Guarantor Financial Statements

9 Months Ended

12 Months Ended

Oct. 01, 2011

Dec. 31, 2010

Guarantor Financial Statements/ Guarantor Information [Abstract]

GUARANTOR FINANCIAL STATEMENTS

(M)   GUARANTOR FINANCIAL STATEMENTS

Nortek’s 10% Notes and 8.5% Notes are guaranteed by each of Nortek’s current and future domestic subsidiaries that guarantee Nortek’s obligations under its senior secured credit facilities (the “Guarantors”). The Guarantors are wholly-owned either directly or indirectly by Nortek and jointly and severally guarantee Nortek’s obligations under the 10% Notes and 8.5% Notes. None of Nortek’s foreign subsidiaries guarantee the 10% Notes and 8.5% Notes.

Consolidating balance sheets related to Nortek, the Guarantors and non-Guarantor subsidiaries as of October 1, 2011 and December 31, 2010 and the related consolidating statements of operations and cash flows for the third quarter and first nine months ended October 1, 2011 and October 2, 2010 are reflected below in order to comply with the reporting requirements for guarantor subsidiaries.

Condensed Consolidating Balance Sheet as of October 1, 2011

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	22.9		$	9.4		$	24.9		$	—		$	57.2
Restricted cash		—			—			0.1			—			0.1
Accounts receivable, less allowances		—			203.1			82.0			—			285.1
Intercompany receivables (payables)		1.6			(20.4	)		18.8			—			—
Inventories, net		—			253.4			79.5			(3.9	)		329.0
Prepaid expenses		1.1			11.4			5.4			—			17.9
Other current assets		1.6			33.9			9.2			(3.3	)		41.4
Prepaid income taxes		4.0			13.7			0.7			—			18.4
Total current assets		31.2			504.5			220.6			(7.2	)		749.1
Property and Equipment, at Cost:
Total property and equipment, net		0.5			145.7			71.3			—			217.5
Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries		1,236.9			96.5			(43.8	)		(1,289.6	)		—
Goodwill		—			289.6			15.1			—			304.7
Intangible assets, less accumulated amortization		—			632.4			38.0			—			670.4
Other assets		25.0			18.8			0.5			—			44.3
Total other long-term assets		1,261.9			1,037.3			9.8			(1,289.6	)		1,019.4
Total assets	$	1,293.6		$	1,687.5		$	301.7		$	(1,296.8	)	$	1,986.0
LIABILITIES AND STOCKHOLDERS’ INVESTMENT (DEFICIT):
Current Liabilities:
Notes payable and other short-term obligations	$	—		$	—		$	2.1		$	—		$	2.1
Current maturities of long-term debt		28.5			3.3			1.9			—			33.7
Long-term debt		—			—			0.2			—			0.2
Accounts payable		0.9			81.6			88.1			—			170.6
Accrued expenses and taxes, net		40.0			142.3			48.0			—			230.3
Total current liabilities		69.4			227.2			140.3			—			436.9
Other Liabilities:
Deferred income taxes		(35.6	)		154.4			9.5			(2.7	)		125.6
Other long-term liabilities		43.2			115.8			16.0			—			175.0
		7.6			270.2			25.5			(2.7	)		300.6
Notes, Mortgage Notes and Obligations Payable, Less Current Maturities		1,115.0			14.9			17.0			—			1,146.9
Stockholder’s investment (deficit)		101.6			1,175.2			118.9			(1,294.1	)		101.6
Total liabilities and stockholder’s investment (deficit)	$	1,293.6		$	1,687.5		$	301.7		$	(1,296.8	)	$	1,986.0

Condensed Consolidating Balance Sheet as of December 31, 2010

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	16.0		$	21.3		$	20.4		$	—		$	57.7
Restricted cash		—			—			0.1			—			0.1
Accounts receivable, less allowances		—			203.6			77.2			—			280.8
Intercompany receivables (payables)		1.4			(27.4	)		26.0			—			—
Inventories, net		—			241.1			75.9			(3.5	)		313.5
Prepaid expenses		2.4			9.0			4.5			—			15.9
Other current assets		6.3			18.7			8.2			(0.9	)		32.3
Prepaid income taxes		6.1			9.1			1.7			—			16.9
Total current assets		32.2			475.4			214.0			(4.4	)		717.2
Property and Equipment, at Cost:
Total property and equipment, net		0.6			157.1			77.8			—			235.5
Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries		1,236.6			132.9			(20.8	)		(1,348.7	)		—
Goodwill		—			280.1			12.0			—			292.1
Intangible assets, less accumulated amortization		—			663.6			31.4			—			695.0
Other assets		16.3			14.2			0.8			—			31.3
Total other long-term assets		1,252.9			1,090.8			23.4			(1,348.7	)		1,018.4
Total assets	$	1,285.7		$	1,723.3		$	315.2		$	(1,353.1	)	$	1,971.1
LIABILITIES AND STOCKHOLDERS’ INVESTMENT (DEFICIT):
Current Liabilities:
Notes payable and other short-term obligations	$	—		$	—		$	8.6		$	—		$	8.6
Current maturities of long-term debt		—			5.0			2.7			—			7.7
Long-term debt		—			—			1.5			—			1.5
Accounts payable		4.0			83.9			87.8			—			175.7
Accrued expenses and taxes, net		19.3			123.9			50.0			—			193.2
Total current liabilities		23.3			212.8			150.6			—			386.7
Other Liabilities:
Deferred income taxes		(12.8	)		153.5			13.7			(1.7	)		152.7
Other long-term liabilities		38.0			116.2			16.9			—			171.1
		25.2			269.7			30.6			(1.7	)		323.8
Notes, Mortgage Notes and Obligations Payable, Less Current Maturities		1,078.4			13.2			10.2			—			1,101.8
Stockholder’s investment (deficit)		158.8			1,227.6			123.8			(1,351.4	)		158.8
Total liabilities and stockholder’s investment (deficit)	$	1,285.7		$	1,723.3		$	315.2		$	(1,353.1	)	$	1,971.1

Condensed Consolidating Statement of Operations
For the third quarter ended October 1, 2011

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)
Net Sales	$	—		$	446.0		$	170.3		$	(64.5	)	$	551.8
Costs and expenses:
Costs of products sold		—			330.9			145.3			(66.6	)		409.6
Selling, general and administrative expenses, net		8.3			83.7			25.1			—			117.1
Amortization of intangible assets		—			10.2			0.9			—			11.1
		8.3			424.8			171.3			(66.6	)		537.8
Operating (loss) earnings		(8.3	)		21.2			(1.0	)		2.1			14.0
Interest expense		(23.8	)		(0.5	)		(0.3	)		—			(24.6	)
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(32.1	)		20.7			(1.3	)		2.1			(10.6	)
Charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		21.5			(17.7	)		(0.1	)		(3.7	)		—
(Loss) earnings before (benefit) provision for income taxes		(10.6	)		3.0			(1.4	)		(1.6	)		(10.6	)
(Benefit) provision for income taxes		(8.5	)		37.0			(4.3	)		(32.7	)		(8.5	)
Net (loss) earnings	$	(2.1	)	$	(34.0	)	$	2.9		$	31.1		$	(2.1	)

Condensed Consolidating Statement of Operations
For the third quarter ended October 2, 2010

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)
Net Sales	$	—		$	411.0		$	120.4		$	(34.8	)	$	496.6
Costs and expenses:
Costs of products sold		—			290.8			104.1			(33.5	)		361.4
Selling, general and administrative expenses, net		6.0			77.6			16.5			—			100.1
Amortization of intangible assets		—			7.9			0.5			—			8.4
		6.0			376.3			121.1			(33.5	)		469.9
Operating (loss) earnings		(6.0	)		34.7			(0.7	)		(1.3	)		26.7
Interest expense		(22.0	)		(0.3	)		(0.6	)		—			(22.9	)
Investment income		—			0.1			—			—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries’ earnings (loss) before income taxes		(28.0	)		34.5			(1.3	)		(1.3	)		3.9
Charges and allocations to subsidiaries and equity in subsidiaries’ earnings (loss) before income taxes		31.9			(17.2	)		(0.4	)		(14.3	)		—
Earnings (loss) before (benefit) provision
for income taxes		3.9			17.3			(1.7	)		(15.6	)		3.9
(Benefit) provision for income taxes		(5.9	)		0.7			2.0			(2.7	)		(5.9	)
Net earnings (loss)	$	9.8		$	16.6		$	(3.7	)	$	(12.9	)	$	9.8

Condensed Consolidating Statement of Operations
For the first nine months ended October 1, 2011

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)
Net Sales	$	—		$	1,292.2		$	531.8		$	(218.7	)	$	1,605.3
Costs and expenses:
Costs of products sold		—			940.2			459.2			(216.1	)		1,183.3
Selling, general and administrative expenses, net		30.2			252.4			68.8			—			351.4
Amortization of intangible assets		—			32.0			1.9			—			33.9
		30.2			1,224.6			529.9			(216.1	)		1,568.6
Operating (loss) earnings		(30.2	)		67.6			1.9			(2.6	)		36.7
Interest expense		(78.8	)		(1.4	)		(0.8	)		—			(81.0	)
Loss from debt retirement		(33.8	)		——			—			—			(33.8	)
Investment income		—			—			0.1			—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(142.8	)		66.2			1.2			(2.6	)		(78.0	)
Charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		64.8			(52.1	)		—			(12.7	)		—
(Loss) earnings before (benefit) provision for income taxes		(78.0	)		14.1			1.2			(15.3	)		(78.0	)
(Benefit) provision for income taxes		(22.9	)		31.9			5.8			(37.7	)		(22.9	)
Net (loss) earnings	$	(55.1	)	$	(17.8	)	$	(4.6	)	$	22.4		$	(55.1	)

Condensed Consolidating Statement of Operations
For the first nine months ended October 2, 2010

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)
Net Sales	$	—		$	1,183.0		$	378.5		$	(125.0	)	$	1,436.5
Costs and expenses:
Costs of products sold		—			854.7			318.4			(121.6	)		1,051.5
Selling, general and administrative expenses, net		19.5			224.0			54.5			—			298.0
Amortization of intangible assets		—			26.2			2.8			—			29.0
		19.5			1,104.9			375.7			(121.6	)		1,378.5
Operating (loss) earnings		(19.5	)		78.1			2.8			(3.4	)		58.0
Interest expense		(67.1	)		(1.5	)		(1.3	)		—			(69.9	)
Investment income		—			0.1			—			—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(86.6	)		76.7			1.5			(3.4	)		(11.8	)
Charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		74.8			(47.8	)		(0.4	)		(26.6	)		—
(Loss) earnings before (benefit) provision for income taxes		(11.8	)		28.9			1.1			(30.0	)		(11.8	)
(Benefit) provision for income taxes		(8.5	)		9.0			6.6			(15.6	)		(8.5	)
Net (loss) earnings	$	(3.3	)	$	19.9		$	(5.5	)	$	(14.4	)	$	(3.3	)

Condensed Consolidating Cash Flow Statement
For the first nine months ended October 1, 2011

				Guarantor			Non-Guarantor			Nortek
	Parent			Subsidiaries			Subsidiaries			Consolidated
	(Dollar amounts in millions)
Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(72.9	)	$	97.3		$	9.4		$	33.8
Cash Flows from investing activities:
Capital expenditures		(0.1	)		(10.9	)		(2.9	)		(13.9	)
Net cash paid for businesses acquired		(5.8	)		(25.1	)		—			(30.9	)
Investment in joint venture		—			(5.3	)		—			(5.3	)
Proceeds from the sale of property and equipment		0.1			0.5			—			0.6
Change in restricted cash and investments		—			0.2			—			0.2
Other, net		—			0.2			—			0.2
Net cash used in investing activities		(5.8	)		(40.4	)		(2.9	)		(49.1	)
Cash Flows from financing activities:
Increase in borrowings		50.0			5.3			25.3			80.6
Payment of borrowings		(66.8	)		(5.2	)		(27.3	)		(99.3	)
Sale of the 8.5% Senior Notes due 2021		500.0			—			—			500.0
Net proceeds from borrowings under the Term Loan Facility		348.2			—			—			348.2
Redemption of the 11% Senior Secured Notes due 2013		(753.3	)		—			—			(753.3	)
Long-term intercompany advance		68.9			(68.9	)		—			—
Fees paid in connection with new debt facilities		(58.7	)		—			—			(58.7	)
Payment of minimum withholding taxes in connection with vesting of restricted stock		(2.7	)		—			—			(2.7	)
Net cash provided by (used in) financing activities		85.6			(68.8	)		(2.0	)		14.8
Net change in unrestricted cash and cash equivalents		6.9			(11.9	)		4.5			(0.5	)
Unrestricted cash and cash equivalents at the beginning of the period		16.0			21.3			20.4			57.7
Unrestricted cash and cash equivalents at the end of the period	$	22.9		$	9.4		$	24.9		$	57.2

Condensed Consolidating Cash Flow Statement
For the first nine months ended October 2, 2010

				Guarantor			Non-Guarantor			Nortek
	Parent			Subsidiaries			Subsidiaries			Consolidated
	(Dollar amounts in millions)
Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(66.2	)	$	138.5		$	2.2		$	74.5
Cash Flows from investing activities:
Capital expenditures		(0.2	)		(9.2	)		(3.2	)		(12.6	)
Net cash paid for businesses acquired		—			(9.2	)		—			(9.2	)
Proceeds from the sale of property and equipment		—			0.1			0.4			0.5
Change in restricted cash and investments		0.1			0.7			0.4			1.2
Intercompany dividend (received from) paid by subsidiaries		10.8			4.2			(15.0	)		—
Other, net		—			(0.1	)		0.1			—
Net cash provided by (used in) investing activities		10.7			(13.5	)		(17.3	)		(20.1	)
Cash Flows from financing activities:
Increase in borrowings		—			—			47.9			47.9
Payment of borrowings		(90.0	)		(1.6	)		(46.4	)		(138.0	)
Long-term intercompany advance		124.1			(124.1	)		—			—
Other, net		(0.8	)		0.1			—			(0.7	)
Net cash provided by (used in) financing activities		33.3			(125.6	)		1.5			(90.8	)
Net change in unrestricted cash and cash equivalents		(22.2	)		(0.6	)		(13.6	)		(36.4	)
Unrestricted cash and cash equivalents at the beginning of the period		43.6			11.4			34.6			89.6
Unrestricted cash and cash equivalents at the end of the period	$	21.4		$	10.8		$	21.0		$	53.2

17.   GUARANTOR FINANCIAL STATEMENTS

Nortek’s 10% Notes and 8.5% Notes are guaranteed by each of Nortek’s current and future domestic subsidiaries that guarantee Nortek’s obligations under its senior secured credit facilities (the “Guarantors”). The Guarantors are wholly-owned either directly or indirectly by Nortek and jointly and severally guarantee Nortek’s obligations under the 10% Notes and 8.5% Notes. None of Nortek’s foreign subsidiaries guarantee the 10% Notes and 8.5% Notes.

Consolidating balance sheets related to Nortek, the Guarantors and non-Guarantor subsidiaries as of December 31, 2010 and December 31, 2009 and the related consolidating statements of operations and cash flows for the year ended December 31, 2010 (Successor), the period December 20, 2009 to December 31, 2009 (Successor), the period January 1, 2009 to December 19, 2009 (Predecessor) and the year ended December 31, 2008 (Predecessor) are reflected below in order to comply with the reporting requirements for guarantor subsidiaries.

Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2010 (Successor)

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
				(Dollar amounts in millions)
Net Sales	$	—		$	1,563.6		$	504.5		$	(168.8	)	$	1,899.3
Costs and expenses:
Costs of products sold		—			1,131.4			429.1			(168.7	)		1,391.8
Selling, general and administrative expenses, net		26.9			300.9			72.1			—			399.9
Amortization of intangible assets		—			33.7			3.3			—			37.0
		26.9			1,466.0			504.5			(168.7	)		1,828.7
Operating (loss) earnings		(26.9	)		97.6			—			(0.1	)		70.6
Interest expense		(92.2	)		(1.9	)		(1.6	)		—			(95.7	)
Investment income		—			—			0.1			—			0.1
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(119.1	)		95.7			(1.5	)		(0.1	)		(25.0	)
Charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		94.1			(65.1	)		(0.4	)		(28.6	)		—
(Loss) earnings before (benefit) provision for income taxes		(25.0	)		30.6			(1.9	)		(28.7	)		(25.0	)
(Benefit) provision for income taxes		(11.6	)		8.2			6.5			(14.7	)		(11.6	)
Net (loss) earnings	$	(13.4	)	$	22.4		$	(8.4	)	$	(14.0	)	$	(13.4	)

Condensed Consolidating Statement of Operations
For the period December 20, 2009 to December 31, 2009 (Successor)

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
				(Dollar amounts in millions)
Net Sales	$	—		$	38.5		$	10.3		$	(4.8	)	$	44.0
Costs and expenses:
Costs of products sold		—			29.5			10.3			(4.6	)		35.2
Selling, general and administrative expenses, net		—			7.3			1.2			—			8.5
Amortization of intangible assets		—			1.4			0.1			—			1.5
		—			38.2			11.6			(4.6	)		45.2
Operating earnings (loss)		—			0.3			(1.3	)		(0.2	)		(1.2	)
Interest expense		(3.5	)		—			(0.1	)		—			(3.6	)
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(3.5	)		0.3			(1.4	)		(0.2	)		(4.8	)
Charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(1.3	)		(1.8	)		0.1			3.0			—
(Loss) earnings before (benefit) provision for income taxes		(4.8	)		(1.5	)		(1.3	)		2.8			(4.8	)
(Benefit) provision for income taxes		(1.4	)		(0.6	)		0.1			0.5			(1.4	)
Net (loss) earnings	$	(3.4	)	$	(0.9	)	$	(1.4	)	$	2.3		$	(3.4	)

Condensed Consolidating Statement of Operations
For the period January 1, 2009 to December 19, 2009 (Predecessor)

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
				(Dollar amounts in millions)
Net Sales	$	—		$	1,453.2		$	431.4		$	(120.7	)	$	1,763.9
Costs and expenses:
Costs of products sold		—			1,037.6			348.9			(120.5	)		1,266.0
Selling, general and administrative expenses, net		17.2			282.4			73.0			—			372.6
Pre-petition reorganization items		22.5			—			—						22.5
Goodwill impairment charge		—			284.0			—			—			284.0
Amortization of intangible assets		—			19.2			3.0			—			22.2
		39.7			1,623.2			424.9			(120.5	)		1,967.3
Operating (loss) earnings		(39.7	)		(170.0	)		6.5			(0.2	)		(203.4	)
Interest expense		(132.2	)		(1.5	)		(1.9	)		—			(135.6	)
Investment income		0.1			—			0.1			—			0.2
(Loss) income before gain on reorganization items, net and charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(171.8	)		(171.5	)		4.7			(0.2	)		(338.8	)
Gain on reorganization items, net		470.4			109.7			39.0			—			619.1
Income (loss) before charges and allocations to subsidiaries and equity in subsidiaries’ earnings (loss) before income taxes		298.6			(61.8	)		43.7			(0.2	)		280.3
Charges and allocations to subsidiaries and equity in subsidiaries’ earnings (loss) before income taxes		(18.3	)		(22.3	)		(0.1	)		40.7			—
Earnings (loss) before provision (benefit) for income taxes		280.3			(84.1	)		43.6			40.5			280.3
Provision (benefit) for income taxes		85.0			94.0			25.0			(119.0	)		85.0
Net earnings (loss)	$	195.3		$	(178.1	)	$	18.6		$	159.5		$	195.3

Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2008 (Predecessor)

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
				(Dollar amounts in millions)
Net Sales	$	—		$	1,845.1		$	572.3		$	(147.7	)	$	2,269.7
Costs and expenses:
Costs of products sold		—			1,356.6			464.2			(147.3	)		1,673.5
Selling, general and administrative expenses, net		34.8			349.5			83.7			—			468.0
Goodwill impairment charge		—			698.3			11.7			—			710.0
Amortization of intangible assets		0.3			24.2			3.7			—			28.2
		35.1			2,428.6			563.3			(147.3	)		2,879.7
Operating (loss) earnings		(35.1	)		(583.5	)		9.0			(0.4	)		(610.0	)
Interest expense		(129.2	)		(2.4	)		(3.1	)		—			(134.7	)
Loss from debt retirement		(9.9	)		—			—			—			(9.9	)
Investment income		0.1			0.2			0.5			—			0.8
(Loss) income before charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(174.1	)		(585.7	)		6.4			(0.4	)		(753.8	)
Charges and allocations to subsidiaries and equity in subsidiaries’ (loss) earnings before income taxes		(579.7	)		(43.7	)		(0.2	)		623.6			—
(Loss) earnings before provision (benefit) for income taxes		(753.8	)		(629.4	)		6.2			623.2			(753.8	)
Provision (benefit) for income taxes		26.9			25.5			12.0			(37.5	)		26.9
Net (loss) earnings	$	(780.7	)	$	(654.9	)	$	(5.8	)	$	660.7		$	(780.7	)

Condensed Consolidating Balance Sheet as of December 31, 2010

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	16.0		$	21.3		$	20.4		$	—		$	57.7
Restricted cash		—			—			0.1			—			0.1
Accounts receivable, less allowances		—			203.6			77.2			—			280.8
Intercompany receivables (payables)		1.4			(27.4	)		26.0			—			—
Inventories, net		—			241.1			75.9			(3.5	)		313.5
Prepaid expenses		2.4			9.0			4.5			—			15.9
Other current assets		6.3			18.7			8.2			(0.9	)		32.3
Prepaid income taxes		6.1			9.1			1.7			—			16.9
Total current assets		32.2			475.4			214.0			(4.4	)		717.2
Property and Equipment, at Cost:
Total property and equipment, net		0.6			157.1			77.8			—			235.5
Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries		1,236.6			132.9			(20.8	)		(1,348.7	)		—
Goodwill		—			280.1			12.0			—			292.1
Intangible assets, less accumulated amortization		—			663.6			31.4			—			695.0
Other assets		16.3			14.2			0.8			—			31.3
Total other long-term assets		1,252.9			1,090.8			23.4			(1,348.7	)		1,018.4
Total assets	$	1,285.7		$	1,723.3		$	315.2		$	(1,353.1	)	$	1,971.1
LIABILITIES AND STOCKHOLDERS’ INVESTMENT (DEFICIT):
Current Liabilities:
Notes payable and other short-term obligations	$	—		$	—		$	8.6		$	—		$	8.6
Current maturities of long-term debt		—			5.0			2.7			—			7.7
Long-term debt		—			—			1.5			—			1.5
Accounts payable		4.0			83.9			87.8			—			175.7
Accrued expenses and taxes, net		19.3			123.9			50.0			—			193.2
Total current liabilities		23.3			212.8			150.6			—			386.7
Other Liabilities:
Deferred income taxes		(12.8	)		153.5			13.7			(1.7	)		152.7
Other long-term liabilities		38.0			116.2			16.9			—			171.1
		25.2			269.7			30.6			(1.7	)		323.8
Notes, Mortgage Notes and Obligations
Payable, Less Current Maturities		1,078.4			13.2			10.2			—			1,101.8
Stockholder’s investment (deficit)		158.8			1,227.6			123.8			(1,351.4	)		158.8
Total liabilities and stockholder’s investment (deficit)	$	1,285.7		$	1,723.3		$	315.2		$	(1,353.1	)	$	1,971.1

Condensed Consolidating Balance Sheet as of December 31, 2009

				Guarantor			Non-Guarantor						Nortek
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
				(Dollar amounts in millions)
ASSETS:
Current Assets:
Unrestricted cash and cash equivalents	$	43.6		$	11.4		$	34.6		$	—		$	89.6
Restricted cash		0.1			0.7			0.5			—			1.3
Accounts receivable, less allowances		—			187.8			61.3			—			249.1
Intercompany receivables (payables)		1.3			(3.2	)		1.9			—			—
Inventories, net		—			227.3			49.9			(4.0	)		273.2
Prepaid expenses		9.0			6.3			2.7			—			18.0
Other current assets		1.1			4.8			7.6			—			13.5
Prepaid income taxes		8.1			16.7			0.6			—			25.4
Total current assets		63.2			451.8			159.1			(4.0	)		670.1
Property and Equipment, at Cost:
Total property and equipment, net		0.4			162.7			81.8			—			244.9
Other Long-term Assets:
Investment in subsidiaries and long-term receivable from (to) subsidiaries		993.9			49.6			(30.2	)		(1,013.3	)		—
Goodwill		—			142.8			12.0			—			154.8
Intangible assets, less accumulated amortization		—			501.9			34.7			—			536.6
Other assets		8.5			2.6			1.4			—			12.5
Total other long-term assets		1,002.4			696.9			17.9			(1,013.3	)		703.9
Total assets	$	1,066.0		$	1,311.4		$	258.8		$	(1,017.3	)	$	1,618.9
LIABILITIES AND STOCKHOLDERS’ INVESTMENT (DEFICIT):
Current Liabilities:
Notes payable and other short-term obligations	$	—		$	—		$	13.4		$	—		$	13.4
Current maturities of long-term debt		25.0			2.2			5.2			—			32.4
Long-term debt		—			—			4.1			—			4.1
Accounts payable		1.6			66.8			56.1			—			124.5
Accrued expenses and taxes, net		21.4			111.7			41.8			—			174.9
Total current liabilities		48.0			180.7			120.6			—			349.3
Other Liabilities:
Deferred income taxes		(13.4	)		99.2			28.3			(1.5	)		112.6
Other long-term liabilities		42.9			99.6			9.0			—			151.5
		29.5			198.8			37.3			(1.5	)		264.1
Notes, Mortgage Notes and Obligations Payable, Less Current Maturities		818.4			16.2			0.8			—			835.4
Stockholder’s investment (deficit)		170.1			915.7			100.1			(1,015.8	)		170.1
Total liabilities and stockholder’s investment (deficit)	$	1,066.0		$	1,311.4		$	258.8		$	(1,017.3	)	$	1,618.9

Condensed Consolidating Cash Flow Statement
For the Year Ended December 31, 2010 (Successor)

				Guarantor			Non-Guarantor			Nortek
	Parent			Subsidiaries			Subsidiaries			Consolidated
				(Dollar amounts in millions)
Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(145.7	)	$	177.7		$	14.9		$	46.9
Cash Flows from investing activities:
Capital expenditures		(0.3	)		(13.4	)		(6.1	)		(19.8	)
Net cash paid for businesses acquired		(76.1	)		(209.1	)		—			(285.2	)
Proceeds from the sale of property and equipment		—			—			0.4			0.4
Change in restricted cash and investments		0.1			0.7			0.4			1.2
Intercompany dividend paid by (received from) subsidiaries		10.8			4.2			(15.0	)		—
Other, net		0.1			(0.2	)		0.1			—
Net cash used in investing activities		(65.4	)		(217.8	)		(20.2	)		(303.4	)
Cash Flows from financing activities:
Increase in borrowings		90.1			—			43.0			133.1
Payment of borrowings		(95.0	)		(2.2	)		(51.9	)		(149.1	)
Net proceeds from the sale of the 10% Senior Unsecured Notes due 2018		250.0			—			—			250.0
Long-term intercompany advance		(52.1	)		52.1			—			—
Fees paid in connection with debt facilities		(9.5	)		—			—			(9.5	)
Other, net		—			0.1			—			0.1
Net cash provided by (used in) financing activities		183.5			50.0			(8.9	)		224.6
Net change in unrestricted cash and cash equivalents		(27.6	)		9.9			(14.2	)		(31.9	)
Unrestricted cash and cash equivalents at the beginning of the period		43.6			11.4			34.6			89.6
Unrestricted cash and cash equivalents at the end of the period	$	16.0		$	21.3		$	20.4		$	57.7

Condensed Consolidating Cash Flow Statement
For the period December 20, 2009 to December 31, 2009 (Successor)

				Guarantor			Non-Guarantor			Nortek
	Parent			Subsidiaries			Subsidiaries			Consolidated
	(Dollar amounts in millions)
Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(1.6	)	$	4.0		$	4.4		$	6.8
Cash Flows from investing activities:
Capital expenditures		—			(0.3	)		(0.2	)		(0.5	)
Change in restricted cash and investments		0.6			—			—			0.6
Other, net		0.1			(0.1	)		(0.2	)		(0.2	)
Net cash provided by (used in) investing activities		0.7			(0.4	)		(0.4	)		(0.1	)
Cash Flows from financing activities:
Increase in borrowings		—			—			0.3			0.3
Payment of borrowings		—			—			(4.1	)		(4.1	)
Long-term intercompany advance		7.0			(7.0	)		—			—
Net cash provided by (used in) financing activities		7.0			(7.0	)		(3.8	)		(3.8	)
Net change in unrestricted cash and cash equivalents		6.1			(3.4	)		0.2			2.9
Unrestricted cash and cash equivalents at the beginning of the period		37.5			14.8			34.4			86.7
Unrestricted cash and cash equivalents at the end of the period	$	43.6		$	11.4		$	34.6		$	89.6

Condensed Consolidating Cash Flow Statement
For the period January 1, 2009 to December 19, 2009 (Predecessor)

				Guarantor			Non-Guarantor			Nortek
	Parent			Subsidiaries			Subsidiaries			Consolidated
				(Dollar amounts in millions)
Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(183.1	)	$	175.6		$	28.9		$	21.4
Cash Flows from investing activities:
Capital expenditures		—			(11.3	)		(6.6	)		(17.9	)
Net cash paid for businesses acquired		—			(14.1	)		—			(14.1	)
Proceeds from the sale of property and equipment		1.3			0.7			0.2			2.2
Change in restricted cash and investments		(0.7	)		—			(0.5	)		(1.2	)
Other, net		(0.2	)		(0.9	)		(1.8	)		(2.9	)
Net cash provided by (used in) investing activities		0.4			(25.6	)		(8.7	)		(33.9	)
Cash Flows from financing activities:
Increase in borrowings		20.0			—			44.7			64.7
Payment of borrowings		(75.0	)		(7.7	)		(61.1	)		(143.8	)
Long-term intercompany advance		135.2			(135.2	)		—			—
Fees paid in connection with debt facilities		(4.1	)		—			—			(4.1	)
Other, net		—			0.2			—			0.2
Net cash provided by (used in) financing activities		76.1			(142.7	)		(16.4	)		(83.0	)
Net change in unrestricted cash and cash equivalents		(106.6	)		7.3			3.8			(95.5	)
Unrestricted cash and cash equivalents at the beginning of the period		144.1			7.5			30.6			182.2
Unrestricted cash and cash equivalents at the end of the period	$	37.5		$	14.8		$	34.4		$	86.7

Condensed Consolidating Cash Flow Statement
For the Year Ended December 31, 2008 (Predecessor)

				Guarantor			Non-Guarantor			Nortek
	Parent			Subsidiaries			Subsidiaries			Consolidated
				(Dollar amounts in millions)
Cash Flows from operating activities:
Net cash (used in) provided by operating activities	$	(139.1	)	$	168.8		$	24.7		$	54.4
Cash Flows from investing activities:
Capital expenditures		—			(16.5	)		(8.9	)		(25.4	)
Net cash paid for businesses acquired		—			(32.7	)		—			(32.7	)
Proceeds from the sale of property and equipment		—			8.5			—			8.5
Change in restricted cash and investments		—			0.3			—			0.3
Intercompany dividend paid by (received from) subsidiaries		8.6			—			(8.6	)		—
Other, net		(0.9	)		(0.8	)		(0.2	)		(1.9	)
Net cash (used in) provided by investing activities		7.7			(41.2	)		(17.7	)		(51.2	)
Cash Flows from financing activities:
Increase in borrowings		265.0			—			14.4			279.4
Payment of borrowings		(79.2	)		(17.0	)		(14.8	)		(111.0	)
Net proceeds from the sale of the 10% Senior Secured Notes due 2013		742.2			—			—			742.2
Redemption of Nortek’s senior secured credit facility		(755.5	)		—			—			(755.5	)
Fees paid in connection with new debt facilities		(33.8	)		—			—			(33.8	)
Equity investment by Nortek Holdings, Inc.		4.2			—			—			4.2
Intercompany transfers		112.0			(112.0	)		—			—
Other, net		0.1			—			—			0.1
Net cash provided by (used in) financing activities		255.0			(129.0	)		(0.4	)		125.6
Net change in unrestricted cash and cash equivalents		123.6			(1.4	)		6.6			128.8
Unrestricted cash and cash equivalents at the beginning of the period		20.5			8.9			24.0			53.4
Unrestricted cash and cash equivalents at the end of the period	$	144.1		$	7.5		$	30.6		$	182.2