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Lennox International LII Residential Heating And Cooling — Goodwill Impairment

Discontinued — last reported Q4 '16

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Other financials

Income statement

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Revenue$1.1B+5.8%
Gross profit$351.3M+3.1%
Operating income$163.5M-2.7%
Net income$117.2M-9.6%
EPS (diluted)$3.35-7.7%

Balance sheet

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Cash & equivalents$48.2M-77.8%
Total debt$1.7B+7.6%
Total equity$1.2B+20.9%
Total assets$4.3B+24.2%

Cash flow

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Operating cash flow$16.1M+145%
CapEx$55.5M+118%
Free cash flow-$39.4M+35.7%

Valuation

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Market cap$18.53B-19.0%
Enterprise value$20.14B-16.5%
P/E23.4×-4.7×
P/S3.5×-0.7×

Profitability

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Gross margin33.2%+0.1pp
Operating margin19.7%+0.3pp
Net margin15.1%-0.1pp
FCF margin12.6%-1.8pp

Returns & leverage

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Return on equity75.8%-43.9pp
Debt / equity1.4×-0.2×
Current ratio1.6×+0.1×

Where this comes from

Reported directly by Lennox International in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Lennox International’s 10-K, filed February 21, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does residential heating and cooling — goodwill impairment mean?
A non-cash expense recorded when the value of goodwill in the residential segment is deemed to have declined.
How do you interpret residential heating and cooling — goodwill impairment?
An increase signals a significant negative event, such as a decline in segment profitability or market outlook, requiring a write-down of asset value.
How does residential heating and cooling — goodwill impairment compare across companies?
Peers report this as a standard impairment test result, with zero being the expected value for healthy, growing segments.