0001628280-23-004257 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2022	Feb. 03, 2023	Jun. 30, 2022
Cover [Abstract]
Title of 12(b) Security	Common stock, $0.01 par value per share
Entity Incorporation, State or Country Code	DE
Document Transition Report	false
Document Quarterly Report	true
Entity Tax Identification Number	42-0991521
Entity Address, Address Line One	2140 Lake Park Blvd
Entity Address, City or Town	Richardson
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75080
City Area Code	972
Trading Symbol	LII
Security Exchange Name	NYSE
Local Phone Number	497-5000
Entity Registrant Name	LENNOX INTERNATIONAL INC.
Entity Central Index Key	0001069202
Document Type	10-K
Document Period End Date	Dec. 31, 2022
Entity File Number	001-15149
Amendment Flag	false
Document Fiscal Year Focus	2022
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 Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 7.0
Entity Common Stock, Shares Outstanding		35,474,054
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrant’s 2022 Definitive Proxy Statement to be filed with the Securities and Exchange Commission in connection with the registrant’s 2022 Annual Meeting of Stockholders to be held on May 18, 2023 are incorporated by reference into Part III of this report.
ICFR Auditor Attestation Flag	true

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	Dallas, Texas
Auditor Firm ID	185

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 52.6	$ 31.0
Short-term investments	8.5	5.5
Accounts and notes receivable, net of allowances	608.5	508.3
Inventories, net	753.0	510.9
Other assets	73.9	119.7
Total current assets	1,496.5	1,175.4
Total property, plant and equipment, net	548.9	515.1
Right-of-use assets from operating leases	219.9	196.1
Goodwill	186.3	186.6
Deferred income taxes	27.5	11.3
Other assets, net	88.5	87.4
Total assets	2,567.6	2,171.9
Current Liabilities:
Current maturities of long-term debt	710.6	11.3
Current operating lease liabilities	63.3	54.8
Accounts payable	427.3	402.1
Accrued expenses	376.9	358.9
Income taxes payable	17.6	0.0
Total current liabilities	1,595.7	827.1
Long-term debt	814.2	1,226.5
Long-term operating lease liabilities	161.8	145.0
Pensions	40.1	83.3
Other liabilities	158.9	159.0
Total liabilities	2,770.7	2,440.9
Commitments and contingencies
Stockholders' deficit:
Preferred stock	0.0	0.0
Common stock	0.9	0.9
Additional paid-in capital	1,155.2	1,133.7
Retained earnings	3,070.6	2,719.3
Accumulated other comprehensive loss	(90.6)	(88.1)
Treasury stock, at cost	(4,339.2)	(4,034.8)
Total stockholders' deficit	(203.1)	(269.0)
Total liabilities and stockholders' deficit	$ 2,567.6	$ 2,171.9

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowances, accounts and notes receivable	$ 15.5	$ 10.7
Accumulated depreciation	$ 920.8	$ 888.8
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	87,170,197	87,170,197
Treasury stock, shares	51,700,260	50,536,125

Consolidated Statements of Operations - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Gross Profit	$ 1,284,700,000	$ 1,188,400,000	$ 1,040,100,000
Revenues	4,718,400,000	4,194,100,000	3,634,100,000
Cost of goods sold	3,433,700,000	3,005,700,000	2,594,000,000
Gross profit	1,284,700,000	1,188,400,000	1,040,100,000
Operating expenses:
Selling, general and administrative expenses	627,200,000	598,900,000	555,900,000
(Gains) losses and other expenses, net	4,900,000	9,200,000	7,400,000
Restructuring charges	1,500,000	1,800,000	10,800,000
Loss(gain) from natural disaster, net of Insurance recoveries	0	0	3,100,000
Income from equity method investments	(5,100,000)	(11,800,000)	(15,600,000)
Operating income	656,200,000	590,300,000	478,500,000
Interest expense, net	38,700,000	25,000,000.0	28,300,000
Other expense (income), net	1,900,000	4,000,000.0	4,400,000
Income from continuing operations before income taxes	615,800,000	560,100,000	445,200,000
Provision for income taxes	118,700,000	96,100,000	88,100,000
Income from continuing operations	497,100,000	464,000,000.0	357,100,000
Discontinued operations:
Loss from discontinued operations before income taxes	0	0	(1,500,000)
Income tax benefit	0	0	(700,000)
Loss from discontinued operations	0	0	(800,000)
Net income	$ 497,100,000	$ 464,000,000.0	$ 356,300,000
Earnings per share – Basic:
Income from continuing operations (in usd per share)	$ 13.92	$ 12.47	$ 9.32
Loss from discontinued operations (in usd per share)	0	0	(0.02)
Net income (in usd per share)	13.92	12.47	9.30
Earnings per share – Diluted:
Income from continuing operations (in usd per share)	13.88	12.39	9.26
Loss from discontinued operations (in usd per share)	0	0	(0.02)
Net income (in usd per share)	$ 13.88	$ 12.39	$ 9.24
Average shares outstanding:
Basic (in shares)	35.7	37.2	38.3
Diluted (in shares)	35.8	37.5	38.6
Cash dividends declared per share (in usd per share)	$ 4.10	$ 3.53	$ 3.08
Pension settlements	$ (200,000)	$ 1,200,000	$ 600,000

Consolidated Statements of Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 497,100,000	$ 464,000,000.0	$ 356,300,000
Other comprehensive income (loss):
Foreign currency translation adjustments	(10,200,000)	(7,300,000)	800,000
Net change in pension and post-retirement benefit liabilities	20,400,000	11,800,000	(8,700,000)
Net change in fair value of cash flow hedges	(9,900,000)	29,800,000	7,000,000.0
Reclassification of pension and post-retirement benefit losses into earnings	(5,400,000)	(7,900,000)	(5,900,000)
Pension settlements	(200,000)	1,200,000	600,000
Share of equity method investments other comprehensive income	700,000	0	(1,200,000)
Reclassification of cash flow hedge (gains) losses into earnings	(9,700,000)	(26,900,000)	3,700,000
Other comprehensive (income) loss before taxes	(3,500,000)	16,500,000	8,100,000
Tax benefit (expense)	1,000,000.0	(7,400,000)	(1,500,000)
Other comprehensive (loss) income, net of tax	(2,500,000)	9,100,000	6,600,000
Comprehensive income	$ 494,600,000	$ 473,100,000	$ 362,900,000

Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock Issued [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock at Cost [Member]
Beginning balance at Dec. 31, 2019	$ (170.2)		$ 0.9	$ 1,093.5	$ 2,148.7		$ (103.8)	$ (3,309.5)
Beginning balance (Accounting Standards Update 2016-13) at Dec. 31, 2019		$ (1.3)				$ (1.3)
Beginning balance, Treasury shares at Dec. 31, 2019								48,600,000
Stockholders' Equity [Roll Forward]
Net income	356.3				356.3
Dividends	(117.9)				(117.9)
Foreign currency translation adjustments, net	0.8						0.8
Pension and postretirement liability changes, net of tax expense (benefit)	(1.2)						(1.2)
Share of equity method investments other comprehensive income	(1.2)						(1.2)
Stock-based compensation expense	24.3			24.3
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax	8.2						8.2
Treasury shares reissued for common stock, shares								(300,000)
Treasury shares reissued for common stock	3.0			4.6				$ 7.6
Treasury stock purchases, shares								500,000
Treasury stock purchases	(117.9)							$ (117.9)
Ending balance at Dec. 31, 2020	(17.1)		0.9	1,113.2	2,385.8		(97.2)	$ (3,419.8)
Ending balance, Treasury shares at Dec. 31, 2020								48,800,000
Stockholders' Equity [Roll Forward]
Net income	464.0				464.0
Dividends	(130.5)				(130.5)
Foreign currency translation adjustments, net	(7.3)						(7.3)
Pension and postretirement liability changes, net of tax expense (benefit)	13.9						13.9
Stock-based compensation expense	24.3			24.3
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax	2.5						2.5
Treasury shares reissued for common stock, shares								(200,000)
Treasury shares reissued for common stock	3.3			3.8				$ 7.1
Treasury stock purchases, shares								1,900,000
Treasury stock purchases	(622.1)							$ (622.1)
Ending balance at Dec. 31, 2021	$ (269.0)		0.9	1,133.7	2,719.3		(88.1)	$ (4,034.8)
Ending balance, Treasury shares at Dec. 31, 2021	50,536,125							50,500,000
Stockholders' Equity [Roll Forward]
Net income	$ 497.1				497.1
Dividends	(145.8)				(145.8)
Foreign currency translation adjustments, net	(10.2)						(10.2)
Pension and postretirement liability changes, net of tax expense (benefit)	22.6						22.6
Share of equity method investments other comprehensive income	0.7						0.7
Stock-based compensation expense	21.8			21.8
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax	(15.6)						(15.6)
Treasury shares reissued for common stock, shares								(100,000)
Treasury shares reissued for common stock	3.6			0.3				$ 3.9
Treasury stock purchases, shares								1,300,000
Treasury stock purchases	(308.3)							$ (308.3)
Ending balance at Dec. 31, 2022	$ (203.1)		$ 0.9	$ 1,155.2	$ 3,070.6		$ (90.6)	$ (4,339.2)
Ending balance, Treasury shares at Dec. 31, 2022	51,700,260							51,700,000

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividends per share (in usd per share)	$ 4.10	$ 3.53	$ 3.08
Pension and post-retirement liability changes, tax benefit	$ 3.0	$ 7.0	$ 1.0
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax	$ 4.0	$ 0.4	$ 2.5

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 497.1	$ 464.0	$ 356.3
Adjustments to reconcile net income to net cash provided by operating activities:
Income from equity method investments	(5.1)	(11.8)	(15.6)
Dividends from affiliates	1.7	9.1	12.3
Restructuring charges, net of cash paid	1.0	1.1	3.4
Provision for credit losses	6.9	4.9	8.1
Unrealized losses (gains), net on derivative contracts	1.7	(0.6)	0.3
Stock-based compensation expense	21.8	24.3	24.3
Depreciation and amortization	77.9	72.4	72.6
Deferred income taxes	(15.2)	(5.4)	7.2
Pension expense	6.0	11.3	10.5
Pension contributions	(22.5)	(1.5)	(3.3)
Other items, net	(1.1)	0.3	0.2
Changes in assets and liabilities:
Accounts and notes receivable	(112.4)	(68.8)	26.5
Inventories	(249.3)	(71.0)	110.3
Other current assets	(7.3)	(19.2)	5.3
Accounts payable	28.2	55.2	(31.7)
Accrued expenses	13.7	64.2	35.4
Income taxes payable and receivable, net	56.4	(26.5)	(5.7)
Leases, net	1.7	0.2	2.1
Other, net	1.1	13.3	(6.1)
Net Cash Provided by (Used in) Operating Activities, Total	302.3	515.5	612.4
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	1.6	0.9	1.0
Purchases of property, plant and equipment	(101.1)	(106.8)	(78.5)
Purchases of short-term investments, net	(3.5)	(0.5)	(2.2)
Net cash used in investing activities	(103.0)	(106.4)	(79.7)
Cash flows from financing activities:
Short-term debt payments	0.0	0.0	(4.6)
Short-term debt borrowings	0.0	0.0	4.6
Asset securitization borrowings	407.0	627.0	91.0
Asset securitization payments	(307.0)	(377.0)	(376.0)
Long-term debt payments	(12.9)	(12.3)	(10.8)
Long-term debt borrowings	0.0	0.0	600.0
Borrowings from credit facility	2,537.5	1,162.5	1,576.0
Payments on credit facility	(2,352.0)	(1,156.0)	(2,081.5)
Payments of deferred financing costs	0.0	2.4	(7.5)
Proceeds from employee stock purchases	3.6	3.3	3.0
Repurchases of common stock	(300.0)	(600.0)	(100.0)
Repurchases of common stock to satisfy employee withholding tax obligations	(8.3)	(22.1)	(17.9)
Cash dividends paid	(142.0)	(126.5)	(118.1)
Net cash used in financing activities	(174.1)	(498.7)	(441.8)
Increase (decrease) in cash and cash equivalents	25.2	(89.6)	90.9
Effect of exchange rates on cash and cash equivalents	(3.6)	(3.3)	(4.3)
Cash and cash equivalents, beginning of year	31.0	123.9	37.3
Cash and cash equivalents, end of year	52.6	31.0	123.9
Cash paid during the period for:
Interest paid	35.4	23.8	25.3
Income taxes paid (net of refunds)	77.2	128.5	90.3
Insurance recoveries received	$ 0.0	$ (6.6)	$ 0.0

Stock Repurchases	12 Months Ended
Stock Repurchases	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Stock Repurchases	Our Board of Directors have authorized a total of $4 billion to repurchase shares of our common stock (collectively referred to as the “Share Repurchase Plans”), including a $1.0 billion share repurchase authorization in July 2021. The Share Repurchase Plans allow us to repurchase shares from time to time in open market transactions and in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The Share Repurchase Plans do not require the repurchase of a specific number of shares and may be terminated at any time. As of December 31, 2022, $546 million of shares is available to repurchase shares under the Share Repurchase Plans. We entered into multiple Fixed Dollar Accelerated Share Repurchase Transactions (the "ASR Agreements") to effect an accelerated stock buybacks of the Company's common stock in 2022. Under the ASR Agreements, we paid banks $300.0 million and the banks delivered to us common stock representing approximately 86% of the shares expected to be purchased under the ASR Agreement. After the ASR Agreements were completed, the banks delivered the remaining shares under the arrangement. The banks delivered a total of 1.3 million shares of common stock repurchased under this ASR Agreement. We also repurchased less than 0.1 million shares for $8.3 million, 0.1 million shares for $22.1 million, and 0.1 million shares for $17.9 million for the years ended December 31, 2022, 2021, and 2020, respectively, from employees who tendered their shares to satisfy minimum tax withholding obligation upon the vesting of stock-based compensation awards.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Nature of Operations	12 Months Ended
Nature of Operations	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	ennox International Inc., a Delaware corporation, through its subsidiaries (referred to herein as “we,” “our,” “us,” “LII,” or the “Company”), is a leading global provider of climate control solutions. We design, manufacture, market and service a broad range of products for the heating, ventilation, air conditioning and refrigeration (“HVACR”) markets and sell our products and services through a combination of direct sales, distributors and company-owned parts and supplies stores. We operate in three reportable business segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. See Note 3 for financial information regarding our reportable segments.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of Lennox International Inc. and 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.

Short term Investments

Short-term investments include all investments, exclusive of cash equivalents, with a stated maturity date of one year or less from the balance sheet date and are expected to be used in current operations.

Accounts and Notes Receivable

Accounts and notes receivable are shown in the accompanying Consolidated Balance Sheet, net of allowance for doubtful accounts. The allowance for doubtful accounts is generally established during the period in which receivables are recognized and is based on the age of the receivables and management’s judgment on our ability to collect. Management considers the historical trends of write-offs and recoveries of previously written-off accounts, the financial strength of customers and projected economic and market conditions. We determine the delinquency status of receivables predominantly based on contractual terms and we write-off uncollectible receivables after management’s review of our ability to collect, as noted above. We have no significant concentrations of credit risk within our accounts and notes receivable.

Inventories

Inventory costs include material, labor, and capitalized overhead. Inventories of $465.5 million and $302.2 million as of December 31, 2022 and 2021, respectively, were valued at the lower of cost or net realizable value using the last-in, first-out (“LIFO”) cost method. The remainder of inventory is valued at the lower of cost or net realizable value with cost determined primarily using either the first-in, first-out (“FIFO”) or average cost methods.

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 costs that use LIFO include raw materials, purchased components, work-in-process, repair parts and finished goods. Since the late 1990s, we have adopted 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 use the FIFO cost method for our foreign-based manufacturing facilities. See Note 9 for more information on our inventories.

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 while 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:
Buildings and improvements			2 to 40 years
Leasehold improvements			1 to 39 years
Machinery and equipment:
Computer hardware			3 to 5 years
Computer software			3 to 10 years
Factory machinery and equipment			1 to 15 years
Research and development equipment			3 to 5 years
Vehicles			3 to 10 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. 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. See Note 9 for additional information on our property, plant and equipment.

Goodwill

Goodwill represents the excess of cost over fair value of assets from acquired businesses. Goodwill is not amortized, but is reviewed for impairment annually during the third quarter and whenever events or changes in circumstances indicate the asset may be impaired. See Note 9 for additional information on our goodwill.

The provisions of the accounting standard for goodwill allow us to first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. As part of our qualitative assessment, we monitor economic, legal, regulatory and other factors, industry trends, our market capitalization, recent and forecasted financial performance of our reporting units and the timing and nature of our restructuring activities for LII as a whole and for each reporting unit.

If a quantitative goodwill impairment test is determined to be necessary, we estimate reporting unit fair values using a combination of the discounted cash flow approach and a market approach. 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. The market approach is based on objective evidence of market values.

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 limited lifetime warranties. A liability for estimated warranty expense is recorded in cost of goods sold on the date that revenue is recognized. Our estimates of future warranty costs are determined by product category. The number of units we expect to repair or replace is determined by applying an estimated failure rate, which is generally based on historical experience, to the number of units that were sold and are still under warranty. In most cases, the estimated units to be repaired under warranty are multiplied by the estimated cost of replacement parts 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 depending on changes in actual failure rate and cost experience. Subsequent costs incurred for warranty claims serve to reduce the accrued product warranty liability. See Note 5 for more information on our estimated future warranty costs.

Pensions and Post-retirement Benefits

We provide pension and post-retirement medical benefits to eligible domestic and foreign employees and we recognize pension and post-retirement 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 Sheet. Changes in the funded status are recognized in the year in which the changes occur through Accumulated other comprehensive loss (“AOCL”). 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. See Note 10 for information regarding those estimates and additional disclosures on pension and post-retirement medical benefits.

Self-Insurance

Self-insurance expense and liabilities were actuarially determined based primarily on our historical claims information, industry factors, and trends. The self-insurance liabilities as of December 31, 2022 represent the best estimate of the future payments to be made on reported and unreported losses for 2022 and prior years. The amounts and timing of payments for claims reserved 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 liabilities may change. See Note 5 for additional information on our self-insured risks and liabilities.

Derivatives

We use futures contracts, forward contracts and fixed forward contracts to mitigate our exposure to volatility in metal commodity prices and foreign exchange rates. 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 Sheet at fair value and the classification of each derivative instrument is based upon whether the maturity of the instrument is less than or greater than 12 months. See Note 9 for more information on our derivatives.

Leases

We lease certain real and personal property under non-cancelable leases including real estate, IT equipment, fleet vehicles and manufacturing and distribution equipment. At inception of the lease, we determine a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all the economic benefits from the use of an identified asset as well as the right to direct the use of the asset. If a contract is considered to be a lease, we recognize a lease liability based on the present value of the future minimum lease payments and a right-of-use asset. For contracts that are 12 months or less, we do not to recognize a right-of-use asset or liability. We do not separate non-lease components from the lease components to which they relate and account for the combined lease and non-lease components as a single lease component.

Income Taxes

We recognize deferred tax assets and liabilities 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. See Note 12 for more information related to income taxes.

Revenue Recognition

returns for miscellaneous reasons and record a reserve for these returns at the time we recognize revenue based on historical experience. Our historical rates of return are insignificant as a percentage of sales. We also recognize revenue net of sales taxes. We have elected to recognize the revenue and cost for freight and shipping when control over the sale of goods passes to our customers. See Note 8 for more information on our revenue recognition practices.

Cost of Goods Sold

The principal elements of cost of goods sold are components, raw materials, factory overhead, labor, estimated costs of warranty expense, and freight and distribution costs.

Selling, General and Administrative Expenses

SG&A expenses include 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 measure stock-based compensation costs based on the estimated grant-date fair value of the stock-based awards that are expected to ultimately vest and we adjust expected vesting rates to actual rates as additional information becomes known. For stock-based arrangements with performance conditions, we periodically adjust performance achievement rates based on our best estimates of those rates at the end of the performance period. See Note 15 for more information.

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. Revenue and expenses are translated at weighted average exchange rates during the year. Unrealized translation gains and losses are included in AOCL 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 revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, contingencies, product warranties, and assumptions used in the calculation of income taxes, pension and post-retirement medical benefits, and stock-based compensation among others. These estimates and assumptions are based on our best estimates and judgment.

We evaluate these 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 will adjust such estimates and assumptions when facts and circumstances dictate. Volatile equity, foreign currency and commodity markets and uncertain future economic conditions combine to increase the uncertainty inherent in such estimates and assumptions. Future events and their effects cannot be determined with precision and actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Impact of COVID-19 Pandemic

A novel strain of coronavirus (“COVID-19”) has surfaced and spread around the world. The COVID-19 pandemic is creating supply chain disruptions and higher employee absenteeism in our factories and distribution locations since 2020. We cannot predict whether any of our manufacturing, operational or distribution facilities will experience any future disruptions, or how long such disruptions would last. It also remains unclear how various national, state, and local governments will react if new variants of the virus spread. If the pandemic worsens or continues longer than presently expected, COVID-19 could impact our results of operations, financial position and cash flows.

Reportable Business Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting, Measurement Disclosures [Abstract]

Reportable Business Segments

scription of Segments

We operate in three reportable business segments of the HVACR industry. Our segments are organized primarily by the nature of the products and services we provide. The following table describes each segment:

Segment

Products or Services

Markets Served

Geographic Areas

Residential Heating & Cooling

Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies

Residential Replacement;
Residential New Construction

United States
Canada

Commercial Heating & Cooling

Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products

Light Commercial

United States
Canada

Refrigeration(1)

Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, and compressorized racks

Light Commercial;
Food Preservation;
Non-Food/Industrial

United States
Canada
Europe

(1) In November 2022, we announced the decision to explore strategic alternatives for our European commercial HVAC and refrigeration businesses. We will continue to invest in our Heatcraft Worldwide Refrigeration business which will become part of the Commercial Heating & Cooling segment beginning in 2023 and the European portfolio will be presented with Corporate and Other beginning in 2023 until disposition. As we will manage the businesses in this manner beginning in 2023, we will present the financial results of the revised segments beginning in 2023.

Segment Data

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. The reconciliation below details the items excluded.

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 our business. We recorded these share-based awards as Corporate costs because they are determined at the discretion of the Board of Directors and based on the historical practice of doing so for internal reporting purposes.

Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations included in the results presented in the table below.

Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Net Sales (1)
Residential Heating & Cooling	$	3,198.3	$	2,775.6	$	2,361.5
Commercial Heating & Cooling	900.7		864.8		800.9
Refrigeration	619.4		553.7		471.7
	$	4,718.4	$	4,194.1	$	3,634.1
Segment profit (loss) (2)
Residential Heating & Cooling	$	596.9	$	540.3	$	428.5
Commercial Heating & Cooling	80.9		110.9		136.9
Refrigeration	78.8		49.1		32.8
Corporate and other	(90.8)		(96.4)		(91.5)
Total segment profit	665.8		603.9		506.7
Reconciliation to Operating income:
Special product quality adjustments	—		(2.5)		1.0



Loss from natural disasters, net of insurance recoveries	—		—		3.1
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2)	8.1		14.3		13.3
Restructuring charges	1.5		1.8		10.8
Operating income	$	656.2	$	590.3	$	478.5

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

(2) We define segment profit (loss) as a segment’s operating income included in the accompanying Consolidated Statements of Operations, excluding:

•The following items in (Gains) losses and other expenses, net:

◦Net change in unrealized (gains) losses on unsettled futures contracts,

◦Environmental liabilities and special litigation charges,

◦Charges incurred related to COVID-19 pandemic, and

◦Other items, net,

•Special product quality adjustments

•Loss from natural disasters, net of insurance recoveries

•Restructuring charges, and

Total assets by segment are shown below (in millions):


	As of December 31,
	2022		2021		2020
Total Assets:
Residential Heating & Cooling	$	1,456.4	$	1,149.7	$	1,034.6
Commercial Heating & Cooling	456.4		366.2		366.5
Refrigeration	443.6		426.6		387.9
Corporate and other	211.2		229.4		243.5
Total assets	$	2,567.6	$	2,171.9	$	2,032.5

The assets in the Corporate and other segment primarily consist of cash, short-term investments and deferred tax assets. Assets recorded in the operating segments represent those assets directly associated with those segments.

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


	For the Years Ended December 31,
	2022		2021		2020
Capital Expenditures:
Residential Heating & Cooling	$	42.4	$	70.0	$	44.0
Commercial Heating & Cooling	21.5		4.3		5.9
Refrigeration	11.2		11.5		9.2
Corporate and other	26.0		21.0		19.4
Total capital expenditures	$	101.1	$	106.8	$	78.5

Depreciation and amortization expenses by segment are shown below (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Depreciation and Amortization:
Residential Heating & Cooling	$	31.5	$	27.6	$	28.5
Commercial Heating & Cooling	12.9		13.2		13.5
Refrigeration	9.1		7.8		7.8
Corporate and other	24.4		23.8		22.8
Total depreciation and amortization	$	77.9	$	72.4	$	72.6

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


	For the Years Ended December 31,
	2022		2021		2020
Income from Equity Method Investments:
Residential Heating & Cooling	$	0.9	$	6.9	$	11.4
Commercial Heating & Cooling	0.2		1.2		2.3
Refrigeration	4.0		3.7		1.9
Total income from equity method investments	$	5.1	$	11.8	$	15.6

Geographic Information

Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):


	As of December 31,
	2022		2021		2020
Property, Plant and Equipment, net:
United States	$	408.8	$	381.0	$	352.9
Mexico	110.9		102.7		79.2
Canada	2.1		2.1		2.2
Other international	27.1		29.3		30.0
Total Property, plant and equipment, net	$	548.9	$	515.1	$	464.3

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

sic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share are computed by dividing net income by the sum of the weighted-average number of shares and the number of equivalent shares assumed outstanding, if dilutive, under our stock-based compensation plans.

The computations of basic and diluted earnings per share for Income from continuing operations were as follows (in millions, except per share data):


	For the Years Ended December 31,
	2022		2021		2020
Net income	$	497.1	$	464.0	$	356.3
Add: Loss from discontinued operations	—		—		0.8
Income from continuing operations	$	497.1	$	464.0	$	357.1

Weighted-average shares outstanding – basic	35.7		37.2		38.3
Add: Potential effect of diluted securities attributable to stock-based payments	0.1		0.3		0.3
Weighted-average shares outstanding – diluted	35.8		37.5		38.6

Earnings per share - Basic:
Income from continuing operations	$	13.92	$	12.47	$	9.32
Loss from discontinued operations	—		—		(0.02)
Net income	$	13.92	$	12.47	$	9.30

Earnings per share - Diluted:
Income from continuing operations	$	13.88	$	12.39	$	9.26
Loss from discontinued operations	—		—		(0.02)
Net income	$	13.88	$	12.39	$	9.24

There were 0.3 million securities in 2022 that were outstanding but not included in the diluted earnings per share calculation as the assumed exercise of such rights would have been anti-dilutive.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Leases

We lease certain real and personal property under non-cancelable leases. Approximately 81% of our right-of-use assets and lease liabilities relate to our leases of real estate with the remaining amounts relating to our leases of IT equipment, fleet vehicles and manufacturing and distribution equipment.

The components of lease expense were as follows (in millions):



	For the Years Ended December 31,
	2022		2021		2020
Finance lease cost:
Amortization of right-of-use assets	$	13.2	$	11.9	$	10.3
Interest on lease liabilities	0.7		0.5		0.7
Operating lease cost	67.7		62.2		62.7
Short-term lease cost	5.0		3.8		4.0
Variable lease cost	24.5		21.6		20.3

Total lease cost	$	111.1	$	100.0	$	98.0

Other information
Cash paid for amounts included in the measurement lease liabilities:

Operating cash flows from operating leases	$	66.0	$	61.8	$	61.6
Financing cash flows from finance leases	$	13.6	$	12.3	$	10.8
Right-of-use assets obtained in exchange for new finance lease liabilities	$	14.4	$	14.6	$	15.4
Right-of-use assets obtained in exchange for new operating lease liabilities	$	98.8	$	61.8	$	67.6



	As of December 31,
	2022			2021
Finance lease right-of-use assets(1)	$	33.3		$	34.5
Operating lease right-of-use assets	$	219.9		$	196.1
Finance lease liability, current(2)	$	11.2		$	11.3
Finance lease liability, non-current(3)	$	28.3		$	29.0
Operating lease liability, current	$	63.3		$	54.8
Operating lease liability, non-current	$	161.8		$	145.0
Weighted-average remaining lease term - finance leases	3.6 years			3.9 years
Weighted-average remaining lease term - operating leases	5.1 years			4.5 years
Weighted-average discount rate - finance leases	1.92		%	1.14		%
Weighted-average discount rate – operating leases	3.44		%	2.62		%
(1) Recorded in Property, plant and equipments in Consolidated Balance Sheet
(2) Recorded in Current maturities of long-term debt in Consolidated Balance Sheet
(3) Recorded in Long-term debt in Consolidated Balance Sheet

Future annual minimum lease payments and finance lease commitments as of December 31, 2022 were as follows (in millions):


	Operating Leases		Finance Leases
2023	$	70.0	$	11.6
2024	53.2		8.4
2025	36.9		5.8
2026	29.0		2.5
2027	18.9		0.3
Thereafter	40.1		11.7
Total minimum lease payments	$	248.1	$	40.3
Less imputed interest	(23.0)		(0.8)
Present value of minimum payments	$	225.1	$	39.5

On March 1, 2019, we entered into an agreement with a financial institution to renew the lease of our corporate headquarters in Richardson, Texas for a term of five years through March 1, 2024 (the “Lake Park Renewal”). The leased property consists of an office building of approximately 192,000 square feet, land and related improvements. During the lease term, we are obligated to pay base rent in quarterly installments, payable in arrears. At the end of the lease term, we must do one of the following: (i) purchase the property for $41.2 million; (ii) vacate the property and return it 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 of $41.2 million, we must pay any such deficit to the financial institution. Any such deficit payment cannot exceed 87% of the lease balance. The headquarters lease is classified as an operating lease and its future annual minimum lease payments are included in the table above.

Our obligations under the Lake Park Renewal are secured by a pledge of our interest in the leased property. The Lake Park Renewal contains customary lease covenants and events of default as well as events of default if (i) indebtedness of $75 million or more is not paid when due, (ii) there is a change of control or (iii) we fail to comply with certain covenants incorporated from our existing Credit Agreement. We believe we were in compliance with these financial covenants as of December 31, 2022.

Environmental

Environmental laws and regulations in the locations we operate can potentially impose obligations to remediate hazardous substances at our properties, properties formerly owned or operated by us, and 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 believe that any future remediation related to those facilities will be material to our results of operations. Total environmental accruals are included Accrued expenses and Other liabilities on the accompanying Consolidated Balance Sheets. Future environmental costs are estimates and may be subject to change due to changes in environmental remediation regulations, technology or site-specific requirements.

Product Warranties and Product Related Contingencies

We incur the risk of liability for claims related to 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 and certain product liability claims are not covered by our product liability insurance.

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


	As of December 31,
	2022		2021
Accrued expenses	$	41.3	$	37.2
Other liabilities	101.4		97.0
Total product warranty liabilities	$	142.7	$	134.2

The changes in product warranty liabilities related to continuing operations for the years ended December 31, 2022 and 2021 were as follows (in millions):


Total warranty liability as of December 31, 2020	$	119.8
Payments made in 2021	(31.6)
Changes resulting from issuance of new warranties	43.6
Changes in estimates associated with pre-existing liabilities	2.7
Changes in foreign currency translation rates and other	(0.3)

Total warranty liability as of December 31, 2021	$	134.2
Payments made in 2022	(36.3)
Changes resulting from issuance of new warranties	50.5
Changes in estimates associated with pre-existing liabilities	(4.7)
Changes in foreign currency translation rates and other	(1.0)

Total warranty liability as of December 31, 2022	$	142.7

We have incurred, and will likely continue to incur, product costs not covered by insurance or our suppliers’ warranties, which are not included in the table above. Also, to satisfy our customers and protect our brands, we have repaired or replaced installed products experiencing quality-related issues, and will likely continue such repairs and replacements.

Self-Insurance

We use a combination of third-party insurance and self-insurance plans to provide protection against claims relating to workers’ compensation/employers’ liability, general liability, product liability, auto liability, auto physical damage and other exposures. We use large deductible insurance plans, written through third-party insurance providers, for workers’ compensation/employers’ liability, general liability, product liability and auto liability. 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 certain other insurance programs. For directors’ and officers’ liability, property damage and certain other exposures, we use third-party insurance plans that may include per occurrence and annual aggregate limits. We believe the deductibles and liability limits for all of our insurance policies are appropriate for our business and are adequate for companies of our size in our industry.

We maintain safety and manufacturing programs that are designed to remove risk, improve the effectiveness of our business processes and reduce the likelihood and significance of our various retained and insured risks. In recent years, our actual claims experience has collectively trended favorably and, as a result, both self-insurance expense and the related liability have decreased.

Total self-insurance liabilities were included in the following captions on the accompanying Consolidated Balance Sheets (in millions):


	As of December 31,
	2022		2021
Accrued expenses	$	3.0	$	3.2
Other liabilities	14.6		15.7
Total self-insurance liabilities	$	17.6	$	18.9

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, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known.

It is management’s opinion that none of these claims or lawsuits or any threatened litigation will have a material adverse effect, individually or in the aggregate, on our financial condition, results of operations or cash flows. Claims and lawsuits, however, involve uncertainties and it is possible that their eventual outcome could adversely affect our results of operations in a future period.

Restructuring Charges	12 Months Ended
Restructuring Charges	Dec. 31, 2022
Restructuring Charges [Abstract]
Restructuring Charges	record restructuring charges associated with management-approved restructuring plans to reorganize or to remove duplicative headcount and infrastructure within our businesses. Restructuring charges include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other related activities. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. Restructuring charges are not included in our calculation of segment profit (loss), as more fully explained in Note 3.We recorded $1.5 million of restructuring charges in 2022, $1.8 million 2021, and $10.8 million in 2020 from actions initiated in prior years including the economic impact of COVID-19. There is not expected to be a material amount of costs expected to be incurred from existing restructuring actions in future periods. Restructuring accruals are included in Accrued expenses in the accompanying Consolidated Balance Sheets.

Revenue Recognition

12 Months Ended

Dec. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer [Text Block]

The following table disaggregates our revenue by business segment by geography to provide information as to the major sources of revenue. See Note 3 for additional description of our reportable business segments and the products and services being sold in each segment.


	For the Year Ended December 31, 2022
Primary Geographic Markets	Residential Heating & Cooling		Commercial Heating & Cooling		Refrigeration		Consolidated
United States	$	2,957.1	$	837.7	$	385.7	$	4,180.5
Canada	241.2		62.4		—		303.6
International	—		0.6		233.7		234.3
Total	$	3,198.3	$	900.7	$	619.4	$	4,718.4


	For the Year Ended December 31, 2021
Primary Geographic Markets	Residential Heating & Cooling		Commercial Heating & Cooling		Refrigeration		Consolidated
United States	$	2,532.4	$	790.1	$	324.0	$	3,646.5
Canada	243.2		73.1		—		316.3
International	—		1.6		229.7		231.3
Total	$	2,775.6	$	864.8	$	553.7	$	4,194.1


	For the Year Ended December 31, 2020
Primary Geographic Markets	Residential Heating & Cooling		Commercial Heating & Cooling		Refrigeration		Consolidated
United States	$	2,181.8	$	721.1	$	257.9	$	3,160.8
Canada	179.7		77.6		—		257.3
International	—		2.2		213.8		216.0
Total	$	2,361.5	$	800.9	$	471.7	$	3,634.1

Our revenue recognition practices for the sale of goods depend upon the shipping terms for each transaction. Shipping terms are primarily FOB Shipping Point and, therefore, revenue is recognized for these transactions when products are shipped to customers and title and control passes. Certain customers in our smaller operations, primarily outside of North America, have shipping terms where risks and rewards of ownership do not transfer until the product is delivered to the customer. For these transactions, revenue is recognized on the date that the product is received and accepted by such customers. We experience returns for miscellaneous reasons and record a reserve for these returns at the time we recognize revenue based on historical experience. Our historical rates of return are insignificant as a percentage of sales. We also recognize revenue net of sales taxes. We have elected to recognize the revenue and cost for freight and shipping when control over the sale of goods passes to our customers.

For our businesses that provide services, revenue is recognized at the time services are completed. Our Commercial Heating & Cooling segment also provides sales, installation, maintenance and repair services under fixed-price contracts. Revenue for services is recognized as the services are performed under the contract based on the relative fair value of the services provided. We allocate a portion of the revenue for extended labor warranty obligations and recognize the revenue over the term of the extended warranty. Revenue from extended warranties is insignificant. See Note 5 for more information on product warranties.

Residential Heating & Cooling - We manufacture and market a broad range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America. These products are sold under various brand names and are sold either through direct sales to a network of independent installing dealers, including through our network of Lennox stores or to independent distributors. For the years ended December 31, 2022, 2021 and 2020, direct sales represented 70%, 73% and 75% of revenues, respectively, and sales to independent distributors represented the remainder. Given the nature of our business, customer product orders are fulfilled at a point in time and not over a period of time.

Commercial Heating & Cooling - In North America, we manufacture and sell unitary heating and cooling equipment used in light commercial applications, such as low-rise office buildings, restaurants, retail centers, churches and schools. These products are distributed primarily through commercial contractors and directly to national account customers in the planned replacement, emergency replacement and new construction markets. Revenue for the products sold is recognized at a point in time when control transfers to the customer, which is generally at time of shipment. Lennox National Account Services provides installation, service and preventive maintenance for HVAC national account customers in the United States and Canada. Revenue related to service contracts is recognized as the services are performed under the contract based on the relative fair value of the services provided. For the years ended December 31, 2022, 2021 and 2020, equipment sales represented 82%, 82% and 85% of revenues, respectively, and the remainder of our revenue was generated from our service business.

Refrigeration - We manufacture and market equipment for the global commercial refrigeration markets under the Heatcraft Worldwide Refrigeration name. Our products are used in the food retail, food service, cold storage as well as non-food refrigeration markets. We sell these products to distributors, installing contractors, engineering design firms, original equipment manufacturers and end-users. In Europe, we also manufacture and sell unitary heating and cooling products and applied systems. Substantially all segment revenue was related to these types of equipment and systems and is recognized at a point in time when control transfers to the customer, which is generally at time of shipment. Approximately 1% of segment revenue relates to services for start-up and commissioning activities.

Variable Consideration - We engage in cooperative advertising, customer rebate, and other miscellaneous programs that result in payments or credits being issued to our customers. We record these customer discounts and incentives as a reduction of sales when the sales are recorded. For certain cooperative advertising programs, we also receive an identifiable benefit

(goods or services) in exchange for the consideration given, and, accordingly, record a ratable portion of the expenditure to SG&A expenses. All other advertising, promotions and marketing costs are expensed as incurred.

Other Judgments and Assumptions - We apply the practical expedient in ASC 606-10-50-14 and do not disclose information about remaining performance obligations that have original expected durations of one year or less. Applying the practical expedient in ASC 340-40-25-4, we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. These costs are included in SG&A expenses. ASC 606-10-32-18 allows us to not adjust the amount of consideration to be received in a contract for any significant financing component if we expect to receive payment within twelve months of transfer of control of goods or services. We have elected this expedient as we expect all consideration to be received in one year or less at contract inception. We have also elected not to provide the remaining performance obligations disclosures related to service contracts in accordance with the practical expedient in ASC 606-10-55-18. We recognize revenue in the amount to which the entity has a right to invoice and have adopted this election to not provide the remaining performance obligations related to service contracts.

Contract Assets - We do not have material amounts of contract assets since revenue is recognized as control of goods is transferred or as services are performed. There are a small number of installation services that may occur over a period of time, but that period of time is generally very short in duration and right of payment does not exist until the installation is completed. Any contract assets that may arise are recorded in Other assets in our Consolidated Balance Sheets.

Contract Liabilities - Our contract liabilities consist of advance payments and deferred revenue. Our contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify advance payments and deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. Generally all contract liabilities are expected to be recognized within one year and are included in Accrued expenses in our Consolidated Balance Sheet. The noncurrent portion of deferred revenue is included in Other liabilities in our Consolidated Balance Sheets.

Net contract assets (liabilities) consisted of the following:


	December 31, 2022		December 31, 2021

Contract liabilities - current	(9.6)		(10.2)
Contract liabilities - noncurrent	(6.4)		(5.5)
Total	$	(16.0)	$	(15.7)

For the years ended December 31, 2022, 2021, and 2020 we recognized revenue of $10.1 million, $3.6 million and $7.2 million related to our contract liabilities at January 1, 2022, 2021 and 2020, respectively. Impairment losses recognized in our receivables and contract assets were de minimis in 2022, 2021 and 2020.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Inventories

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventories

The components of inventories are as follows (in millions):


	As of December 31,
	2022		2021
Finished goods	$	534.6	$	310.8
Work in process	8.9		12.4
Raw materials and parts	328.7		262.1
Total	872.2		585.3
Excess of current cost over last-in, first-out cost	(119.2)		(74.4)
Total inventories, net	$	753.0	$	510.9

The Company recorded a pre-tax gain of $0.7 million in 2020 from LIFO inventory liquidations. There were no pre-tax gains or losses in 2022 or 2021 from LIFO inventory liquidations. Reserves for obsolete and slow-moving inventories were $34.9 million and $26.5 million at December 31, 2022 and December 31, 2021, respectively.

Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill in 2022 and 2021, in total and by segment, are summarized in the table below (in millions):


Segment:	Balance at December 31, 2020 (1)		Changes in foreign currency translation rates		Balance at December 31, 2021		Changes in foreign currency translation rates		Balance at December 31, 2022
Residential Heating & Cooling	$	26.1	$	—	$	26.1	$	—	$	26.1
Commercial Heating & Cooling	61.1		—		61.1		—		61.1
Refrigeration	99.7		(0.3)		99.4		(0.3)		99.1
	$	186.9	$	(0.3)	$	186.6	$	(0.3)	$	186.3

(1) The goodwill balances in the table above are presented net of accumulated impairment charges of $32.7 million, all of which relate to impairments in periods prior to 2020.

A qualitative review of impairment indicators was performed in 2022 for the Residential Heating & Cooling, the Commercial Heating & Cooling, and the Refrigeration segments. We did not record any goodwill impairments in 2022, 2021, or 2020.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Components of Property, plant and equipment, net were as follows (in millions):


	As of December 31,
	2022		2021
Land	$	24.1	$	24.0
Buildings and improvements	321.6		285.9
Machinery and equipment	964.7		946.5
Finance leases	66.5		63.5
Construction in progress and equipment not yet in service	92.8		84.0
Total	1,469.7		1,403.9
Less accumulated depreciation	(920.8)		(888.8)
Property, plant and equipment, net	$	548.9	$	515.1

No impairment charges were recorded in 2022 or 2021.

Accrued Expenses

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Accrued Expenses

The significant components of Accrued expenses are presented below (in millions):


	As of December 31,
	2022		2021
Accrued rebates and promotions	123.3		102.9
Accrued compensation and benefits	$	90.7	$	114.9
Accrued warranties	41.3		37.2
Other	33.8		32.0
Accrued sales, use, property and VAT taxes	26.8		26.9
Accrued Freight	19.0		12.0
Accrued asbestos reserves	14.3		13.1
Deferred income	9.6		10.2
Derivative contracts	9.0		1.0
Accrued interest	6.1		5.5
Self insurance reserves	3.0		3.2
Total Accrued expenses	$	376.9	$	358.9

Derivatives

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

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 used in our production processes. Our hedging program includes the use of futures contracts to lock in prices, and as a result, we are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase. We utilize a dollar cost averaging strategy so that a higher percentage of commodity price exposures are hedged near-term with lower percentages hedged at future dates. This strategy allows for protection against near-term price volatility while allowing us to adjust to market price movements over time.

Interest Rate Risk. A portion of our debt bears interest at variable interest rates, and as a result, we are subject to variability in the cash paid for interest. To mitigate a portion of that risk, we may choose to engage in an interest rate swap hedging strategy to eliminate the variability of interest payment cash flows. We are not currently hedged against interest rate risk.

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. We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts.

Cash Flow Hedges

We have commodity futures contracts and foreign exchange forward contracts designated as cash flows hedges that are scheduled to mature through May 2024 and January 2024, respectively. We currently have cash flow hedge contracts with a notional amount of 54.5 million pounds of aluminum and copper. Unrealized gains or losses from our cash flow hedges are included in AOCL and are expected to be reclassified into earnings within the next 17 months based on the prices of the commodities and foreign currencies at the settlement dates.

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


	As of December 31,
	2022		2021
Unrealized losses (gains), net on unsettled contracts	$	6.3	$	(13.4)
Income tax (benefit) expense	(1.4)		2.7
Unrealized losses (gains) included in AOCL, net of tax (1)	$	4.9	$	(10.7)

(1) Assuming commodity and foreign currency prices remain constant, we expect to reclassify $5.0 million of derivative losses into earnings within the next 12 months.

Supplemental Information

12 Months Ended

Dec. 31, 2022

Supplemental Information [Abstract]

Supplemental Information

Expenses included in our Consolidated Statements of Operations

Below is information about expenses included in Selling, general and administrative expenses in our Consolidated Statements of Operations (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Research and development	$	80.3	$	76.1	$	66.8
Advertising, promotions and marketing (1)	32.4		26.9		26.5
Cooperative advertising expenditures	28.1		27.6		22.2

(1) Cooperative advertising expenditures were not included in these amounts.

Losses and Other Expenses, net

12 Months Ended

Dec. 31, 2022

Losses (Gains) and Other Expenses, net [Abstract]

Losses and Other Expenses, net

Losses (Gains) and Other Expenses, net

Losses (gains) and other expenses, net in our Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Realized losses (gains) on settled future contracts	$	0.1	$	(1.2)	$	0.1
Foreign currency exchange gains	(1.3)		(2.2)		(3.6)
Loss (gain) on disposal of fixed assets	(1.0)		(0.2)		(0.2)
Other operating income	(1.0)		(1.5)		(2.2)
Net change in unrealized (gains) losses on unsettled futures contracts	0.4		—		(0.3)
Environmental liabilities and special litigation charges	7.5		9.6		5.3


Charges incurred related to COVID-19 pandemic	0.8		2.2		8.3
Other items, net	(0.6)		2.5		—
(Gains) losses and other expenses, net (pre-tax)	$	4.9	$	9.2	$	7.4

Employee Benefit Plans

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Many of our defined benefit pension and profit sharing plans have been frozen and replaced with defined contribution plans. We have a liability for the benefits earned under these inactive plans prior to the date the benefits were frozen. We also have several active defined benefit plans that provide benefits based on years of service. Our defined contribution plans generally include both company and employee contributions which are based on predetermined percentages of compensation earned by the employee.

In addition to freezing the benefits of our defined benefit pension plans, we have also eliminated nearly all of our post-retirement medical benefits.

Defined Contribution Plans

We recorded the following contributions to the defined contribution plans (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Contributions to defined contribution plans	$	22.7	$	19.9	$	17.8

Pension and Post-retirement Benefit Plans

Benefit Obligations, Fair Value of Plan Assets, Funded Status, and Balance Sheet Position

The following tables set forth amounts recognized in our financial statements and the plans’ funded status for our pension and post-retirement benefit plans (dollars in millions):


	Pension Benefits
	2022		2021
Accumulated benefit obligation	$	171.6	$	266.1

Changes in projected benefit obligation:
Benefit obligation at beginning of year	$	269.2	$	276.2
Service cost	3.8		6.1
Interest cost	6.2		5.1



Actuarial (gain) loss	(74.6)		(11.2)
Effect of exchange rates	(3.4)		(0.7)

Settlements	(21.7)		(2.1)
Benefits paid	(5.2)		(4.2)
Benefit obligation at end of year	$	174.3	$	269.2

Changes in plan assets:
Fair value of plan assets at beginning of year	$	184.3	$	179.7
Actual return on plan assets	(45.4)		9.5
Employer contributions	22.5		1.5

Effect of exchange rates	(3.4)		(0.1)

Plan settlements	(21.7)		(2.1)
Benefits paid	(5.2)		(4.2)
Fair value of plan assets at end of year	131.1		184.3
Funded status / net amount recognized	$	(43.2)	$	(84.9)

Net amount recognized consists of:
Non-current assets	$	2.7	$	6.5
Current liability	(5.8)		(8.1)
Non-current liability	(40.1)		(83.3)
Net amount recognized	$	(43.2)	$	(84.9)

Plans with Benefit Obligations in Excess of Plan Assets


	For the Years Ended December 31,
	2022		2021
Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$	152.1	$	234.8
Accumulated benefit obligation	149.6		231.4
Fair value of plan assets	106.2		143.7

Net Periodic Benefit Cost

Our U.S.-based pension plans comprised approximately 84% of the projected benefit obligation and 81% of plan assets as of December 31, 2022.


	Pension Benefits
	2022		2021		2020
Components of net periodic benefit cost as of December 31:
Service cost	$	3.8	$	6.1	$	5.5
Interest cost	6.2		5.1		6.6
Expected return on plan assets	(9.1)		(8.6)		(8.2)
Amortization of prior service costs	0.1		0.2		0.2
Recognized actuarial loss	5.3		7.7		5.8
Settlements	(0.2)		1.2		0.6
Other	(0.1)		(0.4)		—
Net periodic benefit cost	$	6.0	$	11.3	$	10.5

Amounts recognized in AOCL and Other Comprehensive Income

The following table sets forth amounts recognized in AOCL and Other comprehensive income (loss) in our financial statements for 2022 and 2021 (in millions):


	Pension Benefits
	2022		2021
Amounts recognized in AOCL:
Prior service costs	$	(0.4)	$	(0.5)
Actuarial loss	(57.7)		(83.1)
Subtotal	(58.1)		(83.6)
Deferred taxes	15.8		18.6
Net amount recognized	$	(42.3)	$	(65.0)
Changes recognized in other comprehensive loss:


Current year actuarial gain	(19.4)		(12.2)
Effect of exchange rates	(0.9)		—
Amortization of prior service costs	(0.1)		(0.2)
Amortization of actuarial loss, including settlements and other	(5.1)		(8.5)
Total recognized in other comprehensive income (loss)	$	(25.5)	$	(20.9)
Total recognized in net periodic benefit cost and other comprehensive income	$	(19.5)	$	(9.6)

The estimated prior service costs and actuarial losses for pension benefits that will be amortized from AOCL in 2023 are $0.1 million and $1.2 million, respectively.

Assumptions

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 2022 and 2021:


	Pension Benefits
	2022		2021
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	5.50	%	2.69	%
Rate of compensation increase	4.02	%	4.1	%


	Pension Benefits
	2022		2021		2020
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:

Discount rate - service cost	2.53	%	1.85	%	2.89	%
Discount rate - interest cost	2.48	%	2.16	%	2.99	%
Expected long-term return on plan assets	6.50	%	6.50	%	6.50	%
Rate of compensation increase	4.13	%	4.13	%	4.23	%

The change in the discount rate for 2022 was the primary driver in the actuarial gain in the projected benefit obligation during the year.

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 2022 and 2021:


	Pension Benefits
	2022		2021
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	4.72	%	1.99	%
Rate of compensation increase	3.11	%	3.14	%


	Pension Benefits
	2022		2021		2020
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	0.86	%	0.42	%	0.73	%
Discount rate - interest cost	2.07	%	1.51	%	2.3	%
Expected long-term return on plan assets	2.75	%	2.10	%	3.31	%
Rate of compensation increase	3.14	%	3.17	%	3.20	%

To develop the expected long-term rate of return on assets assumption for the U.S. plans, we considered the historical returns for each asset category, as well as the target asset allocation of the pension portfolio and the effect of periodic balancing. These results were adjusted for the payment of reasonable expenses of the plan from plan assets. This resulted in the selection of the 6.50% 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 projected cash flows from defined benefit and retiree healthcare plans was 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 for each plan. The analysis was completed separately for each U.S. pension and OPEB plan. A similar process was followed for the non-U.S.-based plans with sufficient corporate bond information. In other countries, the discount rate was selected based on the approximate duration of plan obligations.

Assumed health care cost trend rates have an effect on the amounts reported for our healthcare plan. The following table sets forth the healthcare trend rate assumptions used:


	2022		2021
Assumed health care cost trend rates as of December 31:
Health care cost trend rate assumed for next year	6.50	%	6.00	%
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	2029		2025

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


	For the Years Ended December 31,
	2023		2024		2025		2026		2027		2028-2032
Pension benefits	$	11.1	$	11.9	$	7.6	$	8.8	$	22.9	$	56.4

Composition of Pension Plan Assets

We believe asset returns can be optimized at an acceptable level of risk by adequately diversifying the plan assets between equity and fixed income. The targeted allocation for fixed income and cash investments is 50% and the targeted allocation for equity investments is 50%. Our targeted exposure to International equity including emerging markets is 15% while our exposure to domestic equity is 35%. Our U.S. pension plan represents 81%, our Canadian pension plan 9%, and our United Kingdom (“U.K.”) pension plan 10% of the total fair value of our plan assets as of December 31, 2022.

Our U.S. pension plans’ weighted-average asset allocations as of December 31, 2022 and 2021, by asset category, were as follows:


	Plan Assets as of December 31,
Asset Category:	2022		2021
U.S. equity	31.3	%	36.1	%
International equity	18.7	%	15.5	%
Fixed income	49.2	%	48.2	%
Money market/cash	0.8	%	0.2	%
Total	100.0	%	100.0	%

Our U.S. pension plans’ assets were invested according to the following targets:


Asset Category:	Target
U.S. equity	35.0	%
International equity	15.0	%
Fixed income	50.0	%

Our Canadian pension plans were invested in fixed income securities and equities. Our U.K. pension plan was invested in fixed income securities, including corporate and government bonds.

The fair values of our pension plan assets, by asset category, were as follows (in millions):


	Fair Value Measurements as of December 31, 2022
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Asset Category:
Cash and cash equivalents	$	0.9	$	—	$	—	$	0.9
Commingled pools / Collective Trusts:
U.S. equity (1)	—		33.3		—		33.3
International equity (2)	—		19.8		—		19.8
Fixed income (3)	—		52.5		—		52.5
Balanced pension trust: (4)
International equity	—		3.3		—		3.3
Fixed income	—		8.3		—		8.3
Pension fund:

Fixed income (6)	—		13.0		—		13.0

Total	$	0.9	$	130.2	$	—	$	131.1


	Fair Value Measurements as of December 31, 2021
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Asset Category:
Cash and cash equivalents	$	0.4	$	—	$	—	$	0.4
Commingled pools / Collective Trusts:
U.S. equity (1)	—		51.8		—		51.8
International equity (2)	—		22.2		—		22.2
Fixed income (3)	—		69.3		—		69.3
Balanced pension trust: (4)
International equity	—		4.4		—		4.4
Fixed income	—		12.6		—		12.6
Pension fund:

Fixed income (5)	—		23.6		—		23.6

Total	$	0.4	$	183.9	$	—	$	184.3

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

As of December 31, 2022

Fair Value

Redemption Frequency
(if currently eligible)

Redemption Notice Period

Asset Category:

Commingled pools / Collective Trusts:

U.S. equity (1)

33.3

Daily

5 days

International equity (2)

19.8

Daily

5 days

Fixed income (3)

52.5

Daily

5 days

Balanced pension trust: (4)

International equity

3.3

Daily

3-5 days

Fixed income

8.3

Daily

3-5 days

Pension fund:

Fixed income (5)

13.0

Daily

1 - 3 days

Total

130.2

As of December 31, 2021

Fair Value

Redemption Frequency
(if currently eligible)

Redemption Notice Period

Asset Category:

Commingled pools / Collective Trusts:

U.S. equity (1)

51.8

Daily

5 days

International equity (2)

22.2

Daily

5 days

Fixed income (3)

69.3

Daily

5-15 days

Balanced pension trust: (4)

International equity

4.4

Daily

3-5 days

Fixed income

12.6

Daily

3-5 days

Pension fund:

Fixed income (5)

23.6

Daily

1 - 3 days

Total

183.9


(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 international 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, international fixed income securities and emerging markets fixed income securities.
(4)			The investment objectives of the plan 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 plan also holds a portion of its assets in international equities, a portion of which may be invested in U.S. securities.

(5)			This category includes investments in U.K. government index-linked securities (index-linked gilts) that have maturity periods of 5 years or longer with a derivatives overlay and investment grade corporate bonds denominated in sterling. The plan also holds a portion of its assets in international instruments, a portion of which may be invested in U.S. securities.

The majority of our commingled pool/collective trusts, mutual funds, balanced pension trusts and pension funds 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 assessed the fair value classification of these investments as Level 2 for commingled pool/collective trusts, balanced pension trusts and pension funds based on an examination of their pricing policies and the related controls and procedures. The fair values we report are based on the pool, trust or fund’s NAV per share. The NAVs 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 16 for information about our fair value hierarchies and valuation techniques.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Joint Ventures and Other Equity Investments

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Joint Ventures and Other Equity Investments

participate in two joint ventures, the largest located in the U.S. and the other in Mexico, that are engaged in the manufacture and sale of compressors, unit coolers and condensing units. We exert significant influence over these affiliates based upon our respective 25% and 50% ownership, but do not control them due to venture partner participation. Accordingly, these joint ventures have been accounted for under the equity method and their financial position and results of operations are not consolidated.

The combined balance of equity method investments included in Other assets, net totaled (in millions):


	As of December 31,
	2022		2021
Equity method investments	$	44.4	$	37.7

We purchase compressors from our U.S. joint venture for use in certain of our products. The amounts of purchases included in Cost of goods sold in the Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Purchases of compressors from joint venture	$	156.2	$	141.7	$	123.1

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

r Provision for income taxes from continuing operations consisted of the following (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Current:
Federal	$	104.0	$	72.0	$	61.7
State	21.6		17.0		14.1
Foreign	7.8		13.4		4.8
Total current	133.4		102.4		80.6
Deferred:
Federal	(13.9)		(2.6)		(0.7)
State	(3.1)		(1.5)		1.1
Foreign	2.3		(2.2)		7.1
Total deferred	(14.7)		(6.3)		7.5
Total provision for income taxes	$	118.7	$	96.1	$	88.1

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


	For the Years Ended December 31,
	2022		2021		2020
Domestic	$	340.2	$	307.8	$	268.4
Foreign	275.6		252.3		176.8
Total	$	615.8	$	560.1	$	445.2

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


	For the Years Ended December 31,
	2022		2021		2020
Provision at the U.S. statutory rate of 21%	$	129.3	$	117.6	$	93.5
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	14.6		12.1		10.8

Tax credits, net of unrecognized tax benefits	(8.0)		(9.3)		(7.8)
Change in unrecognized tax benefits	0.2		0.2		0.2
Change in valuation allowance	—		—		7.8
Foreign taxes at rates other than U.S. statutory rate	(47.4)		(43.6)		(33.6)
Deemed inclusions	10.0		7.7		9.2
Global intangible low-taxed income	23.9		18.8		10.3
Change in rates from the Tax Act & other law changes	0.1		0.1		0.7
Excess tax benefits from stock-based compensation	(0.6)		(5.7)		(4.2)
Miscellaneous other	(3.4)		(1.8)		1.2
Total provision for income taxes	$	118.7	$	96.1	$	88.1

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 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):


	As of December 31,
	2022		2021
Gross deferred tax assets:
Warranties	$	34.9	$	32.9
Loss carryforwards (foreign, U.S. and state)	29.6		28.5
Post-retirement and pension benefits	10.2		15.6
Inventory reserves	9.3		7.1
Receivables allowance	6.0		4.5
Compensation liabilities	5.9		9.5

Legal reserves	10.5		12.1
Tax credits, net of federal effect	11.9		11.5
Research and development capitalization	17.9		—
Other	7.1		9.6
Total deferred tax assets	143.3		131.3
Valuation allowance	(37.9)		(37.3)
Total deferred tax assets, net of valuation allowance	105.4		94.0
Gross deferred tax liabilities:
Depreciation	(58.9)		(58.7)
Intangibles	(15.6)		(15.5)
Insurance liabilities	(1.4)		(1.4)
Other	(2.0)		(7.1)
Total deferred tax liabilities	(77.9)		(82.7)
Net deferred tax assets	$	27.5	$	11.3

As of December 31, 2022 and 2021, we had $21.5 million and $20.3 million in tax-effected foreign net operating loss carryforwards, respectively. The deferred tax asset valuation allowance relates primarily to loss carryforwards. The remainder of the valuation allowance relates to state tax credits.

In assessing whether a deferred tax asset will be realized, we consider whether it is more likely than not that some portion or all of the deferred tax asset 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 we will realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2022.

No provision was made for income taxes which may become payable upon distribution of our foreign subsidiaries’ earnings. An actual repatriation in the future from our non-U.S. subsidiaries could still be subject to foreign withholding taxes and U.S. state taxes, but we expect any amounts to be immaterial.

We are currently in the Bridge program for our U.S. federal income taxes under the Internal Revenue Service’s Compliance Assurance Program for 2022 and 2021. As a result, our returns for those years will not be examined. However, we are subject to examination by numerous other taxing authorities in the U.S. and in foreign jurisdictions. We have no material uncertain tax provisions recorded as of December 31, 2022. 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 prior to 2015.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Lines of Credit and Financing Arrangements

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Lines of Credit and Financing Arrangements

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


	As of December 31,
	2022		2021





Current maturities of long-term debt:
Asset securitization program	$	350.0	$	—
Finance lease obligations	11.2		11.3
Senior unsecured notes	350.0		—

Debt issuance costs	(0.6)		—
Total current maturities of long-term debt	$	710.6	$	11.3
Long-Term Debt:
Asset securitization program	$	—	$	250.0
Finance lease obligations	28.3		29.0
Credit agreement	192.0		6.5
Senior unsecured notes	600.0		950.0
Debt issuance costs	(6.1)		(9.0)
Total long-term debt	$	814.2	$	1,226.5
Total debt	$	1,524.8	$	1,237.8

As of December 31, 2022, the aggregate amounts of required principal payments on total debt excluding finance lease obligations (see Note 5) were as follows (in millions):


2023	$	700.0
2024	—
2025	300.0
2026	192.0
2027	300.0
Thereafter	—

Short-Term Debt

Foreign Obligations

Through several of our foreign subsidiaries, we have facilities available to assist in financing seasonal borrowing needs for our foreign locations. As of December 31, 2022 or 2021, we did not have any outstanding short-term foreign obligations. Proceeds and repayments from these facilities were $0.0 million, $0.0 million and $4.6 million during the years ended December 31, 2022, 2021 and 2020, respectively.

Long-Term Debt

Asset Securitization Program

Under the Asset Securitization Program (“ASP”), we are eligible to sell beneficial interests in a portion of our trade accounts receivable to a financial institution for cash. The ASP contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. As a result of the repurchase right, the transfer of the receivables under the ASP is not accounted for as a sale. Accordingly, the cash received from the transfer of the beneficial interests in our trade accounts receivable is reflected as secured borrowings in the accompanying Consolidated Balance Sheet and proceeds received are included in Cash flows from financing activities in the accompanying Consolidated Statements of Cash Flows. Our continued involvement with the transferred assets includes servicing, collection and administration of the transferred beneficial interests. The accounts receivable securitized under the ASP are high-quality domestic customer accounts that have not aged significantly. 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 transferred under the ASP.

We renewed the ASP in November 2021, extending its term to November 2023 and increasing the maximum securitization amount to a range from $300.0 million to $450.0 million, depending on the period. The maximum capacity under the ASP is the lesser of the maximum securitization amount or 100% of the net pool balance less allowances, as defined by the ASP. Eligibility for securitization is limited based on the amount and quality of the qualifying accounts receivable and is calculated monthly. The eligible amounts available and beneficial interests sold were as follows (in millions):


	As of December 31,
	2022		2021
Eligible amount available under the ASP on qualified accounts receivable	$	350.0	$	335.6
Less: Beneficial interest transferred	(350.0)		(250.0)
Remaining amount available	$	—	$	85.6

We pay certain discount fees to use the ASP and to 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 either the average LIBOR rate or floating commercial paper rate determined by the purchaser of the beneficial interest, plus a program fee of 0.70%. The average rates as of December 31, 2022 and 2021 were 5.17% and 0.82%, respectively. The unused fee is based on 101% of the maximum available amount less the beneficial interest transferred and is calculated at rate ranging between 0.25% and 0.35%, depending on available borrowings, throughout the term of the agreement. We recorded these fees in Interest expense, net in the accompanying Consolidated Statements of Operations.

The ASP contains certain restrictive covenants relating to the quality of our accounts receivable and cross-default provisions with our Credit Agreement (as defined below), senior unsecured notes and any other indebtedness we may have over $75.0 million. The administrative agent under the ASP is also a participant in our Credit Agreement. The participating financial institutions have investment grade credit ratings. As of December 31, 2022, we believe we were in compliance with all covenant requirements.

Credit Agreement

In July 2021, we entered into a new Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto, which refinanced and replaced the Seventh Amended and Restated Credit Facility.

The Credit Agreement consists of a $750.0 million unsecured revolving credit facility that matures in July 2026. We had outstanding borrowings of $192.0 million as well as $2.0 million committed to standby letters of credit as of December 31, 2022. Subject to covenant limitations, $556.0 million was available for future borrowings. The revolving credit facility includes

a subfacility for swingline loans of up to $65.0 million. The Credit Agreement will expire and outstanding loans will be required to be repaid in July 2026, unless maturity is extended by the lenders pursuant to two one-year extension options that we may request under the Credit Agreement.

Below is a summary of the weighted average interest rate for both December 31, 2022 and 2021:


	As of December 31,
	2022		2021
Weighted average borrowing rate	5.57	%	1.38	%

The Credit Agreement is guaranteed by certain of our subsidiaries and contains customary covenants applicable to us and its subsidiaries including limitations on indebtedness, liens, dividends, stock repurchases, mergers and sales of all or substantially all of its assets. In addition, the Credit Agreement contains a financial covenant requiring us to maintain, as of the last day of each fiscal quarter for the four prior fiscal quarters, a Total Net Leverage Ratio of no more than 3.50 to 1.00 (or, at our election, on up to two occasions following a material acquisition, 4.00 to 1.00).

The Credit Agreement 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 certain other indebtedness or receivables securitizations (cross default), and bankruptcy. A cross default under our Credit Agreement could occur if:

• We fail to pay any principal or interest when due on any other indebtedness or receivables securitization exceeding $75.0 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 exceeding $75.0 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 Credit Agreement, our senior unsecured notes, our lease of our corporate headquarters in Richardson, Texas (recorded as an operating lease), or our ASP 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, the administrative agent, or lenders with a majority of the aggregate commitments may require the administrative agent to, terminate our right to borrow under our Credit Agreement and accelerate amounts due under our Credit Agreement (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). As of December 31, 2022, we believe we were in compliance with all covenant requirements.

Senior Unsecured Notes

We issued two series of senior unsecured notes on July 30, 2020 for $300.0 million each, which will mature on August 1, 2025 (the "2025 Notes") and August 1, 2027 (the "2027 Notes") with interest being paid semi-annually on February and August at 1.35% and 1.70% respectively, per annum. We also issued $350.0 million of senior unsecured notes in November 2016 (the "2023 Notes," and together with the 2025 Notes and the 2027 Notes, the "Notes") which will mature on November 15, 2023 with interest being paid semi-annually on May 15 and November 15 at 3.00% per annum.

All the Notes are guaranteed, on a senior unsecured basis, by certain of our subsidiaries that guarantee indebtedness under our Credit Agreement. 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; and enter into certain mergers, consolidations and transfers of substantially all of our assets. 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. As of December 31, 2022, we believe we were in compliance with all covenant requirements.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Comprehensive Income

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Comprehensive Income

following table provides information on items not reclassified in their entirety from AOCL to Net Income in the accompanying Consolidated Statements of Operations (in millions):


	For the Years Ended December 31,
AOCL Component	2022		2021		Affected Line Item(s) in the Consolidated Statements of Operations
Gains/(Losses) on cash flow hedges:
Derivative contracts	$	9.7	$	26.9	Cost of goods sold and Losses (gains) and other expenses, net.
Income tax expense	(2.2)		(6.2)		Provision for income taxes
Net of tax	$	7.5	$	20.7

Defined Benefit Plan Items:
Pension and post-retirement benefits costs	$	(5.4)	$	(7.9)	Cost of goods sold; Selling, general, administrative expenses and Other (income) expense, net
Pension settlements	0.2		(1.2)		Pension settlements
Income tax benefit	1.3		2.2		Provision for income taxes
Net of tax	$	(3.9)	$	(6.9)






Total reclassifications from AOCL	$	3.6	$	13.8

The following tables provide information on changes in AOCL, by component (net of tax), for the years ended December 31, 2022 and 2021 (in millions):


	Gains (Loss) on Cash Flow Hedges		Share of equity method investments other comprehensive income		Defined Benefit Plan Items		Foreign Currency Translation Adjustments		Total AOCL
Balance as of December 31, 2021	$	10.7	$	(1.2)	$	(68.8)	$	(28.8)	$	(88.1)
Other comprehensive (loss) income before reclassifications	(8.1)		0.7		18.7		(10.2)		1.1
Amounts reclassified from AOCL	(7.5)		—		3.9		—		(3.6)
Net other comprehensive (loss) income	(15.6)		0.7		22.6		(10.2)		(2.5)
Balance as of December 31, 2022	$	(4.9)	$	(0.5)	$	(46.2)	$	(39.0)	$	(90.6)


	Gains (Losses) on Cash Flow Hedges		Share of equity method investments other comprehensive income		Defined Benefit Plan Items		Foreign Currency Translation Adjustments		Total AOCL
Balance as of December 31, 2020	$	8.2	$	(1.2)	$	(82.7)	$	(21.5)	$	(97.2)
Other comprehensive income (loss) before reclassifications	23.2		—		7.0		(7.3)		22.9
Amounts reclassified from AOCL	(20.7)		—		6.9		—		(13.8)
Other comprehensive income (loss) before reclassifications	2.5		—		13.9		(7.3)		9.1
Balance as of December 31, 2021	$	10.7	$	(1.2)	$	(68.8)	$	(28.8)	$	(88.1)

Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

ock-based compensation expense related to continuing operations was included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Compensation expense(1)	$	21.8	$	24.3	$	24.3

(1) Stock-based compensation expense was recorded in our Corporate and other business segment.

Incentive Plan

Under the Lennox International Inc. 2019 Equity and Incentive Compensation Plan, we are authorized to issue awards for 1.7 million shares of common stock. The plan provides for various long-term incentive awards, including 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. As of December 31, 2022, there were 1.5 million shares available for future issuance.

Performance Share Units

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. 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 up to 200% of the units granted, depending on LII’s performance over the three-year performance period.

Performance share units are classified as equity awards. Compensation expense is recognized on an earnings curve over the period and is based on the expected number of units to be earned and the fair value of the stock at the date of grant. The fair value of units is calculated as 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. The number of units expected to be earned will be adjusted in future periods as necessary to reflect changes in the estimated number of award to be issued and, upon vesting, the actual number of units awarded. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy performance share unit distributions.

The following table provides information on our performance share units:


	For the Years Ended December 31,
	2022			2021			2020
Compensation expense for performance share units (in millions)	$	6.9		$	10.8		$	8.9
Weighted-average fair value of grants, per share	$	237.68		$	314.27		$	265.96
Payout ratio for shares paid	126		%	100		%	133		%

A summary of the status of our undistributed performance share units as of December 31, 2022, and changes during the year then ended, is presented below (in thousands, except per share data):


	Shares	Weighted- Average Grant Date Fair Value per Share
Undistributed performance share units as of December 31, 2021	149.2	$	246.84
Granted	51.5	$	237.68
Adjustment to shares paid based on payout ratio	7.4	245.06
Distributed	(54.4)	$	204.64
Forfeited	(29.0)	$	262.82
Undistributed performance share units as of December 31, 2022 (1)	124.7	$	257.55

(1) Undistributed performance share units include approximately 93.9 thousand units with a weighted-average grant date fair value of $261.65 per share that had not yet vested and 30.8 thousand units that have vested but were not yet distributed.

As of December 31, 2022, we had $18.8 million of total unrecognized compensation cost related to non-vested performance share units that is expected to be recognized over a weighted-average period of 2.4 years years. Our weighted-average estimated forfeiture rate for these performance share units was 10.9% as of December 31, 2022.

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


	For the Years Ended December 31,
	2022		2021		2020
Fair value of performance share units distributed	$	6.1	$	10.8	$	15.1
Realized tax benefits from tax deductions	$	1.5	$	2.7	$	0.7

Restricted Stock Units

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. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy restricted stock unit vestings. Restricted stock units are classified as equity awards. The fair value of units granted 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.

The following table provides information on our restricted stock units (in millions, except per share data):


	For the Years Ended December 31,
	2022		2021		2020
Compensation expense for restricted stock units	$	11.0	$	8.7	$	10.4
Weighted-average fair value of grants, per share	$	240.87	$	315.70	$	265.96

A summary of our non-vested restricted stock units as of December 31, 2022 and changes during the year then ended is presented below (in thousands, except per share data):


	Shares	Weighted- Average Grant Date Fair Value per Share
Non-vested restricted stock units as of December 31, 2021	135.1	$	277.85
Granted	58.8	$	240.87
Vested	(37.3)	$	250.45
Forfeited	(25.6)	$	268.59
Non-vested restricted stock units as of December 31, 2022 (1)	131.0	$	270.86

(1) As of December 31, 2022, we had $24.7 million of total unrecognized compensation cost related to non-vested restricted stock units that is expected to be recognized over a weighted-average period of 2.4 years. Our estimated forfeiture rate for restricted stock units was 13.3% as of December 31, 2022.

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


	For the Years Ended December 31,
	2022		2021		2020
Fair value of restricted stock units vested	$	9.7	$	11.0	$	15.0
Realized tax benefits from tax deductions	2.4		2.7		2.7

Stock Appreciation Rights

Stock appreciation rights are issued to certain key employees. Each recipient is given the “right” to receive compensation, paid in shares of our common stock, equal to the future appreciation of our common stock price. Stock appreciation rights generally vest in one-third increments beginning on the first anniversary date after the grant date and expire after seven years. Our practice is to issue new shares of common stock or utilize treasury stock to satisfy the exercise of stock appreciation rights.

The following table provides information on our stock appreciation rights (in millions, except per share data):


	For the Years Ended December 31,
	2022		2021		2020
Compensation expense for stock appreciation rights	$	3.9	$	4.8	$	5.0
Weighted-average fair value of grants, per share	$	64.54	$	70.50	$	55.21

Compensation expense for stock appreciation rights is based on the fair value on the date of grant, estimated using the Black-Scholes-Merton valuation model, and is recognized over the service period. We used historical stock price data to estimate the expected volatility. We determined that the recipients of stock appreciation rights can be combined into one employee group that has similar historical exercise behavior and we used our historical pattern of award exercises to estimate the expected life of the awards for the employee group. The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve with a maturity equal to the expected life of the awards at the time of grant.

The fair value of the stock appreciation rights granted in 2022, 2021 and 2020 were estimated on the date of grant using the following assumptions:


	2022		2021		2020
Expected dividend yield	2.01	%	1.69	%	1.64	%
Risk-free interest rate	3.88	%	0.88	%	0.27	%
Expected volatility	29.90	%	29.80	%	29.70	%
Expected life (in years)	4.18		4.35		3.95

A summary of our stock appreciation rights as of December 31, 2022, and changes during the year then ended, is presented below (in thousands, except per share data):


	Shares	Weighted-Average Exercise Price per Share
Outstanding stock appreciation rights as of December 31, 2021	478.3	$	241.61
Granted	98.1	$	259.56
Exercised	(42.7)	$	170.48
Forfeited	(45.8)	$	280.78
Outstanding stock appreciation rights as of December 31, 2022	487.9	$	247.77
Exercisable stock appreciation rights as of December 31, 2022	324.6	$	231.24

The following table summarizes information about stock appreciation rights outstanding as of December 31, 2022 (in millions, except per share data and years; shares in thousands):


	Stock Appreciation Rights Outstanding				Stock Appreciation Rights Exercisable
Range of Exercise Prices	Shares	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value		Shares (1)	Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
$124.97 to $214.63	175.7	2.12	$	7.7	175.7	2.12	$	7.7
$257.08 to $278.00	147.9	4.42	$	—	126.9	4.33	$	—
$259.56 to $328.65	164.3	6.59	$	—	22.1	6.00	$	—

(1) Share amounts are rounded but the balance accurately reflects the actual amount of exercisable stock appreciation rights as of December 31, 2022.

As of December 31, 2022, we had $10.6 million of unrecognized compensation cost related to non-vested stock appreciation rights that is expected to be recognized over a weighted-average period of 2.8 years. Our estimated forfeiture rate for stock appreciation rights was 12.6% as of December 31, 2022.

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,
	2022		2021		2020
Intrinsic value of stock appreciation rights exercised	$	3.5	$	31.2	$	26.7
Realized tax benefits from tax deductions	$	0.9	$	7.7	$	6.7

Employee Stock Purchase Plan

On May 24, 2022, the Company commenced a new Employee Stock Purchase Plan to succeed the prior agreement from 2012. Under the 2022 Employee Stock Purchase Plan (“ESPP”), all employees who meet certain service requirements are eligible to purchase our common stock through payroll deductions at the end of three month offering periods. The purchase price for such shares is 95% of the fair market value of the stock on the last day of the offering period. A maximum of 1.0 million shares is authorized for purchase until issuance of all shares available under the plan, unless terminated earlier at the discretion of the Board of Directors. Employees purchased approximately 16,100 shares under the ESPP during the year ended December 31, 2022. Approximately 0.8 million shares remain available for purchase under the ESPP as of December 31, 2022.

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

ir 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. Fair value is 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. Our framework for measuring fair value is based on the following three-level hierarchy for fair value measurements:

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.

Where available, the fair values were based upon quoted prices in active markets. However, if quoted prices were not available, then the fair values were 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 without observable market activity, if any, the fair values were based upon discounted cash flow methodologies incorporating assumptions that, in our judgment, reflect the assumptions a marketplace participant would use. Valuation adjustments to reflect either party’s creditworthiness and ability to pay were incorporated into our valuations, where appropriate, as of December 31, 2022 and 2021, the measurement dates.

The methodologies used to determine the fair value of our financial assets and liabilities as of December 31, 2022 were the same as those used as of December 31, 2021.

Fair values are estimates and are not necessarily indicative of amounts for which we could settle such instruments currently nor indicative of our intent or ability to dispose of or liquidate them.

Assets and Liabilities Carried at Fair Value on a Recurring Basis

Derivatives, classified as Level 2, were primarily valued using estimated future cash flows based on observed prices from exchange-traded derivatives. We also considered the counterparty’s creditworthiness, or our own creditworthiness, as appropriate. Adjustments were recorded to reflect the risk of credit default, but they were insignificant to the overall value of the derivatives. Refer to Note 9 for more information related to our derivative instruments. Refer to Note 10 for more information related to the fair value assumptions related to our pension assets and liabilities.

Other Fair Value Disclosures

The carrying amounts of Cash and cash equivalents, Short-term investments, Accounts and notes receivable, net, Accounts payable, Other current liabilities, and Short-term debt approximate fair value due to the short maturities of these instruments. The carrying amount of our Credit Agreement in Long-term debt also approximates fair value due to its variable-rate characteristics.

The fair value of our senior unsecured notes in Long-term debt was based on the amount of future cash flows using current market rates for debt instruments of similar maturities and credit risk. The following table presents the fair value for our senior unsecured notes in Long-term debt (in millions):


	As of December 31,
	2022		2021
Quoted Prices in Active Markets for Similar Instruments (Level 2):
Senior unsecured notes	$	878.0	$	959.2

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

For the Years Ended December 31, 2022, 2021 and 2020

(In millions)


	Balance at beginning of year		Additions charged to cost and expenses		Write-offs		Recoveries		Other		Balance at end of year
2020
Allowance for doubtful accounts	$	6.1	$	8.1	$	(4.2)	$	1.2	$	(1.6)	$	9.6
2021
Allowance for doubtful accounts	$	9.6	$	0.3	$	(0.4)	$	1.2	$	—	$	10.7
2022
Allowance for doubtful accounts	$	10.7	$	6.9	$	(0.4)	$	—	$	(1.7)	$	15.5

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Principles of Consolidation

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

Cash and Cash Equivalents

Cash and Cash EquivalentsWe 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.

Short term Investments

Accounts and Notes Receivable

Inventories

Property, Plant and Equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:


Buildings and improvements:
Buildings and improvements			2 to 40 years
Leasehold improvements			1 to 39 years
Machinery and equipment:
Computer hardware			3 to 5 years
Computer software			3 to 10 years
Factory machinery and equipment			1 to 15 years
Research and development equipment			3 to 5 years
Vehicles			3 to 10 years

Goodwill

Product Warranties

Pensions and Post-retirement Benefits

Self-Insurance

Leases

The principal elements of cost of goods sold are components, raw materials, factory overhead, labor, estimated costs of warranty expense, and freight and distribution costs.

Selling, General and Administrative Expenses

Stock-Based Compensation

Translation of Foreign Currencies

Translation of Foreign CurrenciesAll 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. Revenue and expenses are translated at weighted average exchange rates during the year. Unrealized translation gains and losses are included in AOCL 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

Impact of COVID-19 Pandemic

Leases

Commitment and Contingencies (Policies)	12 Months Ended
Commitment and Contingencies (Policies)	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Leases	Leases We lease certain real and personal property under non-cancelable leases. Approximately 81% of our right-of-use assets and lease liabilities relate to our leases of real estate with the remaining amounts relating to our leases of IT equipment, fleet vehicles and manufacturing and distribution equipment.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Estimated useful lives of property, plant and equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:


Buildings and improvements:
Buildings and improvements			2 to 40 years
Leasehold improvements			1 to 39 years
Machinery and equipment:
Computer hardware			3 to 5 years
Computer software			3 to 10 years
Factory machinery and equipment			1 to 15 years
Research and development equipment			3 to 5 years
Vehicles			3 to 10 years

Components of Property, plant and equipment, net were as follows (in millions):


	As of December 31,
	2022		2021
Land	$	24.1	$	24.0
Buildings and improvements	321.6		285.9
Machinery and equipment	964.7		946.5
Finance leases	66.5		63.5
Construction in progress and equipment not yet in service	92.8		84.0
Total	1,469.7		1,403.9
Less accumulated depreciation	(920.8)		(888.8)
Property, plant and equipment, net	$	548.9	$	515.1

Reportable Business Segments (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting, Measurement Disclosures [Abstract]

Net sales, segment profit (loss) by business segment and reconciliation of segment profit (loss) to Income from Continuing Operations before Income Taxes

Segment

Products or Services

Markets Served

Geographic Areas

Residential Heating & Cooling

Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies

Residential Replacement;
Residential New Construction

United States
Canada

Commercial Heating & Cooling

Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products

Light Commercial

United States
Canada

Refrigeration(1)

Condensing units, unit coolers, fluid coolers, air- cooled condensers, air handlers, process chillers, controls, and compressorized racks

Light Commercial;
Food Preservation;
Non-Food/Industrial

United States
Canada
Europe

Net sales and segment profit (loss) with reconciliation of segment profit (loss)

Net sales and segment profit (loss) by segment, along with a reconciliation of segment profit (loss) to Operating income, are shown below (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Net Sales (1)
Residential Heating & Cooling	$	3,198.3	$	2,775.6	$	2,361.5
Commercial Heating & Cooling	900.7		864.8		800.9
Refrigeration	619.4		553.7		471.7
	$	4,718.4	$	4,194.1	$	3,634.1
Segment profit (loss) (2)
Residential Heating & Cooling	$	596.9	$	540.3	$	428.5
Commercial Heating & Cooling	80.9		110.9		136.9
Refrigeration	78.8		49.1		32.8
Corporate and other	(90.8)		(96.4)		(91.5)
Total segment profit	665.8		603.9		506.7
Reconciliation to Operating income:
Special product quality adjustments	—		(2.5)		1.0



Loss from natural disasters, net of insurance recoveries	—		—		3.1
Items in Losses (gains) and other expenses, net that are excluded from segment profit (loss) (2)	8.1		14.3		13.3
Restructuring charges	1.5		1.8		10.8
Operating income	$	656.2	$	590.3	$	478.5

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

(2) We define segment profit (loss) as a segment’s operating income included in the accompanying Consolidated Statements of Operations, excluding:

•The following items in (Gains) losses and other expenses, net:

◦Net change in unrealized (gains) losses on unsettled futures contracts,

◦Environmental liabilities and special litigation charges,

◦Charges incurred related to COVID-19 pandemic, and

◦Other items, net,

•Special product quality adjustments

•Loss from natural disasters, net of insurance recoveries

•Restructuring charges, and

Total assets by business segment

Total assets by segment are shown below (in millions):


	As of December 31,
	2022		2021		2020
Total Assets:
Residential Heating & Cooling	$	1,456.4	$	1,149.7	$	1,034.6
Commercial Heating & Cooling	456.4		366.2		366.5
Refrigeration	443.6		426.6		387.9
Corporate and other	211.2		229.4		243.5
Total assets	$	2,567.6	$	2,171.9	$	2,032.5

Summary of capital expenditures, depreciation and amortization, and income from equity method investments expense by business segment

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


	For the Years Ended December 31,
	2022		2021		2020
Capital Expenditures:
Residential Heating & Cooling	$	42.4	$	70.0	$	44.0
Commercial Heating & Cooling	21.5		4.3		5.9
Refrigeration	11.2		11.5		9.2
Corporate and other	26.0		21.0		19.4
Total capital expenditures	$	101.1	$	106.8	$	78.5

Depreciation and amortization expenses by segment are shown below (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Depreciation and Amortization:
Residential Heating & Cooling	$	31.5	$	27.6	$	28.5
Commercial Heating & Cooling	12.9		13.2		13.5
Refrigeration	9.1		7.8		7.8
Corporate and other	24.4		23.8		22.8
Total depreciation and amortization	$	77.9	$	72.4	$	72.6

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


	For the Years Ended December 31,
	2022		2021		2020
Income from Equity Method Investments:
Residential Heating & Cooling	$	0.9	$	6.9	$	11.4
Commercial Heating & Cooling	0.2		1.2		2.3
Refrigeration	4.0		3.7		1.9
Total income from equity method investments	$	5.1	$	11.8	$	15.6

Property, plant, and equipment, net for each major geographic area

Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):


	As of December 31,
	2022		2021		2020
Property, Plant and Equipment, net:
United States	$	408.8	$	381.0	$	352.9
Mexico	110.9		102.7		79.2
Canada	2.1		2.1		2.2
Other international	27.1		29.3		30.0
Total Property, plant and equipment, net	$	548.9	$	515.1	$	464.3

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Computations of basic and diluted loss per share for Loss from Continuing Operations

The computations of basic and diluted earnings per share for Income from continuing operations were as follows (in millions, except per share data):


	For the Years Ended December 31,
	2022		2021		2020
Net income	$	497.1	$	464.0	$	356.3
Add: Loss from discontinued operations	—		—		0.8
Income from continuing operations	$	497.1	$	464.0	$	357.1

Weighted-average shares outstanding – basic	35.7		37.2		38.3
Add: Potential effect of diluted securities attributable to stock-based payments	0.1		0.3		0.3
Weighted-average shares outstanding – diluted	35.8		37.5		38.6

Earnings per share - Basic:
Income from continuing operations	$	13.92	$	12.47	$	9.32
Loss from discontinued operations	—		—		(0.02)
Net income	$	13.92	$	12.47	$	9.30

Earnings per share - Diluted:
Income from continuing operations	$	13.88	$	12.39	$	9.26
Loss from discontinued operations	—		—		(0.02)
Net income	$	13.88	$	12.39	$	9.24

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Components of lease expense

The components of lease expense were as follows (in millions):



	For the Years Ended December 31,
	2022		2021		2020
Finance lease cost:
Amortization of right-of-use assets	$	13.2	$	11.9	$	10.3
Interest on lease liabilities	0.7		0.5		0.7
Operating lease cost	67.7		62.2		62.7
Short-term lease cost	5.0		3.8		4.0
Variable lease cost	24.5		21.6		20.3

Total lease cost	$	111.1	$	100.0	$	98.0

Other information
Cash paid for amounts included in the measurement lease liabilities:

Operating cash flows from operating leases	$	66.0	$	61.8	$	61.6
Financing cash flows from finance leases	$	13.6	$	12.3	$	10.8
Right-of-use assets obtained in exchange for new finance lease liabilities	$	14.4	$	14.6	$	15.4
Right-of-use assets obtained in exchange for new operating lease liabilities	$	98.8	$	61.8	$	67.6



	As of December 31,
	2022			2021
Finance lease right-of-use assets(1)	$	33.3		$	34.5
Operating lease right-of-use assets	$	219.9		$	196.1
Finance lease liability, current(2)	$	11.2		$	11.3
Finance lease liability, non-current(3)	$	28.3		$	29.0
Operating lease liability, current	$	63.3		$	54.8
Operating lease liability, non-current	$	161.8		$	145.0
Weighted-average remaining lease term - finance leases	3.6 years			3.9 years
Weighted-average remaining lease term - operating leases	5.1 years			4.5 years
Weighted-average discount rate - finance leases	1.92		%	1.14		%
Weighted-average discount rate – operating leases	3.44		%	2.62		%
(1) Recorded in Property, plant and equipments in Consolidated Balance Sheet
(2) Recorded in Current maturities of long-term debt in Consolidated Balance Sheet
(3) Recorded in Long-term debt in Consolidated Balance Sheet

Summary of approximate minimum commitments under all non-cancelable leases outstanding

Future annual minimum lease payments and finance lease commitments as of December 31, 2022 were as follows (in millions):


	Operating Leases		Finance Leases
2023	$	70.0	$	11.6
2024	53.2		8.4
2025	36.9		5.8
2026	29.0		2.5
2027	18.9		0.3
Thereafter	40.1		11.7
Total minimum lease payments	$	248.1	$	40.3
Less imputed interest	(23.0)		(0.8)
Present value of minimum payments	$	225.1	$	39.5

Summary of information related to our environmental reserve

Environmental

Summary of changes in the total warranty liabilities

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


	As of December 31,
	2022		2021
Accrued expenses	$	41.3	$	37.2
Other liabilities	101.4		97.0
Total product warranty liabilities	$	142.7	$	134.2

The changes in product warranty liabilities related to continuing operations for the years ended December 31, 2022 and 2021 were as follows (in millions):


Total warranty liability as of December 31, 2020	$	119.8
Payments made in 2021	(31.6)
Changes resulting from issuance of new warranties	43.6
Changes in estimates associated with pre-existing liabilities	2.7
Changes in foreign currency translation rates and other	(0.3)

Total warranty liability as of December 31, 2021	$	134.2
Payments made in 2022	(36.3)
Changes resulting from issuance of new warranties	50.5
Changes in estimates associated with pre-existing liabilities	(4.7)
Changes in foreign currency translation rates and other	(1.0)

Total warranty liability as of December 31, 2022	$	142.7

Summary of self-insurance liabilities

Total self-insurance liabilities were included in the following captions on the accompanying Consolidated Balance Sheets (in millions):


	As of December 31,
	2022		2021
Accrued expenses	$	3.0	$	3.2
Other liabilities	14.6		15.7
Total self-insurance liabilities	$	17.6	$	18.9

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from External Customers by Geographic Areas [Table Text Block]


	For the Year Ended December 31, 2022
Primary Geographic Markets	Residential Heating & Cooling		Commercial Heating & Cooling		Refrigeration		Consolidated
United States	$	2,957.1	$	837.7	$	385.7	$	4,180.5
Canada	241.2		62.4		—		303.6
International	—		0.6		233.7		234.3
Total	$	3,198.3	$	900.7	$	619.4	$	4,718.4


	For the Year Ended December 31, 2021
Primary Geographic Markets	Residential Heating & Cooling		Commercial Heating & Cooling		Refrigeration		Consolidated
United States	$	2,532.4	$	790.1	$	324.0	$	3,646.5
Canada	243.2		73.1		—		316.3
International	—		1.6		229.7		231.3
Total	$	2,775.6	$	864.8	$	553.7	$	4,194.1


	For the Year Ended December 31, 2020
Primary Geographic Markets	Residential Heating & Cooling		Commercial Heating & Cooling		Refrigeration		Consolidated
United States	$	2,181.8	$	721.1	$	257.9	$	3,160.8
Canada	179.7		77.6		—		257.3
International	—		2.2		213.8		216.0
Total	$	2,361.5	$	800.9	$	471.7	$	3,634.1

Contract with Customer, Asset and Liability [Table Text Block]

Net contract assets (liabilities) consisted of the following:


	December 31, 2022		December 31, 2021

Contract liabilities - current	(9.6)		(10.2)
Contract liabilities - noncurrent	(6.4)		(5.5)
Total	$	(16.0)	$	(15.7)

Inventories (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Components of inventories

The components of inventories are as follows (in millions):


	As of December 31,
	2022		2021
Finished goods	$	534.6	$	310.8
Work in process	8.9		12.4
Raw materials and parts	328.7		262.1
Total	872.2		585.3
Excess of current cost over last-in, first-out cost	(119.2)		(74.4)
Total inventories, net	$	753.0	$	510.9

Goodwill (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill in 2022 and 2021, in total and by segment, are summarized in the table below (in millions):


Segment:	Balance at December 31, 2020 (1)		Changes in foreign currency translation rates		Balance at December 31, 2021		Changes in foreign currency translation rates		Balance at December 31, 2022
Residential Heating & Cooling	$	26.1	$	—	$	26.1	$	—	$	26.1
Commercial Heating & Cooling	61.1		—		61.1		—		61.1
Refrigeration	99.7		(0.3)		99.4		(0.3)		99.1
	$	186.9	$	(0.3)	$	186.6	$	(0.3)	$	186.3

(1) The goodwill balances in the table above are presented net of accumulated impairment charges of $32.7 million, all of which relate to impairments in periods prior to 2020.

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Components of property, plant and equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:


Buildings and improvements:
Buildings and improvements			2 to 40 years
Leasehold improvements			1 to 39 years
Machinery and equipment:
Computer hardware			3 to 5 years
Computer software			3 to 10 years
Factory machinery and equipment			1 to 15 years
Research and development equipment			3 to 5 years
Vehicles			3 to 10 years

Components of Property, plant and equipment, net were as follows (in millions):


	As of December 31,
	2022		2021
Land	$	24.1	$	24.0
Buildings and improvements	321.6		285.9
Machinery and equipment	964.7		946.5
Finance leases	66.5		63.5
Construction in progress and equipment not yet in service	92.8		84.0
Total	1,469.7		1,403.9
Less accumulated depreciation	(920.8)		(888.8)
Property, plant and equipment, net	$	548.9	$	515.1

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Components of accrued expenses

The significant components of Accrued expenses are presented below (in millions):


	As of December 31,
	2022		2021
Accrued rebates and promotions	123.3		102.9
Accrued compensation and benefits	$	90.7	$	114.9
Accrued warranties	41.3		37.2
Other	33.8		32.0
Accrued sales, use, property and VAT taxes	26.8		26.9
Accrued Freight	19.0		12.0
Accrued asbestos reserves	14.3		13.1
Deferred income	9.6		10.2
Derivative contracts	9.0		1.0
Accrued interest	6.1		5.5
Self insurance reserves	3.0		3.2
Total Accrued expenses	$	376.9	$	358.9

Derivatives (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Amounts related to cash flow hedges

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


	As of December 31,
	2022		2021
Unrealized losses (gains), net on unsettled contracts	$	6.3	$	(13.4)
Income tax (benefit) expense	(1.4)		2.7
Unrealized losses (gains) included in AOCL, net of tax (1)	$	4.9	$	(10.7)

(1) Assuming commodity and foreign currency prices remain constant, we expect to reclassify $5.0 million of derivative losses into earnings within the next 12 months.

Supplemental Information (Tables)

12 Months Ended

Dec. 31, 2022

Supplemental Information [Abstract]

Summary of expenses in statements of operations

Below is information about expenses included in Selling, general and administrative expenses in our Consolidated Statements of Operations (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Research and development	$	80.3	$	76.1	$	66.8
Advertising, promotions and marketing (1)	32.4		26.9		26.5
Cooperative advertising expenditures	28.1		27.6		22.2

(1) Cooperative advertising expenditures were not included in these amounts.

Losses (gains) and other expenses, net in our Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Realized losses (gains) on settled future contracts	$	0.1	$	(1.2)	$	0.1
Foreign currency exchange gains	(1.3)		(2.2)		(3.6)
Loss (gain) on disposal of fixed assets	(1.0)		(0.2)		(0.2)
Other operating income	(1.0)		(1.5)		(2.2)
Net change in unrealized (gains) losses on unsettled futures contracts	0.4		—		(0.3)
Environmental liabilities and special litigation charges	7.5		9.6		5.3


Charges incurred related to COVID-19 pandemic	0.8		2.2		8.3
Other items, net	(0.6)		2.5		—
(Gains) losses and other expenses, net (pre-tax)	$	4.9	$	9.2	$	7.4

Summary of components of interest expense

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Interest expense, net of capitalized interest	$	39.8	$	26.0	$	29.7
Less: Interest income	1.1		1.0		1.4
Interest expense, net	$	38.7	$	25.0	$	28.3

Our Provision for income taxes from continuing operations consisted of the following (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Current:
Federal	$	104.0	$	72.0	$	61.7
State	21.6		17.0		14.1
Foreign	7.8		13.4		4.8
Total current	133.4		102.4		80.6
Deferred:
Federal	(13.9)		(2.6)		(0.7)
State	(3.1)		(1.5)		1.1
Foreign	2.3		(2.2)		7.1
Total deferred	(14.7)		(6.3)		7.5
Total provision for income taxes	$	118.7	$	96.1	$	88.1

Losses and Other Expenses, net (Tables)

12 Months Ended

Dec. 31, 2022

Losses (Gains) and Other Expenses, net [Abstract]

Summary of losses and other expenses, net

Below is information about expenses included in Selling, general and administrative expenses in our Consolidated Statements of Operations (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Research and development	$	80.3	$	76.1	$	66.8
Advertising, promotions and marketing (1)	32.4		26.9		26.5
Cooperative advertising expenditures	28.1		27.6		22.2

(1) Cooperative advertising expenditures were not included in these amounts.

Losses (gains) and other expenses, net in our Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Realized losses (gains) on settled future contracts	$	0.1	$	(1.2)	$	0.1
Foreign currency exchange gains	(1.3)		(2.2)		(3.6)
Loss (gain) on disposal of fixed assets	(1.0)		(0.2)		(0.2)
Other operating income	(1.0)		(1.5)		(2.2)
Net change in unrealized (gains) losses on unsettled futures contracts	0.4		—		(0.3)
Environmental liabilities and special litigation charges	7.5		9.6		5.3


Charges incurred related to COVID-19 pandemic	0.8		2.2		8.3
Other items, net	(0.6)		2.5		—
(Gains) losses and other expenses, net (pre-tax)	$	4.9	$	9.2	$	7.4

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2022

Defined Benefit Plan Disclosure [Line Items]

Defined contribution plans

We recorded the following contributions to the defined contribution plans (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Contributions to defined contribution plans	$	22.7	$	19.9	$	17.8

Pension and postretirement benefit plans recognized in financial statements

The following tables set forth amounts recognized in our financial statements and the plans’ funded status for our pension and post-retirement benefit plans (dollars in millions):


	Pension Benefits
	2022		2021
Accumulated benefit obligation	$	171.6	$	266.1

Changes in projected benefit obligation:
Benefit obligation at beginning of year	$	269.2	$	276.2
Service cost	3.8		6.1
Interest cost	6.2		5.1



Actuarial (gain) loss	(74.6)		(11.2)
Effect of exchange rates	(3.4)		(0.7)

Settlements	(21.7)		(2.1)
Benefits paid	(5.2)		(4.2)
Benefit obligation at end of year	$	174.3	$	269.2

Changes in plan assets:
Fair value of plan assets at beginning of year	$	184.3	$	179.7
Actual return on plan assets	(45.4)		9.5
Employer contributions	22.5		1.5

Effect of exchange rates	(3.4)		(0.1)

Plan settlements	(21.7)		(2.1)
Benefits paid	(5.2)		(4.2)
Fair value of plan assets at end of year	131.1		184.3
Funded status / net amount recognized	$	(43.2)	$	(84.9)

Net amount recognized consists of:
Non-current assets	$	2.7	$	6.5
Current liability	(5.8)		(8.1)
Non-current liability	(40.1)		(83.3)
Net amount recognized	$	(43.2)	$	(84.9)

Schedule of non-current pension liability plan


	For the Years Ended December 31,
	2022		2021
Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$	152.1	$	234.8
Accumulated benefit obligation	149.6		231.4
Fair value of plan assets	106.2		143.7

Components of net periodic benefit cost

Our U.S.-based pension plans comprised approximately 84% of the projected benefit obligation and 81% of plan assets as of December 31, 2022.


	Pension Benefits
	2022		2021		2020
Components of net periodic benefit cost as of December 31:
Service cost	$	3.8	$	6.1	$	5.5
Interest cost	6.2		5.1		6.6
Expected return on plan assets	(9.1)		(8.6)		(8.2)
Amortization of prior service costs	0.1		0.2		0.2
Recognized actuarial loss	5.3		7.7		5.8
Settlements	(0.2)		1.2		0.6
Other	(0.1)		(0.4)		—
Net periodic benefit cost	$	6.0	$	11.3	$	10.5

Summary of amounts recognized in AOCI in our financial statements

The following table sets forth amounts recognized in AOCL and Other comprehensive income (loss) in our financial statements for 2022 and 2021 (in millions):


	Pension Benefits
	2022		2021
Amounts recognized in AOCL:
Prior service costs	$	(0.4)	$	(0.5)
Actuarial loss	(57.7)		(83.1)
Subtotal	(58.1)		(83.6)
Deferred taxes	15.8		18.6
Net amount recognized	$	(42.3)	$	(65.0)
Changes recognized in other comprehensive loss:


Current year actuarial gain	(19.4)		(12.2)
Effect of exchange rates	(0.9)		—
Amortization of prior service costs	(0.1)		(0.2)
Amortization of actuarial loss, including settlements and other	(5.1)		(8.5)
Total recognized in other comprehensive income (loss)	$	(25.5)	$	(20.9)
Total recognized in net periodic benefit cost and other comprehensive income	$	(19.5)	$	(9.6)

Summary of health care cost trend rates

The following table sets forth the healthcare trend rate assumptions used:


	2022		2021
Assumed health care cost trend rates as of December 31:
Health care cost trend rate assumed for next year	6.50	%	6.00	%
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	2029		2025

Summary of expected future benefit payments

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


	For the Years Ended December 31,
	2023		2024		2025		2026		2027		2028-2032
Pension benefits	$	11.1	$	11.9	$	7.6	$	8.8	$	22.9	$	56.4

Summary of weighted-average asset allocations

Our U.S. pension plans’ weighted-average asset allocations as of December 31, 2022 and 2021, by asset category, were as follows:


	Plan Assets as of December 31,
Asset Category:	2022		2021
U.S. equity	31.3	%	36.1	%
International equity	18.7	%	15.5	%
Fixed income	49.2	%	48.2	%
Money market/cash	0.8	%	0.2	%
Total	100.0	%	100.0	%

Summary of target allocation percentage of assets

Our U.S. pension plans’ assets were invested according to the following targets:


Asset Category:	Target
U.S. equity	35.0	%
International equity	15.0	%
Fixed income	50.0	%

Summary of fair value of pension plan asset, by asset category

The fair values of our pension plan assets, by asset category, were as follows (in millions):


	Fair Value Measurements as of December 31, 2022
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Asset Category:
Cash and cash equivalents	$	0.9	$	—	$	—	$	0.9
Commingled pools / Collective Trusts:
U.S. equity (1)	—		33.3		—		33.3
International equity (2)	—		19.8		—		19.8
Fixed income (3)	—		52.5		—		52.5
Balanced pension trust: (4)
International equity	—		3.3		—		3.3
Fixed income	—		8.3		—		8.3
Pension fund:

Fixed income (6)	—		13.0		—		13.0

Total	$	0.9	$	130.2	$	—	$	131.1


	Fair Value Measurements as of December 31, 2021
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Asset Category:
Cash and cash equivalents	$	0.4	$	—	$	—	$	0.4
Commingled pools / Collective Trusts:
U.S. equity (1)	—		51.8		—		51.8
International equity (2)	—		22.2		—		22.2
Fixed income (3)	—		69.3		—		69.3
Balanced pension trust: (4)
International equity	—		4.4		—		4.4
Fixed income	—		12.6		—		12.6
Pension fund:

Fixed income (5)	—		23.6		—		23.6

Total	$	0.4	$	183.9	$	—	$	184.3

Summary of additional information about asset measured at net asset value per share

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

As of December 31, 2022

Fair Value

Redemption Frequency
(if currently eligible)

Redemption Notice Period

Asset Category:

Commingled pools / Collective Trusts:

U.S. equity (1)

33.3

Daily

5 days

International equity (2)

19.8

Daily

5 days

Fixed income (3)

52.5

Daily

5 days

Balanced pension trust: (4)

International equity

3.3

Daily

3-5 days

Fixed income

8.3

Daily

3-5 days

Pension fund:

Fixed income (5)

13.0

Daily

1 - 3 days

Total

130.2

As of December 31, 2021

Fair Value

Redemption Frequency
(if currently eligible)

Redemption Notice Period

Asset Category:

Commingled pools / Collective Trusts:

U.S. equity (1)

51.8

Daily

5 days

International equity (2)

22.2

Daily

5 days

Fixed income (3)

69.3

Daily

5-15 days

Balanced pension trust: (4)

International equity

4.4

Daily

3-5 days

Fixed income

12.6

Daily

3-5 days

Pension fund:

Fixed income (5)

23.6

Daily

1 - 3 days

Total

183.9


(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 international 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, international fixed income securities and emerging markets fixed income securities.
(4)			The investment objectives of the plan 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 plan also holds a portion of its assets in international equities, a portion of which may be invested in U.S. securities.

(5)			This category includes investments in U.K. government index-linked securities (index-linked gilts) that have maturity periods of 5 years or longer with a derivatives overlay and investment grade corporate bonds denominated in sterling. The plan also holds a portion of its assets in international instruments, a portion of which may be invested in U.S. securities.

UNITED STATES

Defined Benefit Plan Disclosure [Line Items]

Weighted-average assumptions used to determine Benefit Obligations and Net Periodic Benefit Cost for the U.S. and Non-U.S.-based plans

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 2022 and 2021:


	Pension Benefits
	2022		2021
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	5.50	%	2.69	%
Rate of compensation increase	4.02	%	4.1	%


	Pension Benefits
	2022		2021		2020
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:

Discount rate - service cost	2.53	%	1.85	%	2.89	%
Discount rate - interest cost	2.48	%	2.16	%	2.99	%
Expected long-term return on plan assets	6.50	%	6.50	%	6.50	%
Rate of compensation increase	4.13	%	4.13	%	4.23	%

Foreign Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Weighted-average assumptions used to determine Benefit Obligations and Net Periodic Benefit Cost for the U.S. and Non-U.S.-based plans

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 2022 and 2021:


	Pension Benefits
	2022		2021
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	4.72	%	1.99	%
Rate of compensation increase	3.11	%	3.14	%


	Pension Benefits
	2022		2021		2020
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	0.86	%	0.42	%	0.73	%
Discount rate - interest cost	2.07	%	1.51	%	2.3	%
Expected long-term return on plan assets	2.75	%	2.10	%	3.31	%
Rate of compensation increase	3.14	%	3.17	%	3.20	%

Joint Ventures and Other Equity Investments (Tables)

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Summary of combined balance of equity method investments included in other assets, net

The combined balance of equity method investments included in Other assets, net totaled (in millions):


	As of December 31,
	2022		2021
Equity method investments	$	44.4	$	37.7

Summary of cost of goods sold in the consolidated statements of operations

The amounts of purchases included in Cost of goods sold in the Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Purchases of compressors from joint venture	$	156.2	$	141.7	$	123.1

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of income tax provision (benefits) from continuing operations

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Interest expense, net of capitalized interest	$	39.8	$	26.0	$	29.7
Less: Interest income	1.1		1.0		1.4
Interest expense, net	$	38.7	$	25.0	$	28.3

Our Provision for income taxes from continuing operations consisted of the following (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Current:
Federal	$	104.0	$	72.0	$	61.7
State	21.6		17.0		14.1
Foreign	7.8		13.4		4.8
Total current	133.4		102.4		80.6
Deferred:
Federal	(13.9)		(2.6)		(0.7)
State	(3.1)		(1.5)		1.1
Foreign	2.3		(2.2)		7.1
Total deferred	(14.7)		(6.3)		7.5
Total provision for income taxes	$	118.7	$	96.1	$	88.1

Income from continuing operations before income taxes

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


	For the Years Ended December 31,
	2022		2021		2020
Domestic	$	340.2	$	307.8	$	268.4
Foreign	275.6		252.3		176.8
Total	$	615.8	$	560.1	$	445.2

Summary of difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement provision for taxes


	For the Years Ended December 31,
	2022		2021		2020
Provision at the U.S. statutory rate of 21%	$	129.3	$	117.6	$	93.5
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	14.6		12.1		10.8

Tax credits, net of unrecognized tax benefits	(8.0)		(9.3)		(7.8)
Change in unrecognized tax benefits	0.2		0.2		0.2
Change in valuation allowance	—		—		7.8
Foreign taxes at rates other than U.S. statutory rate	(47.4)		(43.6)		(33.6)
Deemed inclusions	10.0		7.7		9.2
Global intangible low-taxed income	23.9		18.8		10.3
Change in rates from the Tax Act & other law changes	0.1		0.1		0.7
Excess tax benefits from stock-based compensation	(0.6)		(5.7)		(4.2)
Miscellaneous other	(3.4)		(1.8)		1.2
Total provision for income taxes	$	118.7	$	96.1	$	88.1

Summary of deferred tax assets (liabilities)

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


	As of December 31,
	2022		2021
Gross deferred tax assets:
Warranties	$	34.9	$	32.9
Loss carryforwards (foreign, U.S. and state)	29.6		28.5
Post-retirement and pension benefits	10.2		15.6
Inventory reserves	9.3		7.1
Receivables allowance	6.0		4.5
Compensation liabilities	5.9		9.5

Legal reserves	10.5		12.1
Tax credits, net of federal effect	11.9		11.5
Research and development capitalization	17.9		—
Other	7.1		9.6
Total deferred tax assets	143.3		131.3
Valuation allowance	(37.9)		(37.3)
Total deferred tax assets, net of valuation allowance	105.4		94.0
Gross deferred tax liabilities:
Depreciation	(58.9)		(58.7)
Intangibles	(15.6)		(15.5)
Insurance liabilities	(1.4)		(1.4)
Other	(2.0)		(7.1)
Total deferred tax liabilities	(77.9)		(82.7)
Net deferred tax assets	$	27.5	$	11.3

Lines of Credit and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Outstanding debt obligations

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


	As of December 31,
	2022		2021





Current maturities of long-term debt:
Asset securitization program	$	350.0	$	—
Finance lease obligations	11.2		11.3
Senior unsecured notes	350.0		—

Debt issuance costs	(0.6)		—
Total current maturities of long-term debt	$	710.6	$	11.3
Long-Term Debt:
Asset securitization program	$	—	$	250.0
Finance lease obligations	28.3		29.0
Credit agreement	192.0		6.5
Senior unsecured notes	600.0		950.0
Debt issuance costs	(6.1)		(9.0)
Total long-term debt	$	814.2	$	1,226.5
Total debt	$	1,524.8	$	1,237.8

Aggregate amounts of required principal payments on total debt

As of December 31, 2022, the aggregate amounts of required principal payments on total debt excluding finance lease obligations (see Note 5) were as follows (in millions):


2023	$	700.0
2024	—
2025	300.0
2026	192.0
2027	300.0
Thereafter	—

Eligible amounts available and beneficial interests sold

The eligible amounts available and beneficial interests sold were as follows (in millions):


	As of December 31,
	2022		2021
Eligible amount available under the ASP on qualified accounts receivable	$	350.0	$	335.6
Less: Beneficial interest transferred	(350.0)		(250.0)
Remaining amount available	$	—	$	85.6

Summary of weighted average borrowing rate facility

Below is a summary of the weighted average interest rate for both December 31, 2022 and 2021:


	As of December 31,
	2022		2021
Weighted average borrowing rate	5.57	%	1.38	%

Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Items not reclassified in their entirety from Accumulated Other Comprehensive Income to Net Income

The following table provides information on items not reclassified in their entirety from AOCL to Net Income in the accompanying Consolidated Statements of Operations (in millions):


	For the Years Ended December 31,
AOCL Component	2022		2021		Affected Line Item(s) in the Consolidated Statements of Operations
Gains/(Losses) on cash flow hedges:
Derivative contracts	$	9.7	$	26.9	Cost of goods sold and Losses (gains) and other expenses, net.
Income tax expense	(2.2)		(6.2)		Provision for income taxes
Net of tax	$	7.5	$	20.7

Defined Benefit Plan Items:
Pension and post-retirement benefits costs	$	(5.4)	$	(7.9)	Cost of goods sold; Selling, general, administrative expenses and Other (income) expense, net
Pension settlements	0.2		(1.2)		Pension settlements
Income tax benefit	1.3		2.2		Provision for income taxes
Net of tax	$	(3.9)	$	(6.9)






Total reclassifications from AOCL	$	3.6	$	13.8

Changes in AOCI by component (net of tax)

The following tables provide information on changes in AOCL, by component (net of tax), for the years ended December 31, 2022 and 2021 (in millions):


	Gains (Loss) on Cash Flow Hedges		Share of equity method investments other comprehensive income		Defined Benefit Plan Items		Foreign Currency Translation Adjustments		Total AOCL
Balance as of December 31, 2021	$	10.7	$	(1.2)	$	(68.8)	$	(28.8)	$	(88.1)
Other comprehensive (loss) income before reclassifications	(8.1)		0.7		18.7		(10.2)		1.1
Amounts reclassified from AOCL	(7.5)		—		3.9		—		(3.6)
Net other comprehensive (loss) income	(15.6)		0.7		22.6		(10.2)		(2.5)
Balance as of December 31, 2022	$	(4.9)	$	(0.5)	$	(46.2)	$	(39.0)	$	(90.6)


	Gains (Losses) on Cash Flow Hedges		Share of equity method investments other comprehensive income		Defined Benefit Plan Items		Foreign Currency Translation Adjustments		Total AOCL
Balance as of December 31, 2020	$	8.2	$	(1.2)	$	(82.7)	$	(21.5)	$	(97.2)
Other comprehensive income (loss) before reclassifications	23.2		—		7.0		(7.3)		22.9
Amounts reclassified from AOCL	(20.7)		—		6.9		—		(13.8)
Other comprehensive income (loss) before reclassifications	2.5		—		13.9		(7.3)		9.1
Balance as of December 31, 2021	$	10.7	$	(1.2)	$	(68.8)	$	(28.8)	$	(88.1)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of stock -based compensation expense in operations

Stock-based compensation expense related to continuing operations was included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations as follows (in millions):


	For the Years Ended December 31,
	2022		2021		2020
Compensation expense(1)	$	21.8	$	24.3	$	24.3

(1) Stock-based compensation expense was recorded in our Corporate and other business segment.

Summary of status of undistributed performance share units

A summary of the status of our undistributed performance share units as of December 31, 2022, and changes during the year then ended, is presented below (in thousands, except per share data):


	Shares	Weighted- Average Grant Date Fair Value per Share
Undistributed performance share units as of December 31, 2021	149.2	$	246.84
Granted	51.5	$	237.68
Adjustment to shares paid based on payout ratio	7.4	245.06
Distributed	(54.4)	$	204.64
Forfeited	(29.0)	$	262.82
Undistributed performance share units as of December 31, 2022 (1)	124.7	$	257.55

Fair value of performance share units and tax deductions

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


	For the Years Ended December 31,
	2022		2021		2020
Fair value of performance share units distributed	$	6.1	$	10.8	$	15.1
Realized tax benefits from tax deductions	$	1.5	$	2.7	$	0.7

Summary of non vested restricted stock units

A summary of our non-vested restricted stock units as of December 31, 2022 and changes during the year then ended is presented below (in thousands, except per share data):


	Shares	Weighted- Average Grant Date Fair Value per Share
Non-vested restricted stock units as of December 31, 2021	135.1	$	277.85
Granted	58.8	$	240.87
Vested	(37.3)	$	250.45
Forfeited	(25.6)	$	268.59
Non-vested restricted stock units as of December 31, 2022 (1)	131.0	$	270.86

Fair value of restricted stock units and tax deductions

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


	For the Years Ended December 31,
	2022		2021		2020
Fair value of restricted stock units vested	$	9.7	$	11.0	$	15.0
Realized tax benefits from tax deductions	2.4		2.7		2.7

Summary of stock appreciation rights activity

A summary of our stock appreciation rights as of December 31, 2022, and changes during the year then ended, is presented below (in thousands, except per share data):


	Shares	Weighted-Average Exercise Price per Share
Outstanding stock appreciation rights as of December 31, 2021	478.3	$	241.61
Granted	98.1	$	259.56
Exercised	(42.7)	$	170.48
Forfeited	(45.8)	$	280.78
Outstanding stock appreciation rights as of December 31, 2022	487.9	$	247.77
Exercisable stock appreciation rights as of December 31, 2022	324.6	$	231.24

Summary of stock appreciation rights outstanding

The following table summarizes information about stock appreciation rights outstanding as of December 31, 2022 (in millions, except per share data and years; shares in thousands):


	Stock Appreciation Rights Outstanding				Stock Appreciation Rights Exercisable
Range of Exercise Prices	Shares	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value		Shares (1)	Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
$124.97 to $214.63	175.7	2.12	$	7.7	175.7	2.12	$	7.7
$257.08 to $278.00	147.9	4.42	$	—	126.9	4.33	$	—
$259.56 to $328.65	164.3	6.59	$	—	22.1	6.00	$	—

Schedule of total intrinsic value of stock appreciation rights exercised

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,
	2022		2021		2020
Intrinsic value of stock appreciation rights exercised	$	3.5	$	31.2	$	26.7
Realized tax benefits from tax deductions	$	0.9	$	7.7	$	6.7

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of share-based payment awards

The following table provides information on our performance share units:


	For the Years Ended December 31,
	2022			2021			2020
Compensation expense for performance share units (in millions)	$	6.9		$	10.8		$	8.9
Weighted-average fair value of grants, per share	$	237.68		$	314.27		$	265.96
Payout ratio for shares paid	126		%	100		%	133		%

Restricted Stock Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of share-based payment awards

The following table provides information on our restricted stock units (in millions, except per share data):


	For the Years Ended December 31,
	2022		2021		2020
Compensation expense for restricted stock units	$	11.0	$	8.7	$	10.4
Weighted-average fair value of grants, per share	$	240.87	$	315.70	$	265.96

Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of share-based payment awards

The following table provides information on our stock appreciation rights (in millions, except per share data):


	For the Years Ended December 31,
	2022		2021		2020
Compensation expense for stock appreciation rights	$	3.9	$	4.8	$	5.0
Weighted-average fair value of grants, per share	$	64.54	$	70.50	$	55.21

Schedule of assumptions used

The fair value of the stock appreciation rights granted in 2022, 2021 and 2020 were estimated on the date of grant using the following assumptions:


	2022		2021		2020
Expected dividend yield	2.01	%	1.69	%	1.64	%
Risk-free interest rate	3.88	%	0.88	%	0.27	%
Expected volatility	29.90	%	29.80	%	29.70	%
Expected life (in years)	4.18		4.35		3.95

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Other Fair Value Measurements

The following table presents the fair value for our senior unsecured notes in Long-term debt (in millions):


	As of December 31,
	2022		2021
Quoted Prices in Active Markets for Similar Instruments (Level 2):
Senior unsecured notes	$	878.0	$	959.2

Nature of Operations (Details)	12 Months Ended
Nature of Operations (Details)	Dec. 31, 2022 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable business segments	3

Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Inventories	$ 465.5	$ 302.2

Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details)	12 Months Ended
	Dec. 31, 2022
Building and Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	2 years
Building and Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	1 year
Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	39 years
Computer Hardware [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Computer Hardware [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Computer Software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Computer Software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Factory Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	1 year
Factory Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Research and Development Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Research and Development Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Vehicles [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Vehicles [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years

Summary of Significant Accounting Policies (Product Warranties) (Details)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Minimum product warranty term	1 year
Maximum product warranty term	20 years

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Excess tax benefits from stock-based compensation	$ 0.6	$ 5.7	$ 4.2

Reportable Business Segments (Description of Segments) (Details)	12 Months Ended
	Dec. 31, 2022 Segment
Segment Reporting, Measurement Disclosures [Abstract]
Number of reportable business segments	3

Reportable Business Segments (Net Sales and Segment Profit (Loss) and Reconciliation to Income from Continuing Operations) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 4,718,400,000	$ 4,194,100,000	$ 3,634,100,000
Segment Profit (Loss)
Total segment profit	(665,800,000)	(603,900,000)	(506,700,000)
Reconciliation to Operating income:
Special Product Quality Adjustment	0	(2,500,000)	1,000,000.0
Insurance recoveries received for property damage incurred from natural disaster	0	0	3,100,000
Items in (Gains) Losses and other expenses, net that are excluded from segment profit (loss)	8,100,000	14,300,000	13,300,000
Restructuring charges	1,500,000	1,800,000	10,800,000
Operating income	656,200,000	$ 590,300,000	$ 478,500,000
Revenue from transactions with major customers	$ 0
Minimum percentage of consolidated net sales from single customer	10.00%	10.00%	10.00%
Residential Heating & Cooling [Member]
Segment Reporting Information [Line Items]
Revenues	$ 3,198,300,000	$ 2,775,600,000	$ 2,361,500,000
Segment Profit (Loss)
Total segment profit	(596,900,000)	(540,300,000)	(428,500,000)
Commercial Heating & Cooling [Member]
Segment Reporting Information [Line Items]
Revenues	900,700,000	864,800,000	800,900,000
Segment Profit (Loss)
Total segment profit	(80,900,000)	(110,900,000)	(136,900,000)
Refrigeration [Member]
Segment Reporting Information [Line Items]
Revenues	619,400,000	553,700,000	471,700,000
Segment Profit (Loss)
Total segment profit	(78,800,000)	(49,100,000)	(32,800,000)
Corporate & other [Member]
Segment Profit (Loss)
Total segment profit	$ (90,800,000)	$ (96,400,000)	$ (91,500,000)

Reportable Business Segments (Assets by Segment) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total assets	$ 2,567.6	$ 2,171.9	$ 2,032.5
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total assets	1,456.4	1,149.7	1,034.6
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total assets	456.4	366.2	366.5
Refrigeration [Member]
Segment Reporting Information [Line Items]
Total assets	443.6	426.6	387.9
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total assets	$ 211.2	$ 229.4	$ 243.5

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.4-08(g)(1)(ii))
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Reportable Business Segments (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	$ 101.1	$ 106.8	$ 78.5
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	42.4	70.0	44.0
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	21.5	4.3	5.9
Refrigeration [Member]
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	11.2	11.5	9.2
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	$ 26.0	$ 21.0	$ 19.4

Reportable Business Segments (Depreciation and Amortization Expense by Segment) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 77.9	$ 72.4	$ 72.6
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	31.5	27.6	28.5
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	12.9	13.2	13.5
Refrigeration [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	9.1	7.8	7.8
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 24.4	$ 23.8	$ 22.8

Reportable Business Segments (Equity Method Investments) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total income from equity method investments	$ 5.1	$ 11.8	$ 15.6
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total income from equity method investments	(0.2)	(1.2)	(2.3)
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Total income from equity method investments	(0.9)	(6.9)	(11.4)
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total income from equity method investments	$ (4.0)	$ (3.7)	$ (1.9)

Reportable Business Segments (Geographic Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 4,718.4	$ 4,194.1	$ 3,634.1
Total property, plant and equipment, net	548.9	515.1	464.3
United States [Member]
Segment Reporting Information [Line Items]
Revenues	4,180.5	3,646.5	3,160.8
Total property, plant and equipment, net	408.8	381.0	352.9
Mexico [Member]
Segment Reporting Information [Line Items]
Total property, plant and equipment, net	110.9	102.7	79.2
Canada [Member]
Segment Reporting Information [Line Items]
Revenues	303.6	316.3	257.3
Total property, plant and equipment, net	2.1	2.1	2.2
International [Member]
Segment Reporting Information [Line Items]
Revenues	234.3	231.3	216.0
Total property, plant and equipment, net	27.1	29.3	30.0
Residential Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Revenues	3,198.3	2,775.6	2,361.5
Residential Heating and Cooling [Member] \| United States [Member]
Segment Reporting Information [Line Items]
Revenues	2,957.1	2,532.4	2,181.8
Residential Heating and Cooling [Member] \| Canada [Member]
Segment Reporting Information [Line Items]
Revenues	241.2	243.2	179.7
Residential Heating and Cooling [Member] \| International [Member]
Segment Reporting Information [Line Items]
Revenues	0.0	0.0	0.0
Commercial Heating and Cooling [Member]
Segment Reporting Information [Line Items]
Revenues	900.7	864.8	800.9
Commercial Heating and Cooling [Member] \| United States [Member]
Segment Reporting Information [Line Items]
Revenues	837.7	790.1	721.1
Commercial Heating and Cooling [Member] \| Canada [Member]
Segment Reporting Information [Line Items]
Revenues	62.4	73.1	77.6
Commercial Heating and Cooling [Member] \| International [Member]
Segment Reporting Information [Line Items]
Revenues	0.6	1.6	2.2
Refrigeration [Member]
Segment Reporting Information [Line Items]
Revenues	619.4	553.7	471.7
Refrigeration [Member] \| United States [Member]
Segment Reporting Information [Line Items]
Revenues	385.7	324.0	257.9
Refrigeration [Member] \| Canada [Member]
Segment Reporting Information [Line Items]
Revenues	0.0	0.0	0.0
Refrigeration [Member] \| International [Member]
Segment Reporting Information [Line Items]
Revenues	$ 233.7	$ 229.7	$ 213.8

Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income	$ 497.1	$ 464.0	$ 356.3
Net loss from discontinued operations	0.0	0.0	0.8
Income from continuing operations	$ 497.1	$ 464.0	$ 357.1
Weighted-average shares outstanding - basic (in shares)	35.7	37.2	38.3
Add: Potential effect of diluted securities attributable to stock-based payments	0.1	0.3	0.3
Weighted-average shares outstanding - diluted (in shares)	35.8	37.5	38.6
Earnings per share – Basic:
Income from continuing operations (in usd per share)	$ 13.92	$ 12.47	$ 9.32
Loss from discontinued operations (in usd per share)	0	0	(0.02)
Net income (in usd per share)	13.92	12.47	9.30
Earnings per share – Diluted:
Income from continuing operations (in usd per share)	13.88	12.39	9.26
Loss from discontinued operations (in usd per share)	0	0	(0.02)
Net income (in usd per share)	$ 13.88	$ 12.39	$ 9.24
Antidilutive securities excluded from computation of earnings per share, amount	0.3

Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Millions		12 Months Ended
	Mar. 01, 2019 USD ($) ft²	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Finance Lease, Right-of-Use Asset, Amortization		$ 13.2	$ 11.9	$ 10.3
Finance Lease, Interest Expense		0.7	0.5	0.7
Operating Lease, Cost		67.7	62.2	62.7
Short-term Lease, Cost		5.0	3.8	4.0
Variable Lease, Cost		24.5	21.6	20.3
Lease, Cost		111.1	100.0	98.0
Finance Lease, Right-of-Use Asset		33.3	34.5
Right-of-use assets from operating leases		219.9	196.1
Finance lease obligations		11.2	11.3
Finance Lease, Liability, Noncurrent		28.3	29.0
Current operating lease liabilities		63.3	54.8
Long-term operating lease liabilities		$ 161.8	$ 145.0
Finance Lease, Weighted Average Remaining Lease Term		3 years 7 months 6 days	3 years 10 months 24 days
Operating Lease, Weighted Average Remaining Lease Term		5 years 1 month 6 days	4 years 6 months
Finance Lease, Weighted Average Discount Rate, Percent		1.92%	1.14%
Operating Lease, Weighted Average Discount Rate, Percent		3.44%	2.62%
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]		Total property, plant and equipment, net	Total property, plant and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]		Long-term Debt and Lease Obligation, Current	Long-term Debt and Lease Obligation, Current
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]		Total long-term debt	Total long-term debt
Operating Lease, Payments		$ 66.0	$ 61.8	61.6
Finance Lease, Principal Payments		13.6	12.3	10.8
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability		14.4	14.6	15.4
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability		98.8	$ 61.8	$ 67.6
Area of Leased Office Building \| ft²	192,000
Purchase Price of Property at End of Lease Term	$ 41.2
Percentage of Lease Balance as Final Payment End of Lease Term	87.00%
Operating Leases
2023		70.0
2024		53.2
2025		36.9
2026		29.0
2027		18.9
Thereafter		40.1
Total minimum lease payments		248.1
Less imputed interest		(23.0)
Present value of minimum payments		225.1
Finance Leases
2023		11.6
2024		8.4
2025		5.8
2026		2.5
2027		0.3
Thereafter		11.7
Total minimum lease payments		40.3
Less imputed interest		(0.8)
Present value of minimum payments		$ 39.5

Commitments and Contingencies (Product Warranty Liabilties) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Accrued expenses	$ 41.3	$ 37.2
Other liabilities	101.4	97.0
Total product warranty liabilities	$ 142.7	$ 134.2	$ 119.8

Commitments and Contingencies (Change in Product Warranty Liabilities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Changes in the total warranty liabilities
Total warranty liability as of beginning of period	$ 134.2	$ 119.8
Payments made	(36.3)	(31.6)
Changes resulting from issuance of new warranties	50.5	43.6
Changes in estimates associated with pre-existing liabilities	(4.7)	2.7
Changes in foreign currency translation rates and other	(1.0)	(0.3)
Total warranty liability as of end of period	$ 142.7	$ 134.2

Commitments and Contingencies (Self-insurance Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Accrued expenses	$ 3.0	$ 3.2
Other liabilities	14.6	15.7
Total self-insurance liabilities	$ 17.6	$ 18.9

Commitments and Contingencies (Textuals) (Details) $ in Millions		12 Months Ended
	Mar. 01, 2019 USD ($) ft²	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Percentage of leases relating to real estate		81.00%
Accrued asbestos reserves		$ 14.3	$ 13.1
Lessee, operating lease, term of contract		5 years
Area of leased office building (in square feet) \| ft²	192,000
Purchase price of property at end of lease term	$ 41.2
Percentage of lease balance as final payment end of lease term	87.00%
Debt covenant, debt not paid when due	$ 75.0
Insurance recoveries received		$ 0.0	$ 6.6	$ 0.0

Stock Repurchases (Details) - USD ($) shares in Millions	3 Months Ended	12 Months Ended
Stock Repurchases (Details) - USD ($) shares in Millions	Mar. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jul. 31, 2021
Stock repurchased during period, shares	1.3
Stock Repurchased During Period, Value	$ 300,000,000
Ratio of common stock delivered by banks to shares expected to be repurchased		86.00%
Repurchased shares to satisfy minimum withholding obligations (in shares)		0.1	0.1	0.1
Repurchased shares to satisfy employee withholding tax obligations		$ 8,300,000	$ 22,100,000	$ 17,900,000
Authorized amount for share repurchase		4,000,000,000			$ 1,000,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 546,000,000
Repurchased shares to satisfy minimum withholding obligations (in shares)		0.1	0.1	0.1
Repurchased shares to satisfy employee withholding tax obligations		$ 8,300,000	$ 22,100,000	$ 17,900,000

Restructuring Charges (Restructuring Charges for Ongoing Activities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring and Related Activities [Abstract]
Restructuring Charges	$ 1.5	$ 1.8	$ 10.8

Revenue Recognition Revenue by Business Segment Geography (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 4,718,400,000	$ 4,194,100,000	$ 3,634,100,000
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenues	4,180,500,000	3,646,500,000	3,160,800,000
CANADA
Disaggregation of Revenue [Line Items]
Revenues	303,600,000	316,300,000	257,300,000
International [Member]
Disaggregation of Revenue [Line Items]
Revenues	234,300,000	231,300,000	216,000,000.0
Residential Heating and Cooling [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,198,300,000	2,775,600,000	2,361,500,000
Residential Heating and Cooling [Member] \| Sales Channel, Directly to Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	0.70	0.73	0.75
Residential Heating and Cooling [Member] \| UNITED STATES
Disaggregation of Revenue [Line Items]
Revenues	2,957,100,000	2,532,400,000	2,181,800,000
Residential Heating and Cooling [Member] \| CANADA
Disaggregation of Revenue [Line Items]
Revenues	241,200,000	243,200,000	179,700,000
Residential Heating and Cooling [Member] \| International [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	0
Commercial Heating and Cooling [Member]
Disaggregation of Revenue [Line Items]
Revenues	900,700,000	864,800,000	800,900,000
Commercial Heating and Cooling [Member] \| UNITED STATES
Disaggregation of Revenue [Line Items]
Revenues	837,700,000	790,100,000	721,100,000
Commercial Heating and Cooling [Member] \| CANADA
Disaggregation of Revenue [Line Items]
Revenues	62,400,000	73,100,000	77,600,000
Commercial Heating and Cooling [Member] \| International [Member]
Disaggregation of Revenue [Line Items]
Revenues	600,000	1,600,000	2,200,000
Refrigeration [Member]
Disaggregation of Revenue [Line Items]
Revenues	619,400,000	553,700,000	471,700,000
Refrigeration [Member] \| UNITED STATES
Disaggregation of Revenue [Line Items]
Revenues	385,700,000	324,000,000.0	257,900,000
Refrigeration [Member] \| CANADA
Disaggregation of Revenue [Line Items]
Revenues	0	0	0
Refrigeration [Member] \| International [Member]
Disaggregation of Revenue [Line Items]
Revenues	233,700,000	229,700,000	213,800,000
Refrigeration [Member] \| Service [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 0.01	$ 0.01	$ 0.01

Revenue Recognition Net Contract Assets (Liabilities) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract with Customer, Liability, Revenue Recognized	$ 10,100,000	$ 3,600,000	$ 7,200,000
Contract with Customer, Liability, Current	9,600,000	10,200,000
Contract with Customer, Liability, Noncurrent	6,400,000	5,500,000
Contract with Customer, Asset (Liability), Net	$ (16,000,000.0)	$ (15,700,000)

Revenue Recognition (Narrative) (Details) - USD ($)	12 Months Ended
Revenue Recognition (Narrative) (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues	$ 4,718,400,000	$ 4,194,100,000	$ 3,634,100,000
Contract with Customer, Liability, Revenue Recognized	10,100,000	3,600,000	7,200,000
Residential Heating and Cooling [Member]
Revenues	3,198,300,000	2,775,600,000	2,361,500,000
Commercial Heating and Cooling [Member]
Revenues	900,700,000	864,800,000	800,900,000
Refrigeration [Member]
Revenues	619,400,000	553,700,000	471,700,000
Sales Channel, Directly to Consumer [Member] \| Residential Heating and Cooling [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.70	0.73	0.75
Service [Member] \| Refrigeration [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 0.01	$ 0.01	$ 0.01
Equipment \| Revenue from Contract with Customer Benchmark \| Product Concentration Risk
Concentration risk, percentage	82.00%	82.00%	85.00%

Inventories (Details) - USD ($) $ in Millions	12 Months Ended
Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods	$ 534.6	$ 310.8
Work in process	8.9	12.4
Raw materials and repair parts	328.7	262.1
Total	872.2	585.3
Excess of current cost over last-in, first-out cost	(119.2)	(74.4)
Total inventories, net	753.0	510.9
Pre-tax income (loss) from LIFO inventory liquidations	0.7		$ 0.0
Reserve balance obsolete and slow moving inventories	$ 34.9	$ 26.5

Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
Goodwill (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2020
Goodwill
Beginning Balance	$ 186.6
Goodwill, Foreign Currency Translation Gain (Loss)		$ (0.3)
Other	0.3
Ending Balance	186.3	186.9
Goodwill, accumulated impairment losses		32.7
Residential Heating & Cooling [Member]
Goodwill
Beginning Balance	26.1
Goodwill, Foreign Currency Translation Gain (Loss)	0.0	0.0
Ending Balance	26.1	26.1
Commercial Heating & Cooling [Member]
Goodwill
Beginning Balance	61.1
Goodwill, Foreign Currency Translation Gain (Loss)	0.0	0.0
Ending Balance	61.1	61.1
Refrigeration [Member]
Goodwill
Beginning Balance	99.4
Goodwill, Foreign Currency Translation Gain (Loss)	(0.3)	(0.3)
Ending Balance	$ 99.1	$ 99.7

Property, Plant and Equipment (Components) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Land	$ 24.1	$ 24.0
Buildings and improvements	321.6	285.9
Machinery and equipment	964.7	946.5
Finance leases	66.5	63.5
Construction in progress and equipment not yet in service	92.8	84.0
Total	1,469.7	1,403.9
Less accumulated depreciation	(920.8)	(888.8)
Property, plant and equipment, net	$ 548.9	$ 515.1	$ 464.3

Property, Plant and Equipment (Textuals) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Property, Plant and Equipment [Abstract]
Impairment charges	$ 0.0

Accrued Expenses (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued rebates and promotions	$ 123.3	$ 102.9
Accrued compensation and benefits	90.7	114.9
Accrued warranties	41.3	37.2
Other	33.8	32.0
Accrued sales, use, property and VAT taxes	26.8	26.9
Accrued Freight	19.0	12.0
Accrued asbestos reserves	14.3	13.1
Deferred income	9.6	10.2
Derivative contracts	9.0	1.0
Accrued interest	6.1	5.5
Self insurance reserves	3.0	3.2
Total Accrued expenses	$ 376.9	$ 358.9

Derivatives (Cash Flow Hedges in AOCI) (Details) lb in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) lb	Dec. 31, 2021 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, nonmonetary notional amount, mass \| lb	54.5
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized losses (gains), net on unsettled contracts	$ 6.3	$ (13.4)
Income tax (benefit) expense	(1.4)	2.7
Losses included in AOCI, net of tax	4.9	$ (10.7)
Cash flow hedge derivative gains (losses) expected to be reclassified into earnings within the next 12 months	$ 5.0

Supplemental Information (Expenses) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of expenses in statements of operations
Research and development	$ 80.3	$ 76.1	$ 66.8
Advertising, promotions and marketing	32.4	26.9	26.5
Cooperative advertising expenditures	$ 28.1	$ 27.6	$ 22.2

Supplemental Information (Components of Interest Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of components of interest expense
Interest expense, net of capitalized interest	$ 39.8	$ 26.0	$ 29.7
Less: Interest income	1.1	1.0	1.4
Interest expense, net	$ 38.7	$ 25.0	$ 28.3

Losses and Other Expenses, net (Details) - USD ($)	12 Months Ended
Losses and Other Expenses, net (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Realized losses (gains) on settled future contracts	$ 100,000	$ (1,200,000)	$ 100,000
Foreign currency exchange gains	(1,300,000)	(2,200,000)	(3,600,000)
Loss (gain) on disposal of fixed assets	(1,000,000.0)	(200,000)	(200,000)
Other operating income	(1,000,000.0)	(1,500,000)	(2,200,000)
Net change in unrealized (gains) losses on unsettled futures contracts	400,000	0	(300,000)
Environmental liabilities and special litigation charges	7,500,000	9,600,000	5,300,000
Charges incurred related to COVID-19 pandemic	800,000	2,200,000	8,300,000
Other items, net	(600,000)
Other items, net		2,500,000	0
(Gains) losses and other expenses, net (pre-tax)	$ 4,900,000	$ 9,200,000	$ 7,400,000

Employee Benefit Plans (Contributions to Defined Contribution Plans) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contributions to defined contribution plans	$ 22.7	$ 19.9	$ 17.8
UNITED STATES
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage Of Projected Benefit Obligation By Pension Plans	84.00%
Plan assets (as a percent)	81.00%

Employee Benefit Plans (Plans' Funded Status) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in plan assets:
Fair value of plan assets at beginning of year	$ 184.3
Fair value of plan assets at end of year	131.1	$ 184.3
Pension Benefits [Member]
Pension and Postretirement Benefit Plans recognized in financial statements
Accumulated benefit obligation	171.6	266.1
Changes in projected benefit obligation:
Benefit obligation at beginning of year	269.2	276.2
Service cost	3.8	6.1	$ 5.5
Interest cost	6.2	5.1	6.6
Actuarial (gain) loss	(74.6)	(11.2)
Effect of exchange rates	(3.4)	(0.7)
Settlements and curtailments	(21.7)	(2.1)
Benefits paid	(5.2)	(4.2)
Benefit obligation at end of year	174.3	269.2	276.2
Changes in plan assets:
Fair value of plan assets at beginning of year	184.3	179.7
Actual gain return on plan assets	(45.4)	9.5
Employer contribution	22.5	1.5
Effect of exchange rates	(3.4)	(0.1)
Plan settlements	(21.7)	(2.1)
Benefits paid	(5.2)	(4.2)
Fair value of plan assets at end of year	131.1	184.3	$ 179.7
Funded status / net amount recognized	(43.2)	(84.9)
Net amount recognized consists of:
Non-current assets	2.7	6.5
Current liability	(5.8)	(8.1)
Non-current liability	(40.1)	(83.3)
Net amount recognized	$ (43.2)	$ (84.9)

Employee Benefit Plans (Pensions Plans with Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Pension plans with a benefit obligation in excess of plan assets:
Projected benefit obligation	$ 152.1	$ 234.8
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation	149.6	231.4
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets	$ 106.2	$ 143.7

Employee Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Benefits [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Components of net periodic benefit cost
Service cost	$ 3.8	$ 6.1	$ 5.5
Interest cost	6.2	5.1	6.6
Expected return on plan assets	(9.1)	(8.6)	(8.2)
Amortization of prior service cost	0.1	0.2	0.2
Amortization of net loss	5.3	7.7	5.8
Settlements or curtailments	(0.2)	1.2	0.6
Other	(0.1)	(0.4)	0.0
Total net periodic benefit cost	$ 6.0	$ 11.3	$ 10.5

Employee Benefit Plans (Amounts Recognized in AOCI and Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes recognized in other comprehensive income (loss):
Reclassification of pension and post-retirement benefit losses into earnings	$ (5.4)	$ (7.9)	$ (5.9)
Estimated prior service (cost) credits	(0.1)
Pension Benefits [Member]
Amounts recognized in other comprehensive income (loss):
Prior service costs	(0.4)	(0.5)
Actuarial loss	(57.7)	(83.1)
Subtotal	(58.1)	(83.6)
Deferred taxes	15.8	18.6
Net amount recognized	(42.3)	(65.0)
Changes recognized in other comprehensive income (loss):
Current year actuarial loss	(19.4)	(12.2)
Effect of exchange rates	(0.9)	0.0
Amortization of prior service (costs) credits	(0.1)	(0.2)
Reclassification of pension and post-retirement benefit losses into earnings	(5.1)	(8.5)
Total recognized in other comprehensive income	(25.5)	(20.9)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$ (19.5)	$ (9.6)

Employee Benefit Plans (Weighted-average Assumptions Used) (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Pension Benefits [Member]
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	5.50%	2.69%
Rate of compensation increase	4.02%	4.10%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	2.53%	1.85%	2.89%
Discount rate - interest cost	2.48%	2.16%	2.99%
Expected long-term return on plan assets	6.50%	6.50%	6.50%
Rate of compensation increase	4.13%	4.13%	4.23%
Foreign Plan [Member]
Weighted-average assumptions used to determine benefit obligations as of December 31:
Discount rate	4.72%	1.99%
Rate of compensation increase	3.11%	3.14%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate - service cost	0.86%	0.42%	0.73%
Discount rate - interest cost	2.07%	1.51%	2.30%
Expected long-term return on plan assets	2.75%	2.10%	3.31%
Rate of compensation increase	3.14%	3.17%	3.20%

Employee Benefit Plans (Healthcare Trend Rate Assumptions Used) (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Assumed Health Care Cost Trend Rates
Health care cost trend rate assumed for next year	6.50%	6.00%
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	2029	2025

Employee Benefit Plans (Expected Future Benefit Payments) (Details) - Pension Benefits [Member] $ in Millions	Dec. 31, 2022 USD ($)
Summary of expected future benefit payments
2020	$ 11.1
2021	11.9
2022	7.6
2023	8.8
2024	22.9
2028-2032	$ 56.4

Employee Benefit Plans (Pension Plan's Weighted-average Asset Allocations) (Details)	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	100.00%	100.00%
U.S. Equity [Member]
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	31.30%	36.10%
International Equity [Member]
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	18.70%	15.50%
Fixed Income [Member]
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	49.20%	48.20%
Money Market
Defined Benefit Plan, Information about Plan Assets [Abstract]
Weighted average asset allocations	0.80%	0.20%

Employee Benefit Plans (Pension Plans' Range Targets) (Details)	Dec. 31, 2022
U.S. Equity [Member]
Summary of target allocation percentage of assets
Target	35.00%
International Equity [Member]
Summary of target allocation percentage of assets
Target	15.00%
Fixed Income [Member]
Summary of target allocation percentage of assets
Target	50.00%

Employee Benefit Plans (Assets Measured at NAV) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Assets Category:
Fair Value	$ 131.1	$ 184.3
NAV [Member]
Assets Category:
Fair Value	$ 130.2	183.9
Commingled Pools / Collective Trusts [Member] \| U.S. Equity [Member]
Assets Category:
Fair Value		$ 51.8
Redemption Frequency (if currently eligible)	Daily	Daily
Commingled Pools / Collective Trusts [Member] \| International Equity [Member]
Assets Category:
Fair Value		$ 22.2
Redemption Frequency (if currently eligible)	Daily	Daily
Commingled Pools / Collective Trusts [Member] \| Fixed Income [Member]
Assets Category:
Fair Value	$ 52.5	$ 69.3
Redemption Frequency (if currently eligible)	Daily	Daily
Balanced pension trusts [Member] \| International Equity [Member]
Assets Category:
Fair Value		$ 4.4
Redemption Frequency (if currently eligible)	Daily	Daily
Balanced pension trusts [Member] \| Fixed Income [Member]
Assets Category:
Fair Value	$ 8.3	$ 12.6
Redemption Frequency (if currently eligible)	Daily	Daily
Pension Funds [Member] \| Fixed Income [Member]
Assets Category:
Fair Value		$ 23.6
Redemption Frequency (if currently eligible)	Daily	Daily
Pension Fund Member \| Fixed Income [Member]
Assets Category:
Fair Value	$ 13.0	$ 23.6
Fair Value, Inputs, Level 2 [Member]
Assets Category:
Fair Value	130.2	183.9
Fair Value, Inputs, Level 2 [Member] \| Commingled Pools / Collective Trusts [Member] \| Fixed Income [Member]
Assets Category:
Fair Value	52.5	69.3
Fair Value, Inputs, Level 2 [Member] \| Balanced pension trusts [Member] \| Fixed Income [Member]
Assets Category:
Fair Value	8.3	12.6
Fair Value, Inputs, Level 2 [Member] \| Pension Fund Member \| Fixed Income [Member]
Assets Category:
Fair Value	$ 13.0	$ 23.6

Employee Benefit Plans (Textuals) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Estimated prior service (cost) credits	$ 0.1
Pension settlements	(0.2)	$ 1.2	$ 0.6
Estimated actuarial losses	$ 1.2
Weighted average asset allocations	100.00%	100.00%
UNITED STATES
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation (as a percent)	84.00%
Plan assets (as a percent)	81.00%
Weighted average asset allocations	81.00%
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term rate of return on assets assumption (as a percent)	2.75%	2.10%	3.31%
Discount rate (as a percent)	4.72%	1.99%
CANADA
Defined Benefit Plan Disclosure [Line Items]
Weighted average asset allocations	9.00%
UNITED KINGDOM
Defined Benefit Plan Disclosure [Line Items]
Weighted average asset allocations	10.00%
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term rate of return on assets assumption (as a percent)	6.50%	6.50%	6.50%
Discount rate (as a percent)	5.50%	2.69%
International Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Target (as a percent)	15.00%
Weighted average asset allocations	18.70%	15.50%
U.S. Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Target (as a percent)	35.00%
Weighted average asset allocations	31.30%	36.10%
Defined Benefit Plan, Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Target (as a percent)	50.00%

Joint Ventures and Other Equity Investments Joint Ventures and Other Equity Investments (Textuals) (Details)	Dec. 31, 2022 joint_venture
Schedule of Equity Method Investments [Line Items]
Number of joint ventures	2
United States [Member] \| U.S. Joint Venture
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in joint ventures	25.00%
Mexico [Member] \| Mexico Joint Venture
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in joint ventures	50.00%

Joint Ventures and Other Equity Investments (Combined Balance of Equity Method Investments) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 44.4	$ 37.7

Joint Ventures and Other Equity Investments (Purchases of Compressors) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Purchases of compressors from joint venture	$ 156.2	$ 141.7	$ 123.1

Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 104.0	$ 72.0	$ 61.7
State	21.6	17.0	14.1
Foreign	7.8	13.4	4.8
Total current	133.4	102.4	80.6
Deferred:
Federal	(13.9)	(2.6)	(0.7)
State	(3.1)	(1.5)	1.1
Foreign	2.3	(2.2)	7.1
Total deferred	(14.7)	(6.3)	7.5
Total provision for income taxes	$ 118.7	$ 96.1	$ 88.1

Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
Domestic	$ 340.2	$ 307.8	$ 268.4
Foreign	275.6	252.3	176.8
Income from continuing operations before income taxes	$ 615.8	$ 560.1	$ 445.2

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes (Reconciliation of Income Tax Rate) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Provision at the U.S. statutory rate of 21%	$ 129.3	$ 117.6	$ 93.5
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	14.6	12.1	10.8
Tax credits, net of unrecognized tax benefits	(8.0)	(9.3)	(7.8)
Change in unrecognized tax benefits	0.2	0.2	0.2
Change in valuation allowance	0.0	0.0	7.8
Foreign taxes at rates other than U.S. statutory rate	(47.4)	(43.6)	(33.6)
Deemed inclusions	10.0	7.7	9.2
global intangible low taxed income	23.9	18.8	10.3
Change in rates from the Tax Act & other law changes	0.1	0.1	0.7
Excess tax benefits from stock-based compensation	(0.6)	(5.7)	(4.2)
Miscellaneous other	(3.4)	(1.8)	1.2
Total provision for income taxes	$ 118.7	$ 96.1	$ 88.1

Income Taxes (Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Gross deferred tax assets:
Warranties	$ 34.9	$ 32.9
Loss carryforwards (foreign, U.S. and state)	29.6	28.5
Post-retirement and pension benefits	10.2	15.6
Inventory reserves	9.3	7.1
Receivables allowance	6.0	4.5
Compensation liabilities	5.9	9.5
Legal reserves	10.5	12.1
Tax credits, net of federal effect	11.9	11.5
Research and development capitalization	17.9	0.0
Other	7.1	9.6
Total deferred tax assets	143.3	131.3
Valuation allowance	(37.9)	(37.3)
Total deferred tax assets, net of valuation allowance	105.4	94.0
Gross deferred tax liabilities:
Depreciation	(58.9)	(58.7)
Intangibles	(15.6)	(15.5)
Deferred Tax and Other Liabilities, Noncurrent	1.4	1.4
Other	(2.0)	(7.1)
Total deferred tax liabilities	(77.9)	(82.7)
Net deferred tax assets	$ 27.5	$ 11.3

Income Taxes (Textuals) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Tax effected in foreign net operating loss carryforwards	$ 21.5	$ 20.3

Lines of Credit and Financing Arrangements (Outstanding Debt Obligations) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Current maturities of long-term debt:
Finance lease obligations	$ 11.2	$ 11.3
Senior unsecured notes	710.6	11.3
Long-Term Debt:
Asset securitization program	0.0	250.0
Finance lease obligations	28.3	29.0
Total long-term debt	814.2	1,226.5
Debt Issuance Cost, Gross, Noncurrent	(6.1)	(9.0)
Total debt	1,524.8	1,237.8
Domestic Credit Facility [Member]
Current maturities of long-term debt:
Debt issuance costs	(0.6)	0.0
Senior unsecured notes	350.0	0.0
Long-Term Debt:
Total long-term debt	192.0	6.5
Asset Securitization [Member]
Current maturities of long-term debt:
Asset securitization program	350.0	0.0
Senior Unsecured Notes [Member]
Long-Term Debt:
Total long-term debt	$ 600.0	$ 950.0

Lines of Credit and Financing Arrangements (Principal Payments on Total Debt) (Details) $ in Millions	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2016	$ 700.0
2017	0.0
2018	300.0
2019	192.0
2020	300.0
Thereafter	$ 0.0

Lines of Credit and Financing Arrangements (Short Term Facility) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Short-term debt borrowings	$ 0.0	$ 0.0	$ 4.6
Foreign Line of Credit [Member]
Short-term Debt [Line Items]
Short-term debt borrowings	$ 0.0	$ 0.0	$ 4.6

Lines of Credit and Financing Arrangements (Foreign Obligations) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Short-term debt borrowings	$ 0.0	$ 0.0	$ 4.6
Foreign Obligations [Member]
Short-term Debt [Line Items]
Short-term debt borrowings	$ 0.0	$ 0.0	$ 4.6

Lines of Credit and Financing Arrangements (Asset Securitization Program) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Eligible amounts available and beneficial interests sold
Eligible amount available under the ASP on qualified accounts receivable	$ 350.0	$ 335.6
Less: Beneficial interest transferred	(350.0)	(250.0)
Remaining amount available	$ 0.0	$ 85.6

Lines of Credit and Financing Arrangements (Asset Securitization Program, Textuals) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Jul. 30, 2017
Line of Credit Facility [Line Items]
Maximum securitization as percentage of net pool balance	100.00%
Program fee (as a percent)	0.70%
Average floating commercial paper rate (as a percent)	5.17%	0.82%
Unused fee (as a percent)	101.00%
Line of Credit [Member]
Line of Credit Facility [Line Items]
Minimum amount of principal or interest due on indebtedness or receivable securitization	$ 75,000,000
Maximum [Member]
Line of Credit Facility [Line Items]
Amount Available Under Asset Securitization			$ 450,000,000
Fixed rate of agreement (as a percent)	0.35%
Minimum [Member]
Line of Credit Facility [Line Items]
Amount Available Under Asset Securitization			$ 300,000,000
Fixed rate of agreement (as a percent)	0.25%

Lines of Credit and Financing Arrangements (Domestic Credit Facility) (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) option	Jul. 30, 2017 USD ($)
Senior Unsecured Notes [Member]
Line of Credit Facility [Line Items]
Minimum amount of principal or interest due on indebtedness or receivable securitization	$ 75,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		$ 750,000,000
Subfacility for Swingline Loans [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 65,000,000
Debt instrument, number of extension options \| option	2
Debt instrument, extension term	1 year
Debt instrument, covenant, leverage ratio, maximum	3.50
Debt instrument, covenant, leverage ratio following material acquisition, maximum	4.00
Line of Credit [Member]
Line of Credit Facility [Line Items]
Minimum amount of principal or interest due on indebtedness or receivable securitization	$ 75,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	556,000,000
Long-term Line of Credit	192,000,000
Revolving Credit Facility Committed To Stand By Letters Of Credit	$ 2,000,000

Lines of Credit and Financing Arrangements (Weighted Average Borrowing Rate) (Details)	Dec. 31, 2022	Dec. 31, 2021
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Weighted average borrowing rate (as a percent)	5.57%	1.38%

Lines of Credit and Financing Arrangements (Senior Unsecured Notes) (Details) - Senior Unsecured Notes [Member] - USD ($)	12 Months Ended
	Dec. 31, 2022	Jul. 30, 2017	Nov. 01, 2016
Debt Instrument [Line Items]
Fixed interest rate for senior unsecured notes			3.00%
Minimum amount of principal or interest due on indebtedness or receivable securitization	$ 75,000,000
Number of days within notice date acceleration is not rescinded	30 days
2025 Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		$ 300
Fixed interest rate for senior unsecured notes		1.35%
2027 Notes [Member]
Debt Instrument [Line Items]
Fixed interest rate for senior unsecured notes		1.70%
2023 Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount			$ 350,000,000

Comprehensive Income (Items Not Reclassified from AOCI to Net Income) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold; Selling, general, administrative expenses and Other (income) expense, net	$ (3,433.7)	$ (3,005.7)	$ (2,594.0)
non-cash pension settlement loss	0.2	(1.2)	(0.6)
Provision for income taxes	(118.7)	(96.1)	$ (88.1)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	3.6	13.8
Losses on Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	7.5	20.7
Defined Benefit Plan Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(3.9)	(6.9)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0.0	0.0
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax	3.6	13.8
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Losses on Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Provision for income taxes	(2.2)	(6.2)
Net of tax	7.5	20.7
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Losses on Cash Flow Hedges [Member] \| Commodity Derivative Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold; Selling, general, administrative expenses and Other (income) expense, net	9.7	26.9
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Defined Benefit Plan Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of goods sold; Selling, general, administrative expenses and Other (income) expense, net	(5.4)	(7.9)
Provision for income taxes	1.3	2.2
Net of tax	$ (3.9)	$ (6.9)

Comprehensive Income (Changes in AOCI) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	$ (88.1)	$ (97.2)
Other comprehensive (loss) income before reclassifications	1.1	22.9
Amounts reclassified from AOCL	(3.6)	(13.8)
Net other comprehensive (loss) income	(2.5)	9.1
Ending balance	(90.6)	(88.1)
Gains (Losses) on Cash Flow Hedges [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	10.7	8.2
Other comprehensive (loss) income before reclassifications	(8.1)	23.2
Amounts reclassified from AOCL	(7.5)	(20.7)
Net other comprehensive (loss) income	(15.6)	2.5
Ending balance	(4.9)	10.7
Defined Benefit Plan Items [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	(68.8)	(82.7)
Other comprehensive (loss) income before reclassifications	18.7	7.0
Amounts reclassified from AOCL	3.9	6.9
Net other comprehensive (loss) income	22.6	13.9
Ending balance	(46.2)	(68.8)
Foreign Currency Translation Adjustments [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	(28.8)	(21.5)
Other comprehensive (loss) income before reclassifications	(10.2)	(7.3)
Amounts reclassified from AOCL	0.0	0.0
Net other comprehensive (loss) income	(10.2)	(7.3)
Ending balance	(39.0)	(28.8)
Accumulated Defined Benefit Plans Adjustment Attributable to Noncontrolling Interest [Member]
Changes in AOCI by component (net of tax) [Roll Forward]
Beginning balance	(1.2)	(1.2)
Other comprehensive (loss) income before reclassifications	0.7	0.0
Amounts reclassified from AOCL	0.0	0.0
Net other comprehensive (loss) income	0.7	0.0
Ending balance	$ (0.5)	$ (1.2)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124442407-227067

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21463-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=124507222&loc=d3e1436-108581

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124442411-227067

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669625-108580

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

+ Details

Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Compensation expense	$ 21.8	$ 24.3	$ 24.3

Stock-Based Compensation (Incentive Plan) (Details) shares in Millions	Dec. 31, 2022 shares
Share-based Payment Arrangement [Abstract]
Shares available for future issuance	1.5

Stock-Based Compensation (Performance Share Units) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 21.8	$ 24.3	$ 24.3
Payout ratio for shares paid (as a percent)	100.00%
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award service period	3 years
Compensation expense	$ 6.9	$ 10.8	$ 8.9
Weighted-average fair value of grants, per share (in usd per share)	$ 237.68	$ 314.27	$ 265.96
Payout ratio for shares paid (as a percent)	126.00%	100.00%	133.00%
Distributed (in shares)	(54,400)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 204.64
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	51,500
Share-Based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Adjustments In Period, Weighted Average Grant Date Fair Value	$ 245.06
Share-Based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Adjustments In Period	7,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(29,000.0)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 262.82
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award service period	3 years
Compensation expense	$ 11.0	$ 8.7	$ 10.4
Weighted-average fair value of grants, per share (in usd per share)	$ 240.87	$ 315.70	$ 265.96
Distributed (in shares)	(37,300)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 250.45
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	58,800
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(25,600)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 268.59
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 3.9	$ 4.8	$ 5.0
Award expiration period	7 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(45,800)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 280.78

Stock-based Compensation (Changes in Undistributed Performance Share Units) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Weighted- Average Grant Date Fair Value per Share
Undistributed performance share units (in shares)	93,900
Weighted-average grant date fair value of undistributed performance share units (in usd per share)	$ 261.65
Undistributed and vested performance share units (in shares)	30,800
Performance Shares [Member]
Shares
Undistributed as of beginning of period (in shares)	149,200
Granted (in shares)	51,500
Distributed (in shares)	54,400
Forfeited (in shares)	(29,000.0)
Undistributed as of end of period (in shares)	124,700	149,200
Weighted- Average Grant Date Fair Value per Share
Undistributed as of beginning of period (in usd per share)	$ 246.84
Granted (in usd per share)	237.68	$ 314.27	$ 265.96
Distributed (in usd per share)	204.64
Forfeited (in usd per share)	262.82
Undistributed as of end of period (in usd per share)	$ 257.55	$ 246.84

Stock-based Compensation (Fair Value and Tax Deductions of Performance Share Units Distributed) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Undistributed And Unvested Performance Share Units	93,900
Realized tax benefits from tax deductions	$ 0.6	$ 5.7	$ 4.2
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares or units distributed	6.1	10.8	15.1
Realized tax benefits from tax deductions	$ 1.5	$ 2.7	$ 0.7

Stock-based Compensation (Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 21.8	$ 24.3	$ 24.3
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 11.0	$ 8.7	$ 10.4
Weighted-average fair value of grants, per share (in usd per share)	$ 240.87	$ 315.70	$ 265.96
Award service period	3 years

Stock-based Compensation (Changes in Non-vested Restricted Stock Units) (Details) - Restricted Stock Units [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares
Undistributed as of beginning of period (in shares)	135,100
Granted (in shares)	58,800
Distributed (in shares)	(37,300)
Forfeited (in shares)	(25,600)
Undistributed as of end of period (in shares)	131,000.0	135,100
Weighted- Average Grant Date Fair Value per Share
Undistributed as of beginning of period (in usd per share)	$ 277.85
Granted (in usd per share)	240.87	$ 315.70	$ 265.96
Distributed (in usd per share)	250.45
Forfeited (in usd per share)	268.59
Undistributed as of end of period (in usd per share)	$ 270.86	$ 277.85

Stock-Based Compensation (Fair Value and Tax Deductions of Restricted Stock Units Vested) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Realized tax benefits from tax deductions	$ 0.6	$ 5.7	$ 4.2
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares or units distributed	9.7	11.0	15.0
Realized tax benefits from tax deductions	$ 2.4	$ 2.7	$ 2.7

Stock-based Compensation (Stock Appreciation Rights) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 21.8	$ 24.3	$ 24.3
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 3.9	$ 4.8	$ 5.0
Weighted-average fair value of grants, per share (in usd per share)	$ 64.54	$ 70.50	$ 55.21

Stock-Based Compensation (Stock Appreciation Rights, Fair Value Assumptions) (Details) - Stock Appreciation Rights (SARs) [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	2.01%	1.69%	1.64%
Risk-free interest rate	3.88%	0.88%	0.27%
Expected volatility	29.90%	29.80%	29.70%
Expected life (in years)	4 years 2 months 4 days	4 years 4 months 6 days	3 years 11 months 12 days

Stock-Based Compensation (Changes in Stock Appreciation Rights) (Details) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $	$ 10.6
Shares
Outstanding awards as of beginning of period (in shares) \| shares	478,300
Granted (in shares) \| shares	98,100
Exercised (in shares) \| shares	(42,700)
Outstanding awards as of end of period (in shares) \| shares	487,900
Exercisable at end of period (in shares) \| shares	324,600
Weighted-Average Exercise Price per Share
Outstanding awards as of beginning of period (in usd per share) \| $ / shares	$ 241.61
Granted (in usd per share) \| $ / shares	259.56
Exercised (in usd per share) \| $ / shares	170.48
Outstanding as of end of period (in shares) \| $ / shares	247.77
Exercisable at end of period, Weighted-Average Exercise Price per Share (in usd per share) \| $ / shares	$ 231.24
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period \| shares	(45,800)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value \| $ / shares	$ 280.78

Stock-Based Compensation (Stock Appreciation Rights Outstanding and Exercisable) (Details) - Stock Appreciation Rights (SARs) [Member] - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	2 years 9 months 18 days
Stock Appreciation Rights Outstanding, Shares	487,900	478,300
Stock Appreciation Rights Exercisable, Shares	324,600
$34.06 to $46.78 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices per Share, upper range limit	$ 214.63
Stock Appreciation Rights Outstanding, Shares	175,700
Stock Appreciation Rights Outstanding, Weighted-Average Remaining Contractual Term (in years)	2 years 1 month 13 days
Stock Appreciation Rights Outstanding, Aggregate Intrinsic Value	$ 7.7
Stock Appreciation Rights Exercisable, Shares	175,700
Stock Appreciation Rights Exercisable, Weighted-Average Remaining Contractual Life (in years)	2 years 1 month 13 days
Stock Appreciation Rights Exercisable, Aggregate Intrinsic Value	$ 7.7
Range of Exercise Prices per Share, lower range limit	$ 124.97
$51.11 to $81.14 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices per Share, upper range limit	$ 278.00
Stock Appreciation Rights Outstanding, Shares	147,900
Stock Appreciation Rights Outstanding, Weighted-Average Remaining Contractual Term (in years)	4 years 5 months 1 day
Stock Appreciation Rights Outstanding, Aggregate Intrinsic Value	$ 0.0
Stock Appreciation Rights Exercisable, Shares	126,900
Stock Appreciation Rights Exercisable, Weighted-Average Remaining Contractual Life (in years)	4 years 3 months 29 days
Stock Appreciation Rights Exercisable, Aggregate Intrinsic Value	$ 0.0
Range of Exercise Prices per Share, lower range limit	$ 257.08
$92.64 to $126.31 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices per Share, upper range limit	$ 328.65
Stock Appreciation Rights Outstanding, Shares	164,300
Stock Appreciation Rights Outstanding, Weighted-Average Remaining Contractual Term (in years)	6 years 7 months 2 days
Stock Appreciation Rights Outstanding, Aggregate Intrinsic Value	$ 0.0
Stock Appreciation Rights Exercisable, Shares	22,100
Stock Appreciation Rights Exercisable, Weighted-Average Remaining Contractual Life (in years)	6 years
Stock Appreciation Rights Exercisable, Aggregate Intrinsic Value	$ 0.0
Range of Exercise Prices per Share, lower range limit	$ 259.56

Stock-Based Compensation (Intrinsic Value and Tax Deductions of Stock Appreciation Rights) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Realized tax benefits from tax deductions	$ 0.6	$ 5.7	$ 4.2
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeiture Rate	12.60%
Instrinsic value of stock appreciation rights exercised	$ 3.5	31.2	26.7
Realized tax benefits from tax deductions	$ 0.9	$ 7.7	$ 6.7

Stock-Based Compensation (Employee Stock Purchase Plan) (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future issuance		1,500,000
Stock repurchased during period, shares	1,300,000
2012 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Offering periods		3 months
Purchase price (as a percent)		95.00%
Maximum shares authorized		1,000,000
Stock repurchased during period, shares		16,100
Stock repurchase program, remaining number of shares authorized to be repurchased		800,000

Stock-Based Compensation (Textuals) (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Shares available for future issuance	1.5
Payout Percentage	100.00%
Maximum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Potential increase for payout percentage	200.00%
Performance Shares [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award service period	3 years
Payout Percentage	126.00%	100.00%	133.00%
Total unrecognized compensation cost	$ 18.8
Weighted average period of recognition	2 years 4 months 24 days
Estimated forfeiture rate	10.90%
Restricted Stock Units [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award service period	3 years
Total unrecognized compensation cost	$ 24.7
Weighted average period of recognition	2 years 4 months 24 days
Estimated forfeiture rate	13.30%
Stock Appreciation Rights (SARs) [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized compensation cost	$ 10.6
Weighted average period of recognition	2 years 9 months 18 days
Estimated forfeiture rate	12.60%
Award expiration period	7 years

Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Quoted Prices in Active Markets for Identical Assets (Level 2) [Member] \| Senior Unsecured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior unsecured notes	$ 878.0	$ 959.2

Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of year	$ 10.7	$ 9.6	$ 6.1
Additions charged to cost and expenses	6.9	0.3	8.1
Write-offs	(0.4)	(0.4)	(4.2)
Recoveries	0.0	1.2	1.2
Other	(1.7)	0.0	(1.6)
Balance at end of year	$ 15.5	$ 10.7	$ 9.6