Guarantor Financial Statements (Tables)

6 Months Ended

Jun. 27, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet as of June 27, 2015



			Guarantor		Non-Guarantor					Nortek
	Nortek		Subsidiaries		Subsidiaries		Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	4.4	$	0.5	$	21.3	$	—		$	26.2
Restricted cash	0.1		0.2		—		—			0.3
Accounts receivable, less allowances	—		354.4		68.0		—			422.4
Intercompany receivables	1.1		—		94.5		(95.6		)	—
Inventories, net	—		318.0		84.0		(7.6		)	394.4
Prepaid expenses	2.1		12.2		5.0		—			19.3
Other current assets	0.1		9.8		12.7		—			22.6
Deferred tax assets	11.0		26.9		—		(0.4		)	37.5
Total current assets	18.8		722.0		285.5		(103.6		)	922.7

Property and Equipment, at Cost:
Total property and equipment, net	11.7		160.1		56.3		—			228.1

Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries	1,530.2		270.4		—		(1,800.6		)	—
Goodwill	—		459.5		40.0		—			499.5
Intangible assets, less accumulated amortization	—		586.7		53.2		(9.2		)	630.7
Deferred tax asset	14.1		—		—		(14.1		)	—
Other assets	17.0		12.3		1.0		—			30.3
Total other long-term assets	1,561.3		1,328.9		94.2		(1,823.9		)	1,160.5
Total Assets	$	1,591.8	$	2,211.0	$	436.0	$	(1,927.5	)	$	2,311.3

LIABILITIES AND STOCKHOLDERS' INVESTMENT (DEFICIT):
Current Liabilities:
Short term bank obligations	$	—	$	—	$	0.3	$	—		$	0.3
Current maturities of long-term debt	6.3		1.6		—		—			7.9
Accounts payable	2.2		153.4		137.6		—			293.2
Accrued expenses and taxes	36.5		138.3		41.9		—			216.7
Current deferred taxes	—		—		0.4		(0.4		)	—
Intercompany payables	—		95.6		—		(95.6		)	—
Total current liabilities	45.0		388.9		180.2		(96.0		)	518.1

Other Liabilities:
Deferred income taxes	—		120.2		14.3		(17.0		)	117.5
Other long-term liabilities	53.7		99.7		24.3		—			177.7
Long-term intercompany payables	—		—		110.6		(110.6		)	—
	53.7		219.9		149.2		(127.6		)	295.2

Notes, Mortgage Notes and Obligations Payable, Less Current Maturities	1,468.9		4.9		—		—			1,473.8

Stockholders' investment (deficit)	24.2		1,597.3		106.6		(1,703.9		)	24.2
Total Liabilities and Stockholders' Investment (Deficit)	$	1,591.8	$	2,211.0	$	436.0	$	(1,927.5	)	$	2,311.3

Condensed Consolidating Balance Sheet as of December 31, 2014



			Guarantor		Non-Guarantor					Nortek
	Nortek		Subsidiaries		Subsidiaries		Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	17.5	$	5.1	$	35.8	$	—		$	58.4
Restricted cash	0.2		0.4		—		—			0.6
Accounts receivable, less allowances	—		257.3		67.6		—			324.9
Intercompany receivables	3.2		—		80.8		(84.0		)	—
Inventories, net	—		303.5		78.2		(7.4		)	374.3
Prepaid expenses	2.5		10.5		5.4		—			18.4
Other current assets	—		7.2		10.9		—			18.1
Deferred tax assets	4.1		25.1		—		(1.1		)	28.1
Total current assets	27.5		609.1		278.7		(92.5		)	822.8

Property and Equipment, at Cost:
Total property and equipment, net	11.9		163.0		63.1		—			238.0

Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries	1,376.2		415.9		—		(1,792.1		)	—
Goodwill	—		434.4		39.9		—			474.3
Intangible assets, less accumulated amortization	—		596.5		55.7		(9.6		)	642.6
Deferred tax asset	13.9		—		—		(13.9		)	—
Other assets	19.1		11.4		0.9		—			31.4
Total other long-term assets	1,409.2		1,458.2		96.5		(1,815.6		)	1,148.3
Total Assets	$	1,448.6	$	2,230.3	$	438.3	$	(1,908.1	)	$	2,209.1

LIABILITIES AND STOCKHOLDERS' INVESTMENT (DEFICIT):
Current Liabilities:
Short term bank obligations	$	—	$	—	$	0.6	$	—		$	0.6
Current maturities of long-term debt	3.8		2.5		—		—			6.3
Accounts payable	2.4		157.0		129.4		—			288.8
Accrued expenses and taxes	32.7		145.7		44.0		—			222.4
Current deferred taxes	—		—		1.1		(1.1		)	—
Intercompany payables	—		84.0		—		(84.0		)	—
Total current liabilities	38.9		389.2		175.1		(85.1		)	518.1

Other Liabilities:
Deferred income taxes	—		126.4		13.8		(16.7		)	123.5
Other long-term liabilities	34.6		125.1		26.2		—			185.9
Long-term intercompany payables	—		—		119.6		(119.6		)	—
	34.6		251.5		159.6		(136.3		)	309.4

Notes, Mortgage Notes and Obligations Payable, Less Current Maturities	1,332.9		6.5		—		—			1,339.4

Stockholders' investment (deficit)	42.2		1,583.1		103.6		(1,686.7		)	42.2
Total Liabilities and Stockholders' Investment (Deficit)	$	1,448.6	$	2,230.3	$	438.3	$	(1,908.1	)	$	2,209.1

Schedule of Condensed Income Statement

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the second quarter ended June 27, 2015



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

Net Sales	$	—		$	612.0		$	225.8	$	(133.9	)	$	703.9
Cost of products sold	—			445.5			193.3		(133.0		)	505.8
Gross profit	—			166.5			32.5		(0.9		)	198.1
Selling, general and administrative expense, net	12.6			107.9			25.6		—			146.1
Impairment of long-lived assets and goodwill	—			0.2			1.0		—			1.2
Amortization of intangible assets	—			14.8			1.5		(0.2		)	16.1
Operating (loss) earnings	(12.6		)	43.6			4.4		(0.7		)	34.7
Net interest expense	(24.0		)	(0.9		)	—		—			(24.9		)
Loss from debt retirement	(14.8		)	—			—		—			(14.8		)
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	(51.4		)	42.7			4.4		(0.7		)	(5.0		)
Charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	46.4			(20.9		)	0.1		(25.6		)	—
(Loss) earnings before (benefit) provision for income taxes	(5.0		)	21.8			4.5		(26.3		)	(5.0		)
(Benefit) provision for income taxes	(2.7		)	7.9			3.2		(11.1		)	(2.7		)
Net (loss) earnings	$	(2.3	)	$	13.9		$	1.3	$	(15.2	)	$	(2.3	)
Other comprehensive income (loss), net of tax:
Currency translation adjustment	2.3			—			2.3		(2.3		)	2.3
Total pension liability adjustments, net of tax	0.4			—			0.3		(0.3		)	0.4
Other comprehensive income (loss)	2.7			—			2.6		(2.6		)	2.7

Comprehensive income (loss)	$	0.4		$	13.9		$	3.9	$	(17.8	)	$	0.4

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the first half ended June 27, 2015



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

Net Sales	$	—		$	1,094.8		$	413.5		$	(231.7	)	$	1,276.6
Cost of products sold	—			793.6			349.6			(231.5		)	911.7
Gross profit	—			301.2			63.9			(0.2		)	364.9
Selling, general and administrative expense, net	25.4			214.5			49.5			—			289.4
Impairment of long-lived assets and goodwill	—			0.2			1.0			—			1.2
Amortization of intangible assets	—			29.5			2.8			(0.4		)	31.9
Operating (loss) earnings	(25.4		)	57.0			10.6			0.2			42.4
Net interest expense	(50.3		)	(1.8		)	—			—			(52.1		)
Loss from debt retirement	(14.8		)	—			—			—			(14.8		)
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	(90.5		)	55.2			10.6			0.2			(24.5		)
Charges and allocations to subsidiaries and equity in subsidiaries' (loss) earnings before income taxes	66.0			(32.8		)	(0.1		)	(33.1		)	—
(Loss) earnings before (benefit) provision for income taxes	(24.5		)	22.4			10.5			(32.9		)	(24.5		)
(Benefit) provision for income taxes	(8.3		)	9.3			5.8			(15.1		)	(8.3		)
Net (loss) earnings	$	(16.2	)	$	13.1		$	4.7		$	(17.8	)	$	(16.2	)
Other comprehensive (loss) income, net of tax:
Currency translation adjustment	(3.8		)	—			(2.9		)	2.9			(3.8		)
Total pension liability adjustments, net of tax	0.4			—			0.3			(0.3		)	0.4
Other comprehensive (loss) income	(3.4		)	—			(2.6		)	2.6			(3.4		)

Comprehensive (loss) income	$	(19.6	)	$	13.1		$	2.1		$	(15.2	)	$	(19.6	)

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			210.0			(148.5		)	509.0
Gross profit	—			176.8			33.2			(0.4		)	209.6
Selling, general and administrative expense, net	18.4			101.0			26.7			—			146.1
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	(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 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	)
Other comprehensive income (loss), net of tax:
Currency translation adjustment	2.1			—			2.0			(2.0		)	2.1
Total pension liability adjustments, net of tax	(0.3		)	—			(0.3		)	0.3			(0.3		)
Other comprehensive income (loss)	1.8			—			1.7			(1.7		)	1.8

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 half 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			376.0			(250.3		)	902.5
Gross profit	—			309.3			56.7			(2.1		)	363.9
Selling, general and administrative expense, net	33.7			193.0			47.6			—			274.3
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	)
Other comprehensive (loss) income, net of tax:
Currency translation adjustment	(0.4		)	—			(0.4		)	0.4			(0.4		)
Total pension liability adjustments, net of tax	(0.3		)	—			(0.3		)	0.3			(0.3		)
Other comprehensive (loss) income	(0.7		)	—			(0.7		)	0.7			(0.7		)

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

Schedule of Condensed Cash Flow Statement

Condensed Consolidating Cash Flow Statement

For the first half ended June 27, 2015



				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	$	(92.5	)	$	11.7		$	(0.1	)	$	(80.9	)
Cash Flows from investing activities:
Capital expenditures	(1.1		)	(15.7		)	(3.2		)	(20.0		)
Net cash paid for businesses acquired	—			(51.8		)	—			(51.8		)
Intercompany contributions	(0.9		)	—			0.9			—
Proceeds from the sale of property and equipment	—			0.1			—			0.1
Change in restricted cash and marketable securities	—			0.1			—			0.1
Other, net	—			(0.8		)	0.2			(0.6		)
Net cash used in investing activities	(2.0		)	(68.1		)	(2.1		)	(72.2		)

Cash Flows from financing activities:
Proceeds from ABL and other borrowings	283.0			—			1.1			284.1
Payment of ABL and other borrowings	(155.1		)	(1.6		)	(1.3		)	(158.0		)
Redemption of the 10% Senior Notes due 2018, including redemption premium	(262.5		)	—			—			(262.5		)
Net proceeds from borrowings under the senior secured term loan facility due 2020	261.8			—			—			261.8
Fees paid in connection with debt facilities	(2.7		)	—			—			(2.7		)
Net use from equity transactions	(1.9		)	—			—			(1.9		)
Long-term intercompany advances and loans	(41.3		)	53.4			(12.1		)	—
Other, net	0.1			—			—			0.1
Net cash provided by (used in) financing activities	81.4			51.8			(12.3		)	120.9
Net change in unrestricted cash and cash equivalents	(13.1		)	(4.6		)	(14.5		)	(32.2		)
Unrestricted cash and cash equivalents at the beginning of the period	17.5			5.1			35.8			58.4
Unrestricted cash and cash equivalents at the end of the period	$	4.4		$	0.5		$	21.3		$	26.2

Condensed Consolidating Cash Flow Statement

For the first half 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			—
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 ABL and other borrowings	140.0			—			1.5			141.5
Payment of ABL and other 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