Guarantor Financial Statements (Tables)

6 Months Ended

Jun. 29, 2013

Guarantor Financial Statements [Abstract]

Condensed Consolidating Balance Sheet as of June 29, 2013



			Guarantor		Non-Guarantor					Nortek
	Nortek		Subsidiaries		Subsidiaries		Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	12.0	$	10.2	$	26.6	$	—		$	48.8
Restricted cash	0.1		—		0.1		—			0.2
Accounts receivable, less allowances	—		281.9		57.7		—			339.6
Intercompany receivables	1.1		—		53.0		(54.1		)	—
Inventories, net	—		222.8		79.4		(8.5		)	293.7
Prepaid expenses	4.9		11.1		5.2		—			21.2
Other current assets	—		6.0		10.2		—			16.2
Prepaid income taxes	16.8		14.6		—		(1.6		)	29.8
Total current assets	34.9		546.6		232.2		(64.2		)	749.5

Property and Equipment, at Cost:
Total property and equipment, net	5.9		129.1		66.8		—			201.8

Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries	1,246.7		354.8		—		(1,601.5		)	—
Goodwill	—		357.8		16.3		—			374.1
Intangible assets, less accumulated amortization	—		658.5		33.1		(10.8		)	680.8
Deferred tax asset	10.4		—		—		(10.4		)	—
Other assets	21.4		16.4		0.8		—			38.6
Total other long-term assets	1,278.5		1,387.5		50.2		(1,622.7		)	1,093.5
Total Assets	$	1,319.3	$	2,063.2	$	349.2	$	(1,686.9	)	$	2,044.8

LIABILITIES AND STOCKHOLDERS' INVESTMENT (DEFICIT):
Current Liabilities:
Short term bank obligations	$	—	$	—	$	0.7	$	—		$	0.7
Current maturities of long-term debt	10.3		2.3		—		—			12.6
Accounts payable	3.7		121.0		103.3		—			228.0
Accrued expenses and taxes, net	36.2		145.2		42.3		—			223.7
Current deferred taxes	—		—		1.6		(1.6		)	—
Intercompany payables	—		54.1		—		(54.1		)	—
Total current liabilities	50.2		322.6		147.9		(55.7		)	465.0

Other Liabilities:
Deferred income taxes	—		168.5		8.8		(13.7		)	163.6
Other long-term liabilities	43.4		110.3		24.9		—			178.6
Long-term intercompany payables	—		—		44.6		(44.6		)	—
	43.4		278.8		78.3		(58.3		)	342.2

Notes, Mortgage Notes and Obligations Payable, Less Current Maturities	1,134.0		11.8		0.1		—			1,145.9

Stockholders' investment (deficit)	91.7		1,450.0		122.9		(1,572.9		)	91.7
Total Liabilities and Stockholders' Investment (Deficit)	$	1,319.3	$	2,063.2	$	349.2	$	(1,686.9	)	$	2,044.8

Condensed Consolidating Balance Sheet as of December 31, 2012



			Guarantor		Non-Guarantor					Nortek
	Nortek		Subsidiaries		Subsidiaries		Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	94.9	$	13.1	$	36.7	$	—		$	144.7
Restricted cash	—		—		0.2		—			0.2
Accounts receivable, less allowances	—		191.7		65.7		—			257.4
Intercompany receivables	1.0		—		42.3		(43.3		)	—
Inventories, net	—		192.4		71.6		(5.6		)	258.4
Prepaid expenses	1.2		8.7		4.5		—			14.4
Other current assets	—		10.7		10.4		(1.1		)	20.0
Prepaid income taxes	18.3		12.6		—		(1.6		)	29.3
Total current assets	115.4		429.2		231.4		(51.6		)	724.4

Property and Equipment, at Cost:
Total property and equipment, net	3.0		128.7		67.8		—			199.5

Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries	1,107.8		321.2		—		(1,429.0		)	—
Goodwill	—		292.7		14.9		—			307.6
Intangible assets, less accumulated amortization	—		591.6		34.5		(11.2		)	614.9
Deferred tax asset	10.9		—		—		(10.9		)	—
Other assets	25.4		15.7		0.6		—			41.7
Total other long-term assets	1,144.1		1,221.2		50.0		(1,451.1		)	964.2
Total Assets	$	1,262.5	$	1,779.1	$	349.2	$	(1,502.7	)	$	1,888.1

LIABILITIES AND STOCKHOLDERS' INVESTMENT (DEFICIT):
Current Liabilities:
Short term bank obligations	$	—	$	—	$	0.7	$	—		$	0.7
Current maturities of long-term debt	0.3		2.1		—		—			2.4
Accounts payable	4.1		76.7		93.6		—			174.4
Accrued expenses and taxes, net	31.1		119.4		48.8		(0.4		)	198.9
Current deferred taxes	—		—		1.6		(1.6		)	—
Intercompany payables	—		43.3		—		(43.3		)	—
Total current liabilities	35.5		241.5		144.7		(45.3		)	376.4

Other Liabilities:
Deferred income taxes	—		137.3		8.7		(13.3		)	132.7
Other long-term liabilities	47.7		110.3		28.9		—			186.9
Long-term intercompany payables	—		—		44.0		(44.0		)	—
	47.7		247.6		81.6		(57.3		)	319.6

Notes, Mortgage Notes and Obligations Payable, Less Current Maturities	1,085.1		12.8		—		—			1,097.9

Stockholders' investment (deficit)	94.2		1,277.2		122.9		(1,400.1		)	94.2
Total Liabilities and Stockholders' Investment (Deficit)	$	1,262.5	$	1,779.1	$	349.2	$	(1,502.7	)	$	1,888.1

Schedule of Condensed Income Statement

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the second quarter ended June 29, 2013



				Guarantor			Non-Guarantor					Nortek
	Nortek			Subsidiaries			Subsidiaries		Eliminations			Consolidated
	(Dollar amounts in millions)

Net Sales	$	—		$	544.8		$	192.9	$	(107.0	)	$	630.7
Cost of products sold	—			384.3			162.2		(104.9		)	441.6
Gross profit	—			160.5			30.7		(2.1		)	189.1
Selling, general and administrative expense, net	16.1			95.7			23.3		—			135.1
Amortization of intangible assets	—			13.1			0.7		(0.2		)	13.6
Operating (loss) earnings	(16.1		)	51.7			6.7		(1.9		)	40.4
Interest expense	(24.2		)	(0.6		)	—		—			(24.8		)
Investment income	—			—			0.1		—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' earnings (loss) before income taxes	(40.3		)	51.1			6.8		(1.9		)	15.7
Charges and allocations to subsidiaries and equity in subsidiaries' earnings (loss) before income taxes	56.0			(18.7		)	0.3		(37.6		)	—
Earnings (loss) before provision (benefit) for income taxes	15.7			32.4			7.1		(39.5		)	15.7
Provision (benefit) for income taxes	4.2			8.1			3.1		(11.2		)	4.2
Net earnings (loss)	$	11.5		$	24.3		$	4.0	$	(28.3	)	$	11.5

Comprehensive income (loss)	$	9.9		$	24.3		$	2.1	$	(26.4	)	$	9.9

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the second quarter ended June 30, 2012



				Guarantor			Non-Guarantor						Nortek
	Nortek			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)

Net Sales	$	—		$	508.6		$	198.7		$	(91.6	)	$	615.7
Cost of products sold	—			355.7			165.9			(89.7		)	431.9
Gross profit	—			152.9			32.8			(1.9		)	183.8
Selling, general and administrative expense, net	10.1			86.5			22.5			—			119.1
Amortization of intangible assets	—			10.3			0.7			—			11.0
Operating (loss) earnings	(10.1		)	56.1			9.6			(1.9		)	53.7
Interest expense	(23.4		)	(0.5		)	(0.1		)	—			(24.0		)
Investment income	—			—			0.1			—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' earnings (loss) before income taxes	(33.5		)	55.6			9.6			(1.9		)	29.8
Charges and allocations to subsidiaries and equity in subsidiaries' earnings (loss) before income taxes	63.3			(15.0		)	0.1			(48.4		)	—
Earnings (loss) before provision (benefit) for income taxes	29.8			40.6			9.7			(50.3		)	29.8
Provision (benefit) for income taxes	11.3			15.8			3.7			(19.5		)	11.3
Net earnings (loss)	$	18.5		$	24.8		$	6.0		$	(30.8	)	$	18.5

Comprehensive income (loss)	$	16.0		$	24.8		$	3.3		$	(28.1	)	$	16.0

Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income

For the first half ended June 29, 2013



				Guarantor			Non-Guarantor						Nortek
	Nortek			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)

Net Sales	$	—		$	978.7		$	364.9		$	(193.8	)	$	1,149.8
Cost of products sold	—			702.2			308.6			(191.6		)	819.2
Gross profit	—			276.5			56.3			(2.2		)	330.6
Selling, general and administrative expense, net	33.0			181.4			46.3			—			260.7
Amortization of intangible assets	—			23.9			1.4			(0.4		)	24.9
Operating (loss) earnings	(33.0		)	71.2			8.6			(1.8		)	45.0
Interest expense	(48.0		)	(1.3		)	(0.1		)	—			(49.4		)
Investment income	—			—			0.1			—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	(81.0		)	69.9			8.6			(1.8		)	(4.3		)
Charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	76.7			(34.9		)	0.5			(42.3		)	—
(Loss) earnings before (benefit) provision for income taxes	(4.3		)	35.0			9.1			(44.1		)	(4.3		)
(Benefit) provision for income taxes	(0.7		)	8.2			4.0			(12.2		)	(0.7		)
Net (loss) earnings	$	(3.6	)	$	26.8		$	5.1		$	(31.9	)	$	(3.6	)

Comprehensive (loss) income	$	(8.2	)	$	26.9		$	—		$	(26.9	)	$	(8.2	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the first half ended June 30, 2012



				Guarantor			Non-Guarantor						Nortek
	Nortek			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)

Net Sales	$	—		$	930.2		$	364.4		$	(156.1	)	$	1,138.5
Cost of products sold	—			657.0			305.8			(154.1		)	808.7
Gross profit	—			273.2			58.6			(2.0		)	329.8
Selling, general and administrative expense, net	17.9			168.8			42.5			—			229.2
Amortization of intangible assets	—			20.6			1.4			—			22.0
Operating (loss) earnings	(17.9		)	83.8			14.7			(2.0		)	78.6
Interest expense	(47.0		)	(1.2		)	(0.3		)	—			(48.5		)
Investment income	—			—			0.1			—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' earnings (loss) before income taxes	(64.9		)	82.6			14.5			(2.0		)	30.2
Charges and allocations to subsidiaries and equity in subsidiaries' earnings (loss) before income taxes	95.1			(29.3		)	0.2			(66.0		)	—
Earnings (loss) before provision (benefit) for income taxes	30.2			53.3			14.7			(68.0		)	30.2
Provision (benefit) for income taxes	12.9			20.6			6.7			(27.3		)	12.9
Net earnings (loss)	$	17.3		$	32.7		$	8.0		$	(40.7	)	$	17.3

Comprehensive income (loss)	$	16.7		$	32.7		$	7.5		$	(40.2	)	$	16.7

Schedule of Condensed Cash Flow Statement

Condensed Consolidating Cash Flow Statement

For the first half ended June 29, 2013



				Guarantor			Non-Guarantor			Nortek
	Nortek			Subsidiaries			Subsidiaries			Consolidated
	(Dollar amounts in millions)

Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(79.8	)	$	97.7		$	(4.1	)	$	13.8
Cash Flows from investing activities:
Capital expenditures	(3.2		)	(12.4		)	(5.4		)	(21.0		)
Net cash paid for businesses acquired	(143.9		)	—			(0.9		)	(144.8		)
Proceeds from the sale of property and equipment	—			—			0.1			0.1
Change in restricted cash and marketable securities	—			0.2			—			0.2
Other, net	—			(1.2		)	0.1			(1.1		)
Net cash used in investing activities	(147.1		)	(13.4		)	(6.1		)	(166.6		)

Cash Flows from financing activities:
Proceeds from borrowings	125.0			—			1.6			126.6
Payment of borrowings	(65.3		)	(1.3		)	(1.5		)	(68.1		)
Net use from equity transactions	(1.6		)	—			—			(1.6		)
Long-term intercompany advances and loans	85.9			(85.9		)	—			—
Other, net	—			—			—			—
Net cash provided by (used in) financing activities	144.0			(87.2		)	0.1			56.9
Net change in unrestricted cash and cash equivalents	(82.9		)	(2.9		)	(10.1		)	(95.9		)
Unrestricted cash and cash equivalents at the beginning of the period	94.9			13.1			36.7			144.7
Unrestricted cash and cash equivalents at the end of the period	$	12.0		$	10.2		$	26.6		$	48.8

Condensed Consolidating Cash Flow Statement

For the first half ended June 30, 2012



				Guarantor			Non-Guarantor			Nortek
	Nortek			Subsidiaries			Subsidiaries			Consolidated
	(Dollar amounts in millions)

Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(70.8	)	$	109.7		$	8.8		$	47.7
Cash Flows from investing activities:
Capital expenditures	(0.2		)	(7.3		)	(2.4		)	(9.9		)
Net cash paid for businesses acquired	(2.6		)	—			—			(2.6		)
Proceeds from the sale of property and equipment	—			2.3			—			2.3
Change in restricted cash and marketable securities	—			0.1			—			0.1
Other, net	0.1			—			—			0.1
Net cash used in investing activities	(2.7		)	(4.9		)	(2.4		)	(10.0		)

Cash Flows from financing activities:
Proceeds from borrowings	30.0			—			2.4			32.4
Payment of borrowings	(56.8		)	(1.1		)	(9.0		)	(66.9		)
Fees paid in connection with debt facilities	(1.0		)	—			—			(1.0		)
Net proceeds from equity transactions	0.2			—			—			0.2
Long-term intercompany advances and loans	95.6			(100.6		)	5.0			—
Other, net	(0.1		)	—			—			(0.1		)
Net cash provided by (used in) financing activities	67.9			(101.7		)	(1.6		)	(35.4		)
Net change in unrestricted cash and cash equivalents	(5.6		)	3.1			4.8			2.3
Unrestricted cash and cash equivalents at the beginning of the period	17.8			9.3			31.1			58.2
Unrestricted cash and cash equivalents at the end of the period	$	12.2		$	12.4		$	35.9		$	60.5