Note E. Segment Information

9 Months Ended

Oct. 01, 2011

Segment Information [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Information

The Company is a diversified manufacturer of innovative, branded residential and commercial building products, operating within four reporting segments:

• the Residential Ventilation Products (“RVP”) segment,

• the Technology Products (“TECH”) segment,

• the Residential Air Conditioning and Heating Products (“R-HVAC”) segment and

• the Commercial Air Conditioning and Heating Products (“C-HVAC”) segment.

Through these segments, the Company manufactures and sells, primarily in the United States, Canada and Europe, a wide variety of products for the remodeling and replacement markets, the residential and commercial new construction markets, the manufactured housing market and the personal and enterprise computer markets.

The Company's performance is significantly impacted by the levels of residential replacement and remodeling activity, as well as the levels of residential and non-residential new construction. New residential and non-residential construction activity and, to a lesser extent, residential remodeling and replacement activity are affected by seasonality and cyclical factors such as interest rates, credit availability, inflation, consumer spending, employment levels and other macroeconomic factors, over which the Company has no control.

The RVP segment primarily manufactures and sells room and whole house ventilation and other products primarily for the professional remodeling and replacement markets, the residential new construction market and the do-it-yourself ("DIY") market. The principal products sold by this segment include kitchen range hoods, exhaust fans (such as bath fans and fan, heater and light combination units) and indoor air quality products.

The TECH segment, formerly known as the Home Technology Products ("HTP") segment, manufactures and distributes a broad array of products designed to provide convenience and security for residential and certain commercial applications. The principal product categories sold in this segment include audio/video distribution and control equipment, security and access control products, and digital display mounting and mobility products.

The R-HVAC segment manufactures and sells heating, ventilating and air conditioning systems for site-built residential and manufactured housing structures and certain commercial markets. The principal products sold by the segment are split-system and packaged air conditioners and heat pumps, air handlers, furnaces and related equipment.

The C-HVAC segment manufactures and sells heating, ventilating and air conditioning systems for custom-designed commercial applications to meet customer specifications. The principal products sold by the segment are large custom rooftop cooling and heating products.

The Company evaluates segment performance based on operating earnings before allocations of corporate overhead costs. Intersegment net sales and intersegment eliminations are not material for any of the periods presented. The financial statement impact of all purchase accounting adjustments, including intangible assets amortization and goodwill, are reflected in the applicable operating segment, which are the Company’s reporting units.

Unaudited net sales, operating earnings and (loss) earnings before benefit from income taxes for the Company’s reporting segments for the third quarter of 2011 and 2010 were as follows:

	For the third quarter of
	2011			2010
	(Dollar amounts in millions)
Net sales:
Residential ventilation products	$	146.5		$	146.0
Technology products	196.1			139.7
Residential HVAC products	98.0			119.0
Commercial HVAC products	111.2			91.9
Consolidated net sales	$	551.8		$	496.6
Operating earnings (loss):
Residential ventilation products	$	4.1		$	13.4
Technology products	13.6			13.9
Residential HVAC products	—			4.4
Commercial HVAC products	4.9			0.7
Subtotal	22.6			32.4
Executive retirement (Note L)	(0.2		)	—
Unallocated, net	(8.4		)	(5.7		)
Consolidated operating earnings	14.0			26.7
Interest expense	(24.6		)	(22.9		)
Investment income	—			0.1
(Loss) earnings before benefit from income taxes	$	(10.6	)	$	3.9

Unaudited net sales, operating earnings and loss before benefit from income taxes for the Company’s reporting segments for the first nine months of 2011 and 2010 were as follows:

	For the first nine months of
	2011			2010
	(Dollar amounts in millions)
Net sales:
Residential ventilation products	$	447.9		$	453.1
Technology products	534.0			349.4
Residential HVAC products	306.7			361.3
Commercial HVAC products	316.7			272.7
Consolidated net sales	$	1,605.3		$	1,436.5
Operating earnings (loss):
Residential ventilation products	$	22.9		$	43.2
Technology products	34.3			10.4
Residential HVAC products	4.7			18.6
Commercial HVAC products	5.1			5.3
Subtotal	67.0			77.5
Executive retirement (Note L)	(8.7		)	—
Unallocated, net	(21.6		)	(19.5		)
Consolidated operating earnings	36.7			58.0
Interest expense	(81.0		)	(69.9		)
Loss from debt retirement	(33.8		)	—
Investment income	0.1			0.1
Loss before benefit from income taxes	$	(78.0	)	$	(11.8	)