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Segment Information
 6 Months Ended
Jun. 28, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information

The Company's reporting 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.
 

During the second quarter of 2014, the Company changed the composition of its reporting segments to exclude the audio/video entities from the Technology Solutions segment due to the Chief Operating Decision Maker's decision to operate each of these entities separately and manage each as a standalone segment. As a result, the Company has restated prior period segment disclosures to conform to the new composition. The audio/video entities have been combined and not reported separately as they are individually not significant (the "AV segments"). These subsidiaries were principally acquired at various times from 2003 to 2011.
 
The AV segments include whole-house audio/video products, and home automation systems as well as certain accessories often used with these systems such as power conditioners and surge protectors. Whole-house audio/video products include, among other products, multi-room/multi-source controllers and amplifiers, architectural speakers, and control devices such as keypads, remote controls and volume controls. Home automation systems include software and hardware that facilitate the control of third-party residential subsystems such as home theater, whole-house audio, climate control, lighting, security and irrigation.

For a description of the activities of the Company's primary reporting segments, see "Segment Information and Concentration of Credit Risk", of the Company's 2013 Form 10-K.

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 and impairment charges. Intersegment net sales and intersegment eliminations are not material for any of the periods presented. The financial statement impact of all acquisition 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 earnings (loss) before provision (benefit) for income taxes for the Company’s reporting segments for the second quarter and first half of 2014 and 2013 were as follows:

 
 
Second quarter of
 
First half of
 
 
2014
 
2013
 
2014
 
2013
 
 
(Dollar amounts in millions)
Net sales:
 
 
 
 
 
 
 
 
RESV
 
$
151.5

 
$
150.2

 
$
292.3

 
$
294.7

TECH
 
161.5

 
110.1

 
246.8

 
177.7

DMS
 
69.3

 
69.0

 
130.9

 
130.0

RHC
 
159.9

 
137.3

 
260.7

 
224.7

CES
 
139.4

 
120.0

 
262.8

 
235.8

AV
 
37.0

 
44.1

 
72.9

 
86.9

Consolidated net sales
 
$
718.6

 
$
630.7

 
$
1,266.4

 
$
1,149.8

 
 
 
 
 
 
 
 
 
Operating earnings (loss):
 
 

 
 

 
 

 
 

RESV
 
$
17.3

 
$
19.3

 
$
26.9

 
$
30.7

TECH
 
22.0

 
7.1

 
23.1

 
11.9

DMS
 
11.6

 
10.9

 
19.1

 
16.8

RHC
 
11.9

 
14.9

 
15.1

 
9.8

CES
 
12.2

 
8.5

 
23.3

 
15.5

AV
 
(8.1
)
 
(4.1
)
 
(12.8
)
 
(6.1
)
Subtotal
 
66.9

 
56.6

 
94.7

 
78.6

Impairment of long-lived assets and goodwill
 
(80.4
)
 
—

 
(80.4
)
 
—

Unallocated, net
 
(18.6
)
 
(16.2
)
 
(33.9
)
 
(33.6
)
Consolidated operating (loss) earnings
 
(32.1
)
 
40.4

 
(19.6
)
 
45.0

Net interest expense
 
(26.6
)
 
(24.7
)
 
(50.7
)
 
(49.3
)
Loss from debt retirement
 
(1.8
)
 
—

 
(1.8
)
 
—

(Loss) earnings before (benefit) provision
for income taxes
 
$
(60.5
)
 
$
15.7

 
$
(72.1
)
 
$
(4.3
)


Intersegment sales between the TECH segment and the combined AV segments totaled approximately $4.7 million and $5.3 million for the second quarter of 2014 and 2013, respectively, and totaled approximately $8.3 million and $10.2 million for the first half of 2014 and 2013, respectively.

See Note F, “Exit & Disposal Activities” and Note G, "Commitments & Contingencies", with respect to certain other items affecting segment earnings (loss).
Segment assets at June 28, 2014 and December 31, 2013 for the Company’s reporting segments are presented in the table that follows:
 
 
 
June 28,
2014
 
December 31,
2013
 
 
(Dollar amounts in millions)
Segment Assets:
 
 

 
 

RESV
 
$
612.6

 
$
610.7

TECH
 
407.8

 
327.7

DMS
 
376.1

 
378.4

RHC
 
529.2

 
175.0

CES
 
203.6

 
199.0

AV
 
65.8

 
148.9

 
 
2,195.1

 
1,839.7

Unallocated:
 
 

 
 

Cash and cash equivalents, including current restricted cash
 
92.2

 
83.8

Deferred tax assets
 
30.8

 
29.7

Other assets, including long-term restricted investments and
     marketable securities
 
44.8

 
37.7

Consolidated assets
 
$
2,362.9

 
$
1,990.9