Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 29, 2014

Guarantor Financial Statements [Abstract]

Condensed Consolidating Balance Sheet as of March 29, 2014



			Guarantor		Non-Guarantor					Nortek
	Nortek		Subsidiaries		Subsidiaries		Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	14.0	$	7.6	$	29.5	$	—		$	51.1
Restricted cash	0.9		—		0.1		—			1.0
Accounts receivable, less allowances	—		266.4		63.0		—			329.4
Intercompany receivables	0.3		—		55.8		(56.1		)	—
Inventories, net	—		257.6		82.8		(7.7		)	332.7
Prepaid expenses	2.6		11.0		4.9		—			18.5
Other current assets	—		6.2		10.6		—			16.8
Deferred tax assets	8.3		26.5		—		(1.4		)	33.4
Total current assets	26.1		575.3		246.7		(65.2		)	782.9

Property and Equipment, at Cost:
Total property and equipment, net	8.2		154.0		65.4		—			227.6

Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries	1,231.0		371.1		—		(1,602.1		)	—
Goodwill	—		357.8		15.7		—			373.5
Intangible assets, less accumulated amortization	—		614.0		31.5		(10.2		)	635.3
Deferred tax asset	10.4		—		—		(10.4		)	—
Other assets	19.9		14.6		1.1		—			35.6
Total other long-term assets	1,261.3		1,357.5		48.3		(1,622.7		)	1,044.4
Total Assets	$	1,295.6	$	2,086.8	$	360.4	$	(1,687.9	)	$	2,054.9

LIABILITIES AND STOCKHOLDERS' INVESTMENT (DEFICIT):
Current Liabilities:
Short term bank obligations	$	—	$	—	$	0.6	$	—		$	0.6
Current maturities of long-term debt	0.3		2.6		—		—			2.9
Accounts payable	2.3		153.3		115.4		—			271.0
Accrued expenses and taxes, net	56.9		128.5		35.0		—			220.4
Current deferred taxes	—		—		1.4		(1.4		)	—
Intercompany payables	—		56.1		—		(56.1		)	—
Total current liabilities	59.5		340.5		152.4		(57.5		)	494.9

Other Liabilities:
Deferred income taxes	—		162.7		7.9		(13.4		)	157.2
Other long-term liabilities	31.7		136.3		21.2		—			189.2
Long-term intercompany payables	—		—		50.4		(50.4		)	—
	31.7		299.0		79.5		(63.8		)	346.4

Notes, Mortgage Notes and Obligations Payable, Less Current Maturities	1,117.9		9.1		0.1		—			1,127.1

Stockholders' investment (deficit)	86.5		1,438.2		128.4		(1,566.6		)	86.5
Total Liabilities and Stockholders' Investment (Deficit)	$	1,295.6	$	2,086.8	$	360.4	$	(1,687.9	)	$	2,054.9

Condensed Consolidating Balance Sheet as of December 31, 2013



			Guarantor		Non-Guarantor					Nortek
	Nortek		Subsidiaries		Subsidiaries		Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	23.2	$	20.0	$	37.7	$	—		$	80.9
Restricted cash	2.7		0.1		0.1		—			2.9
Accounts receivable, less allowances	0.1		219.2		57.1		—			276.4
Intercompany receivables	1.4		—		60.5		(61.9		)	—
Inventories, net	—		204.5		72.0		(6.0		)	270.5
Prepaid expenses	3.2		11.0		6.0		—			20.2
Other current assets	0.1		6.5		12.8		—			19.4
Deferred tax assets	4.8		26.3		—		(1.4		)	29.7
Total current assets	35.5		487.6		246.2		(69.3		)	700.0

Property and Equipment, at Cost:
Total property and equipment, net	7.0		157.4		68.0		—			232.4

Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries	1,180.7		418.6		—		(1,599.3		)	—
Goodwill	—		357.8		15.7		—			373.5
Intangible assets, less accumulated amortization	—		627.1		32.2		(10.4		)	648.9
Deferred tax asset	10.2		—		—		(10.2		)	—
Other assets	20.3		14.6		1.2		—			36.1
Total other long-term assets	1,211.2		1,418.1		49.1		(1,619.9		)	1,058.5
Total Assets	$	1,253.7	$	2,063.1	$	363.3	$	(1,689.2	)	$	1,990.9

LIABILITIES AND STOCKHOLDERS' INVESTMENT (DEFICIT):
Current Liabilities:
Short term bank obligations	$	—	$	—	$	0.7	$	—		$	0.7
Current maturities of long-term debt	0.3		2.5		—		—			2.8
Accounts payable	2.3		103.7		108.7		—			214.7
Accrued expenses and taxes, net	36.2		152.4		42.9		—			231.5
Current deferred taxes	—		—		1.4		(1.4		)	—
Intercompany payables	—		61.9		—		(61.9		)	—
Total current liabilities	38.8		320.5		153.7		(63.3		)	449.7

Other Liabilities:
Deferred income taxes	—		163.8		7.7		(12.4		)	159.1
Other long-term liabilities	31.7		135.6		21.6		—			188.9
Long-term intercompany payables	—		—		49.4		(49.4		)	—
	31.7		299.4		78.7		(61.8		)	348.0

Notes, Mortgage Notes and Obligations Payable, Less Current Maturities	1,083.3		10.0		—		—			1,093.3

Stockholders' investment (deficit)	99.9		1,433.2		130.9		(1,564.1		)	99.9
Total Liabilities and Stockholders' Investment (Deficit)	$	1,253.7	$	2,063.1	$	363.3	$	(1,689.2	)	$	1,990.9

Schedule of Condensed Income Statement

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the first quarter ended March 29, 2014



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

Net Sales	$	—		$	464.1		$	189.5		$	(103.5	)	$	550.1
Cost of products sold	—			329.3			165.7			(101.8		)	393.2
Gross profit	—			134.8			23.8			(1.7		)	156.9
Selling, general and administrative expense, net	15.3			94.3			21.2			—			130.8
Amortization of intangible assets	—			13.1			0.7			(0.2		)	13.6
Operating (loss) earnings	(15.3		)	27.4			1.9			(1.5		)	12.5
Interest expense	(23.9		)	(0.1		)	(0.1		)	—			(24.1		)
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	(39.2		)	27.3			1.8			(1.5		)	(11.6		)
Charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	27.6			(16.8		)	0.2			(11.0		)	—
(Loss) earnings before (benefit) provision for income taxes	(11.6		)	10.5			2.0			(12.5		)	(11.6		)
(Benefit) provision for income taxes	(3.0		)	4.2			2.1			(6.3		)	(3.0		)
Net (loss) earnings	$	(8.6	)	$	6.3		$	(0.1	)	$	(6.2	)	$	(8.6	)

Comprehensive (loss) income	$	(11.1	)	$	6.3		$	(2.5	)	$	(3.8	)	$	(11.1	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the first quarter ended March 30, 2013



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

Net Sales	$	—		$	433.9		$	172.0		$	(86.8	)	$	519.1
Cost of products sold	—			317.9			146.4			(86.7		)	377.6
Gross profit	—			116.0			25.6			(0.1		)	141.5
Selling, general and administrative expense, net	16.9			85.7			23.0			—			125.6
Amortization of intangible assets	—			10.8			0.7			(0.2		)	11.3
Operating (loss) earnings	(16.9		)	19.5			1.9			0.1			4.6
Interest expense	(23.8		)	(0.7		)	(0.1		)	—			(24.6		)
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	(40.7		)	18.8			1.8			0.1			(20.0		)
Charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	20.7			(16.2		)	0.2			(4.7		)	—
(Loss) earnings before (benefit) provision for income taxes	(20.0		)	2.6			2.0			(4.6		)	(20.0		)
(Benefit) provision for income taxes	(4.9		)	0.1			0.9			(1.0		)	(4.9		)
Net (loss) earnings	$	(15.1	)	$	2.5		$	1.1		$	(3.6	)	$	(15.1	)

Comprehensive (loss) income	$	(18.1	)	$	2.6		$	(2.1	)	$	(0.5	)	$	(18.1	)

Schedule of Condensed Cash Flow Statement

Condensed Consolidating Cash Flow Statement

For the first quarter ended March 29, 2014



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

Cash Flows from operating activities:
Net cash used in operating activities	$	(15.6	)	$	(29.4	)	$	(7.4	)	$	(52.4	)
Cash Flows from investing activities:
Capital expenditures	(1.9		)	(5.1		)	(0.9		)	(7.9		)
Proceeds from the sale of property and equipment	—			0.8			0.5			1.3
Change in restricted cash and marketable securities	—			—			—			—
Other, net	—			(0.3		)	(0.3		)	(0.6		)
Net cash used in investing activities	(1.9		)	(4.6		)	(0.7		)	(7.2		)

Cash Flows from financing activities:
Proceeds from borrowings	40.0			—			0.7			40.7
Payment of borrowings	(5.1		)	(0.7		)	(0.8		)	(6.6		)
Net use from equity transactions	(4.0		)	—			—			(4.0		)
Long-term intercompany advances and loans	(22.3		)	22.3			—			—
Other, net	(0.3		)	—			—			(0.3		)
Net cash provided by (used in) financing activities	8.3			21.6			(0.1		)	29.8
Net change in unrestricted cash and cash equivalents	(9.2		)	(12.4		)	(8.2		)	(29.8		)
Unrestricted cash and cash equivalents at the beginning of the period	23.2			20.0			37.7			80.9
Unrestricted cash and cash equivalents at the end of the period	$	14.0		$	7.6		$	29.5		$	51.1

Condensed Consolidating Cash Flow Statement

For the first quarter ended March 30, 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	$	(18.3	)	$	6.8		$	(3.0	)	$	(14.5	)
Cash Flows from investing activities:
Capital expenditures	(1.5		)	(4.9		)	(3.4		)	(9.8		)
Net cash paid for businesses acquired	—			—			(0.9		)	(0.9		)
Change in restricted cash and marketable securities	—			0.1			—			0.1
Other, net	—			(0.9		)	0.1			(0.8		)
Net cash used in investing activities	(1.5		)	(5.7		)	(4.2		)	(11.4		)

Cash Flows from financing activities:
Proceeds from borrowings	85.0			—			0.8			85.8
Payment of borrowings	(0.1		)	(0.7		)	(0.8		)	(1.6		)
Net use from equity transactions	(1.6		)	—			—			(1.6		)
Long-term intercompany advances and loans	7.6			(7.6		)	—			—
Net cash provided by (used in) financing activities	90.9			(8.3		)	—			82.6
Net change in unrestricted cash and cash equivalents	71.1			(7.2		)	(7.2		)	56.7
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	$	166.0		$	5.9		$	29.5		$	201.4