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Guarantor Financial Statements (Tables)
 9 Months Ended
Sep. 27, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule of Condensed Balance Sheet
Condensed Consolidating Balance Sheet as of September 27, 2014

 
 
 
 
Guarantor
 
Non-Guarantor
 
 
 
Nortek
 
 
Nortek
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(Dollar amounts in millions)
ASSETS:
Current Assets:
 
 
 
 
 
 
 
 
 
 
Unrestricted cash and cash equivalents
 
$
21.3

 
$
18.1

 
$
26.8

 
$
—

 
$
66.2

Restricted cash
 
0.1

 
0.1

 
—

 
—

 
0.2

Accounts receivable, less allowances
 
—

 
282.4

 
72.9

 
—

 
355.3

Intercompany receivables
 
2.4

 
—

 
69.0

 
(71.4
)
 
—

Inventories, net
 
—

 
291.3

 
87.9

 
(7.3
)
 
371.9

Prepaid expenses
 
2.8

 
10.2

 
7.0

 
—

 
20.0

Other current assets
 
1.2

 
5.7

 
10.9

 
—

 
17.8

Deferred tax assets
 
3.2

 
26.8

 
—

 
(0.6
)
 
29.4

Total current assets
 
31.0

 
634.6

 
274.5

 
(79.3
)
 
860.8

 
 
 
 
 
 
 
 
 
 
 
Property and Equipment, at Cost:
 
 
 
 
 
 
 
 
 
 
Total property and equipment, net
 
11.8

 
165.2

 
66.5

 
—

 
243.5

 
 
 
 
 
 
 
 
 
 
 
Other Long-term Assets:
 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries and long-term
     receivable from (to) subsidiaries
 
1,417.7

 
394.2

 
—

 
(1,811.9
)
 
—

Goodwill
 
—

 
439.1

 
35.3

 
—

 
474.4

Intangible assets, less accumulated amortization
 
—

 
596.2

 
64.1

 
(9.8
)
 
650.5

Deferred tax asset
 
11.4

 
—

 
—

 
(11.4
)
 
—

Other assets
 
20.6

 
13.8

 
1.0

 
—

 
35.4

Total other long-term assets
 
1,449.7

 
1,443.3

 
100.4

 
(1,833.1
)
 
1,160.3

Total Assets
 
$
1,492.5

 
$
2,243.1

 
$
441.4

 
$
(1,912.4
)
 
$
2,264.6

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

 
$
—

 
$
0.6

 
$
—

 
$
0.6

Current maturities of long-term debt
 
3.8

 
2.7

 
—

 
—

 
6.5

Accounts payable
 
4.7

 
163.5

 
131.7

 
—

 
299.9

Accrued expenses and taxes, net
 
59.3

 
144.2

 
45.2

 
—

 
248.7

Current deferred taxes
 
—

 
—

 
0.6

 
(0.6
)
 
—

Intercompany payables
 
—

 
71.4

 
—

 
(71.4
)
 
—

Total current liabilities
 
67.8

 
381.8

 
178.1

 
(72.0
)
 
555.7

 
 
 
 
 
 
 
 
 
 
 
Other Liabilities:
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
—

 
119.6

 
17.3

 
(14.1
)
 
122.8

Other long-term liabilities
 
37.3

 
132.2

 
22.1

 
—

 
191.6

Long-term intercompany payables
 
—

 
—

 
117.2

 
(117.2
)
 
—

 
 
37.3

 
251.8

 
156.6

 
(131.3
)
 
314.4

 
 
 
 
 
 
 
 
 
 
 
Notes, Mortgage Notes and Obligations
     Payable, Less Current Maturities
 
1,335.0

 
7.1

 
—

 
—

 
1,342.1

 
 
 
 
 
 
 
 
 
 
 
Stockholders' investment (deficit)
 
52.4

 
1,602.4

 
106.7

 
(1,709.1
)
 
52.4

Total Liabilities and Stockholders'
     Investment (Deficit)
 
$
1,492.5

 
$
2,243.1

 
$
441.4

 
$
(1,912.4
)
 
$
2,264.6

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 third quarter ended September 27, 2014

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

 
$
545.3

 
$
207.4

 
$
(109.8
)
 
$
642.9

Cost of products sold
 
—

 
387.0

 
176.5

 
(110.6
)
 
452.9

Gross profit
 
—

 
158.3

 
30.9

 
0.8

 
190.0

Selling, general and administrative expense, net
 
14.8

 
99.1

 
27.8

 
—

 
141.7

Amortization of intangible assets
 
—

 
13.8

 
1.3

 
(0.2
)
 
14.9

Operating (loss) earnings
 
(14.8
)
 
45.4

 
1.8

 
1.0

 
33.4

Net interest expense
 
(26.4
)
 
(0.9
)
 
—

 
—

 
(27.3
)
Loss from debt retirement
 
(0.5
)
 
—

 
—

 
—

 
(0.5
)
(Loss) income before charges and allocations to
     subsidiaries and equity in subsidiaries'
     earnings (loss) before income taxes
 
(41.7
)
 
44.5

 
1.8

 
1.0

 
5.6

Charges and allocations to subsidiaries and equity
     in subsidiaries' earnings (loss) before income
     taxes
 
47.3

 
(18.8
)
 
(0.3
)
 
(28.2
)
 
—

Earnings (loss) before provision (benefit) for
     income taxes
 
5.6

 
25.7

 
1.5

 
(27.2
)
 
5.6

Provision (benefit) for income taxes
 
1.0

 
8.7

 
2.2

 
(10.9
)
 
1.0

Net earnings (loss)
 
$
4.6

 
$
17.0

 
$
(0.7
)
 
$
(16.3
)
 
$
4.6

 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
 
$
0.8

 
$
17.0

 
$
(3.8
)
 
$
(13.2
)
 
$
0.8

 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
For the first nine months ended September 27, 2014

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

 
$
1,631.4

 
$
640.1

 
$
(362.2
)
 
$
1,909.3

Cost of products sold
 
—

 
1,163.8

 
552.5

 
(360.9
)
 
1,355.4

Gross profit
 
—

 
467.6

 
87.6

 
(1.3
)
 
553.9

Selling, general and administrative expense, net
 
48.5

 
292.1

 
75.4

 
—

 
416.0

Impairment of long-lived assets and goodwill
 
—

 
70.1

 
10.3

 
—

 
80.4

Amortization of intangible assets
 
—

 
40.9

 
3.4

 
(0.6
)
 
43.7

Operating (loss) earnings
 
(48.5
)
 
64.5

 
(1.5
)
 
(0.7
)
 
13.8

Net interest expense
 
(76.1
)
 
(1.8
)
 
(0.1
)
 
—

 
(78.0
)
Loss from debt retirement
 
(2.3
)
 
—

 
—

 
—

 
(2.3
)
(Loss) income before charges and allocations to
     subsidiaries and equity in subsidiaries'
     (loss) earnings before income taxes
 
(126.9
)
 
62.7

 
(1.6
)
 
(0.7
)
 
(66.5
)
Charges and allocations to subsidiaries and equity
     in subsidiaries' (loss) earnings before income
     taxes
 
60.4

 
(58.3
)
 
0.2

 
(2.3
)
 
—

(Loss) earnings before (benefit) provision for
     income taxes
 
(66.5
)
 
4.4

 
(1.4
)
 
(3.0
)
 
(66.5
)
(Benefit) provision for income taxes
 
(16.3
)
 
3.9

 
3.9

 
(7.8
)
 
(16.3
)
Net (loss) earnings
 
$
(50.2
)
 
$
0.5

 
$
(5.3
)
 
$
4.8

 
$
(50.2
)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive (loss) income
 
$
(54.7
)
 
$
0.5

 
$
(9.1
)
 
$
8.6

 
$
(54.7
)
 





Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
For the third quarter ended September 28, 2013

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

 
$
510.6

 
$
185.8

 
$
(107.2
)
 
$
589.2

Cost of products sold
 
—

 
366.4

 
156.4

 
(107.3
)
 
415.5

Gross profit
 
—

 
144.2

 
29.4

 
0.1

 
173.7

Selling, general and administrative expense, net
 
13.1

 
92.9

 
22.0

 
—

 
128.0

Amortization of intangible assets
 
—

 
12.7

 
0.7

 
(0.2
)
 
13.2

Operating (loss) earnings
 
(13.1
)
 
38.6

 
6.7

 
0.3

 
32.5

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

 
—

 
(24.8
)
(Loss) income before charges and allocations to
     subsidiaries and equity in subsidiaries'
     earnings (loss) before income taxes
 
(37.3
)
 
38.0

 
6.7

 
0.3

 
7.7

Charges and allocations to subsidiaries and equity
     in subsidiaries' earnings (loss) before income
     taxes
 
45.0

 
(16.4
)
 
0.3

 
(28.9
)
 
—

Earnings (loss) before provision (benefit) for
     income taxes
 
7.7

 
21.6

 
7.0

 
(28.6
)
 
7.7

Provision (benefit) for income taxes
 
3.5

 
7.4

 
3.8

 
(11.2
)
 
3.5

Net earnings (loss)
 
$
4.2

 
$
14.2

 
$
3.2

 
$
(17.4
)
 
$
4.2

 
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
 
$
7.0

 
$
14.2

 
$
6.0

 
$
(20.2
)
 
$
7.0

 

 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
For the first nine months ended September 28, 2013

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

 
$
1,489.3

 
$
550.7

 
$
(301.0
)
 
$
1,739.0

Cost of products sold
 
—

 
1,070.4

 
465.4

 
(298.9
)
 
1,236.9

Gross profit
 
—

 
418.9

 
85.3

 
(2.1
)
 
502.1

Selling, general and administrative expense, net
 
46.1

 
272.5

 
67.9

 
—

 
386.5

Amortization of intangible assets
 
—

 
36.6

 
2.1

 
(0.6
)
 
38.1

Operating (loss) earnings
 
(46.1
)
 
109.8

 
15.3

 
(1.5
)
 
77.5

Net interest expense
 
(72.2
)
 
(1.9
)
 
—

 
—

 
(74.1
)
(Loss) income before charges and allocations to
     subsidiaries and equity in subsidiaries'
     earnings (loss) before income taxes
 
(118.3
)
 
107.9

 
15.3

 
(1.5
)
 
3.4

Charges and allocations to subsidiaries and equity
     in subsidiaries' earnings (loss) before income
     taxes
 
121.7

 
(51.3
)
 
0.8

 
(71.2
)
 
—

Earnings (loss) before provision (benefit) for
     income taxes
 
3.4

 
56.6

 
16.1

 
(72.7
)
 
3.4

Provision (benefit) for income taxes
 
2.8

 
15.6

 
7.8

 
(23.4
)
 
2.8

Net earnings (loss)
 
$
0.6

 
$
41.0

 
$
8.3

 
$
(49.3
)
 
$
0.6

 
 
 
 
 
 
 
 
 
 
 
Comprehensive (loss) income
 
$
(1.2
)
 
$
41.1

 
$
6.0

 
$
(47.1
)
 
$
(1.2
)
 
Schedule of Condensed Cash Flow Statement
Condensed Consolidating Cash Flow Statement
For the first nine months ended September 27, 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
 
$
(127.3
)
 
$
135.7

 
$
9.2

 
$
17.6

Cash Flows from investing activities:
 
 
 
 
 
 
 
 
Capital expenditures
 
(7.0
)
 
(16.7
)
 
(4.0
)
 
(27.7
)
Net cash paid for businesses acquired
 
(184.5
)
 
—

 
(70.4
)
 
(254.9
)
Intercompany dividends
 
—

 
15.5

 
(15.5
)
 
—

Intercompany contributions
 
(0.4
)
 
—

 
0.4

 
—

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
 
—

 
(1.1
)
 
(0.3
)
 
(1.4
)
Net cash used in investing activities
 
(191.8
)
 
(1.1
)
 
(89.2
)
 
(282.1
)
 
 
 
 
 
 
 
 
 
Cash Flows from financing activities:
 
 
 
 
 
 
 
 
Proceeds from borrowings
 
140.0

 
—

 
2.4

 
142.4

Payment of borrowings
 
(140.3
)
 
(2.1
)
 
(2.4
)
 
(144.8
)
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
 
(6.3
)
 
—

 
—

 
(6.3
)
Net use from equity transactions
 
(4.0
)
 
—

 
—

 
(4.0
)
Excess tax benefit on share-based awards
 
6.4

 
—

 
—

 
6.4

Long-term intercompany advances and loans
 
65.3

 
(134.4
)
 
69.1

 
—

Net cash provided by (used in) financing activities
 
317.2

 
(136.5
)
 
69.1

 
249.8

Net change in unrestricted cash and cash equivalents
 
(1.9
)
 
(1.9
)
 
(10.9
)
 
(14.7
)
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
 
$
21.3

 
$
18.1

 
$
26.8

 
$
66.2




Condensed Consolidating Cash Flow Statement
For the first nine months ended September 28, 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
 
$
(100.3
)
 
$
194.0

 
$
2.3

 
$
96.0

Cash Flows from investing activities:
 
 
 
 
 
 
 
 
Capital expenditures
 
(4.3
)
 
(20.6
)
 
(8.0
)
 
(32.9
)
Net cash paid for businesses acquired
 
(145.5
)
 
—

 
(0.9
)
 
(146.4
)
Proceeds from the sale of property and equipment
 
—

 
0.1

 
—

 
0.1

Change in restricted cash and marketable securities
 
0.1

 
0.1

 
—

 
0.2

Other, net
 
—

 
(1.6
)
 
0.6

 
(1.0
)
Net cash used in investing activities
 
(149.7
)
 
(22.0
)
 
(8.3
)
 
(180.0
)
 
 
 
 
 
 
 
 
 
Cash Flows from financing activities:
 
 
 
 
 
 
 
 
Proceeds from borrowings
 
135.0

 
—

 
2.3

 
137.3

Payment of borrowings
 
(105.3
)
 
(1.9
)
 
(2.2
)
 
(109.4
)
Net use from equity transactions
 
(1.8
)
 
—

 
—

 
(1.8
)
Long-term intercompany advances and loans
 
165.7

 
(165.7
)
 
—

 
—

Other, net
 
(0.2
)
 
—

 
—

 
(0.2
)
Net cash provided by (used in) financing activities
 
193.4

 
(167.6
)
 
0.1

 
25.9

Net change in unrestricted cash and cash equivalents
 
(56.6
)
 
4.4

 
(5.9
)
 
(58.1
)
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
 
$
38.3

 
$
17.5

 
$
30.8

 
$
86.6