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Guarantor Financial Statements (Tables)
 6 Months Ended
Jun. 28, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule of Condensed Balance Sheet
Condensed Consolidating Balance Sheet as of June 28, 2014

 
 
 
 
Guarantor
 
Non-Guarantor
 
 
 
Nortek
 
 
Nortek
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(Dollar amounts in millions)
ASSETS:
Current Assets:
 
 
 
 
 
 
 
 
 
 
Unrestricted cash and cash equivalents
 
$
37.5

 
$
14.1

 
$
39.7

 
$
—

 
$
91.3

Restricted cash
 
0.9

 
—

 
—

 
—

 
0.9

Accounts receivable, less allowances
 
—

 
341.6

 
68.6

 
—

 
410.2

Intercompany receivables
 
0.5

 
—

 
67.0

 
(67.5
)
 
—

Inventories, net
 
—

 
279.6

 
93.9

 
(8.1
)
 
365.4

Prepaid expenses
 
3.2

 
9.8

 
5.9

 
—

 
18.9

Other current assets
 
0.9

 
4.3

 
10.9

 
—

 
16.1

Deferred tax assets
 
3.5

 
27.8

 
—

 
(0.5
)
 
30.8

Total current assets
 
46.5

 
677.2

 
286.0

 
(76.1
)
 
933.6

 
 
 
 
 
 
 
 
 
 
 
Property and Equipment, at Cost:
 
 
 
 
 
 
 
 
 
 
Total property and equipment, net
 
10.5

 
167.2

 
70.7

 
—

 
248.4

 
 
 
 
 
 
 
 
 
 
 
Other Long-term Assets:
 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries and long-term
     receivable from (to) subsidiaries
 
1,476.8

 
330.5

 
—

 
(1,807.3
)
 
—

Goodwill
 
—

 
448.2

 
31.5

 
—

 
479.7

Intangible assets, less accumulated amortization
 
—

 
600.8

 
71.9

 
(10.0
)
 
662.7

Deferred tax asset
 
10.5

 
—

 
—

 
(10.5
)
 
—

Other assets
 
23.3

 
14.4

 
0.8

 
—

 
38.5

Total other long-term assets
 
1,510.6

 
1,393.9

 
104.2

 
(1,827.8
)
 
1,180.9

Total Assets
 
$
1,567.6

 
$
2,238.3

 
$
460.9

 
$
(1,903.9
)
 
$
2,362.9

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' INVESTMENT (DEFICIT):
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
Short term bank obligations
 
$
—

 
$
—

 
$
0.6

 
$
—

 
$
0.6

Current maturities of long-term debt
 
18.8

 
2.4

 
—

 
—

 
21.2

Accounts payable
 
5.9

 
171.4

 
136.8

 
—

 
314.1

Accrued expenses and taxes, net
 
41.8

 
139.1

 
46.1

 
—

 
227.0

Current deferred taxes
 
—

 
—

 
0.5

 
(0.5
)
 
—

Intercompany payables
 
—

 
67.5

 
—

 
(67.5
)
 
—

Total current liabilities
 
66.5

 
380.4

 
184.0

 
(68.0
)
 
562.9

 
 
 
 
 
 
 
 
 
 
 
Other Liabilities:
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
—

 
128.9

 
19.5

 
(13.6
)
 
134.8

Other long-term liabilities
 
37.1

 
134.1

 
21.2

 
—

 
192.4

Long-term intercompany payables
 
—

 
—

 
125.8

 
(125.8
)
 
—

 
 
37.1

 
263.0

 
166.5

 
(139.4
)
 
327.2

 
 
 
 
 
 
 
 
 
 
 
Notes, Mortgage Notes and Obligations
     Payable, Less Current Maturities
 
1,415.6

 
8.8

 
—

 
—

 
1,424.4

 
 
 
 
 
 
 
 
 
 
 
Stockholders' investment (deficit)
 
48.4

 
1,586.1

 
110.4

 
(1,696.5
)
 
48.4

Total Liabilities and Stockholders'
     Investment (Deficit)
 
$
1,567.6

 
$
2,238.3

 
$
460.9

 
$
(1,903.9
)
 
$
2,362.9

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 second quarter ended June 28, 2014

 
 
 
 
Guarantor
 
Non-Guarantor
 
 
 
Nortek
 
 
Nortek
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(Dollar amounts in millions)
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
—

 
$
624.3

 
$
243.2

 
$
(148.9
)
 
$
718.6

Cost of products sold
 
—

 
447.5

 
209.8

 
(148.5
)
 
508.8

Gross profit
 
—

 
176.8

 
33.4

 
(0.4
)
 
209.8

Selling, general and administrative expense, net
 
18.4

 
101.0

 
26.9

 
—

 
146.3

Impairment of long-lived assets and goodwill
 
—

 
70.1

 
10.3

 
—

 
80.4

Amortization of intangible assets
 
—

 
14.0

 
1.4

 
(0.2
)
 
15.2

Operating (loss) earnings
 
(18.4
)
 
(8.3
)
 
(5.2
)
 
(0.2
)
 
(32.1
)
Net interest expense
 
(25.8
)
 
(0.8
)
 
—

 
—

 
(26.6
)
Loss from debt retirement
 
(1.8
)
 
—

 
—

 
—

 
(1.8
)
(Loss) income before charges and allocations to
     subsidiaries and equity in subsidiaries'
     (loss) earnings before income taxes
 
(46.0
)
 
(9.1
)
 
(5.2
)
 
(0.2
)
 
(60.5
)
Charges and allocations to subsidiaries and equity
     in subsidiaries' (loss) earnings before income
     taxes
 
(14.5
)
 
(22.7
)
 
0.3

 
36.9

 
—

(Loss) earnings before (benefit) provision for
     income taxes
 
(60.5
)
 
(31.8
)
 
(4.9
)
 
36.7

 
(60.5
)
(Benefit) provision for income taxes
 
(14.3
)
 
(9.0
)
 
(0.4
)
 
9.4

 
(14.3
)
Net (loss) earnings
 
$
(46.2
)
 
$
(22.8
)
 
$
(4.5
)
 
$
27.3

 
$
(46.2
)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive (loss) income
 
$
(44.4
)
 
$
(22.8
)
 
$
(2.8
)
 
$
25.6

 
$
(44.4
)
 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
For the first six months ended June 28, 2014

 
 
 
 
Guarantor
 
Non-Guarantor
 
 
 
Nortek
 
 
Nortek
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(Dollar amounts in millions)
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
—

 
$
1,086.1

 
$
432.7

 
$
(252.4
)
 
$
1,266.4

Cost of products sold
 
—

 
776.8

 
375.5

 
(250.3
)
 
902.0

Gross profit
 
—

 
309.3

 
57.2

 
(2.1
)
 
364.4

Selling, general and administrative expense, net
 
33.7

 
193.0

 
48.1

 
—

 
274.8

Impairment of long-lived assets and goodwill
 
—

 
70.1

 
10.3

 
—

 
80.4

Amortization of intangible assets
 
—

 
27.1

 
2.1

 
(0.4
)
 
28.8

Operating (loss) earnings
 
(33.7
)
 
19.1

 
(3.3
)
 
(1.7
)
 
(19.6
)
Net interest expense
 
(49.7
)
 
(0.9
)
 
(0.1
)
 
—

 
(50.7
)
Loss from debt retirement
 
(1.8
)
 
—

 
—

 
—

 
(1.8
)
(Loss) income before charges and allocations to
     subsidiaries and equity in subsidiaries'
     (loss) earnings before income taxes
 
(85.2
)
 
18.2

 
(3.4
)
 
(1.7
)
 
(72.1
)
Charges and allocations to subsidiaries and equity
     in subsidiaries' (loss) earnings before income
     taxes
 
13.1

 
(39.5
)
 
0.5

 
25.9

 
—

(Loss) earnings before (benefit) provision for
     income taxes
 
(72.1
)
 
(21.3
)
 
(2.9
)
 
24.2

 
(72.1
)
(Benefit) provision for income taxes
 
(17.3
)
 
(4.8
)
 
1.7

 
3.1

 
(17.3
)
Net (loss) earnings
 
$
(54.8
)
 
$
(16.5
)
 
$
(4.6
)
 
$
21.1

 
$
(54.8
)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive (loss) income
 
$
(55.5
)
 
$
(16.5
)
 
$
(5.3
)
 
$
21.8

 
$
(55.5
)
 





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
 
—

 
386.0

 
162.2

 
(104.9
)
 
443.3

Gross profit
 
—

 
158.8

 
30.7

 
(2.1
)
 
187.4

Selling, general and administrative expense, net
 
16.1

 
94.0

 
23.3

 
—

 
133.4

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

Net interest (expense) income
 
(24.2
)
 
(0.6
)
 
0.1

 
—

 
(24.7
)
(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 first six months 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
 
—

 
704.0

 
308.6

 
(191.6
)
 
821.0

Gross profit
 
—

 
274.7

 
56.3

 
(2.2
)
 
328.8

Selling, general and administrative expense, net
 
33.0

 
179.6

 
46.3

 
—

 
258.9

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

Net interest expense
 
(48.0
)
 
(1.3
)
 
—

 
—

 
(49.3
)
(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
)
 

 
Schedule of Condensed Cash Flow Statement
Condensed Consolidating Cash Flow Statement
For the first six months ended June 28, 2014
 
 
 
 
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
 
$
(89.7
)
 
$
17.2

 
$
12.0

 
$
(60.5
)
Cash Flows from investing activities:
 
 
 
 
 
 
 
 
Capital expenditures
 
(4.9
)
 
(11.1
)
 
(2.3
)
 
(18.3
)
Net cash paid for businesses acquired
 
(184.5
)
 
—

 
(70.4
)
 
(254.9
)
Intercompany dividends
 
—

 
15.5

 
(15.5
)
 
—

Intercompany contributions
 
(0.3
)
 
—

 
0.3

 
—

Investment in joint venture
 
—

 
—

 
—

 
—

Proceeds from the sale of property and equipment
 
—

 
1.1

 
0.5

 
1.6

Change in restricted cash and marketable securities
 
0.1

 
0.1

 
0.1

 
0.3

Other, net
 
—

 
(1.5
)
 
—

 
(1.5
)
Net cash (used in) provided by investing activities
 
(189.6
)
 
4.1

 
(87.3
)
 
(272.8
)
 
 
 
 
 
 
 
 
 
Cash Flows from financing activities:
 
 
 
 
 
 
 
 
Proceeds from borrowings
 
140.0

 
—

 
1.5

 
141.5

Payment of borrowings
 
(45.1
)
 
(1.4
)
 
(1.6
)
 
(48.1
)
Net proceeds from borrowings under the senior secured
     term loan facility due 2020
 
349.1

 
—

 
—

 
349.1

Redemption of the senior secured term loan facility due 2017
 
(93.0
)
 
—

 
—

 
(93.0
)
Fees paid in connection with debt facilities
 
(5.9
)
 
—

 
—

 
(5.9
)
Net use from equity transactions
 
(3.7
)
 
—

 
—

 
(3.7
)
Excess tax benefit on share-based awards
 
3.8

 
—

 
—

 
3.8

Long-term intercompany advances and loans
 
(51.6
)
 
(25.8
)
 
77.4

 
—

Other, net
 
—

 
—

 
—

 
—

Net cash provided by (used in) financing activities
 
293.6

 
(27.2
)
 
77.3

 
343.7

Net change in unrestricted cash and cash equivalents
 
14.3

 
(5.9
)
 
2.0

 
10.4

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
 
$
37.5

 
$
14.1

 
$
39.7

 
$
91.3




Condensed Consolidating Cash Flow Statement
For the first six months 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