, 2010, we were in compliance with all covenant requirements.

We have additional borrowing capacity through several of our foreign subsidiaries used primarily to finance seasonal borrowing needs. We had $1.4 million and $2.5 million of obligations outstanding through our foreign subsidiaries as of December 31, 2010 and 2009, respectively. Available borrowing capacity at December 31, 2010 and 2009, under foreign facilities was $10.1 million and $12.6 million, respectively.

Our domestic revolving credit facility includes a subfacility for swingline loans of up to $50.0 million and provides for the issuance of letters of credit for the full amount available under the domestic revolving credit facility. Our weighted average borrowing rate on the domestic revolving credit facility was 0.96% and 0.84% as of December 31, 2010 and 2009, respectively.

Our domestic revolving credit facility contains financial covenants relating to leverage and interest coverage. Other covenants contained in our domestic revolving credit facility restrict, among other things, mergers, asset dispositions, guarantees, debt, liens, acquisitions, investments, affiliate transactions and our ability to make restricted payments. The financial covenants require us to maintain defined levels of Consolidated Indebtedness to Adjusted EBITDA Ratio and a Cash Flow (defined as EBITDA minus capital expenditures) to Net Interest Expense Ratio. The required ratios as of December 31, 2010 are detailed below:


Consolidated Indebtedness to Adjusted EBITDA Ratio not greater than			3.5 : 1.0
Cash Flow to Net Interest Expense Ratio no less than			3.0 : 1.0

Our domestic revolving credit facility contains customary events of default. These events of default include nonpayment of principal or interest, breach of covenants or other restrictions or requirements, default on any other indebtedness or receivables securitizations (cross default), and bankruptcy. A cross default under our revolving credit facility could occur if:


	•	we fail to pay any principal or interest when due on any other indebtedness or receivables securitization of at least $40.0 million; or

	•	we are in default in the performance of, or compliance with any term of any other indebtedness or receivables securitization in an aggregate principal amount of at least $40.0 million, or any other condition exists which would give the holders the right to declare such indebtedness due and payable prior to its stated maturity.

Each of our major debt agreements contains provisions by which a default under one agreement causes a default in the others (a cross default). If a cross default under the revolving credit facility, our senior unsecured notes, or our revolving period asset securitization program were to occur, it could have a wider impact on our liquidity than might otherwise occur from a default of a single debt instrument or lease commitment.

If any event of default occurs and is continuing, lenders with a majority of the aggregate commitments may require the administrative agent to terminate our right to borrow under our domestic revolving credit facility and accelerate amounts due under our domestic revolving credit facility (except for a bankruptcy event of default, in which case such amounts will automatically become due and payable and the lenders’ commitments will automatically terminate).

On May 6, 2010, we issued $200.0 million of senior unsecured notes due May 15, 2017 bearing fixed interest at 4.90% as a result of a public offering of securities. We received proceeds of $199.8 million from the offering for a yield of 4.91%. We also paid and capitalized $1.9 million of debt issue costs related to the issuance. We pay interest on the notes semiannually on May 15 and November 15.

The notes are guaranteed, on a senior unsecured basis, by each of our domestic subsidiaries that guarantee payment by us of any indebtedness under our domestic revolving credit facility. The indenture governing the notes contains covenants that, among other things, limit our ability and the ability of the subsidiary guarantors to: create or incur certain liens; enter into certain sale and leaseback transactions; enter into certain mergers, consolidations and transfers of substantially all of our assets; and transfer certain properties. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date.

During 2008, we expanded our Tifton, Georgia manufacturing facility using the proceeds from Industrial Development Bonds (“IDBs”). We entered into a lease agreement with the owner of the property and the issuer of the IDBs, and through our lease payments fund the interest payments to investors in the IDBs. We also guaranteed the repayment of the IDBs and entered into letters of credit totaling $15.5 million to fund a potential repurchase of the IDBs in the event that investors exercised their right to tender the IDBs to the Trustee. As of December 31, 2010 and 2009, we recorded both a capital lease asset and a corresponding long-term obligation of $14.3 million related to these transactions.

Credit Rating

At December 31, 2010, our senior credit rating was Baa3, with a stable outlook, by Moody’s and BBB-, with a stable outlook, by Standard & Poor’s Rating Group (“S&P”).

Asset Securitization

Under a revolving period asset securitization arrangement (“ASA”), we are eligible to sell beneficial interests in a portion of our trade accounts receivable to participating financial institutions for cash. The current arrangement expires November 18, 2011 and is subject to renewal and contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. Our continued involvement in the transferred assets includes servicing, collection and administration of the transferred beneficial interests.

The accounts receivable sold under the ASA are high quality domestic customer accounts that have not aged significantly and the program takes into account an allowance for uncollectable accounts. The receivables represented by the retained interest that we service are exposed to the risk of loss for any uncollectible amounts in the pool of receivables sold under the ASA. The fair values assigned to the retained and transferred interests are based on the sold accounts receivable carrying value given the short term to maturity and low credit risk.

The ASA contains certain restrictive covenants relating to the quality of our accounts receivable and cross-default provisions with our Credit Agreement. The administrative agent under the ASA is also a participant in our Credit Agreement. The participating financial institution has an investment grade credit rating. We continue to evaluate its credit rating and have no reason to believe it will not perform under the ASA. As of December 31, 2010, we were in compliance with all covenant requirements.

The ASA provides for a maximum securitization amount of $100.0 million or 100% of the net pool balance as defined by the ASA. However, eligibility for securitization is limited based on the amount and quality of the qualifying accounts receivable and is calculated monthly. The beneficial interest sold cannot exceed the maximum amount even if our qualifying accounts receivable is greater than the maximum amount at any point in time. The eligible amounts available were as follows (in millions):


	For the Years Ended December 31,
	2010		2009

Eligible amount available under the ASA on qualified accounts receivable	$	100.0	$	72.5
Beneficial interest sold		—		—

Remaining amount available	$	100.0	$	72.5

Under the ASA, we pay certain discount fees to use the program and have the facility available to us. These fees relate to both the used and unused portions of the securitization. The used fee is based on the beneficial interest sold and calculated on the average floating commercial paper rate determined by the purchaser of the beneficial interest, plus a program fee of 0.75%. The rate as of December 31, 2010 and 2009 was 1.06% and 1.38%, respectively. The unused fee is based on 102% of the maximum available amount less the beneficial interest sold and calculated at 0.375% fixed rate throughout the term of the agreement. We recorded these fees in Selling, General and Administrative Expenses in the accompanying Consolidated Statements of Operations. The amounts recorded were as follows (in millions):


	For the Years Ended December 31,
	2010		2009		2008

Discount fees	$	0.5	$	0.7	$	0.2

Employee Benefit Plans

12 Months Ended

Dec. 31, 2010

Employee Benefit Plans [Abstract]

Employee Benefit Plans


12.	Employee Benefit Plans:

Defined Contribution Plans

We maintain noncontributory profit sharing plans for our eligible domestic and Canadian salaried employees. These plans are discretionary, as our contributions are determined annually by the Board of Directors. We also sponsor several defined contribution plans with employer contribution-matching requirements. We recorded the following (in millions):


	For the Years Ended December 31,
	2010		2009		2008

Provisions for profit sharing contributions	$	—	$	—	$	3.0
Contributions to defined contribution plans	$	12.1	$	12.4	$	1.6

Pension and Postretirement Benefit Plans

We provide pension and postretirement medical benefits to eligible domestic and foreign employees. In the third quarter of 2008, we announced that we were freezing our defined benefit pension and profit sharing plans for our domestic and Canadian salaried employees and moving to an enhanced defined contribution plan in 2009 for our domestic salaried employees and 2010 for our Canadian salaried employees. We also maintain an unfunded postretirement benefit plan, which provides certain medical and life insurance benefits to eligible employees. In 2006, we amended the postretirement benefit plan to (i) eliminate post-65 coverage for current and future nonunion retirees and (ii) gradually shift the pre-65 medical coverage cost from us to participants starting in 2007 such that by 2010, pre-65 retirees would be paying 100% of the cost. As a result of this amendment, the postretirement plan will still exist in 2010 and eligible nonunion participants will still be able to receive group coverage rates. However, we will no longer be paying any portion of the participants’ premiums.

The following tables set forth amounts recognized in our financial statements and the plans’ funded status (dollars in millions):


	Pension Benefits						Other Benefits
	2010			2009			2010			2009

Accumulated benefit obligation	$	333.2		$	296.1		$	N/A		$	N/A
Changes in projected benefit obligation:
Benefit obligation at beginning of year	$	299.4		$	284.6		$	14.4		$	14.1
Service cost		5.0			5.6			0.6			0.5
Interest cost		17.6			17.5			0.8			0.8
Plan participants’ contributions		—			—			0.8			1.0
Amendments		—			—			(0.1	)		—
Actuarial loss		34.0			9.1			2.4			1.3
Effect of exchange rates		0.4			3.9			—			—
Settlements and curtailments		(2.6	)		(2.6	)		—			(0.9	)
Benefits paid		(17.5	)		(18.7	)		(1.9	)		(2.4	)

Benefit obligation at end of year	$	336.3		$	299.4		$	17.0		$	14.4

Changes in plan assets:
Fair value of plan assets at beginning of year	$	231.1		$	174.0		$	—		$	—
Actual gain return on plan assets		27.6			33.0			—			—
Employer contribution		5.6			42.2			1.1			1.4
Plan participants’ contributions		—			—			0.8			1.0
Effect of exchange rates		0.4			3.0			—			—
Plan settlements		(2.6	)		(2.4	)		—			—
Benefits paid		(17.5	)		(18.7	)		(1.9	)		(2.4	)

Fair value of plan assets at end of year		244.6			231.1			—			—

Funded status / net amount recognized	$	(91.7	)	$	(68.3	)	$	(17.0	)	$	(14.4	)

Net amount recognized consists of:
Current liability	$	(3.6	)	$	(1.6	)	$	(1.1	)	$	(1.0	)
Non-current liability		(88.1	)		(66.7	)		(15.9	)		(13.4	)

Net amount recognized	$	(91.7	)	$	(68.3	)	$	(17.0	)	$	(14.4	)

Included in the Non-Current Pension Liability on the Consolidated Balance Sheets were plans with an over-funded position of $0.1 million as of December 31, 2010 and 2009 (in millions).


	For the Years Ended
	December 31,
	2010		2009

Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$	335.6	$	298.7
Accumulated benefit obligation		332.5		295.4
Fair value of plan assets		243.8		230.3

Our U.S.-based pension plans comprised approximately 88.7% of the projected benefit obligation and 88.9% of plan assets as of December 31, 2010.


	Pension Benefits									Other Benefits
	2010			2009			2008			2010			2009			2008

Components of net periodic benefit cost as of December 31:
Service cost	$	5.0		$	5.6		$	6.8		$	0.6		$	0.5		$	0.8
Interest cost		17.6			17.5			16.4			0.8			0.8			0.8
Expected return on plan assets		(19.5	)		(16.7	)		(17.6	)		—			—			—
Amortization of prior service cost		0.5			0.5			0.6			(1.9	)		(1.9	)		(1.9	)
Recognized actuarial loss		5.1			8.9			4.6			1.2			1.2			1.1
Settlements and curtailments		1.4			1.0			3.1			—			(0.6	)		—

Net periodic benefit cost	$	10.1		$	16.8		$	13.9		$	0.7		$	—		$	0.8

The following table sets forth amounts recognized in AOCI in our financial statements for 2010 and 2009 (in millions):


	Pension Benefits						Other Benefits
	2010			2009			2010			2009

Amounts recognized in other comprehensive income (loss):
Prior service costs	$	(3.5	)	$	(4.0	)	$	14.7		$	16.5
Actuarial loss		(176.2	)		(156.6	)		(19.8	)		(18.7	)

Subtotal		(179.7	)		(160.6	)		(5.1	)		(2.2	)
Deferred taxes		66.2			58.6			1.9			0.8

Net amount recognized	$	(113.5	)	$	(102.0	)	$	(3.2	)	$	(1.4	)

Changes recognized in other comprehensive income (loss):
Current year prior service costs	$	—		$	—			(0.1	)	$	—
Current year actuarial loss (gain)		25.8			(7.5	)		2.4			0.5
Effect of exchange rates		0.3			1.5			—			—
Amortization of prior service (costs) credits		(0.5	)		(0.5	)		1.9			2.5
Amortization of actuarial loss		(6.5	)		(9.9	)		(1.3	)		(1.3	)

Total recognized in other comprehensive income	$	19.1		$	(16.4	)	$	2.9		$	1.7

Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	29.2		$	0.4		$	3.6		$	1.7

The estimated prior service (costs) credits and actuarial gains (losses) that will be amortized from AOCI in 2011 are $(0.5) million and $(9.5) million, respectively, for pension benefits and $1.9 million and $(1.2) million, respectively, for other benefits.

The following tables set forth the weighted-average assumptions used to determine Benefit Obligations and Net Periodic Benefit Cost for the U.S.-based plans in 2010 and 2009:


	Pension Benefits						Other Benefits
	2010			2009			2010			2009

Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate		5.45	%		6.07	%		5.30	%		5.95	%
Rate of compensation increase		4.23			4.23			—			—


	Pension Benefits									Other Benefits
	2010			2009			2008			2010			2009			2008

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate		6.07	%		6.27	%		6.48	%		5.95	%		6.42	%		6.36	%
Expected long-term return on plan assets		8.00			8.25			8.25			—			—			—
Rate of compensation increase		4.23			4.19			4.34			—			—			—

The following tables set forth the weighted-average assumptions used to determine Benefit Obligations and Net Periodic Benefit Cost for the non-U.S.-based plans in 2010 and 2009:


	Pension Benefits
	2010			2009

Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate		5.43	%		5.98	%
Rate of compensation increase		3.94			3.98


	Pension Benefits
	2010			2009			2008

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate		5.98	%		6.57	%		5.60	%
Expected long-term return on plan assets		5.59			6.24			6.61
Rate of compensation increase		3.98			3.90			4.22

To develop the expected long-term rate of return on assets assumption for the U.S. plans, we considered the historical returns and the future expectations for returns for each asset category, as well as the target asset allocation of the pension portfolio and the effect of periodic rebalancing. These results were adjusted for the payment of reasonable expenses of the plan from plan assets. This resulted in the selection of the 8.00% long-term rate of return on assets assumption. A similar process was followed for the non-U.S.-based plans.

To select a discount rate for the purpose of valuing the plan obligations for the U.S. plans, we performed an analysis in which the duration of projected cash flows from defined benefit and retiree healthcare plans were matched with a yield curve based on the appropriate universe of high-quality corporate bonds that were available. We used the results of the yield curve analysis to select the discount rate that matched the duration and payment stream of the benefits in each plan. This resulted in the selection of the 5.47% discount rate assumption for the U.S. qualified pension plans, 5.28% for the U.S. non-qualified pension plans, and 5.30% for the other benefits. A similar process was followed for the non-U.S.-based plans.


	2010			2009

Assumed health care cost trend rates as of December 31:
Health care cost trend rate assumed for next year		8.50	%		8.75	%
Rate to which the cost rate is assumed to decline (the ultimate trend rate)		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate		2020			2017

Assumed health care cost trend rates have a significant effect on the amounts reported for our healthcare plan. A one percentage-point change in assumed healthcare cost trend rates would have the following effects (in millions):


	1-Percentage-		1-Percentage-
	Point Increase		Point Decrease

Effect on total of service and interest cost	$	0.2	$	(0.2	)
Effect on the postretirement benefit obligation		1.6		(1.4	)

Expected future benefit payments are shown in the table below (in millions):


	Years Ended December 31,
	2011		2012		2013		2014		2015		2016- 2020

Pension benefits	$	18.4	$	16.9	$	18.7	$	17.9	$	19.0	$	103.6
Other benefits		1.1		1.1		1.1		1.2		1.2		7.1

We believe that by adequately diversifying the plan assets, asset returns can be optimized at an acceptable level of risk. Since equity securities have historically generated higher returns than fixed income securities and the plan is not fully funded, we believe it is appropriate to allocate more assets to equities than fixed income securities. In addition, these categories are further diversified among various asset classes including high yield and emerging markets debt, and international and emerging markets equities in order to avoid significant concentrations of risk. Our U.S. pension plan represents approximately 90%, our Canadian pension plan approximately 6%, and our United Kingdom (“U.K.”) pension plan approximately 4% of the total fair value of our plan assets as of December 31, 2010.

Our U.S. pension plans’ weighted-average asset allocations as of December 31, 2010 and 2009, by asset category, are as follows:


	Plan Assets as of December 31,
Asset Category	2010			2009

U.S. equity		33.1	%		33.2	%
International equity		28.5			25.8
Fixed income		36.8			36.8
Money market/cash/guaranteed investment contracts		1.6			4.2

Total		100.0	%		100.0	%

U.S. pension plan investments are invested within the following range targets:


Asset Category	Target

U.S. equity		36.0	%
International equity		24.0	%
Fixed income		38.0	%
Money market/cash/guaranteed investment contracts		2.0	%

Our Canadian pension plan is invested in only one asset, which is a balanced fund that maintains diversification among various asset classes, including Canadian common stocks, bonds and money market securities, U.S. equities, other international equities and fixed income investments. Our U.K. pension plan was invested in a broad mix of assets consisting of U.K., U.S. and international equities, U.K. fixed income securities, including corporate and government bonds, and bank deposits.

The fair values of our pension plan assets, by asset category, are as follows:


	Fair Value Measurements as of
	December 31, 2010
			Significant
	Quoted Prices in		Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

Assets Category:
Cash and cash equivalents	$	3.9	$	—	$	—	$	3.9
Commingled pools / Collective Trusts
U.S. equity(1)		—		33.7		—		33.7
International equity(2)		—		53.8		—		53.8
Fixed income(3)		—		74.0		—		74.0
Mutual funds
U.S. equity(4)		38.2		—		—		38.2
International equity(4)		6.5		—		—		6.5
Fixed income(5)		6.2		—		—		6.2
Balanced pension trust(6)
U.S. equity		—		2.1		—		2.1
International equity		—		7.4		—		7.4
Bonds		—		5.3		—		5.3
Pension fund
U.S. equity(7)		—		1.1		—		1.1
International equity(7)		—		5.7		—		5.7
Fixed income(8)		—		4.1		—		4.1
Money market instruments(9)		—		0.8		—		0.8
Guaranteed investment contracts		—		1.8		—		1.8

Total	$	54.8	$	189.8	$	—	$	244.6


	Fair Value Measurements as of
	December 31, 2009
			Significant
	Quoted Prices in		Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

Assets Category:
Cash and cash equivalents	$	8.9	$	—	$	—	$	8.9
Commingled pools / Collective Trusts
U.S. equity(1)		—		45.5		—		45.5
International equity(2)		—		47.2		—		47.2
Fixed income(3)		—		69.7		—		69.7
Mutual funds
U.S. equity(4)		23.0		—		—		23.0
International equity(4)		6.0		—		—		6.0
Fixed income(5)		6.0		—		—		6.0
Balanced pension trust(6)
U.S. equity		—		2.0		—		2.0
International equity		—		7.0		—		7.0
Bonds		—		5.1		—		5.1
Guaranteed investment contracts		—		10.7		—		10.7

Total	$	43.9	$	187.2	$	—	$	231.1

Additional information about assets measured at Net Asset Value (“NAV”) per share (in millions):


	As of December 31, 2010
			Redemption Frequency	Redemption Notice
	Fair Value		(if currently eligible)	Period

Assets Category:
Commingled pools / Collective Trusts
U.S. equity(1)	$	33.7	n/a	n/a
International equity(2)		53.8	Monthly	10 — 15 days
Fixed income(3)		74.0	Quarterly	15 days
Mutual funds
U.S. equity(4)		38.2	n/a	n/a
International equity(4)		6.5	n/a	n/a
Fixed income(5)		6.2	n/a	n/a
Balanced pension trust(6)
U.S. equity		2.1	Daily	5 days
International equity		7.4	Daily	5 days
Bonds		5.3	Daily	5 days
Pension fund
U.S. equity(7)		1.1	Daily	7 days
International equity(7)		5.7	Daily	7 days
Fixed income(8)		4.1	Daily	7 days
Money market instruments(9)		0.8	Daily	7 days

Total	$	238.9

As of December 31, 2009

Redemption Frequency

Redemption Notice

Fair Value

(if currently eligible)

Period

Assets Category:

Commingled pools / Collective Trusts

U.S. equity(1)

45.5

Daily

4 days

International equity(2)

47.2

Daily, Monthly

4 — 15 days

Fixed income(3)

69.7

Quarterly

15 days

Mutual funds

U.S. equity(4)

23.0

n/a

International equity(4)

6.0

n/a

Fixed income(5)

6.0

n/a

Balanced pension trust(6)

U.S. equity

2.0

Daily

5 days

International equity

7.0

Daily

5 days

Bonds

5.1

Daily

5 days

Total

211.5


(1)		This category includes investments primarily in U.S. equity securities that include large, mid and small capitalization companies.

(2)		This category includes investments primarily in Non-U.S. equity securities that include large, mid and small capitalization companies in large developed markets as well as emerging markets equities.

(3)		This category includes investments in U.S. investment grade and high yield fixed income securities, non-U.S. fixed income securities and emerging markets fixed income securities.

(4)		These funds seek capital appreciation and generally invest in common stocks of U.S. and Non-U.S. issuers. They may invest in growth stocks or value stocks.

(5)		This fund seeks to provide inflation protection. It currently invests at least 80% of its assets in inflation-indexed bonds issued by the U.S. government. It may invest in bonds of any maturity, though the fund typically maintains a dollar-weighted average maturity of 7 to 20 years.

(6)		The investment objectives of the fund are to provide long-term capital growth and income by investing primarily in a well-diversified, balanced portfolio of Canadian common stocks, bonds and money market securities. The fund also holds a portion of its assets in U.S. and non-U.S. equities.

(7)		This category includes investments in U.S. and Non-U.S. equity securities and aims to provide returns consistent with the markets in which it invests and provide broad exposure to countries around the world.

(8)		This category includes investments in U.K. government index-linked securities (index-linked gilts) that have maturity periods of 5 years or longer and investment grade corporate bonds denominated in sterling.

(9)		This fund invests in U.K. money market instruments and includes cash, bank deposits and short-term fixed interest investments.

The majority of our commingled pool /collective trust, mutual funds and balanced pension trusts are managed by professional investment advisors. The NAVs per share are furnished in monthly and/or quarterly statements received from the investment advisors and reflect valuations based upon their pricing policies. We have assessed the classification of the inputs used to value these investments at Level 1 for mutual funds and Level 2 for commingled pool / collective trusts and balance pension trusts through examination of their pricing policies and the related controls and procedures. The fair values we report are based on the pool or trust’s NAV per share. The NAV’s per share are calculated periodically (daily or no less than one time per month) as the aggregate value of each pool or trust’s underlying assets divided by the number of units owned.

See Note 20 for information about our fair value hierarchies and valuation techniques.

Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2010

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans


15.	Stock-Based Compensation Plans:

Stock-Based Compensation expense is included in SG&A Expenses in the accompanying Consolidated Statements of Operations as follows (in millions):


	For the Years Ended December 31,
	2010		2009		2008

Compensation expense(1)	$	15.4	$	12.8	$	11.8


(1)		Stock-Based Compensation expense is recorded in our Corporate and other business segment.

Excess tax benefits classified as a financing cash inflow in the accompanying Consolidated Statements of Cash Flows were as follows (in millions):


	For the Years Ended December 31,
	2010		2009		2008

Excess tax benefits	$	5.3	$	4.9	$	11.0

Incentive Plan

Under the Lennox International Inc. 2010 Incentive Plan, as amended and restated (the “2010 Incentive Plan”), we are authorized to issue awards for 24,254,706 shares of common stock. As of December 31, 2010, awards for 20,478,607 shares of common stock had been granted, net of cancellations and repurchases. Consequently, as of December 31, 2010, there were 3,776,099 shares available for future issuance.

The 2010 Incentive Plan provides for various long-term incentive awards, which include stock options, performance share units, restricted stock units and stock appreciation rights. A description of these long-term incentive awards and related activity within each award category is provided below.

Performance Share Units

Total compensation expense for performance share units was $4.1 million, $1.8 million and $3.4 million for the years ended December 31, 2010, 2009 and 2008, respectively. The weighted-average fair value of performance share units granted during the years ended December 31, 2010, 2009 and 2008 was $44.85, $35.26 and $26.83 per share, respectively.

Under the 2010 Incentive Plan, performance share units are granted to certain employees at the discretion of the Board of Directors with a three-year performance period beginning January 1st of each year. Upon meeting the performance and vesting criteria, performance share units are converted to an equal number of shares of our common stock. Outstanding awards granted prior to 2003 vest after ten years of service at the target amount.

Performance share units vest if, at the end of the three-year performance period, at least the threshold performance level has been attained. To the extent that the payout level attained is less than 100%, the difference between 100% and the units earned and distributed will be forfeited. Eligible participants may also earn additional units of our common stock, which would increase the potential payout from 101% to 200% of the units granted, depending on LII’s performance over the three-year performance period. The payout level for shares paid during years ended December 31, 2010, 2009 and 2008 was 127.68%, 200% and 200%, respectively.

Performance share units under the 2010 Incentive Plan are classified as equity awards, with the fair value of each unit equal to the average of the high and low market price of the stock on the date of grant for units granted prior to December 2007. The fair value of units granted after December 2007 is the average of the high and low market price of the stock on the date of grant discounted by the expected dividend rate over the service period. Units are amortized to expense ratably over the service period. The compensation expense for any additional units which may be earned is estimated each reporting period based on the fair value of the stock at the date of grant. The number of units expected to be earned will be adjusted, as necessary, to reflect the actual number of units awarded.

A summary of the status of our undistributed performance share units as of December 31, 2010, and changes during the year then ended, is presented below (in millions, except per share data):


	Year Ended December 31, 2010
				Weighted-Average
				Grant Date
	Shares			Fair Value per Share

Undistributed performance share units:
Undistributed as of December 31, 2009		1.0		$	28.68
Granted		0.2			44.85
Additional shares earned		—			30.85
Distributed		(0.3	)		27.07
Forfeited		(0.1	)		22.52

Undistributed as of December 31, 2010(1)		0.8			33.90


(1)		Undistributed performance share units as of December 31, 2010 include approximately 0.8 million units with a weighted-average grant date fair value of $33.90 per share that had not yet vested.

As of December 31, 2010, we had $12.6 million of total unrecognized compensation cost related to nonvested performance share units. Such cost is expected to be recognized over a weighted-average period of 2.4 years. Our estimated forfeiture rate for performance share units was 20.5% as of December 31, 2010.

The total fair value of performance share units distributed and the resulting tax deductions to realize tax benefits were as follows (in millions):


	For the Years Ended
	December 31,
	2010		2009		2008

Fair value of performance share units distributed	$	13.2	$	9.6	$	28.2
Realized tax benefits from tax deductions		5.0		3.7		10.7

Our practice is to issue new shares of common stock to satisfy performance share unit distributions.

Restricted Stock Units

Total compensation expense for restricted stock units was $6.6 million, $6.6 million and $4.6 million for the years ended December 31, 2010, 2009 and 2008, respectively. The weighted-average fair value of restricted stock units granted during the years ended December 31, 2010, 2009 and 2008 was $44.80, $35.09 and $27.48 per share, respectively.

Under the 2010 Incentive Plan, restricted stock units are issued to attract and retain key employees. Generally, at the end of a three-year retention period, the units will vest and be distributed in shares of our common stock to the participant.

Restricted stock units under the 2010 Incentive Plan are classified as equity awards, with the fair value of each unit equal to the average of the high and low market price of the stock on the date of grant for units granted prior to December 2007. The fair value of units granted after December 2007 is the average of the high and low market price of the stock on the date of grant discounted by the expected dividend rate over the service period. Units are amortized to compensation expense ratably over the service period.

A summary of the status of our nonvested restricted stock units as of December 31, 2010 and changes during the year then ended is presented below (in millions, except per share data):


	Year Ended December 31, 2010
				Weighted-Average
				Grant Date
	Shares			Fair Value per Share

Nonvested restricted stock units:
Nonvested as of December 31, 2009		0.7		$	31.14
Granted		0.2			44.80
Vested		(0.2	)		32.96
Forfeited		(0.1	)		30.90

Nonvested as of December 31, 2010		0.6			34.44

As of December 31, 2010, we had $13.0 million of total unrecognized compensation cost related to nonvested restricted stock units. Such cost is expected to be recognized over a weighted-average period of 2.4 years. Our estimated forfeiture rate for restricted stock units was 16.7% as of December 31, 2010.

The total fair value of restricted stock units vested and the resulting tax deductions to realize tax benefits were as follows (in millions):


	For the Years Ended December 31,
	2010		2009		2008

Fair value of restricted stock units vested	$	9.4	$	8.3	$	6.4
Realized tax benefits from tax deductions		3.6		3.2		2.4

Our practice is to issue new shares of common stock to satisfy restricted stock unit vestings.

Stock Appreciation Rights

Total compensation expense for stock appreciation rights was $4.7 million, $4.4 million and $3.8 million for the years ended December 31, 2010, 2009 and 2008, respectively. The weighted-average fair value of stock appreciation rights granted during the years ended December 31, 2010, 2009 and 2008 was $13.75, $10.96 and $6.84 per share, respectively.

In 2003, we began awarding stock appreciation rights. Each recipient is given the “right” to receive a value equal to the future appreciation of our common stock price. The value is paid in shares of our common stock. Stock appreciation rights generally vest in one-third increments beginning on the first anniversary date after the grant date, and expire after seven years.

Compensation expense for stock appreciation rights granted is based on the fair value on the date of grant and is recognized over the service period. The fair value for these awards is estimated using the Black-Scholes-Merton valuation model. We use historical stock price data and other pertinent information to estimate the expected volatility and the outstanding period of the award for separate groups of employees that have similar historical exercise behavior to estimate expected life. The risk-free interest rate was based on zero-coupon U.S. Treasury instruments with a remaining term equal to the expected life of the stock appreciation right at the time of grant.

The fair value of each stock appreciation right granted in 2010, 2009 and 2008 is estimated on the date of grant using the following assumptions:


	For the Years Ended
	December 31,
	2010			2009			2008

Expected dividend yield		1.46	%		1.57	%		2.05	%
Risk-free interest rate		1.46	%		1.78	%		1.40	%
Expected volatility		39.93	%		39.81	%		34.08	%
Expected life (in years)		4.04			4.12			4.18

A summary of stock appreciation rights activity are as follows (in millions, except per share data):


	Years Ended December 31,
	2010					2009					2008
				Weighted-					Weighted-					Weighted-
				Average					Average					Average
				Exercise					Exercise					Exercise
				Price per					Price per					Price per
	Shares			Share		Shares			Share		Shares			Share

Outstanding at beginning of year		2.9		$	31.06		2.7		$	29.59		2.2		$	29.14
Granted		0.5			46.78		0.6			36.94		1.0			28.36
Exercised		(0.7	)		27.20		(0.2	)		28.31		(0.3	)		21.68
Forfeited		(0.2	)		31.97		(0.2	)		30.59		(0.2	)		32.68

Outstanding at end of year		2.5		$	34.89		2.9		$	31.06		2.7		$	29.59

Exercisable at end of year		1.5		$	31.81		1.6		$	29.58		1.1		$	28.65

The following table summarizes information about stock appreciation rights outstanding as of December 31, 2010 (in millions, except per share data and years):

Stock Appreciation Rights Outstanding

Stock Appreciation Rights Exercisable

Weighted-Average

Remaining

Range of Exercise

Contractual Term

Aggregate Intrinsic

Contractual Life

Aggregate Intrinsic

Prices per Share

(in years)

Value

(in years)

Value

$16.76-$46.78

31.3

22.6

As of December 31, 2010, we had $10.2 million of unrecognized compensation cost related to nonvested stock appreciation rights. Such cost is expected to be recognized over a weighted-average period of 2.3 years. Our estimated forfeiture rate for stock appreciation rights was 18% as of December 31, 2010.

The total intrinsic value of stock appreciation rights exercised and the resulting tax deductions to realize tax benefits were as follows (in millions):


	For the Years Ended
	December 31,
	2010		2009		2008

Intrinsic value of stock appreciation rights exercised	$	10.1	$	1.5	$	5.5
Realized tax benefits from tax deductions		3.9		0.6		2.1

Our practice is to issue new shares of common stock to satisfy the exercise of stock appreciation rights.

Restructuring Charges

12 Months Ended

Dec. 31, 2010

Restructuring Charges [Abstract]

Restructuring Charges


16.	Restructuring Charges:

As part of our strategic priorities of manufacturing and sourcing excellence and expense reduction, we have initiated various manufacturing rationalization actions designed to lower our cost structure. We also continue to reorganize our North American distribution network in order to better serve our customers’ needs by deploying parts and equipment inventory closer to them. We have also initiated a number of activities that rationalize and reorganize various support and administrative functions to reduce ongoing selling and administrative expenses.

Information on Total Restructuring Charges and Related Reserves

Restructuring charges incurred include the following amounts (in millions):


	For the Years Ended
	December 31,
	2010		2009		2008(1)

Manufacturing rationalizations	$	11.1	$	30.1	$	19.7
Reorganization of distribution network		0.1		0.1		2.9
Reorganizations of corporate and business unit administrative functions		4.4		11.3		7.8

Total	$	15.6	$	41.5	$	30.4


(1)		Restructuring charges for manufacturing rationalizations included pension curtailment charges of $0.9 million for 2008 have not been reflected in restructuring reserves as these items relate to our pension obligation. These amounts also include pension settlement charges of $0.2 million in 2008.

The components of the $15.6 million of restructuring charges recorded in 2010 are discussed in greater detail in later sections of this footnote.

In 2009, restructuring charges for manufacturing rationalizations included $9.7 million related to the consolidation of Residential Heating & Cooling manufacturing operations from Blackville, South Carolina into our operations in Orangeburg, South Carolina and Saltillo, Mexico. Manufacturing rationalizations recorded in 2009 also included $7.8 million of charges related to the consolidation of certain Refrigeration manufacturing operations located in Parets, Spain into our existing operations in Genas, France. Restructuring charges for manufacturing rationalizations recorded in 2009 also included $7.7 million related to the consolidation of certain Commercial Heating & Cooling manufacturing operations located in Mions, France into our existing manufacturing operations in Longvic, France. Restructuring charges for manufacturing rationalizations recorded in 2009 also included $2.1 million related to the closure of our Refrigeration operations in Danville, Illinois and consolidate Danville manufacturing, support, and warehouse functions into our Tifton, Georgia and Stone Mountain, Georgia operations and $1.1 million related to the transition of production of selected Refrigeration products currently manufactured in Milperra, Australia to its sister facility in Wuxi, China.

In 2009, restructuring charges related to reorganizations of corporate and business unit selling and administrative functions included $3.9 million related to reorganization of Commercial Heating & Cooling’s selling and administrative functions in Northern Europe through a series of restructuring actions. Reorganizations of corporate and business unit selling and administrative functions in 2009 also included charges of $1.9 million related to the relocation of Residential Heating & Cooling factory-built fireplace headquarters from Orange, California to Nashville, Tennessee and the consolidation of customer and technical service departments into our existing hearth products plant in Union City, Tennessee. Restructuring charges in 2009 for corporate and business unit selling and administrative functions also included $1.9 million related to the reorganization of the management structure of our Refrigeration administrative and support functions across the globe. Restructuring charges recorded in 2009 also included $1.8 million related to the centralization of certain Service Experts administrative and support functions and $1.1 million related to the reorganization of our Commercial Heating & Cooling selling and administrative organization in the United States and Canada.

In 2008, restructuring charges for manufacturing rationalizations included $9.8 million related to the closure of our Refrigeration operations in Danville, Illinois and consolidation of manufacturing, support and warehouse functions in our Tifton, Georgia and Stone Mountain, Georgia operations. Manufacturing rationalizations also included charges of $3.4 million related to the transition of production of certain Residential Heating & Cooling products from our Marshalltown, Iowa manufacturing facility to our new manufacturing operations in Saltillo, Mexico and $3.1 million related to the transition of production of selected Refrigeration products manufactured in Milperra, Australia to its sister facility in Wuxi, China. We also recorded $1.6 million in restructuring charges related to the closure of Lennox Hearth Products Inc.’s operations in Lynwood, California, part of our Residential Heating & Cooling operations, and the consolidation of our U.S. factory-built fireplace manufacturing operations into our facility in Union City, Tennessee.

In 2008, restructuring charges for reorganizations of corporate and business unit administrative functions included $4.1 million related to the reorganization of the Northern European sales support and administrative functions of the Commercial business unit and $1.1 million in charges related to the rationalization of our corporate administrative functions, primarily in the human resources and information technology areas.

Restructuring reserves are included in Accrued Expenses in the accompanying Consolidated Balance Sheets. The table below details activity within the restructuring reserves for the years ended December 31, 2010 and 2009 (in millions):


	Balance as of		Charged								Balance as of
	December 31,		to		Cash			Non-Cash			December 31,
Description of Reserves	2009		Earnings		Utilization			Utilization and Other			2010

Severance and related expense	$	21.1	$	9.0	$	(22.5	)	$	(1.4	)	$	6.2
Asset write-offs and accelerated depreciation		—		2.6		—			(2.6	)		—
Equipment moves		—		0.8		(0.8	)		—			—
Lease termination		0.3		0.5		(0.5	)		—			0.3
Other(1)		0.8		2.7		(2.8	)		—			0.7

Total restructuring reserves	$	22.2	$	15.6	$	(26.6	)	$	(4.0	)	$	7.2


(1)		Charges classified as ‘Other’ include $1.0 million third-party services related to restructuring activities and $0.8 million of facilities clean-up and demolition costs.


	Balance as of		Charged					Non-Cash			Balance as of
	December 31,		to		Cash			Utilization and			December 31,
Description of Reserves	2008		Earnings		Utilization			Other			2009

Severance and related expense	$	9.3	$	27.8	$	(16.0	)	$	—		$	21.1
Asset write-offs and accelerated depreciation		—		7.7		—			(7.7	)		—
Equipment moves		—		1.5		(1.4	)		(0.1	)		—
Lease termination		0.6		0.8		(1.1	)		—			0.3
Other(1)		1.0		3.7		(4.4	)		0.5			0.8

Total restructuring reserves	$	10.9	$	41.5	$	(22.9	)	$	(7.3	)	$	22.2


(1)		Charges classified as ‘Other’ include $1.7 million of manufacturing inefficiencies, $0.8 million third-party services related to restructuring activities and $0.7 million of facilities clean-up and demolition costs.

Manufacturing Rationalization Activities

Information regarding the restructuring charges related to manufacturing rationalizations is as follows (in millions):


	Charges		Charges		Total Charges
	Incurred in		Incurred to		Expected to be
	2010		Date		Incurred

Severance and related expense	$	6.0	$	31.2	$	31.2
Asset write-offs and accelerated depreciation		2.1		10.5		10.5
Equipment moves		0.6		2.7		3.6
Other		2.4		6.2		8.4

Total	$	11.1	$	50.6	$	53.7

Restructuring expense for significant manufacturing rationalization activities related to the following:


	•	In the third quarter of 2010, we began to exit contract coil manufacturing in our Refrigeration operations in Milperra, Australia. Total restructuring charges related to this action recorded in 2010 were $3.3 million, which was composed of severance of $2.8 million and other charges of $0.5 million. This action was primarily completed during 2010.


	•	In the first quarter of 2010, we began to exit OEM coil manufacturing in our Refrigeration operations in Milperra, Australia. Total restructuring charges related to this action recorded in 2010 were $5.3 million, which was composed of severance of $4.0 million, asset write-offs of $1.1 million and other charges of $0.2 million. This action was completed during 2010.

	•	In the fourth quarter of 2009, we began the consolidation of certain Refrigeration manufacturing operations located in Parets, Spain into our existing operations in Genas, France. During 2010 we recorded restructuring charges totaling $1.4 million, primarily composed of equipment move costs, severance and other plant closure costs. This action was completed during 2010.

	•	In the first quarter of 2009, we began the consolidation of Residential Heating & Cooling manufacturing operations from Blackville, South Carolina into our operations in Orangeburg, South Carolina and Saltillo, Mexico. Total restructuring charges recorded related to this action in 2010 were $1.4 million, primarily composed of equipment move costs, accelerated depreciation, severance and other plant closure costs. The consolidation is expected to be completed during the fourth quarter of 2011.

	•	Additionally, during 2010, we reversed $0.8 million of restructuring severance charges related to the consolidation of certain Commercial Heating & Cooling manufacturing operations located in Mions, France into our existing manufacturing operations in Longvic, France to adjust estimated amounts to actual.

Reorganization of Distribution Network

In the fourth quarter of 2008, we commenced the transition of activities currently performed at our North American Parts Center in Des Moines, Iowa to other locations, including our North American Distribution Center in Marshalltown, Iowa. We incurred $0.1 million of restructuring charges, which was composed of severance, during 2010 related to this transition. To date, we have incurred $3.2 million, which was composed primarily of severance, and we expect the total cost to be $3.6 million related to this restructuring activity. The total cost of this restructuring activity will be composed of severance of $2.6 million, equipment moving costs of $0.3 million and other costs of $0.7 million. The transition is expected to be completed in the fourth quarter of 2011.

Reorganizations of Corporate and Business Unit Administrative Functions

Information regarding the restructuring charges related to the reorganization of the support and administrative functions is as follows (in millions):


	Charges		Charges		Total Charges
	Incurred in		Incurred to		Expected to be
	2010		Date		Incurred

Severance and related expense	$	2.8	$	23.4	$	23.4
Asset write-offs and accelerated depreciation		0.6		1.4		1.4
Lease termination		0.7		2.4		2.4
Other		0.3		0.9		0.9

Total	$	4.4	$	28.1	$	28.1

We incurred costs related to the following significant restructuring actions in our support and administrative activities:


	•	In the fourth quarter of 2010, we began to reorganize the management structure of our Service Experts business. Restructuring charges recorded in 2010 related to his action, totaled $1.1 million and was primarily composed of severance. Total anticipated restructuring charges related to this action are expected to total $1.1 million and consist principally of severance. We anticipate that this action will be completed in the third quarter of 2011.


	•	During the second quarter of 2010, we reorganized certain administrative operations of an acquired company within our Service Experts segment. Restructuring charges recorded in 2010 related to his action, totaled $1.0 million and was primarily composed of asset write-offs and lease termination costs. This action was completed during 2010.

	•	In the third quarter of 2009, we initiated the relocation of Residential Heating & Cooling factory-built fireplace headquarters from Orange, California to Nashville, Tennessee and the consolidation of customer and technical service departments into our existing hearth products plant in Union City, Tennessee. As a result of this action, we recorded restructuring charges of $1.8 million during 2010, which primarily consisted of employee relocation and lease termination costs. Total restructuring charges related to this action totaled $3.8 million and consisted principally of severance, recruiting, relocation costs and lease termination costs. We completed this action during 2010.

	•	During 2009 and 2008, we reorganized various administrative functions in our Commercial Heating & Cooling and Refrigeration segments. As a result of these actions, we recorded restructuring severance charges of $0.4 million during 2010. These actions were completed during 2010.

Reportable Business Segments

12 Months Ended

Dec. 31, 2010

Reportable Business Segments [Abstract]

Reportable Business Segments


19.	Reportable Business Segments:

We operate in four reportable business segments of the HVACR industry. Our segments are organized primarily by the nature of the products and services provided. The table below details the nature of the operations of each reportable segment:


Segment	Product or Services	Markets Served	Geographic Areas

Residential Heating & Cooling	Heating Air Conditioning Hearth Products	Residential Replacement Residential New Construction	United States Canada
Commercial Heating & Cooling	Rooftop Products Chillers Air Handlers	Light Commercial	United States Canada Europe
Service Experts	Equipment Sales Installation Maintenance Repair	Residential Light Commercial	United States Canada
Refrigeration	Unit Coolers Condensing Units Other Commercial Refrigeration Products	Light Commercial Food Preservation and Non-Food/Industrial	United States Canada Europe Asia Pacific South America

Transactions between segments, such as products sold to Service Experts by the Residential Heating & Cooling segment, are recorded on an arm’s-length basis using the market price for these products. The eliminations of these intercompany sales and any associated profit are noted in the reconciliation of segment results to the income from continuing operations before income taxes below.

We use segment profit or loss as the primary measure of profitability to evaluate operating performance and to allocate capital resources. We define segment profit or loss as a segment’s income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations excluding certain items. See the reconciliation of segment profit to Income from Continuing Operations Before Income Taxes below for more detail on the items excluded from segment profit.

Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Corporate costs also include the long-term share-based incentive awards provided to employees throughout LII. We recorded these share-based awards as Corporate costs as they are determined at the discretion of the Board of Directors and based on the historical practice of doing so for internal reporting purposes.

Net sales and segment profit (loss) by business segment, along with a reconciliation of segment profit to Income from Continuing Operations Before Income Taxes are shown below (in millions):


	For the Years Ended December 31,
	2010			2009			2008

Net Sales
Residential Heating & Cooling	$	1,417.4		$	1,293.5		$	1,493.4
Commercial Heating & Cooling		620.0			594.6			835.3
Service Experts		590.3			535.4			586.3
Refrigeration		550.9			512.7			618.2
Eliminations(1)		(82.2	)		(88.7	)		(92.1	)

	$	3,096.4		$	2,847.5		$	3,441.1

Segment Profit (Loss)(2)
Residential Heating & Cooling	$	132.3		$	111.7		$	145.8
Commercial Heating & Cooling		69.3			49.3			93.3
Service Experts		19.3			16.6			18.5
Refrigeration		61.4			48.9			60.2
Corporate and other		(65.5	)		(62.5	)		(53.8	)
Eliminations(1)		0.2			0.5			(0.7	)

Subtotal that includes segment profit and eliminations		217.0			164.5			263.3
Reconciliation to income from continuing operations before income taxes:
Special product quality adjustments		(0.2	)		18.3			—
Items in losses (gains) and other expenses, net that are excluded from segment profit(3)		11.2			(10.9	)		5.2
Restructuring charges		15.6			41.5			30.4
Impairment of assets		—			6.4			9.1
Interest expense, net		12.8			8.2			14.2
Other expense, net		1.0			0.1			0.1

Income from continuing operations before income taxes	$	176.6		$	100.9		$	204.3


(1)		Eliminations consist of intercompany sales between business segments, such as products sold to Service Experts by the Residential Heating & Cooling segment.

(2)		We define segment profit and loss as a segment’s income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations: Excluding:

•		Special product quality adjustments.

•		Items within Losses (Gains) and Other Expenses, net that are noted in(3).

•		Restructuring charges.

•		Goodwill and equity method investment impairments.

•		Interest expense, net.

•		Other expense, net.

(3)		Items in Losses (Gains) and Other Expenses, net that are excluded from segment profit are net change in unrealized gains and/or losses on open future contracts, discount fee on accounts sold, realized gains and/or losses on marketable securities, special legal contingency charge, and other items. For more information about Losses (Gains) and Other Expenses, net see Note 22.

Included in our Residential Heating & Cooling business segment profit for 2008 is a gain on the sale of fixed assets of $4.1 million. The gains or losses in our other business segments were immaterial for 2010, 2009 and 2008.

On a consolidated basis, no revenues from transactions with a single customer were 10% or greater of our consolidated net sales for any of the periods presented.

Total assets by business segment are shown below (in millions). The assets in the Corporate and other segment are primarily comprised of cash, short-term investments and deferred tax assets. Assets recorded in the operating segments represent those assets directly associated with those segments.


	For the Years Ended
	December 31,
	2010			2009

Total Assets
Residential Heating & Cooling	$	519.8		$	484.2
Commercial Heating & Cooling		252.7			238.5
Service Experts		186.2			173.1
Refrigeration		389.7			357.5
Corporate and other		354.9			297.3
Eliminations(1)		(11.3	)		(10.3	)

Total assets		1,692.0			1,540.3
Discontinued operations (See Note 17)		—			3.6

Total assets	$	1,692.0		$	1,543.9


(1)		Eliminations consist of net intercompany receivables and intercompany profit included in inventory from products sold between business segments, such as products sold to Service Experts by the Residential Heating & Cooling segment.

Total capital expenditures by business segment are shown below (in millions):


	For the Years Ended
	December 31,
	2010		2009		2008

Capital Expenditures
Residential Heating & Cooling	$	19.4	$	31.7	$	33.2
Commercial Heating & Cooling		6.2		6.8		7.0
Service Experts		0.8		0.7		0.3
Refrigeration		6.9		7.4		7.6
Corporate and other		12.5		12.2		14.0

Total capital expenditures	$	45.8	$	58.8	$	62.1

Excluded from capital expenditures for 2008 are capital leases of $7.4 million relating to our Residential Heating & Cooling and $14.6 million relating to our Refrigeration business segment. There were no capital leases in 2010 and 2009.

The depreciation and amortization expense by business segment are shown below (in millions):


	For the Years Ended
	December 31,
	2010		2009		2008

Depreciation and Amortization
Residential Heating & Cooling	$	21.7	$	22.2	$	22.2
Commercial Heating & Cooling		8.0		8.0		8.2
Service Experts		2.2		1.9		1.9
Refrigeration		8.7		9.9		9.2
Corporate and other		12.9		10.9		9.1

Total depreciation and amortization	$	53.5	$	52.9	$	50.6

The equity method investees are shown below (in millions):


	For the Years Ended
	December 31,
	2010		2009		2008

Income from Equity Method Investments
Refrigeration	$	1.3	$	0.5	$	1.3
Corporate and other(1)		8.8		6.8		7.3

	$	10.1	$	7.3	$	8.6


(1)		A significant portion of income for equity method investments is allocated to our Residential Heating & Cooling and Commercial Heating & Cooling segments. We allocated $5.6 million, $5.9 million, and $4.5 million to those segments in 2010, 2009 and 2008, respectively.

The following table sets forth certain financial information relating to our operations by geographic area based on the domicile of our operations (in millions):


	For the Years Ended December 31,
	2010		2009		2008

Net Sales to External Customers by Point of Shipment
United States	$	2,255.4	$	2,033.1	$	2,429.2
Canada		336.6		327.0		363.9
International		504.4		487.4		648.0

Total net sales to external customers	$	3,096.4	$	2,847.5	$	3,441.1


	As of December 31,
	2010		2009

Property, Plant and Equipment, net
United States	$	225.5	$	232.7
Mexico		33.0		30.3
Canada		6.0		6.0
International		59.8		60.6

Total property, plant and equipment, net	$	324.3	$	329.6

Fair Value Measurements

12 Months Ended

Dec. 31, 2010

Fair Value Measurements [Abstract]

Fair Value Measurements


20.	Fair Value Measurements:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our framework for measuring fair value is established on a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities.

Fair Value Hierarchy

The three-level fair value hierarchies for disclosure of fair value measurements are defined as follows:

Level 1 — Quoted prices for identical instruments in active markets at the measurement date.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date and for the anticipated term of the instrument.

Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Fair Value Techniques

Our fair value valuation techniques are applied to all of the assets and liabilities carried at fair value. Where available, the fair values are based upon quoted prices in active markets. However, if quoted prices are not available, then the fair values are based upon quoted prices for similar assets or liabilities or independently sourced market parameters, such as credit default swap spreads, yield curves, reported trades, broker/dealer quotes, interest rates and benchmark securities. For assets and liabilities with a lack of observable market activity, if any, the fair values are based upon discounted cash flow methodologies incorporating assumptions that, in our judgment, reflect the assumptions a marketplace participant would use. To ensure that financial assets and liabilities are recorded at fair value, valuation adjustments may be required to reflect either party’s creditworthiness and ability to pay. Where appropriate, these amounts were incorporated into our valuations as of December 31, 2010 and 2009, the measurement dates.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in millions):

Fair Value Measurements on a Recurring Basis as of

December 31, 2010

Quoted Prices in

Significant

Active Markets

Other

Significant

for

Observable

Unobservable

Identical Assets

Inputs

(Level 1)

(Level 2)

(Level 3)

Total

Assets:

Investment in marketable equity securities(1)

18.0

—

18.0

Derivatives, net(2)

—

16.8

—

16.8

Fair Value Measurements on a Recurring Basis as of

December 31, 2009

Quoted Prices in

Significant

Active Markets

Other

Significant

for

Observable

Unobservable

Identical Assets

Inputs

(Level 1)

(Level 2)

(Level 3)

Total

Assets:

Investment in marketable equity securities(1)

5.4

—

5.4

Derivatives, net(2)

—

10.2

—

10.2


(1)		Investment in marketable equity securities is recorded in Other Long-Term Assets in the accompanying Consolidated Balance Sheets. See Note 6 for more information.

(2)		For more information on the recording of derivatives in the accompanying Consolidated Balance Sheets, see Note 8.

Derivatives are primarily valued using estimated future cash flows that are based directly on observed prices from exchange-traded derivatives and, therefore, have been classified as Level 2. We also take into account the counterparty’s creditworthiness, or our own creditworthiness, as appropriate.

Other Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts and notes receivable, net, accounts payable and other current liabilities approximate fair value due to the short maturities of these instruments. The fair values of each of our long-term debt instruments are based on the quoted market prices for the same issues or on the amount of future cash flows associated with each instrument using current market rates for debt instruments of similar maturities and credit risk. The estimated fair value of long-term debt (including our domestic revolving credit facility, capital lease obligations, foreign obligations and any related current maturities) was $114.6 million and $242.5 million as of December 31, 2010 and 2009, respectively. The estimated fair value of our senior unsecured notes was $203.0 million as of December 31, 2010. The fair values presented are estimates and are not necessarily indicative of amounts for which we could settle such instruments currently or indicative of our intent or ability to dispose of or liquidate them.

Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2010

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements


25.	Condensed Consolidating Financial Statements

The Company’s senior unsecured notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) while they are not by other subsidiaries (the “Non-Guarantor Subsidiaries”). As results of these guarantee arrangements, we are required to present the following condensed consolidating financial statements.

The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. Intercompany account balances have been included in Accounts and Notes Receivable, Other (Current) Assets, Other Assets, net, Short-Term Debt, Accounts Payable, and Long-Term Debt line items of the Parent, Guarantor and Non-Guarantor balance sheets. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.

Condensed consolidating financial statements of the Company, its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of December 31, 2010 and 2009 and for the for each of the fiscal years of the three-year period ended December 31, 2010 are shown below:

Condensed Consolidating Balance Sheets
As of December 31, 2010
(In millions)


				Guarantor		Non-Guarantor
	Parent			Subsidiaries		Subsidiaries		Eliminations			Consolidated

ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	81.1		$	14.7	$	64.2	$	—		$	160.0
Restricted cash		—			—		12.2		—			12.2
Accounts and notes receivable, net		(1,169.7	)		933.3		613.2		8.0			384.8
Inventories, net		—			163.7		128.7		(6.2	)		286.2
Deferred income taxes		—			27.6		12.1		(3.0	)		36.7
Other assets		19.3			21.0		121.2		(94.5	)		67.0

Total current assets		(1,069.3	)		1,160.3		951.6		(95.7	)		946.9
PROPERTY, PLANT AND EQUIPMENT, net		—			202.8		121.6		(0.1	)		324.3
GOODWILL		—			50.8		225.8		(4.8	)		271.8
DEFERRED INCOME TAXES		—			77.3		22.6		(12.7	)		87.2
OTHER ASSETS, net		2,068.3			415.6		51.8		(2,473.9	)		61.8

TOTAL ASSETS	$	999.0		$	1,906.8	$	1,373.4	$	(2,587.2	)	$	1,692.0


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	31.1		$	—	$	1.8	$	(31.5	)	$	1.4
Current maturities of long-term debt		—			0.2		0.4		—			0.6
Accounts payable		8.1			133.1		131.0		1.6			273.8
Accrued expenses		6.6			262.0		115.5		(49.6	)		334.5
Income taxes payable		(36.1	)		30.6		28.3		(17.5	)		5.3

Total current liabilities		9.7			425.9		277.0		(97.0	)		615.6
LONG-TERM DEBT		300.0			5.4		139.6		(128.0	)		317.0
POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS		—			15.9		—		—			15.9
PENSIONS		—			77.4		10.7		—			88.1
OTHER LIABILITIES		5.8			46.8		25.9		(12.8	)		65.7

Total liabilities		315.5			571.4		453.2		(237.8	)		1,102.3
COMMITMENTS AND CONTINGENCIES
TOTAL STOCKHOLDERS’ EQUITY		683.5			1,335.4		920.2		(2,349.4	)		589.7

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	999.0		$	1,906.8	$	1,373.4	$	(2,587.2	)	$	1,692.0

Condensed Consolidating Balance Sheets
As of December 31, 2009
(In millions)


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries		Eliminations			Consolidated

ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	0.8		$	6.6		$	116.9	$	—		$	124.3
Accounts and notes receivable, net		(975.0	)		775.1			558.3		(1.4	)		357.0
Inventories, net		—			139.4			113.7		(2.9	)		250.2
Deferred income taxes		—			25.4			15.8		(6.3	)		34.9
Other assets		12.2			19.1			93.0		(56.8	)		67.5

Total current assets		(962.0	)		965.6			897.7		(67.4	)		833.9
PROPERTY, PLANT AND EQUIPMENT, net		—			207.8			121.8		—			329.6
GOODWILL		—			46.7			215.4		(4.7	)		257.4
DEFERRED INCOME TAXES		—			67.3			21.2		(13.9	)		74.6
OTHER ASSETS, net		1,905.1			371.4			41.5		(2,269.6	)		48.4

TOTAL ASSETS	$	943.1		$	1,658.8		$	1,297.6	$	(2,355.6	)	$	1,543.9


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	25.1		$	—		$	2.5	$	(25.4	)	$	2.2
Current maturities of long-term debt		35.0			—			0.5		—			35.5
Accounts payable		7.9			115.4			122.7		(7.8	)		238.2
Accrued expenses		5.1			192.5			154.3		(34.0	)		317.9
Income taxes payable		(17.5	)		(21.6	)		43.2		(4.1	)		—

Total current liabilities		55.6			286.3			323.2		(71.3	)		593.8
LONG-TERM DEBT		176.5			98.8			117.4		(198.9	)		193.8
POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS		—			13.4			—		—			13.4
PENSIONS		—			56.3			10.5		(0.1	)		66.7
OTHER LIABILITIES		2.6			50.9			32.9		(14.6	)		71.8

Total liabilities		234.7			505.7			484.0		(284.9	)		939.5
COMMITMENTS AND CONTINGENCIES
TOTAL STOCKHOLDERS’ EQUITY		708.4			1,153.1			813.6		(2,070.7	)		604.4

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	943.1		$	1,658.8		$	1,297.6	$	(2,355.6	)	$	1,543.9

Condensed Consolidating Statements of Operations
For the Year Ended December 31, 2010
(In millions)


							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated

NET SALES	$	—		$	2,128.0		$	1,220.8		$	(252.4	)	$	3,096.4
COST OF GOODS SOLD		0.2			1,545.8			907.8			(249.2	)		2,204.6

Gross profit		(0.2	)		582.2			313.0			(3.2	)		891.8
OPERATING EXPENSES:
Selling, general and administrative expenses		—			480.3			205.4			—			685.7
(Gains) losses and other expenses, net		(0.6	)		6.5			4.3			—			10.2
Restructuring charges					5.7			9.9			—			15.6
(Income) loss from equity method investments		(138.8	)		(11.8	)		(10.1	)		150.6			(10.1	)

Operational income from continuing operations		139.2			101.5			103.5			(153.8	)		190.4
INTEREST (INCOME) EXPENSE, net		12.4			(3.0	)		3.4			—			12.8
OTHER EXPENSE, net		—			—			1.0			—			1.0

Income from continuing operations before income taxes		126.8			104.5			99.1			(153.8	)		176.6
(BENEFIT FROM) PROVISION FOR INCOME TAXES		(4.4	)		34.3			29.6			—			59.5

Income from continuing operations		131.2			70.2			69.5			(153.8	)		117.1
Loss from discontinued operations		—			—			0.9			—			0.9

Net income	$	131.2		$	70.2		$	68.6		$	(153.8	)	$	116.2

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Year Ended December 31, 2009
(In millions)


							Non-
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated

NET SALES	$	—		$	1,939.1		$	1,147.1		$	(238.7	)	$	2,847.5
COST OF GOODS SOLD		0.2			1,440.8			857.2			(238.8	)		2,059.4

Gross profit		(0.2	)		498.3			289.9			0.1			788.1
OPERATING EXPENSES:
Selling, general and administrative expenses		—			453.0			191.8			0.1			644.9
(Gains) losses and other expenses, net		(6.7	)		(0.7	)		0.8			—			(6.6	)
Restructuring charges		—			16.2			25.3			—			41.5
Impairment of assets		—			—			6.4			—			6.4
(Income) loss from equity method investments		(39.1	)		5.4			(7.3	)		33.7			(7.3	)

Operational income from continuing operations		45.6			24.4			72.9			(33.7	)		109.2
INTEREST (INCOME) EXPENSE, net		(0.8	)		7.2			1.9			(0.1	)		8.2
OTHER EXPENSE, net		—			—			0.1			—			0.1

Income from continuing operations before income taxes		46.4			17.2			70.9			(33.6	)		100.9
PROVISION FOR INCOME TAXES		0.2			6.3			32.2			0.4			39.1

Income from continuing operations		46.2			10.9			38.7			(34.0	)		61.8
Loss from discontinued operations		—			—			10.7			—			10.7

Net income	$	46.2		$	10.9		$	28.0		$	(34.0	)	$	51.1

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Year Ended December 31, 2008
(In millions)


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated

NET SALES	$	—		$	2,193.6		$	1,396.9		$	(149.4	)	$	3,441.1
COST OF GOODS SOLD		0.2			1,589.2			1,067.0			(149.8	)		2,506.6

Gross profit		(0.2	)		604.4			329.9			0.4			934.5
OPERATING EXPENSES:
Selling, general and administrative expenses		—			477.0			209.9			—			686.9
Losses (gains) and other expenses, net		5.1			(5.9	)		(1.0	)		(0.1	)		(1.9	)
Restructuring charges		—			10.7			19.7			—			30.4
Impairment of assets		—			—			9.1			—			9.1
Income from equity method investments		(139.2	)		(6.6	)		(8.6	)		145.8			(8.6	)

Operational income from continuing operations		133.9			129.2			100.8			(145.3	)		218.6
INTEREST EXPENSE, net		7.7			6.3			0.1			0.1			14.2
OTHER EXPENSE, net		—			—			0.1			—			0.1

Income from continuing operations before income taxes		126.2			122.9			100.6			(145.4	)		204.3
(BENEFIT FROM) PROVISION FOR INCOME TAXES		(2.9	)		43.6			39.6			0.2			80.5

Income from continuing operations		129.1			79.3			61.0			(145.6	)		123.8
Loss from discontinued operations		—			—			1.0			—			1.0

Net income	$	129.1		$	79.3		$	60.0		$	(145.6	)	$	122.8

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2010
(In millions)


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:	$	(115.4	)		315.3		$	(14.1	)	$	—	$	185.8
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the disposal of property, plant and equipment		—			0.1			0.1			—		0.2
Purchases of property, plant and equipment		—			(33.7	)		(12.1	)		—		(45.8	)
Proceeds from sale of businesses		—			0.1			3.5			—		3.6
Acquisition of business		—			(7.2	)		—			—		(7.2	)
Restricted cash		—			—			(12.2	)		—		(12.2	)

Net cash used in investing activities		—			(40.7	)		(20.7	)		—		(61.4	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term payments, net		—			—			(0.8	)		—		(0.8	)
Long-term payments		(35.0	)		(0.1	)		(0.8	)		—		(35.9	)
Issuance of senior unsecured notes		199.8			—			—			—		199.8
Revolver long-term borrowings, net		(76.5	)		—			—			—		(76.5	)
Additional investment in affiliate		—			—			(1.0	)		—		(1.0	)
Proceeds from stock option exercises		3.5			—			—			—		3.5
Payments of deferred financing costs		(1.8	)		—			—			—		(1.8	)
Repurchases of common stock		(153.7	)		—			—			—		(153.7	)
Excess tax benefits related to share-based payments		5.3			—			—			—		5.3
Intercompany debt		90.8			(107.8	)		17.0			—		—
Intercompany financing activity		194.6			(158.6	)		(36.0	)		—		—
Intercompany investments		(7.9	)		—			7.9			—		—
Intercompany dividends		9.0			—			(9.0	)		—		—
Cash dividends paid		(32.4	)		—			—			—		(32.4	)

Net cash provided by (used in) financing activities		195.7			(266.5	)		(22.7	)		—		(93.5	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		80.3			8.1			(57.5	)		—		30.9
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			—			4.8			—		4.8
CASH AND CASH EQUIVALENTS, beginning of period		0.8			6.6			116.9			—		124.3

CASH AND CASH EQUIVALENTS, end of period	$	81.1		$	14.7		$	64.2		$	—	$	160.0

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2009
(In millions)


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:	$	54.0		$	87.0		$	84.5		$	—	$	225.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the disposal of property, plant and equipment		—			0.2			0.4			—		0.6
Purchases of property, plant and equipment		—			(48.3	)		(10.5	)		—		(58.8	)
Proceeds from sale of businesses		—			1.1			8.9			—		10.0
Return of investment		—			—			0.9			—		0.9
Purchases of short-term investments		—			—			(16.9	)		—		(16.9	)
Proceeds from sales and maturities of short-term investments		—			—			50.2			—		50.2

Net cash provided by (used in) investing activities		—			(47.0	)		33.0			—		(14.0	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term payments, net		—			—			(4.3	)		—		(4.3	)
Long-term payments		—			—			(1.7	)		—		(1.7	)
Revolver long-term payments, net		(183.3	)		—			—			—		(183.3	)
Proceeds from stock option exercises		9.4			—			—			—		9.4
Repurchases of common stock		(5.6	)		—			—			—		(5.6	)
Excess tax benefits related to share-based payments		4.9			—			—			—		4.9
Intercompany debt		21.0			(12.5	)		(8.5	)		—		—
Intercompany financing activity		126.5			(24.0	)		(102.5	)		—		—
Intercompany dividends		5.0			—			(5.0	)		—		—
Cash dividends paid		(31.1	)		—			—			—		(31.1	)

Net cash used in financing activities		(53.2	)		(36.5	)		(122.0	)		—		(211.7	)
DECREASE IN CASH AND CASH EQUIVALENTS		0.8			3.5			(4.5	)		—		(0.2	)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			—			2.4			—		2.4
CASH AND CASH EQUIVALENTS, beginning of period		—			3.1			119.0			—		122.1

CASH AND CASH EQUIVALENTS, end of period	$	0.8		$	6.6		$	116.9		$	—	$	124.3

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2008
(In millions)


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:	$	5.5		$	136.4		$	41.3		$	—	$	183.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the disposal of property, plant and equipment		—			1.1			4.7			—		5.8
Purchases of property, plant and equipment		(1.2	)		(49.3	)		(11.6	)		—		(62.1	)
Additional investments in affiliates		—			(3.1	)		(1.6	)		—		(4.7	)
Purchases of short-term investments		—			—			(64.2	)		—		(64.2	)
Proceeds from sales and maturities of short-term investments		—			—			58.7			—		58.7

Net cash used in investing activities		(1.2	)		(51.3	)		(14.0	)		—		(66.5	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term borrowings, net		—			—			1.4			—		1.4
Proceeds from capital lease		—			—			15.3			—		15.3
Long-term payments		(36.3	)		—			(0.1	)		—		(36.4	)
Revolver long-term (payments) borrowings, net		213.5			—			—			—		213.5
Proceeds from stock option exercises		19.7			—			—			—		19.7
Payments of deferred financing costs		(0.3	)		—			—			—		(0.3	)
Repurchases of common stock		(323.8	)		—			—			—		(323.8	)
Excess tax benefits related to share-based payments		11.0			—			—			—		11.0
Intercompany debt		(5.8	)		9.8			(4.0	)		—		—
Intercompany activity		150.0			(145.5	)		(4.5	)		—		—
Intercompany dividends		—			41.5			(41.5	)		—		—
Cash dividends paid		(32.4	)		—			—			—		(32.4	)

Net cash used in financing activities		(4.4	)		(94.2	)		(33.4	)		—		(132.0	)
DECREASE IN CASH AND CASH EQUIVALENTS		(0.1	)		(9.1	)		(6.1	)		—		(15.3	)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		—			—			(8.1	)		—		(8.1	)
CASH AND CASH EQUIVALENTS, beginning of period		0.1			12.2			133.2			—		145.5

CASH AND CASH EQUIVALENTS, end of period	$	—		$	3.1		$	119.0		$	—	$	122.1

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2010	Dec. 31, 2009
CURRENT ASSETS:
Allowances, accounts and notes receivable	$ 12,800,000	$ 15,600,000
STOCKHOLDERS' EQUITY:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	86,480,816	85,567,485
Treasury stock, shares	32,784,503	29,292,512

Consolidated Statements of Stockholders Equity and Comprehensive (Loss) Income (Parenthetical)	12 Months Ended
	Dec. 31, 2010 USD ($) $ / shares	Dec. 31, 2009 USD ($) $ / shares	Dec. 31, 2008 shares	Dec. 31, 2008 USD ($)
Statement [Line Items]
Dividends per share \| (per share)	$ 0.6	$ 0.56	shares 0.56	$ 0.56
Tax provision (benefit) on pension and postretirement liability changes	$ (8,700,000)	$ 6,400,000		(35,100,000)
Tax provision (benefit) on derivatives and other	$ 2,100,000	$ 15,400,000		(12,300,000)
Retained Earnings
Statement [Line Items]
Dividends per share \| (per share)	$ 0.6	$ 0.56	shares 0.56
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Tax provision (benefit) on pension and postretirement liability changes	$ (8,700,000)	$ 6,400,000		(35,100,000)
Tax provision (benefit) on derivatives and other	2,100,000	15,400,000		(12,300,000)
Comprehensive (Loss) Income
Statement [Line Items]
Tax provision (benefit) on pension and postretirement liability changes	(8,700,000)	6,400,000		(35,100,000)
Tax provision (benefit) on derivatives and other	$ 2,100,000	$ 15,400,000		$ (12,300,000)