Segment Information

9 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is aglobal, diversified company whose many market-leading brands deliver broad capabilities and a wide array of innovative, technology-driven products and solutions for lifestyle improvement at home and at work. The Company's fivereporting segments are as follows:

• the Residential Ventilation (“RESV”) segment,

• the Technology Solutions (“TECH”) segment,

• the Display Mount Solutions ("DMS") segment,

• the Residential Heating and Cooling (“RHC”) segment, and

• the Custom & Engineered Solutions (“CES”) segment.

For a description of the activities of the Company's reporting segments, see Note 9, "Segment Information and Concentration of Credit Risk", of the Company's 2012 Form 10-K.

Through these segments, the Company manufactures and sells, primarily in the United States, Canada, and Europe,with additional manufacturing in China, 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 remodeling and replacement activity, as well as the levels of new residential and non-residential construction. The level of new construction activity and, to a lesser extent, the level of residential remodeling and replacement activity are affected by seasonality and cyclical factors such as interest rates, inflation, consumer spending, employment levels, and other macroeconomic factors, over which the Company has no control. Performance in any particular period could be impacted by the timing of sales to certain large customers.

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 segments, which are the Company’s reporting units.

Unaudited net sales, operating earnings and earnings before provision for income taxes for the Company’s reporting segments for the third quarter and nine months of 2013 and 2012 were as follows:

	Third quarter of						Nine months of
	2013			2012			2013			2012
	(Dollar amounts in millions)
Net sales:
RESV	$	150.0		$	145.4		$	444.7		$	446.2
TECH	145.3			121.9			409.9			321.6
DMS	68.7			72.0			198.7			211.9
RHC	110.3			101.4			335.0			308.5
CES	114.9			116.7			350.7			407.7
Consolidated net sales	$	589.2		$	557.4		$	1,739.0		$	1,695.9
Operating earnings (loss):
RESV	$	17.3		$	18.5		$	48.0		$	54.7
TECH (1)	8.1			7.6			13.9			9.9
DMS	9.6			9.7			26.4			23.8
RHC	7.2			3.1			17.0			11.4
CES (2)	3.0			6.1			18.5			41.8
Subtotal	45.2			45.0			123.8			141.6
Unallocated, net (3)	(12.7		)	(11.2		)	(46.3		)	(29.2		)
Consolidated operating earnings	32.5			33.8			77.5			112.4
Interest expense	(24.8		)	(23.7		)	(74.2		)	(72.2		)
Investment income	—			0.1			0.1			0.2
Earnings before provision for income taxes	$	7.7		$	10.2		$	3.4		$	40.4

(1) For the third quarter and nine months of 2013 includes a charge of approximately $2.3 million and $3.7 million, respectively, related to a product safety recall and other warranty matters and for the nine months of 2012, includes a charge of approximately $3.7 million relating to the decision to discontinue development of a certain new product.

(2) For the third quarter and nine months of 2013, includes approximately $2.7 million and $5.9 million, respectively, related to certain warranty matters.

(3) For the third quarter and nine months of 2013, includes approximately $1.9 million and $10.3 million, respectively, related to outside consulting fees and other costs relating to a program of operational improvement initiatives (see Note G, "Operational Improvement Initiatives") and for the nine months of 2013, includes approximately $1.7 million in one-time compensation charges.

See Note F,“Exit & Disposal Activities”, Note G,“Operational Improvement Initiatives”,and Note H,"Commitments & Contingencies", with respect to certain other items affecting segment earnings (loss).