UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 25, 202124, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to
Commission file number 001-37793
 _________________________________________
atkr-20220624_g1.jpg
Atkore Inc.

(Exact name of registrant as specified in its charter)
 _________________________________________
Delaware90-0631463
(State or other jurisdiction of
incorporation or organization)
(IRS Employer
Identification No.)
16100 South Lathrop Avenue, Harvey, Illinois 60426
(Address of principal executive offices) (Zip Code)
708-339-1610
(Registrant’s telephone number, including area code)code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $.01 par value per shareATKRNew York Stock Exchange
_____________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes      No  
_____________________
As of July 30, 2021,28, 2022, there were 46,102,71641,320,866 shares of the registrant’s common stock, $0.01 par value per share, outstanding.




Table of ContentsTABLE OF CONTENTS
 
 Page No.
1


PART I. FINANCIAL INFORMATION
    Item 1. Financial Statements
ATKORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
Three months endedNine months endedThree months endedNine months ended
(in thousands, except per share data)(in thousands, except per share data)NoteJune 25, 2021June 26, 2020June 25, 2021June 26, 2020(in thousands, except per share data)NoteJune 24, 2022June 25, 2021June 24, 2022June 25, 2021
Net salesNet sales$853,658 $384,899 $2,004,283 $1,288,001 Net sales$1,061,590 $853,658 $2,884,963 $2,004,283 
Cost of salesCost of sales514,385 289,086 1,235,970 943,741 Cost of sales607,267 514,385 1,659,416 1,235,970 
Gross profitGross profit339,273 95,813 768,313 344,260 Gross profit454,323 339,273 1,225,547 768,313 
Selling, general and administrativeSelling, general and administrative81,832 46,159 210,250 164,734 Selling, general and administrative95,952 81,832 263,020 210,250 
Intangible asset amortizationIntangible asset amortization118,707 8,026 25,063 24,210 Intangible asset amortization118,624 8,707 25,554 25,063 
Operating incomeOperating income248,734 41,628 533,000 155,316 Operating income349,747 248,734 936,973 533,000 
Interest expense, netInterest expense, net8,090 9,421 24,760 30,605 Interest expense, net7,243 8,090 21,676 24,760 
Loss on extinguishment of debtLoss on extinguishment of debt4,202 4,202 Loss on extinguishment of debt— 4,202 — 4,202 
Other income, netOther income, net5(509)(543)(8,180)(2,462)Other income, net5150 (509)(964)(8,180)
Income before income taxesIncome before income taxes236,951 32,750 512,218 127,173 Income before income taxes342,354 236,951 916,261 512,218 
Income tax expenseIncome tax expense661,654 8,672 126,922 29,112 Income tax expense688,041 61,654 223,630 126,922 
Net incomeNet income$175,297 $24,078 $385,296 $98,061 Net income$254,313 $175,297 $692,631 $385,296 
Net income per shareNet income per shareNet income per share
BasicBasic7$3.69 $0.50 $8.08 $2.03 Basic7$5.81 $3.69 $15.30 $8.08 
DilutedDiluted7$3.64 $0.49 $7.95 $1.99 Diluted7$5.74 $3.64 $15.10 $7.95 
 
See Notes to unaudited condensed consolidated financial statements.


2


ATKORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three months endedNine months ended
(in thousands)NoteJune 25, 2021June 26, 2020June 25, 2021June 26, 2020
Net income$175,297 $24,078 385,296 $98,061 
Other comprehensive income, net of tax:
Change in foreign currency translation adjustment2,152 2,252 8,385 1,132 
Change in unrecognized loss related to pension benefit plans4262 216 786 649 
Total other comprehensive income82,414 2,468 9,171 1,781 
Comprehensive income$177,711 $26,546 $394,467 $99,842 

Three months endedNine months ended
(in thousands)NoteJune 24, 2022June 25, 2021June 24, 2022June 25, 2021
Net income$254,313 $175,297 $692,631 $385,296 
Other comprehensive (loss) income, net of tax:
Change in foreign currency translation adjustment(6,658)2,152 (10,669)8,385 
Change in unrecognized loss related to pension benefit plans4124 262 373 786 
Total other comprehensive (loss) income8(6,534)2,414 (10,296)9,171 
Comprehensive income$247,779 $177,711 $682,335 $394,467 
See Notes to unaudited condensed consolidated financial statements.


3


ATKORE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share data)(in thousands, except share and per share data)NoteJune 25, 2021September 30, 2020(in thousands, except share and per share data)NoteJune 24, 2022September 30, 2021
AssetsAssetsAssets
Current Assets:Current Assets:Current Assets:
Cash and cash equivalentsCash and cash equivalents$397,142 $284,471 Cash and cash equivalents$186,650 $576,289 
Accounts receivable, less allowance for current and expected credit losses of $2,713 and $3,168, respectively524,857 298,242 
Accounts receivable, less allowance for current and expected credit losses of $4,204 and $2,510, respectivelyAccounts receivable, less allowance for current and expected credit losses of $4,204 and $2,510, respectively737,319 524,926 
Inventories, netInventories, net9241,022 199,095 Inventories, net9444,661 285,989 
Prepaid expenses and other current assetsPrepaid expenses and other current assets67,902 46,868 Prepaid expenses and other current assets65,076 34,248 
Total current assetsTotal current assets1,230,923 828,676 Total current assets1,433,706 1,421,452 
Property, plant and equipment, netProperty, plant and equipment, net10257,586 243,891 Property, plant and equipment, net10343,337 275,622 
Intangible assets, netIntangible assets, net11251,312 255,349 Intangible assets, net11351,477 241,204 
GoodwillGoodwill11201,545 188,239 Goodwill11281,949 199,048 
Right-of-use assets, netRight-of-use assets, net33,512 38,692 Right-of-use assets, net42,124 41,113 
Deferred tax assetsDeferred tax assets61,295 687 Deferred tax assets629,431 29,693 
Other long-term assetsOther long-term assets1,186 2,991 Other long-term assets2,027 1,967 
Total AssetsTotal Assets$1,977,359 $1,558,525 Total Assets$2,484,051 $2,210,099 
Liabilities and EquityLiabilities and EquityLiabilities and Equity
Current Liabilities:Current Liabilities:Current Liabilities:
Short-term debt and current maturities of long-term debt12$4,000 $
Accounts payableAccounts payable214,618 142,601 Accounts payable275,367 243,164 
Income tax payableIncome tax payable1,918 1,360 Income tax payable10,176 72,953 
Accrued compensation and employee benefitsAccrued compensation and employee benefits45,828 32,836 Accrued compensation and employee benefits48,927 57,437 
Customer liabilitiesCustomer liabilities65,563 35,802 Customer liabilities95,435 80,324 
Lease obligationsLease obligations11,335 15,786 Lease obligations11,336 11,785 
Other current liabilitiesOther current liabilities54,683 47,785 Other current liabilities76,913 59,273 
Total current liabilitiesTotal current liabilities397,945 276,170 Total current liabilities518,154 524,936 
Long-term debtLong-term debt12780,489 803,736 Long-term debt12759,999 758,386 
Long-term lease obligationsLong-term lease obligations22,995 24,143 Long-term lease obligations31,714 30,236 
Deferred tax liabilitiesDeferred tax liabilities648,494 22,525 Deferred tax liabilities616,881 16,746 
Other long-term tax liabilities1,492 1,619 
Pension liabilitiesPension liabilities36,049 40,023 Pension liabilities1,854 3,819 
Other long-term liabilitiesOther long-term liabilities12,858 11,899 Other long-term liabilities15,440 11,240 
Total LiabilitiesTotal Liabilities1,300,322 1,180,115 Total Liabilities1,344,042 1,345,363 
Equity:Equity:Equity:
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 46,102,716 and 47,407,023 shares issued and outstanding, respectively463 475 
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 42,530,966 and 45,997,159 shares issued and outstanding, respectivelyCommon stock, $0.01 par value, 1,000,000,000 shares authorized, 42,530,966 and 45,997,159 shares issued and outstanding, respectively426 461 
Treasury stock, held at cost, 290,600 and 290,600 shares, respectivelyTreasury stock, held at cost, 290,600 and 290,600 shares, respectively(2,580)(2,580)Treasury stock, held at cost, 290,600 and 290,600 shares, respectively(2,580)(2,580)
Additional paid-in capitalAdditional paid-in capital501,438 487,223 Additional paid-in capital496,785 506,921 
Retained earningsRetained earnings211,099 (64,154)Retained earnings684,400 388,660 
Accumulated other comprehensive lossAccumulated other comprehensive loss8(33,383)(42,554)Accumulated other comprehensive loss8(39,022)(28,726)
Total EquityTotal Equity677,037 378,410 Total Equity1,140,009 864,736 
Total Liabilities and EquityTotal Liabilities and Equity$1,977,359 $1,558,525 Total Liabilities and Equity$2,484,051 $2,210,099 
See Notes to unaudited condensed consolidated financial statements.
4


ATKORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
(in thousands)NoteJune 24, 2022June 25, 2021
Operating activities:
Net income$692,631 $385,296 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization60,467 58,475 
Deferred income taxes6(12,649)17,939 
Stock-based compensation14,180 14,158 
Amortization of right-of-use assets9,868 10,545 
Loss on extinguishment of debt— 4,202 
Other non-cash adjustments to net income13,268 (964)
Changes in operating assets and liabilities, net of effects from acquisitions
Accounts receivable(189,306)(217,583)
Inventories(152,705)(32,556)
Prepaid expenses and other current assets(17,236)(7,081)
Accounts payable15,598 69,353 
Accrued and other liabilities13,063 35,665 
Income taxes(76,996)(15,023)
Other, net1,592 (3,805)
Net cash provided by operating activities371,776 318,621 
Investing activities:
Capital expenditures(81,990)(34,242)
Proceeds from sale of properties and equipment658 3,117 
Acquisition of businesses, net of cash acquired(255,361)(43,195)
Other, net— 17 
Net cash used in investing activities(336,693)(74,303)
Financing activities:
Repayments of long-term debt12— (812,120)
Proceeds from issuance of long-term debt12— 798,000 
Payment for debt financing costs and fees— (11,294)
Issuance of common stock, net of shares withheld for tax(24,312)65 
Repurchase of common stock(396,929)(110,063)
Net cash used for financing activities(421,241)(135,412)
Effects of foreign exchange rate changes on cash and cash equivalents(3,481)3,765 
(Decrease) Increase in cash and cash equivalents(389,639)112,671 
Cash and cash equivalents at beginning of period576,289 284,471 
Cash and cash equivalents at end of period$186,650 $397,142 
Supplementary Cash Flow information
Capital expenditures, not yet paid$5,212 $457 
Operating lease right-of-use assets obtained in exchange for lease liabilities$2,919 $2,630 
Acquisitions of businesses, not yet paid3,266 $— 
See Notes to unaudited condensed consolidated financial statements.
5


ATKORE INC.
CONDENSED CONSOLIDATED STATEMENTSSTATEMENT OF CASH FLOWSCHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
Nine months ended
(in thousands)NoteJune 25, 2021June 26, 2020
Operating activities:
Net income$385,296 $98,061 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization58,475 55,524 
Deferred income taxes617,939 (1,645)
Stock-based compensation14,158 9,302 
Amortization of right-of-use assets10,545 10,995 
Loss on disposal of property, plant and equipment71 6,456 
Loss on extinguishment of debt4,202 
Other non-cash adjustments to net income(1,035)4,668 
Changes in operating assets and liabilities, net of effects from acquisitions
Accounts receivable(217,583)44,809 
Inventories(32,556)22,129 
Accounts payable69,353 (45,699)
Other, net9,756 (48,581)
Net cash provided by operating activities318,621 156,019 
Investing activities:
Capital expenditures(34,242)(25,590)
Insurance proceeds for property, plant and equipment3,117 789 
Acquisition of businesses, net of cash acquired(43,195)
Other, net17 45 
Net cash used in investing activities(74,303)(24,756)
Financing activities:
Repayments of long-term debt12(812,120)
Proceeds from issuance of long-term debt12798,000 
Payment for debt financing costs and fees(11,294)
Issuance of common stock, net of shares withheld for tax65 (1,821)
Repurchase of common stock(110,063)(15,011)
Other, net(85)
Net cash used for financing activities(135,412)(16,917)
Effects of foreign exchange rate changes on cash and cash equivalents3,765 (452)
Increase in cash and cash equivalents112,671 113,894 
Cash and cash equivalents at beginning of period284,471 123,415 
Cash and cash equivalents at end of period$397,142 $237,309 
Supplementary Cash Flow information
Capital expenditures, not yet paid$457 $713 

See Notes to unaudited condensed consolidated financial statements.
Common StockTreasury StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Equity
(in thousands)SharesAmountAmount
Balance as of September 30, 202145,997 $461 $(2,580)$506,921 $388,660 $(28,726)$864,736 
Net income— — — — 204,843 — 204,843 
Other comprehensive loss— — — — — (1,333)(1,333)
Stock-based compensation— — — 3,427 — — 3,427 
Issuance of common stock, net of shares withheld for tax355 — (24,509)— — (24,505)
Repurchase of common stock(958)(10)— (104,537)— (104,547)
Balance as of December 24, 202145,394 $455 $(2,580)$485,839 $488,966 $(30,059)$942,621 
Net income— — — — 233,477 — 233,477 
Other comprehensive loss— — — — — (2,429)(2,429)
Stock-based compensation— — — 6,128 — — 6,128 
Issuance of common stock, net of shares withheld for tax24 — — 103 — — 103 
Repurchase of common stock(1,539)(15)— — (156,611)— (156,626)
Balance as of March 25, 202243,879 $440 $(2,580)$492,070 $565,832 $(32,488)$1,023,274 
Net income— — — — 254,313 — 254,313 
Other comprehensive loss— — — — — (6,534)(6,534)
Stock-based compensation— — — 4,625 — — 4,625 
Issuance of common stock, net of shares withheld for tax25 — — 90  — 90 
Repurchase of common stock(1,374)(14)— — (135,745)— (135,759)
Balance as of June 24, 202242,530 $426 $(2,580)$496,785 $684,400 $(39,022)$1,140,009 


6





ATKORE INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
Common StockTreasury StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Equity
(in thousands)SharesAmountAmount
Balance as of September 30, 202047,407 $475 $(2,580)$487,223 $(64,154)$(42,554)$378,410 
Net income— — — — 85,066 — 85,066 
Other comprehensive income— — — — — 7,313 7,313 
Stock-based compensation— — — 5,522 — — 5,522 
Issuance of common stock, net of shares withheld for tax358 — (3,930)— — (3,927)
Repurchase of common stock(1,140)(11)— — (35,026)— (35,037)
Balance as of December 25, 202046,625 $467 $(2,580)$488,815 $(14,114)$(35,241)$437,347 
Net income— — — — 124,933 — 124,933 
Other comprehensive (loss)— — — — — (556)(556)
Stock-based compensation— — — 4,868 — — 4,868 
Issuance of common stock, net of shares withheld for tax358 — 3,566 — — 3,570 
Balance as of March 26, 202146,983 $471 $(2,580)$497,249 $110,819 $(35,797)$570,162 
Net income    175,297  175,297 
Other comprehensive income     2,414 2,414 
Stock-based compensation   3,768   3,768 
Issuance of common stock, net of shares withheld for tax38  421   424 
Repurchase of common stock(918)(11)  (75,017) (75,028)
Balance as of June 25, 202146,103 463 (2,580)501,438 211,099 (33,383)$677,037 

7


Common StockTreasury StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal EquityCommon StockTreasury StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Equity
(in thousands)(in thousands)SharesAmountAmount(in thousands)SharesAmountAmount
Balance as of September 30, 201946,955 $471 $(2,580)$477,139 $(200,396)$(41,698)$232,936 
Balance as of September 30, 2020Balance as of September 30, 202047,407 $475 $(2,580)$487,223 $(64,154)$(42,554)$378,410 
Net incomeNet income— — — — 34,790 — 34,790 Net income— — — — 85,066 — 85,066 
Other comprehensive incomeOther comprehensive income— — — — — 5,316 5,316 Other comprehensive income— — — — — 7,313 7,313 
ASU 2016-02 modified retrospective adoption— — — — (1,053)— (1,053)
Stock-based compensationStock-based compensation— — — 3,123 — — 3,123 Stock-based compensation— — — 5,522 — — 5,522 
Issuance of common stock, net of shares withheld for taxIssuance of common stock, net of shares withheld for tax524 — (2,986)— — (2,981)Issuance of common stock, net of shares withheld for tax358 — (3,930)— — (3,927)
Balance as of December 27, 201947,479 $476 $(2,580)$477,276 $(166,659)$(36,382)$272,131 
Repurchase of common stockRepurchase of common stock(1,140)(11)— — (35,026)— (35,037)
Balance as of December 25, 2020Balance as of December 25, 202046,625 $467 $(2,580)$488,815 $(14,114)$(35,241)$437,347 
Net incomeNet income— — — — 39,193 — 39,193 Net income— — — — 124,933 — 124,933 
Other comprehensive (loss)Other comprehensive (loss)— — — — — (6,003)(6,003)Other comprehensive (loss)— — — — — (556)(556)
Stock-based compensationStock-based compensation— — — 4,523 — — 4,523 Stock-based compensation— — — 4,868 — — 4,868 
Issuance of common stock, net of shares withheld for taxIssuance of common stock, net of shares withheld for tax91 — 600 — — 601 Issuance of common stock, net of shares withheld for tax358 — 3,566 — — 3,570 
Repurchase of common stock(394)(4)— — (15,007)— (15,011)
Balance as of March 27, 202047,176 $473 $(2,580)$482,399 $(142,473)$(42,385)$295,434 
Balance as of March 26, 2021Balance as of March 26, 202146,983 $471 $(2,580)$497,249 $110,819 $(35,797)$570,162 
Net incomeNet income— $— $— $— $24,078 $— 24,078 Net income— — — — 175,297 — 175,297 
Other comprehensive incomeOther comprehensive income— $— $— $— $— $2,468 2,468 Other comprehensive income— — — — — 2,414 2,414 
Stock-based compensationStock-based compensation— $— $— $1,656 $— $— 1,656 Stock-based compensation— — — 3,768 — — 3,768 
Issuance of common stockIssuance of common stock— $$— $558 $— $— 559 Issuance of common stock38 — 421 — — 424 
Balance as of June 26, 202047,176 474 (2,580)484,613 (118,395)(39,917)324,195 
Repurchase of common stockRepurchase of common stock(918)(11)— — (75,017)— (75,028)
Balance as of June 25, 2021Balance as of June 25, 202146,103 463 (2,580)501,438 211,099 (33,383)677,037 



See Notes to unaudited condensed consolidated financial statements.
87


ATKORE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(dollars and shares in thousands, except per share data)

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    
Basis of Presentation

Organization and Ownership Structure — Atkore Inc. (the “Company”Company, “Atkore”Atkore or “AI”AI) is a leading manufacturer of Electrical products primarily for the non-residential construction and renovation markets and Safety & Infrastructure solutions for the construction and industrial markets. Atkore was incorporated in the State of Delaware on November 4, 2010 under the name Atkore International Group, Inc. Atkore is the sole stockholder of Atkore International Holdings Inc. (“AIH”(AIH), which in turn is the sole stockholder of Atkore International Inc. (“AII”(AII).

Segment Redefinition Effective in the first quarter of fiscal 2021, the Company renamed and redefined its reportable segments.

The Electrical Raceway segment was renamed as the Electrical segment. The Electrical segment manufactures high quality products used in the construction of electrical power systems including conduit, cable, and installation accessories. This segment serves contractors, in partnership with the electrical wholesale channel.

The Mechanical Products & Solutions segment was renamed as the Safety & Infrastructure segment. This segment designs and manufactures solutions including metal framing, mechanical pipe, perimeter security, and cable management for the protection and reliability of critical infrastructure. These solutions are marketed to contractors, original equipment manufacturers and end users.

Segment Realignment & Reclassifications Effective in the first quarter of fiscal 2021, the Company implemented a realignment (the “Realignment”) of its segment financial reporting structure. The Company’s domestic cable management and prefabrication modular businesses had historically been reported in the Electrical Raceway segment. Due to transitions in the Company’s Executive Leadership Team, these businesses are now reported in the Safety & Infrastructure segment. The Realignment reflects how the Company’s Chief Operating Decision Maker now assesses the operating performance and allocates resources to the Safety & Infrastructure segment. Goodwill was also reallocated on a relative fair value basis between the applicable reporting units.

The Company reflected these changes to its segment information retrospectively to the earliest period presented which resulted in a transfer of external net sales, intersegment sales, total assets, and Adjusted EBITDA from the Electrical segment to the Safety & Infrastructure segment. These changes had no impact on the Company’s previously reported consolidated net sales, operating income, net income or earnings per share. See Note 16, “Segment Information” for additional details.

Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”(GAAP). These unaudited condensed consolidated financial statements have been prepared in accordance with the Company’sCompanys accounting policies and on the same basis as those financial statements included in the Company’sCompanys latest Annual Report on Form 10-K for the year ended September 30, 2020,2021, filed with the U.S. Securities and Exchange Commission (the “SEC”SEC) on November 19, 2020,18, 2021, and should be read in conjunction with those consolidated financial statements and the notes thereto. Certain information and disclosures normally included in the Company’sCompanys annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC.
    
The unaudited condensed consolidated financial statements include the assets and liabilities used in operating the Company’sCompanys business. All intercompany balances and transactions have been eliminated in consolidation. The results of companies acquired or disposed of are included in the unaudited condensed consolidated financial statements from the effective date of acquisition or up to the date of disposal.
    
These statements include all adjustments (consisting of normal recurring adjustments) that the Company considered necessary to present a fair statement of its results of operations, financial position and cash flows. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year.

9


Fiscal Periods — The Company has a fiscal year that ends on September 30. The Company’sCompanys fiscal quarters typically end on the last Friday in December, March and June as it follows a 4-5-4 calendar.
    
Use of Estimates — The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclose contingent assets and liabilities at the date of the condensed consolidated financial statements and report the associated amounts of revenues and expenses. Actual results could differ materially from these estimates.





8


Recent Accounting Pronouncements

A summary of recently adopted accounting guidance is as follows. Adoption dates are on the first day of the fiscal year indicated below, unless otherwise specified.
ASUDescription of ASUImpact to AtkoreAdoption Date
2016-13 Financial Instruments - Credit Losses (Topic 326)The ASU adds to GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses.The Company adopted this standard in the first quarter of 2021. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements.2021
A summary of accounting guidance not yet adopted is as follows. Effective dates are on the first day of the fiscal year indicated below, unless otherwise specified.
ASU Description of ASU Impact to AtkoreEffective Date
2019-12 Simplifying the accounting for income taxes (Topic 740)The ASU eliminates certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim period accounting for year to date loss limitations and changes in tax laws and clarifying the accounting for transactions outside of a business combination that result in a step up in the tax basis of goodwill.
The Company will adoptadopted this standard in the new standard on October 1, 2021.first quarter of 2022. The adoption of thisthe standard isdid not expected to have a material impact on the Company’sCompanys consolidated financial statements.
2022

2. REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company’s revenue arrangements primarily consist of a single performance obligation to transfer promised goods which is satisfied at a point in time when title, risks and rewards of ownership, and subsequently control have transferred to the customer. This generally occurs when the product is shipped to the customer, with an immaterial amount of transactions in which control transfers upon delivery. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations.

The Company has certain arrangements that require it to estimate at the time of sale the amounts of variable consideration that should not be recorded as revenue as certain amounts are not expected to be collected from customers, as well as an estimate of the value of products to be returned. The Company principally relies on historical experience, specific customer agreements, and anticipated future trends to estimate these amounts at the time of sale and to reduce the transaction price. These arrangements include sales discounts and allowances, volume rebates, and returned goods.
    
The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue. The Company does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. The Company also expenses costs incurred to obtain a contract, primarily sales commissions, as all obligations will be settled in less than one year.

10


The Company typically receives payment 30 to 60 days from the point it has satisfied the related performance obligation. See Note 16, “Segment Information” for revenue disaggregated by geography and product categories.

3. ACQUISITIONS

From time to time, the Company enters into strategic acquisitions in an effort to better service existing customers and to obtain new customers.

Fiscal 2022

On June 22, 2022, Atkore International Inc., a wholly-owned subsidiary of the Company acquired all of the outstanding stock of United Poly Systems, LLC (“United Poly”), for a purchase price of $226,506. United Poly is a manufacturer of high density polyethylene (“HDPE”) pressure pipe and conduit, primarily serving the telecommunications, water infrastructure, renewables and energy markets. The purchase price allocation has not been finalized as the Company is finalizing working capital, inventory, intangible asset, deferred tax asset and liabilities and fixed asset fair values.
9



On May 19, 2022, Allied Tube and Conduit Corporation, wholly-owned subsidiary of the Company acquired the assets of Talon Products, LLC (“Talon”), for a purchase price of $4,193. Talon is a manufacturer of non-metallic, injection molded cable cleats, primarily serving the power distribution markets. The purchase price allocation has not been finalized as the Company is finalizing working capital and intangible asset fair values.

On December 21, 2021, Atkore HDPE, LLC and Allied Tube and Conduit Corporation, wholly-owned subsidiaries of the Company, acquired the assets of Four Star Industries LLC (“Four Star”), for a purchase price of $23,195. Four Star is a manufacturer of high density polyethylene (HDPE) conduit, primarily serving the telecommunications, utility, infrastructure and datacom markets. The Company finalized the purchase price allocation of Four Star in the third quarter of fiscal 2022.

On December 20, 2021, Columbia-MBF Inc., a wholly-owned subsidiary of the Company acquired all of the outstanding stock of Sasco Tubes & Roll Forming Inc. (“Sasco”), for a purchase price of $16,184, of which $13,320 was paid at closing and additional purchase price payable of $2,864 was accrued. Sasco is a Canadian manufacturer of metal framing and related products serving the electrical, mechanical, construction and solar industries. The Company finalized the purchase price allocation of Sasco in the third quarter of fiscal 2022.

The acquisitions in fiscal 2022 were funded using cash-on-hand. The Company incurred approximately $3,274 in acquisition-related expenses for these acquisitions, which were recorded as a component of selling, general and administrative expenses.

The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed, based on their fair values. The following table summarizes the Level 3 fair values assigned to the net assets acquired and liabilities assumed as of the acquisition date for fiscal 2022:

(in thousands)United PolyOtherTotal
Fair value of consideration transferred: 
Cash consideration$226,506 $40,306 $266,812 
Purchase price payable— 3,266 3,266 
Total consideration transferred$226,506 $43,572 $270,078 
Fair value of assets acquired and liabilities assumed: 
Cash11,451 — 11,451 
Accounts receivable23,679 5,684 29,363 
Inventories13,266 4,821 18,087 
Intangible assets118,670 19,640 138,310 
Fixed assets14,091 2,784 16,875 
Accounts payable(11,940)(3,995)(15,935)
Income taxes(12,189)(2,075)(14,264)
Other(103)(129)(232)
Net assets acquired156,925 26,730 183,655 
Excess purchase price attributed to goodwill acquired$69,581 $16,842 $86,423 

The Company estimates $11.7 million of the goodwill recognized on the United Poly acquisition is deductible for tax purposes. Goodwill recognized from the acquisitions in fiscal 2022 consists largely of the synergies and economies of scale from integrating this company with existing businesses.





10


The following table summarizes the fair value of intangible assets as of the acquisition date:

 United PolyOther
(in thousands)Fair ValueWeighted Average Useful Life (Years)Fair ValueWeighted Average Useful Life (Years)
Customer relationships$96,100 11$16,720 10
Other22,570 82,920 8
Total intangible assets$118,670 $19,640 

The following table presents unaudited pro forma results of operations for the Company and all companies acquired in fiscal 2022 as if those acquisitions had occurred on October 1, 2020. The results presented below are for the three and nine months ended: 
Three months endedNine months ended
(in thousands)June 24, 2022June 25, 2021June 24, 2022June 25, 2021
Pro forma net sales$1,096,866 $883,980 $2,992,265 $2,068,169 
Pro forma net income256,356 175,107 696,012 378,795 

The pro forma condensed financial information is presented for illustrative purposes only and does not indicate the actual financial results of the Company if the closing of the acquisitions in the current year had been completed on October 1, 2020, nor is it indicative of the results of operations in future periods. Included in the unaudited pro forma financial information for the three and nine months ended June 24, 2022 and June 25, 2021 were pro forma adjustments to reflect the results of operations of the acquisitions in the current year as though those acquisitions were completed as of the beginning of October 1, 2020, as well as the impact of amortizing certain acquisition accounting adjustments such as amortizable intangible assets. The pro forma financial information neither indicates the impact of possible business model changes nor considers any potential impact of current market conditions, expense efficiencies or other factors.

Net sales and net income of the acquired companies are included in the consolidated statement of operations for the quarter and nine months ended June 24, 2022 for the post-acquisition period.

Fiscal 2021

On February 24, 2021, Atkore Southwest, LLC, a wholly-owned subsidiary of the Company acquired the assets of FRE Composites USA Inc. and separately the Company acquired all of the outstanding stock of FRE Composites Inc., collectively described as FRE Composites Group (“FRE Composites”), for a purchase price of $36,993, net of cash received. FRE Composites is a leading manufacturer of fiberglass conduit for the electrical and industrial market. The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed, based on their fair values.

On October 22, 2020, Atkore Plastics Southeast, LLC, a wholly-owned subsidiary of the Company acquired the assets of Queen City Plastics, Inc. (“Queen City Plastics”), a leading manufacturer of PVC conduit, elbows and fittings for the electrical market. The purchase price was allocated to tangible assets acquired and liabilities assumed based on their fair values for which the purchase accounting has been finalized.values. The purchase price of $6.2 million$6,214 was deemed immaterial to the Company.

On February 24, 2021, the Company acquiredThe purchase price for FRE Composites, Group, a leading manufacturerwhich was finalized during the fourth quarter of fiberglass conduit for the electrical and industrial market. The purchase pricefiscal 2021, was allocated to tangible and intangible assets acquired and liabilities assumed, based on their fair values. As

11


The acquisitions in fiscal 2021 were funded using cash-on-hand. The Company incurred approximately $646 in acquisition-related expenses for these acquisitions, which were recorded as a component of June 25, 2021, the purchase price allocation has not been finalized as the Company is refining its estimates for taxes. The preliminary purchase price was $37.0 million. selling, general and administrative expenses.

The following table summarizes the Level 3 fair values assigned to the net assets acquired and liabilities assumed as of the acquisition date:date for fiscal 2021:

(in thousands)FRE Composites
Fair value of consideration transferred: 
Cash consideration$36,993 
Fair value of assets acquired and liabilities assumed: 
Cash437 
Accounts receivable2,163 
Inventories3,355 
Intangible assets18,300 
Fixed assets8,509 
Accounts payable(1,186)
Income taxes(5,053)(4,293)
Other(420)(240)
Net assets acquired26,10527,045 
Excess purchase price attributed to goodwill acquired$10,8889,948 

The Company estimates $1.6 million of the goodwill recognized on the FRE acquisition is deductible for tax purposes. Goodwill recognized from this acquisitionthe acquisitions in fiscal 2021 consists largely of the synergies and economies of scale from integrating this company with existing businesses.

The following table summarizes the fair value of intangible assets as of the acquisition date:
  FRE Composites Group
($ in thousands) Fair Value Weighted Average Useful Life (Years)
Customer relationships $14,700  12
Other 3,600  6
Total intangible assets $18,300  

 FRE Composites
(in thousands)Fair ValueWeighted Average Useful Life (Years)
Customer relationships$14,700 12
Other3,600 6
Total intangible assets$18,300 

Net sales and net income of both the above acquisitions are included in the condensed consolidated statement of operations for the post-acquisition periods. Due to the immaterial nature of these acquisitions, both individually and in the aggregate, the Company did not include the full year pro forma results of operations for the acquisition year or previous years.











1112


4. POSTRETIREMENT BENEFITS

The Company provides pension benefits through a number of noncontributory and contributory defined benefit retirement plans covering eligible U.S. employees. As of September 30, 2017, all defined pension benefit plans were frozen, whereby participants no longer accrue credited service. The net periodic benefit credit was as follows: 
Three months endedNine months endedThree months endedNine months ended
(in thousands)(in thousands)NoteJune 25, 2021June 26, 2020June 25, 2021June 26, 2020(in thousands)NoteJune 24, 2022June 25, 2021June 24, 2022June 25, 2021
Interest costInterest cost$682 $935 $2,047 $2,805 Interest cost$739 $682 $2,218 $2,047 
Expected return on plan assetsExpected return on plan assets(1,606)(1,583)(4,818)(4,749)Expected return on plan assets(1,348)(1,606)(4,044)(4,818)
Amortization of actuarial lossAmortization of actuarial loss332 222 995 666 Amortization of actuarial loss158 332 473 995 
Net periodic benefit creditNet periodic benefit credit5$(592)$(426)$(1,776)$(1,278)Net periodic benefit credit5$(451)$(592)$(1,353)$(1,776)


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5. OTHER INCOME, NET

Other income, net consisted of the following:
Three months endedNine months endedThree months endedNine months ended
(in thousands)(in thousands)June 25, 2021June 26, 2020June 25, 2021June 26, 2020(in thousands)June 24, 2022June 25, 2021June 24, 2022June 25, 2021
Business interruption insurance recoveryBusiness interruption insurance recovery$$$(6,000)$Business interruption insurance recovery$— $— $— $(6,000)
Undesignated foreign currency derivative instrumentsUndesignated foreign currency derivative instruments377 (569)3,786 (1,112)Undesignated foreign currency derivative instruments(2,662)377 (3,472)3,786 
Foreign exchange (gain) loss on intercompany loans(294)452 (3,459)(72)
Foreign exchange loss (gain) on intercompany loansForeign exchange loss (gain) on intercompany loans3,263 (294)3,860 (3,459)
Pension-related benefitsPension-related benefits(592)(426)(1,776)(1,278)Pension-related benefits(451)(592)(1,352)(1,776)
Gain on purchase of businessGain on purchase of business(731)Gain on purchase of business— — — (731)
Other income, netOther income, net$(509)$(543)$(8,180)$(2,462)Other income, net$150 $(509)$(964)$(8,180)


6. INCOME TAXES    

For the three months ended June 25, 202124, 2022 and June 26, 2020,25, 2021, the Company’s effective tax rate attributable to income before income taxes was 26.0%25.7% and 26.5%26.0%, respectively. For the three months ended June 25, 202124, 2022 and June 26, 2020,25, 2021, the Company’s income tax expense was $88,041 and $61,654 and $8,672 respectively.The decrease in the current period effective tax rate was primarily driven by losses incurred bythe prior year one-time tax expense from the deferred remeasurement of our foreign jurisdictions forUK subsidiaries due to the enactment of the Finance Act of 2021 which, we are not ableamong other things, changed the UK corporate tax rate from 19% to realize the related tax benefit.25%.

For the nine months ended June 25, 202124, 2022 and June 26, 2020,25, 2021, the Company’s effective tax rate attributable to income before income taxes was 24.8%24.4% and 22.9%24.8%, respectively. For the nine months ended June 24, 2022 and June 25, 2021, and June 26, 2020, the Company’s income tax expense was $126,922$223,630 and $29,112,$126,922 respectively. The increasedecrease in the nine monthcurrent period effective tax rate was primarily due to a smaller impactdriven by an increase in the net discreteexcess tax benefit compared to the increase in earnings period over period.associated with stock compensation.

A valuation allowance has been recorded against certain net operating losses in certain foreign jurisdictions. A valuation allowance is recorded when it is determined to be more likely than not that these assets will not be fully realized in the foreseeable future. The realization of deferred tax assets is dependent upon whether the Company can generate future taxable income in the appropriate character and jurisdiction to utilize the assets. The amount of the deferred tax assets considered realizable is subject to adjustment in future periods.
13


The Company recognizes the benefits of uncertain tax positions taken or expected to be taken in tax returns in the provision for income taxes only for those positions that we have determined are more likely than not to be realized upon examination. We record interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the nine months ended June 25, 2021,24, 2022, the balance of unrecognized tax benefits decreased by $127$1,893 primarily due to the lapse in the statuteresolution of limitations related to certain priora state tax years.matter.

For the nine months ended June 25, 2021,24, 2022, the Company made no additional provision for U.S. or non-U.S. income taxes for unrecognized deferred tax liabilities for temporary differences related to basis differences in investments in subsidiaries, as the investments are essentially permanent in duration.

7. EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating securities as if all of the net earnings for the period had been distributed. The Company’sCompanys participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common stockholders.
 

Basic earnings per common share excludes dilution and is calculated by dividing the net earnings allocated to common stock by the weighted-average number of common stock outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common stock by the weighted-average number of shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

13


The following table sets forth the computation of basic and diluted earnings per share:
Three months endedNine months ended
(in thousands, except per share data)June 25, 2021June 26, 2020June 25, 2021June 26, 2020
Numerator:
Net income$175,297 $24,078 $385,296 $98,061 
Less: Undistributed earnings allocated to participating securities3,389 519 7,483 2,221 
Net income available to common shareholders$171,908 $23,559 $377,813 $95,840 
Denominator:
Basic weighted average common shares outstanding46,602 47,207 46,771 47,247 
Effect of dilutive securities: Non-participating employee stock options (1)
684 612 742 842 
Diluted weighted average common shares outstanding47,286 47,819 47,513 48,089 
Basic earnings per share$3.69 $0.50 $8.08 $2.03 
Diluted earnings per share$3.64 $0.49 $7.95 $1.99 
(1) Stock options to purchase approximately 0.0 million and 0.3 million shares of common stock were outstanding during the three months ended June 25, 2021 and June 26, 2020, respectively, but were not included in the calculation of diluted earnings per share as the impact of these options would have been anti-dilutive. Stock options to purchase approximately 0.0 million and 0.1 million shares of common stock were outstanding during the nine months ended June 25, 2021 and June 26, 2020, respectively, but were not included in the calculation of diluted earnings per share as the impact of these options would have been anti-dilutive.

Three months endedNine months ended
(in thousands, except per share data)June 24, 2022June 25, 2021June 24, 2022June 25, 2021
Numerator:
Net income$254,313 $175,297 $692,631 $385,296 
Less: Undistributed earnings allocated to participating securities3,883 3,389 11,002 7,483 
Net income available to common shareholders$250,430 $171,908 $681,629 $377,813 
Denominator:
Basic weighted average common shares outstanding43,072 46,602 44,553 46,771 
Effect of dilutive securities: Non-participating employee stock options (1)
558 684 578 742 
Diluted weighted average common shares outstanding43,630 47,286 45,131 47,513 
Basic earnings per share$5.81 $3.69 $15.30 $8.08 
Diluted earnings per share$5.74 $3.64 $15.10 $7.95 
(1) Stock options to purchase shares of common stock that would have been anti-dilutive are not included in the calculation. There were no anti-dilutive options outstanding during the three months ended June 24, 2022 and June 25, 2021. Additionally, there were no anti-dilutive options outstanding during the nine months ended June 24, 2022 and June 25, 2021.


14



8. ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table presents the changes in accumulated other comprehensive loss by component for the three months ended June 25, 202124, 2022 and June 26, 2020.25, 2021.

(in thousands)Defined benefit
pension items
Currency
translation
adjustments
Total
Balance as of March 26, 2021$(30,237)$(5,560)$(35,797)
Other comprehensive income before reclassifications2,152 2,152 
Amounts reclassified from accumulated other
comprehensive loss, net of tax
262 262 
Net current period other comprehensive income262 2,152 2,414 
Balance as of June 25, 2021$(29,975)$(3,408)$(33,383)
(in thousands)Defined Benefit
Pension Items
Currency
Translation
Adjustments
Total
Balance as of March 25, 2022$(19,068)$(13,420)$(32,488)
Other comprehensive loss before reclassifications— (6,657)(6,657)
Amounts reclassified from accumulated other
comprehensive income, net of tax
123 — 123 
Net current period other comprehensive income (loss)123 (6,657)(6,534)
Balance as of June 24, 2022$(18,945)$(20,077)$(39,022)

(in thousands)(in thousands)Defined benefit
pension items
Currency
translation
adjustments
Total(in thousands)Defined Benefit
Pension Items
Currency
Translation
Adjustments
Total
Balance as of March 27, 2020$(23,385)$(19,000)$(42,385)
Balance as of March 26, 2021Balance as of March 26, 2021$(30,237)$(5,560)$(35,797)
Other comprehensive income before reclassificationsOther comprehensive income before reclassifications2,252 2,252 Other comprehensive income before reclassifications— 2,152 2,152 
Amounts reclassified from accumulated other
comprehensive loss, net of tax
216 216 
Amounts reclassified from accumulated other
comprehensive income, net of tax
Amounts reclassified from accumulated other
comprehensive income, net of tax
262 — 262 
Net current period other comprehensive incomeNet current period other comprehensive income216 2,252 2,468 Net current period other comprehensive income262 2,152 2,414 
Balance as of June 26, 2020$(23,169)$(16,748)$(39,917)
Balance as of June 25, 2021Balance as of June 25, 2021$(29,975)$(3,408)$(33,383)

The following table presents the changes in accumulated other comprehensive loss by component for the nine months ended June 25, 202124, 2022 and June 26, 2020.
(in thousands)Defined benefit
pension items
Currency
translation
adjustments
Total
Balance as of September 30, 2020$(30,761)$(11,793)$(42,554)
Other comprehensive income before reclassifications8,385 8,385 
Amounts reclassified from accumulated other
comprehensive loss, net of tax
786 786 
Net current period other comprehensive income786 8,385 9,171 
Balance as of June 25, 2021$(29,975)$(3,408)$(33,383)
(in thousands)Defined benefit
pension items
Currency
translation
adjustments
Total
Balance as of September 30, 2019$(23,818)$(17,880)$(41,698)
Other comprehensive income before reclassifications1,132 1,132 
Amounts reclassified from accumulated other
comprehensive loss, net of tax
649 649 
Net current period other comprehensive income649 1,132 1,781 
Balance as of June 26, 2020$(23,169)$(16,748)$(39,917)
25, 2021.


(in thousands)Defined Benefit
Pension Items
Currency
Translation
Adjustments
Total
Balance as of September 30, 2021$(19,318)$(9,408)$(28,726)
Other comprehensive loss before reclassifications— (10,669)(10,669)
Amounts reclassified from accumulated other
comprehensive income, net of tax
373 — 373 
Net current period other comprehensive income (loss)373 (10,669)(10,296)
Balance as of June 24, 2022$(18,945)$(20,077)$(39,022)

15


(in thousands)Defined Benefit
Pension Items
Currency
Translation
Adjustments
Total
Balance as of September 30, 2020$(30,761)$(11,793)$(42,554)
Other comprehensive income before reclassifications— 8,385 8,385 
Amounts reclassified from accumulated other
comprehensive income, net of tax
786 — 786 
Net current period other comprehensive income786 8,385 9,171 
Balance as of June 25, 2021$(29,975)$(3,408)$(33,383)



9. INVENTORIES, NET

A majority of the Company’sCompanys inventories are recorded at the lower of cost (primarily last in, first out, or “LIFO”LIFO) or market or net realizable value, as applicable. Approximately 78%85% and 73%81% of the Company’sCompanys inventories were valued at the lower of LIFO cost or market at June 25, 202124, 2022 and September 30, 2020,2021, respectively. Interim LIFO determinations, including those at June 25, 2021,24, 2022, are based on management’smanagements estimates of future inventory levels and costs for the remainder of the current fiscal year.
(in thousands)June 25, 2021September 30, 2020
Purchased materials and manufactured parts, net$70,894 $49,192 
Work in process, net33,803 24,113 
Finished goods, net136,325 125,790 
Inventories, net$241,022 $199,095 

(in thousands)June 24, 2022September 30, 2021
Purchased materials and manufactured parts, net$134,531 $105,460 
Work in process, net65,436 35,043 
Finished goods, net244,694 145,486 
Inventories, net$444,661 $285,989 

Total inventories would be $71,473$101,710 higher and $4,418 lower$108,911 higher than reported as of June 25, 202124, 2022 and September 30, 2020,2021, respectively, if the first-in, first-out method was used for all inventories. As of June 25, 2021,24, 2022, and September 30, 2020,2021, the excess and obsolete inventory reserve was $12,821$21,486 and $14,533,$11,780, respectively.






















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10. PROPERTY, PLANT AND EQUIPMENT

As of June 25, 2021,24, 2022, and September 30, 2020,2021, property, plant and equipment and accumulated depreciation were as follows:
(in thousands)June 25, 2021September 30, 2020
Land$23,854 $20,460 
Buildings and related improvements134,356 129,538 
Machinery and equipment363,375 332,260 
Leasehold improvements10,522 9,862 
Software28,107 27,028 
Construction in progress26,896 22,736 
Property, plant and equipment, at cost587,110 541,884 
Accumulated depreciation(329,524)(297,993)
Property, plant and equipment, net$257,586 $243,891 

(in thousands)June 24, 2022September 30, 2021
Land$26,596 $23,043 
Buildings and related improvements167,290 136,680 
Machinery and equipment411,808 372,503 
Leasehold improvements9,769 9,720 
Software35,485 28,288 
Construction in progress60,788 43,055 
Property, plant and equipment, at cost711,736 613,289 
Accumulated depreciation(368,399)(337,667)
Property, plant and equipment, net$343,337 $275,622 

Depreciation expense for the three months ended June 24, 2022 and June 25, 2021 totaled $11,804 and June 26, 2020 totaled $11,459 and $10,290 respectively. Depreciation expense for the nine months ended June 24, 2022 and June 25, 2021 totaled $34,914 and June 26, 2020 totaled $33,412 and $31,314, respectively.
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11. GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:    
(in thousands)ElectricalSafety & InfrastructureTotal
Balance as of October 1, 2020$144,662 $43,577 $188,239 
Goodwill acquired during year10,888 10,888 
Exchange rate effects2,418 2,418 
Balance as of June 25, 2021$157,968 $43,577 $201,545 

(in thousands)ElectricalSafety & InfrastructureTotal
Balance as of September 30, 2021$155,471 $43,577 $199,048 
Goodwill acquired during year76,928 9,495 86,423 
Exchange rate effects(3,476)(46)(3,522)
Balance as of June 24, 2022$228,923 $53,026 $281,949 
    
Goodwill balances as of October 1, 2020September 30, 2021 and June 25, 202124, 2022 include $3,924 and $43,000 of accumulated impairment losses within the Electrical and Safety & Infrastructure segments, respectively.

The Company assesses the recoverability of goodwill and indefinite-lived trade names on an annual basis in accordance with ASC 350, “IntangiblesIntangibles - Goodwill and Other. The measurement date is the first day of the fourth fiscal quarter, or more frequently, if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit or the respective indefinite-lived trade name is less than the carrying value.













17


The following table provides the gross carrying value, accumulated amortization and net carrying value for each major class of intangible asset:
  June 25, 2021September 30, 2020
($ in thousands)Weighted Average Useful Life (Years)Gross Carrying ValueAccumulated AmortizationNet Carrying ValueGross Carrying ValueAccumulated AmortizationNet Carrying Value
Amortizable intangible assets:
Customer relationships11$371,048 $(226,988)$144,060 $355,735 $(202,677)$153,058 
Other825,848 (11,476)14,372 19,086 (9,675)9,411 
Total396,896 (238,464)158,432 374,821 (212,352)162,469 
Indefinite-lived intangible assets:
Trade names92,880 — 92,880 92,880 — 92,880 
Total$489,776 $(238,464)$251,312 $467,701 $(212,352)$255,349 

  June 24, 2022September 30, 2021
(in thousands)Weighted Average Useful Life (Years)Gross Carrying ValueAccumulated AmortizationNet Carrying ValueGross Carrying ValueAccumulated AmortizationNet Carrying Value
Amortizable intangible assets:
Customer relationships11$483,965 $(259,167)$224,798 $371,048 $(234,946)$136,102 
Other744,645 (10,846)33,799 23,633 (11,411)12,222 
Total528,610 (270,013)258,597 394,681 (246,357)148,324 
Indefinite-lived intangible assets:
Trade names92,880 — 92,880 92,880 — 92,880 
Total$621,490 $(270,013)$351,477 $487,561 $(246,357)$241,204 

Other intangible assets consist of definite-lived trade names, technology, non-compete agreements and backlogs. Amortization expense for the three months ended June 24, 2022 and June 25, 2021 was $8,624 and June 26, 2020 was $8,707, and $8,026, respectively. Amortization expense for the nine months ended June 24, 2022 and June 25, 2021 was $25,554 and June 26, 2020 was $25,063, and $24,210, respectively. Expected amortization expense for intangible assets for the remainder of fiscal 20212022 and over the next five years and thereafter is as follows:
(in thousands)
Remaining 2021$14,397 
202233,100 
202332,756 
202427,623 
202515,689 
202614,288 
Thereafter20,580 

(in thousands)
Remaining 2022$14,334 
202346,402 
202441,224 
202529,221 
202627,200 
202725,252 
Thereafter74,964 

Actual amounts of amortization may differ from estimated amounts due to additional intangible asset acquisitions, impairment of intangible assets and other events.

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12. DEBT



Debt as of June 25, 202124, 2022 and September 30, 20202021 was as follows:
(in thousands)June 25, 2021September 30, 2020
First Lien Term Loan Facility due December 22, 2023$$811,540 
New Senior Secured Term Loan Facility due May 26, 2028398,024 
Senior Notes due June 2031400,000 
Deferred financing costs(13,535)(7,804)
Total debt$784,489 $803,736 
Less: Current portion4,000 
Long-term debt$780,489 $803,736 

(in thousands)June 24, 2022September 30, 2021
Senior Secured Term Loan Facility due May 26, 2028$371,310 $371,095 
Senior Notes due June 2031400,000 400,000 
Deferred financing costs(11,311)(12,709)
Long-term debt$759,999 $758,386 

The asset-based credit facility (the “ABLABL Credit Facility”Facility) has aggregate commitments of $325,000. AII is the borrower under the ABL Credit Facility which is guaranteed by the Company and all other
18


subsidiaries of the Company (other than AII) that are guarantors of the Senior Notes. AII’sAIIs availability under the ABL Credit Facility was $315,499$312,905 and $265,899$315,499 as of June 25, 202124, 2022 and September 30, 2020, respectively.

Senior Notes - On May 26, 2021, the Company completed the issuance and sale of the $400 million aggregate principal amount of 4.25% Senior Notes due 2031 (the “Senior Notes”) in a previously announced private offering. The Senior Notes were sold only to qualified institutional buyers in compliance with Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside of the United States in compliance with Regulation S of the Securities Act.2021.

New Senior Secured Term Loan Facility - On May 26, 2021, the Company entered into a new $400 million senior secured term loan facility (the “New Senior Secured Term Loan Facility”). The New Senior Secured Term Loan Facility will mature on May 26, 2028 and borrowings thereunder bear interest at the rate of either (x) LIBOR (with a floor of 0.50%) plus 2.00%, or (y) an alternate base rate (with a floor of 1.50%) plus 1.00%. The New Senior Secured Term Loan Facility has an annual amortization rate of 1.00%. The New Senior Secured Term Loan Facility will be payable in consecutive quarterly installments in the amount of 0.25% of the aggregate initial principal amount of $400 million with all unpaid aggregate principal amounts paid at maturity.

ABL Credit Facility - On May 26, 2021, the Company entered into an amendment to the ABL Credit Facility. The amendment (i) extends the maturity of the facility to the earlier of five years from entering into the amendment or 91 days prior to the maturity date of the New Senior Secured Term Loan Facility if at least $100 million of obligations remain outstanding under the New Senior Secured Term Loan Facility on such date (ii) decreases the interest rate margins applicable to loans under the facility to (a) in the case of United States dollar-denominated loans, either (x) LIBOR plus an applicable margin ranging from 1.25% to 1.75%, or (y) an alternate base rate plus an applicable margin ranging from 0.25% to 0.75% or (b) in the case of Canadian dollar-denominated loans, either (x) the bankers acceptance rate plus an applicable margin ranging from 1.25% to 1.75% or (y) a Canadian prime rate plus an applicable margin ranging from 0.25% to 0.75%. (iii) decreases the fee payable with respect to unutilized availability under the facility from 0.375% to 0.25% to 0.30% depending on the remaining availability under the ABL Credit Facility and (iv) made certain other changes agreed with the lenders under the ABL Credit Facility.

The New Senior Secured Term Loan Facility and the ABL Credit Facility are secured by all of the assets of AII and the guarantors under such facilities. The New Senior Secured Term Loan Facility has priority over all real property, plant and equipment, intellectual property and capital stock of AII and any guarantor and any documents or instruments evidencing the foregoing assets. The ABL Credit Facility has second priority over the foregoing assets. The ABL Credit Facility has first priority over cash and cash equivalents, accounts receivable, inventory and other documents and instruments evidencing the foregoing assets. The New Senior Secured Term Loan Facility has second priority over the foregoing assets.

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The aforementioned debt instruments contain customary covenants typical for this type of financing, including limitations on indebtedness, restricted payments including dividends, liens, restrictions on distributions from restricted subsidiaries, sales of assets, affiliate transactions and mergers and consolidations. Many of these covenants are only applicable when the Company has surpassed certain thresholds relating to its indebtedness. Additionally, these debt instruments include customary events of default, including, among other things, payment default, covenant default, payment defaults and accelerations under other indebtedness, judgment defaults and bankruptcy, insolvency or reorganization affecting the Company or certain of its subsidiaries.

Use of Proceeds - The proceeds from the Senior Notes and the New Senior Secured Term Loan Facility were used to repay the remaining principal of the existing First Lien Term Loan Facility of $772 million and $4 million of accrued interest. The Company accounted for the repayment of the First Lien Term Loan Facility as an extinguishment of debt and recorded a $4.2 million loss on extinguishment of debt. The Company accounted for the amendment to the ABL Credit Facility as a modification of debt.

13. FAIR VALUE MEASUREMENTS

Certain assets and liabilities are required to be recorded at fair value on a recurring basis.

The Company uses a forward currency contractscontract to hedge the effects of foreign exchange relating to certainone of the Company’s intercompany balances denominated in a foreign currency. TheseThis derivative instruments areinstrument is not formally designated as hedgesa hedge by the Company and the termsremaining term of these instruments range from six months to one year.the instrument is two months. Short-term forward currency contracts are recorded in either other current assets or other current liabilities and long-term forward currency contracts are recorded in either other long-term assets or other long-term liabilities in the condensed consolidated balance sheet. The fair value gains and losses are included in other income, net within the condensed consolidated statements of operations. See Note 5, “Other Income, net” for further detail.

The total notional amounts of undesignated forward currency contracts were £36.1£30.6 million and £43.3£37.4 million as of June 25, 202124, 2022 and September 30, 2020,2021, respectively. Cash flows associated with derivative financial instruments are recognized in the operating section of the condensed consolidated statements of cash flows. The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

The following table presents the Company’sCompanys assets and liabilities measured at fair value:
June 25, 2021September 30, 2020
(in thousands)Level 1Level 2Level 3Level 1Level 2Level 3
Assets
Cash equivalents$305,269 $$$209,421 $$
     Forward currency contracts2,209 
Liabilities
Forward currency contracts$1,456 102 

June 24, 2022September 30, 2021
(in thousands)Level 1Level 2Level 1Level 2
Assets
Cash equivalents$97,476 $— $489,987 $— 
     Forward currency contracts— 3,381 — 127 
Liabilities
Forward currency contracts— 472 — 183 

The Company’sCompanys remaining financial instruments consist primarily of cash, accounts receivable and accounts payable whose carrying value approximate their fair value due to their short-term nature.

The estimated fair value of financial instruments not carried at fair value in the condensed consolidated balance sheets were as follows:
June 25, 2021September 30, 2020
(in thousands)Carrying ValueFair ValueCarrying ValueFair Value
First Lien Term Loan Facility due December 22, 2023$$812,120 $808,060 
New Senior Secured Term Loan Facility due May 26, 2028$400,000 $399,300 $$
Senior Notes due June 2031$400,000 $400,000 $$

June 24, 2022September 30, 2021
(in thousands)Carrying ValueFair ValueCarrying ValueFair Value
Senior Secured Term Loan Facility due May 26, 2028$373,000 $369,852 $373,000 $371,486 
Senior Notes due June 2031400,000 340,000 400,000 415,828 
Total Debt$773,000 $709,852 $773,000 $787,314 

In determining the approximate fair value of its long-term debt, the Company used the trading values among financial institutions, and these values fall within Level 2 of the fair value hierarchy. The carrying value of the ABL Credit Facility
19


approximates fair value due to it being a market-linked variable rate debt. The carrying values of the New Senior Secured Term Loan Facility and the Senior Notes approximate fair value.




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14. COMMITMENTS AND CONTINGENCIES

The Company has obligations related to commitments to purchase certain goods. As of June 25, 2021,24, 2022, such obligations were $291,715$238,059 for the rest of fiscal year 20212022 and $12,923$12,334 for fiscal year 20222023 and beyond. These amounts represent open purchase orders for materials used in production.

Insurable Liabilities — The Company maintains policies with various insurance companies for its workers’ compensation, product, property, general, auto, and executive liability risks. The insurance policies that the Company maintains have various retention levels and excess coverage limits. The establishment and update of liabilities for unpaid claims, including claims incurred but not reported, is based on management's estimate as a result of the assessment by the Company's claim administrator of each claim and an independent actuarial valuation of the nature and severity of total claims. The Company utilizes a third-party claims administrator to pay claims, track and evaluate actual claims experience, and ensure consistency in the data used in the actuarial valuation.

Legal Contingencies The Company is a defendant in— Historically, a number of pending legal proceedings, some of which were inherited from its former parent, Tyco International Ltd. (“Tyco”), including certain product liability claims. Several lawsuits have been filed against the Company and the Company has also received other claim demand letters alleging that the Company’sCompany's anti-microbial coated steel sprinkler pipe, which the Company has not manufactured or sold for several years, is incompatible with chlorinated polyvinyl chloride and caused stress cracking in such pipe manufactured by third parties when installed together in the same sprinkler system, which the Company refers to collectively as the “Special Products Claims.” After an analysis of claims experience, the Company reserved its best estimate of the probable and reasonably estimable losses related to these matters. The Company’s total product liability reserves for Special Products Claims and other product liability matters were $729 and $597 as of June 25, 2021 and September 30, 2020, respectively. As of June 25, 2021, the Company believes that the range of aggregate reasonably possible losses for Special Products Claims and other product liabilities is between $1,000 and $8,000.

During fiscal 2019, Tyco and the Company agreed with a plaintiff to settle one Special Products Claim that was to go to trial.  The Company agreed to fund the total settlement in exchange for Tyco's agreement to cap the Company’s Special Products Claim deductible at $12,000, as opposed to the $13,000 cap negotiated within the original indemnity agreement. In conjunction with the payment of that settlement, Tyco and the Company examined the Company’s total Special Products Claim payments and agreed that with that settlement payment and payment of a few other legal fee invoices, all of which have now been paid, the Company had met its $12,000 deductible obligation related to these Special Products Claims. Tyco,International Ltd. (“Tyco”), now Johnson Controls, Inc. (“JCI”), has a contractual obligation to indemnify the Company in respect of all remaining and future claims of incompatibility between the Company’sCompany's antimicrobial coated steel sprinkler pipe and CPVC pipe used in the same sprinkler system. TycoWhen Special Products Claims arise, JCI has defended and indemnified the Company on Special Products Claims as required.

At this time, the Company does not expect the outcome of the Special Products Claims proceedings, either individually or in the aggregate, to have a material adverse effect on its business, financial condition, results of operations or cash flows, and the Company believes that its reserves are adequate for all remaining contingencies for Special Products Claims.

During the year ended September 30, 2020, one of the Company’s manufacturing facilities experienced a flood which resulted in damage to certain property, plant and equipment. This facility is covered under the Company’s property and casualty loss and business interruption insurance policies. The Company recorded an expense of $6,046 for losses related to fully written off property, plant and equipment, with a related insurance recovery of $5,046 within selling, general and administrative expenses in its consolidated statements of operations for the year ended September 30, 2020. The Company believes that, other than the $1,000 deductible expense under the related insurance claim, it will be reimbursed for substantially all other property, plant and equipment losses in connection with the event under its current insurance policies. During the three months ended March 26, 2021, the Company received $6,000 of business interruption insurance recovery proceeds related to this incident. The amount was recorded as other income within the condensed consolidated statements of operations for the nine months ended June 25, 2021.

In addition to the matters discussed above, from time to time, the Company is subject to a number of disputes, administrative proceedings and other claims arising out of the ordinary conduct of the Company’sCompanys business. These matters generally relate to disputes arising out of the use or installation of the Company’sCompanys products, product liability litigation, contract disputes, patent infringement accusations, employment matters, personal injury claims and similar matters. On the basis of information currently available to the Company, it does not believe that existing proceedings and claims will have a material adverse effect on its business, financial condition, results of operations or cash flows. However, litigation is unpredictable, and the Company could incur judgments or enter into settlements for current or future claims that could adversely affect its business, financial condition, results of operations or cash flows.

15. GUARANTEES

The Company had outstanding letters of credit totaling $9,501$12,095 supporting workers’workers compensation and general liability insurance policies as of June 25, 2021.24, 2022. The Company also had surety bonds primarily related to performance guarantees on supply agreements and construction contracts, and payment of duties and taxes totaling $18,331$30,039 as of June 25, 2021.
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24, 2022.

In disposing of assets or businesses, the Company often provides representations, warranties and indemnities to cover various risks including unknown damage to the assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. The Company does not have the ability to estimate the potential liability from such indemnities because they relate to unknown conditions. However, the Company has no reason to believe that these uncertainties would have a material adverse effect on the Company’sCompanys business, financial condition, results of operations or cash flows.

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In the normal course of business, the Company is liable for product performance and contract completion. In the opinion of management, such obligations will not have a material adverse effect on the Company’sCompanys business, financial condition, results of operations or cash flows.

16. SEGMENT INFORMATION

Effective in the first quarter of fiscal 2021, the Company renamed and redefined its reportable segments.

The Electrical Raceway segment was renamed as the Electrical segment. The Electrical segment manufactures high quality products used in the construction of electrical power systems including conduit, cable and installation accessories. This segment serves contractors in partnership with the electrical wholesale channel.channel.

The Mechanical Products & Solutions segment was renamed as the Safety & Infrastructure segment. This segment designs and manufactures solutions including metal framing, mechanical pipe, perimeter security and cable management for the protection and reliability of critical infrastructure. These solutions are marketed to contractors, original equipment manufacturers and end users.
Effective in the first quarter of fiscal 2021, the Company also implemented the Realignment of its segment financial reporting structure such that its domestic cable management and prefabrication modular businesses are now reflected in its Safety & Infrastructure segment. These businesses were previously reflected within the Electrical segment. See Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” for additional information. Prior year results have been revised for the impact of the Realignment for comparability.
    
Both segments use Adjusted EBITDA as the primary measure of profit and loss. Segment Adjusted EBITDA is income (loss) before income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, restructuring charges, stock-based compensation, loss on extinguishment of debt, certain legal matters, transaction costs and other items, such as inventory reserves and adjustments, (gain) loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, and realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives.derivatives, gain on purchase of business, restructuring costs and transaction costs.

Intersegment transactions primarily consist of product sales at designated transfer prices on an arm’s-lengtharms-length basis. Gross profit earned and reported within the segment is eliminated in the Company’sCompanys consolidated results. Certain manufacturing and distribution expenses are allocated between the segments on a pro rata basis due to the shared nature of activities. Recorded amounts represent a proportional amount of the quantity of product produced for each segment. Certain assets, such as machinery and equipment and facilities, are not allocated to each segment despite serving both segments. These shared assets are reported within the Safety & Infrastructure segment. The Company allocates certain corporate operating expenses that directly benefit our operating segments, such as insurance and information technology, on a basis that reasonably approximates an estimate of the use of these services.

Three months ended
 June 24, 2022June 25, 2021
(in thousands)External Net SalesIntersegment SalesAdjusted EBITDAExternal Net SalesIntersegment SalesAdjusted EBITDA
Electrical$819,845 $1,721 $351,466 $660,198 $965 $267,824 
Safety & Infrastructure241,745 164 45,669 193,460 32 22,365 
Eliminations— (1,885)— (997)
Consolidated operations$1,061,590 $— $853,658 $— 

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Three months endedNine months ended
June 25, 2021June 26, 2020 June 24, 2022June 25, 2021
(in thousands)(in thousands)External Net SalesIntersegment SalesAdjusted EBITDAExternal Net SalesIntersegment SalesAdjusted EBITDA(in thousands)External Net SalesIntersegment SalesAdjusted EBITDAExternal Net SalesIntersegment SalesAdjusted EBITDA
ElectricalElectrical$660,198 $965 $267,824 $271,521 $630 $55,549 Electrical$2,218,535 $1,947 $961,983 $1,533,442 $2,366 $589,923 
Safety & InfrastructureSafety & Infrastructure193,460 32 22,365 113,378 14,150 Safety & Infrastructure666,428 276 102,018 470,841 116 52,810 
EliminationsEliminations— (997)— (632)Eliminations— (2,223)— (2,482)
Consolidated operationsConsolidated operations$853,658 $— $384,899 $— Consolidated operations$2,884,963 $— $2,004,283 $— 


    
Nine months ended
 June 25, 2021June 26, 2020
(in thousands)External Net SalesIntersegment SalesAdjusted EBITDAExternal Net SalesIntersegment SalesAdjusted EBITDA
Electrical$1,533,442 $2,366 $589,923 $917,986 $1,930 $200,901 
Safety & Infrastructure470,841 116 52,810 370,015 50,765 
Eliminations— (2,482)— (1,933)
Consolidated operations$2,004,283 $— $1,288,001 $— 

Presented below is a reconciliation of operating Segment Adjusted EBITDA to Income before income taxes:

Three months endedNine months endedThree months endedNine months ended
(in thousands)(in thousands)June 25, 2021June 26, 2020June 25, 2021June 26, 2020(in thousands)June 24, 2022June 25, 2021June 24, 2022June 25, 2021
Operating segment Adjusted EBITDAOperating segment Adjusted EBITDAOperating segment Adjusted EBITDA
ElectricalElectrical$267,824 $55,549 $589,923 $200,901 Electrical$351,466 $267,824 $961,983 $589,923 
Safety & InfrastructureSafety & Infrastructure22,365 14,150 52,810 50,765 Safety & Infrastructure45,669 22,365 102,018 52,810 
TotalTotal$290,189 $69,699 $642,733 $251,666 Total$397,135 $290,189 $1,064,001 $642,733 
Unallocated expenses (a)Unallocated expenses (a)(15,925)(5,975)(38,114)(23,229)Unallocated expenses (a)(19,605)(15,925)(47,295)(38,114)
Depreciation and amortizationDepreciation and amortization(20,166)(18,316)(58,475)(55,524)Depreciation and amortization(20,428)(20,166)(60,467)(58,475)
Interest expense, netInterest expense, net(8,090)(9,421)(24,760)(30,605)Interest expense, net(7,243)(8,090)(21,676)(24,760)
Transaction costsTransaction costs(1,708)(287)(3,274)(646)
Loss on extinguishment of debtLoss on extinguishment of debt(4,202)(4,202)Loss on extinguishment of debt— (4,202)— (4,202)
Stock-based compensationStock-based compensation(3,768)(1,656)(14,158)(9,302)Stock-based compensation(4,625)(3,768)(14,180)(14,158)
Other (b)Other (b)(1,087)(1,581)9,194 (5,833)Other (b)(1,172)(800)(848)9,840 
Income before income taxesIncome before income taxes$236,951 $32,750 $512,218 $127,173 Income before income taxes$342,354 $236,951 $916,261 $512,218 
(a) Represents unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, human resources, information technology, business development and communications, as well as certain costs and earnings of employee-related benefits plans, such as stock-based compensation and a portion of self-insured medical costs.(a) Represents unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, human resources, information technology, business development and communications, as well as certain costs and earnings of employee-related benefits plans, such as stock-based compensation and a portion of self-insured medical costs.(a) Represents unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, human resources, information technology, business development and communications, as well as certain costs and earnings of employee-related benefits plans, such as stock-based compensation and a portion of self-insured medical costs.
(b) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, gain on purchase of business, restructuring costs and transaction costs.
(b) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business. realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, and restructuring charges.(b) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business. realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, and restructuring charges.


The Company’s net sales by geography were as follows for the nine months ended June 25, 2021 and June 26, 2020:












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Three months endedNine months ended
(in thousands)June 25, 2021June 26, 2020June 25, 2021June 26, 2020
United States$773,204 $348,960 1,800,395 $1,146,156 
Other Americas15,475 4,474 34,885 18,713 
Europe52,126 27,112 135,025 96,439 
Asia-Pacific12,853 4,353 33,978 26,693 
Total$853,658 $384,899 $2,004,283 $1,288,001 
The Companys net sales by geography were as follows for the three months ended and nine months ended June 24, 2022 and June 25, 2021:

Three months endedNine months ended
(in thousands)June 24, 2022June 25, 2021June 24, 2022June 25, 2021
United States$961,954 $773,204 $2,614,937 $1,800,395 
Other Americas30,094 15,475 77,230 34,885 
Europe56,952 52,126 160,115 135,025 
Asia-Pacific12,588 12,853 32,681 33,978 
Total$1,061,590 $853,658 $2,884,963 $2,004,283 

The table below shows the amount of net sales from external customers for each of the Company’sCompanys product categories which accounted for 10% or more of consolidated net sales in either period for the three months ended and nine months ended June 25, 202124, 2022 and June 26, 2020:25, 2021:

Three months endedNine months endedThree months endedNine months ended
(in thousands)(in thousands)June 25, 2021June 26, 2020June 25, 2021June 26, 2020(in thousands)June 24, 2022June 25, 2021June 24, 2022June 25, 2021
Metal Electrical Conduit and FittingsMetal Electrical Conduit and Fittings$200,989 $105,079 $474,223 $354,530 Metal Electrical Conduit and Fittings$181,196 $200,989 $484,122 $474,223 
Armored Cable and Fittings106,645 60,141 265,597 226,579 
PVC Electrical Conduit and Fittings270,527 71,914 608,201 216,143 
International Cable Management Products57,462 31,669 148,723 109,303 
Electrical Cable & Flexible ConduitElectrical Cable & Flexible Conduit142,298 106,645 395,237 265,597 
PVC Pipe and ConduitPVC Pipe and Conduit389,438 270,527 1,053,203 608,201 
Other Electrical productsOther Electrical products24,575 2,718 36,698 11,431 Other Electrical products106,913 82,037 285,973 185,421 
ElectricalElectrical660,198 271,521 1,533,442 917,986 Electrical819,845 660,198 2,218,535 1,533,442 
Mechanical PipeMechanical Pipe112,110 59,985 264,101 184,009 Mechanical Pipe115,156 112,110 339,217 264,101 
Other Safety & Infrastructure productsOther Safety & Infrastructure products81,350 53,393 206,740 186,006 Other Safety & Infrastructure products126,589 81,350 327,211 206,740 
Safety & InfrastructureSafety & Infrastructure193,460 113,378 470,841 370,015 Safety & Infrastructure241,745 193,460 666,428 470,841 
Net salesNet sales$853,658 $384,899 $2,004,283 $1,288,001 Net sales$1,061,590 $853,658 $2,884,963 $2,004,283 

17. SUBSEQUENT EVENTS

Subsequent to quarter end, the Company has repurchased 1.2 million shares at a cost of $103.2 million as of July 29, 2022.
23


Item 2. ManagementsManagement’s Discussion and Analysis of Financial Condition and Results of Operations

The following information should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included in this report. The following discussion may contain forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in these forward- looking statements. Factors that could cause or contribute to these differences include those factors discussed below and included or referenced elsewhere in this report, particularly in the sections entitled Forward-Looking Statementsand Risk Factors.

Impacts of COVID-19Incremental Market Uncertainties

The outbreak of the novel coronavirus (“COVID-19”(COVID-19) has continued to spread and is currently classified as a pandemic which is contributing to significant volatility and uncertainty in markets and the global economy. This heightened volatility and uncertainty makes it difficult for us to predict the extent of COVID-19’s impact on our operations going forward.

As of the date of this filing, customers and end markets face some uncertainty and delays in the timing of work. In particular, some construction site closures or project delays have occurred, and job sites have had to adjust to increased physical distancing and health-related precautions. Given the continued volatility within the economic impacts of the pandemic it is too difficult to make any judgment on how significant COVID-19 effects could become.

Factors that contribute to our ability to adjust to the outbreak include currently being deemed an “essential business,” benefiting from mostly localized supply chains and continuing to take actions within our control to minimize the disruptive impacts of the outbreak. However, there can be no assurance that we will not be materially and adversely impacted in the future. The extent to which COVID-19 will impact our business will depend on future developments and public health advancements, which are highly uncertain and cannot be predicted with confidence.

Currently,In addition to the uncertainties brought about by COVID-19, recent events, including central bank interest rate increases and the Russia-Ukraine conflict, are creating additional uncertainty in the global economy, generally, and in the markets we operate in. COVID-19, the Russia-Ukraine conflict and other factors have no COVID-19 related facility closures as we lookhad and will continue to serve our current levels of demand. In response to COVID-19, we have implemented a variety of countermeasures to promote the health and safetyadverse effects on global supply chains, which may impact some aspects of our employees during this pandemic, including health screening, physical distancing practices, enhanced cleaning, usebusiness. Furthermore, with the onset of personal protective equipment, business travel restrictions, and remote work capabilities.hurricane season, we are mindful of the effects that adverse weather can have on our domestic supply chain.


Results of OperationsRESULTS OF OPERATIONS
    
The consolidated results of operations for the three months ended June 25, 202124, 2022 and June 26, 202025, 2021 were as follows:
Three months endedThree months ended
($ in thousands)June 25, 2021June 26, 2020Change% Change
(in thousands)(in thousands)June 24, 2022June 25, 2021Change% Change
Net salesNet sales$853,658 $384,899 $468,759 121.8 %Net sales$1,061,590 $853,658 $207,932 24.4 %
Cost of salesCost of sales514,385 289,086 225,299 77.9 %Cost of sales607,267 514,385 92,882 18.1 %
Gross profitGross profit339,273 95,813 243,460 254.1 %Gross profit454,323 339,273 115,050 33.9 %
Selling, general and administrativeSelling, general and administrative81,832 46,159 35,673 77.3 %Selling, general and administrative95,952 81,832 14,120 17.3 %
Intangible asset amortizationIntangible asset amortization8,707 8,026 681 8.5 %Intangible asset amortization8,624 8,707 (83)(1.0)%
Operating incomeOperating income248,734 41,628 207,106 497.5 %Operating income349,747 248,734 101,013 40.6 %
Interest expense, netInterest expense, net8,090 9,421 (1,331)(14.1)%Interest expense, net7,243 8,090 (847)(10.5)%
Loss on extinguishment of debtLoss on extinguishment of debt4,202 — 4,202 100.0 %Loss on extinguishment of debt— 4,202 (4,202)100.0 %
Other income, netOther income, net(509)(543)34 (6.3)%Other income, net150 (509)659 (129.5)%
Income before income taxesIncome before income taxes236,951 32,750 204,201 623.5 %Income before income taxes342,354 236,951 105,403 44.5 %
Income tax expenseIncome tax expense61,654 8,672 52,982 611.0 %Income tax expense88,041 61,654 26,387 42.8 %
Net incomeNet income$175,297 $24,078 $151,219 628.0 %Net income$254,313 $175,297 $79,016 45.1 %





24


Net sales
% Change
Volume23.6 (5.1)%
Average selling prices89.028.6 %
Foreign exchange1.9 (0.8)%
Acquisitions6.91.6 %
Other0.40.1 %
Net sales121.824.4 %
    
Net sales increased by $468.8$207.9 million, or 121.8%24.4%, to $1,061.6 million for the three months ended June 24, 2022, compared to $853.7 million for the three months ended June 25, 2021, compared to $384.9 million for the three months ended June 26, 2020.2021. The increase in net sales is primarily attributed to increased average selling prices across the Company’s products of $342.8$244.0 million which were mostly driven by the PVC electricalpipe and conduit and fittings product category within the Electrical segment and increased net sales of $26.7$13.8 million due tofrom companies acquired during fiscal 2021 and fiscal 2022. These increases are offset by decreased sales volume of $43.9 million across varying product categories within both the acquisitions of Queen City PlasticsElectrical and FRE Composites Group.the Safety & Infrastructure segments. Pricing for PVC products, as well as other parts of the business, areis expected to return to more normal historical levels over time, but that time is uncertain. The increase in net sales was also driven by an increase in sales volume of $90.9 million across nearly all product categories within both the Electrical and the Safety & Infrastructure segments.

Cost of sales
% Change
Volume23.5 (3.6)%
Average input costs42.819.1 %
Foreign exchange2.2 (2.3)%
Acquisitions3.71.8 %
Other5.73.1 %
Cost of sales77.918.1 %

Cost of sales increased by $225.3$92.9 million, or 77.9%18.1%, to $607.3 million for the three months ended June 24, 2022 compared to $514.4 million for the three months ended June 25, 2021 compared to $289.1 million for the three months ended June 26, 2020.2021. The increase was primarily due to higher input costs of steel, copper and PVC resin of $124.0$98.0 million higherand recent acquisitions during fiscal 2021 and fiscal 2022 of $9.3 million partially offset by lower sales volume of $68.0$18.7 million across varying product categories within both the Electrical and due to the acquisitions of Queen City Plastics and FRE Composites Group of $10.7 million.Safety & Infrastructure segments.

Selling, general and administrative

Selling, general and administrative expenses increased by $35.7$14.1 million, or 77.3%17.3%, to $96.0 million for the three months ended June 24, 2022 compared to $81.8 million for the three months ended June 25, 2021. The increase was primarily due to increased general spending on business improvement initiatives of $8.8 million, higher transaction costs of $1.7 million, higher sales commission expense of $3.6 million, higher variable compensation of $1.3 million and recent acquisitions in fiscal 2021 compared to $46.2and 2022 of $1.0 million. These increases were partially offset by decreases of $2.3 million spread across a variety of other spend categories.

Intangible asset amortization

Intangible asset amortization expense remained relatively flat at $8.6 million for the three months ended June 26, 2020. The increase was primarily due to higher sales commission expense of $9.1 million, higher variable compensation of $7.1 million, higher stock compensation expense of $2.5 million, higher acquisition related spend of $1.3 million driven by the acquisitions of Queen City Plastics and the FRE Composites Group, and the remainder primarily being driven by the tight controls on expenditures put into place in the prior year at the onset of the COVID-19 pandemic.

    Intangible asset amortization

Intangible asset amortization expense increased24, 2022 compared to $8.7 million for the three months ended June 25, 2021 compared to $8.0 million for the three months ended June 26, 2020.2021.

Interest expense, net

Interest expense, net decreased by $1.3$0.8 million, or 14.1%10.5% to $7.2 million for the three months ended June 24, 2022 compared to $8.1 million for the three months ended June 25, 2021 compared to $9.4 million for the three months ended June 26, 2020.2021. The decrease is primarily due to the Company’s principal prepayments in fiscal 2020 and 2021, resulting in a lower principal balance in fiscal 2021 from which interest expense was derived.
25


primarily due to interest expense being derived from a lower average principal balance resulting from the Company’s fiscal 2021 debt restructuring transactions.

Other income, net

Other income, net remained consistent atdecreased to $0.2 million other expense for the three months ended June 24, 2022 compared to $0.5 million other income for the three months ended June 25, 2021 compared2021. The decrease was primarily due to $0.5 millionforeign currency fluctuations.

Income tax expense

The Companys income tax rate decreased to 25.7% for the three months ended June 26, 2020.

Income tax expense

The Company’s income tax rate decreased24, 2022 compared to 26.0% for the three months ended June 25, 2021 compared to 26.5% for the three months ended June 26, 2020.2021. The decrease in the current period effective tax rate was primarily driven by losses incurred bythe prior year one-time tax expense from the deferred remeasurement of our foreign jurisdictions forUK subsidiaries due to the enactment of the Finance Act of 2021 which, we are not ableamong other things, changed the UK corporate tax rate from 19% to realize the related tax benefit.25%.

Segment ResultsSEGMENT RESULTS

Effective in the first quarter of fiscal 2021, the Company renamed and redefined its reportable segments.

The Electrical Raceway segment was renamed as the Electrical segment. The Electrical segment manufactures high quality products used in the construction of electrical power systems including conduit, cable and installation accessories. This segment serves contractors in partnership with the electrical wholesale channel.

The Mechanical Products & Solutions segment was renamed as the Safety & Infrastructure segment. This segment designs and manufactures solutions including metal framing, mechanical pipe, perimeter security and cable management for the protection and reliability of critical infrastructure. These solutions are marketed to contractors, original equipment manufacturers and end users.

Effective in the first quarter of fiscal 2021, the Company implemented the Realignment of its segment financial reporting structure. The Company’s domestic cable management and prefabrication modular businesses had historically been reported in the Electrical Raceway segment. Due to transitions in the Company’s Executive Leadership Team, these businesses are now reported in the Safety & Infrastructure segment. The Realignment reflects how the Company’s Chief Operating Decision Maker now assesses the operating performance and allocates resources to the Safety & Infrastructure segment.

The Company reflected these changes to its segment information retrospectively to the earliest period presented which resulted in a transfer of external net sales, intersegment sales, total assets, and Adjusted EBITDA from the Electrical segment to the Safety & Infrastructure segment. These changes had no impact on the Company’s previously reported consolidated net sales, operating income, net income or earnings per share.

Both segments use Adjusted EBITDA as the primary measure of profit and loss. Segment Adjusted EBITDA is income (loss) before income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, restructuring charges, stock-based compensation, loss on extinguishment of debt, certain legal matters, transaction costs and other items, such as inventory reserves and adjustments, (gain) loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, and realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives.derivatives, gain on purchase of business, restructuring costs and transaction costs. We define segment Adjusted EBITDA margin as segment Adjusted EBITDA as a percentage of segment Net sales.
        
Electrical
Three months endedThree months ended
($ in thousands)June 25, 2021June 26, 2020Change% Change
(in thousands)(in thousands)June 24, 2022June 25, 2021Change% Change
Net salesNet sales$661,163 $272,151 $389,012 142.9 %Net sales$821,566 $661,163 $160,403 24.3 %
Adjusted EBITDAAdjusted EBITDA$267,824 $55,549 $212,275 382.1 %Adjusted EBITDA$351,466 $267,824 $83,642 31.2 %
Adjusted EBITDA marginAdjusted EBITDA margin40.5 %20.4 %Adjusted EBITDA margin42.8 %40.5 %












26


Net sales
% Change
Volume23.6 (6.2)%
Average selling prices106.730.3 %
Foreign exchange2.7 (1.0)%
Acquisitions9.71.0 %
Other0.2 %
Net sales142.924.3 %


Net sales increased by $389.0$160.4 million, or 142.9%24.3%, to $821.6 million for the three months ended June 24, 2022 compared to $661.2 million for the three months ended June 25, 2021 compared to $272.2 million for the three months ended June 26, 2020.2021. The increase in net sales is primarily attributed to increased average selling prices of $290.6$200.1 million which were mostly driven by the PVC electricalpipe and conduit and fittingsproduct category the metal electrical conduit and fittings product categories and increased net sales of $26.5$6.9 million from companies acquired during fiscal 2021 and fiscal 2022. These increases are offset by decreased sales volume of $41.2 million across varying product categories. Pricing for PVC products, as well as other parts of the acquisitionsbusiness, is expected to return to more normal historical levels over time, but that time is uncertain.

Adjusted EBITDA

Adjusted EBITDA for the three months ended June 24, 2022 increased by $83.6 million, or 31.2%, to $351.5 million from $267.8 million for the three months ended June 25, 2021. Adjusted EBITDA margins increased to 42.8% for the three months ended June 24, 2022 compared to 40.5% for the three months ended June 25, 2021. The increase in Adjusted EBITDA and Adjusted EBITDA margins was largely due to higher average selling prices over input costs.

Safety & Infrastructure
Three months ended
(in thousands)June 24, 2022June 25, 2021Change% Change
Net sales$241,909 $193,492 $48,417 25.0 %
Adjusted EBITDA$45,669 $22,365 $23,304 104.2 %
Adjusted EBITDA margin18.9 %11.6 %
Net sales
% Change
Volume(1.4)%
Average selling prices22.7 %
Acquisitions3.6 %
Other0.1 %
Net sales25.0 %

Net sales increased by $48.4 million, or 25.0%, for the three months ended June 24, 2022 to $241.9 million compared to $193.5 million for the three months ended June 25, 2021. The increase is primarily attributed to increased average selling prices of Queen City Plastics$43.9 million driven by higher input costs of steel and FRE Composites Group.increased net sales of $6.9 million from companies acquired during fiscal 2022 partially offset by lower volumes of $2.8 million primarily across various steel product categories.




27


Adjusted EBITDA

Adjusted EBITDA increased by $23.3 million, or 104.2%, to $45.7 million for the three months ended June 24, 2022 compared to $22.4 million for the three months ended June 25, 2021. Adjusted EBITDA margins increased to 18.9% for the three months ended June 24, 2022 compared to 11.6% for the three months ended June 25, 2021. The Adjusted EBITDA increase is primarily due to higher average prices over input costs.


The consolidated results of operations for the nine months ended June 24, 2022 and June 25, 2021 were as follows:
Nine months ended
(in thousands)June 24, 2022June 25, 2021Change% Change
Net sales$2,884,963 $2,004,283 $880,680 43.9 %
Cost of sales1,659,416 1,235,970 423,446 34.3 %
Gross profit1,225,547 768,313 457,234 59.5 %
Selling, general and administrative263,020 210,250 52,770 25.1 %
Intangible asset amortization25,554 25,063 491 2.0 %
Operating income936,973 533,000 403,973 75.8 %
Interest expense, net21,676 24,760 (3,084)(12.5)%
Loss on extinguishment of debt— 4,202 (4,202)100.0 %
Other income, net(964)(8,180)7,216 (88.2)%
Income before income taxes916,261 512,218 404,043 78.9 %
Income tax expense223,630 126,922 96,708 76.2 %
Net income$692,631 $385,296 $307,335 79.8 %

Net sales
% Change
Volume(5.1)%
Average selling prices47.4 %
Foreign exchange(0.4)%
Acquisitions1.9 %
Other0.1 %
Net sales43.9 %

Net sales increased by $880.7 million, or 43.9%, to $2,885.0 million for the nine months ended June 24, 2022, compared to $2,004.3 million for the nine months ended June 25, 2021. The increase in net sales is primarily attributed to increased average selling prices of $950.8 million which were mostly driven by the PVC pipe and conduit product category within the Electrical segment and increased net sales of $39.1 million from companies acquired during fiscal 2021 and fiscal 2022. These increases are offset by decreased sales volume of $103.1 million across varying product categories within both the Electrical and the Safety & Infrastructure segments. Pricing for PVC products, as well as other parts of the business, are expected to return to more normal historical levels over time, but that time is uncertain. Additionally, sales volume increased $64.1 million driven by increased volumes across all product categories.

    Adjusted EBITDA

Adjusted EBITDA for the three months ended June 25, 2021 increased by $212.3 million, or 382.1%, to $267.8 million from $55.5 million for the three months ended June 26, 2020. Adjusted EBITDA margins increased to 40.5% for the three months ended June 25, 2021 compared to 20.4% for the three months ended June 26, 2020. The increase in Adjusted EBITDA and Adjusted EBITDA margins was largely due to higher average selling prices in relation to changes in input costs, operational efficiencies and contributions from the acquisitions of Queen City Plastics and FRE Composites Group.


Safety & Infrastructure
Three months ended
($ in thousands)June 25, 2021June 26, 2020Change% Change
Net sales$193,492 $113,380 $80,112 70.7 %
Adjusted EBITDA$22,365 $14,150 $8,215 58.1 %
Adjusted EBITDA margin11.6 %12.5 %
    Net sales
% Change
Volume23.6 %
Average selling prices46.1 %
Acquisitions0.1 %
Other0.9 %
Net sales70.7 %

Net sales increased by $80.1 million, or 70.7%, for the three months ended June 25, 2021 to $193.5 million compared to $113.4 million for the three months ended June 26, 2020. The increase is primarily attributed to increased average selling prices of $52.2 million driven by higher input costs of steel, and by higher volumes of $26.8 million primarily driven by increases across all product categories.

    Adjusted EBITDA

Adjusted EBITDA increased by $8.2 million, or 58.1%, to $22.4 million for the three months ended June 25, 2021 compared to $14.2 million for the three months ended June 26, 2020. Adjusted EBITDA margins decreased to 11.6% for the
2728


three months ended June 25, 2021 compared to 12.5% for the three months ended June 26, 2020. The Adjusted EBITDA increase is primarily due to the price and volume increases discussed above.Cost of sales


The consolidated results of operations for the nine months ended June 25, 2021 and June 26, 2020 were as follows:
Nine months ended
($ in thousands)June 25, 2021June 26, 2020Change% Change
Net sales$2,004,283 $1,288,001 $716,282 55.6 %
Cost of sales1,235,970 943,741 292,229 31.0 %
Gross profit768,313 344,260 424,053 123.2 %
Selling, general and administrative210,250 164,734 45,516 27.6 %
Intangible asset amortization25,063 24,210 853 3.5 %
Operating income533,000 155,316 377,684 243.2 %
Interest expense, net24,760 30,605 (5,845)(19.1)%
Loss on extinguishment of debt4,202 — 4,202 100.0 %
Other income, net(8,180)(2,462)(5,718)232.3 %
Income before income taxes512,218 127,173 385,045 302.8 %
Income tax expense126,922 29,112 97,810 336.0 %
Net income$385,296 $98,061 $287,235 292.9 %

Net sales
% Change
Volume4.9 (4.8)%
Average input costs33.6 %
Foreign exchange(0.7)%
Acquisitions2.0 %
Other4.2 %
Cost of sales34.3 %

Cost of sales increased by $423.4 million, or 34.3% to $1,659.4 million for the nine months ended June 24, 2022 compared to $1,236.0 million for the nine months ended June 25, 2021. The increase in cost of sales was primarily due to higher input costs for steel, copper and resin of $414.8 million and recent acquisitions in fiscal 2021 and fiscal 2022 of $25.2 million, partially offset by lower sales volume of $59.6 million across varying product categories within both the Electrical and the Safety & Infrastructure segments.

Selling, general and administrative
Selling, general and administrative expenses increased by $52.8 million, or 25.1% to $263.0 million for the nine months ended June 24, 2022 compared to $210.3 million for the nine months ended June 25, 2021. The increase was primarily due to higher sales commission expense of $19.7 million, increased general spending on business improvement initiatives of $18.2 million, transaction costs of $3.3 million, higher variable compensation of $5.5 million, and recent acquisitions in fiscal 2021 and 2022 of $2.6 million. The remaining increase of $3.5 million is spread across a variety of other spend categories.

Intangible asset amortization

Intangible asset amortization expense increased to $25.6 million for the nine months ended June 24, 2022 compared to $25.1 million for the nine months ended June 25, 2021. The increase in intangible asset amortization was driven by the acquisition of definite-lived intangible assets in fiscal 2022.

Interest expense, net

Interest expense, net, decreased by $3.1 million, or 12.5% to $21.7 million for the nine months ended June 24, 2022 compared to $24.8 million for the nine months ended June 25, 2021. The decrease is primarily due to the Companys principal prepayments in fiscal 2020 and 2021, resulting in a lower principal balance in fiscal 2021 from which interest expense was derived.

Other income, net

Other income, net decreased to $1.0 million for the nine months ended June 24, 2022 compared to $8.2 million for the nine months ended June 25, 2021. The decrease was primarily due to a $6.0 million business interruption insurance recovery in fiscal 2021 from a flood at one of the Company’s manufacturing facilities.

Income tax expense

The Companys income tax rate decreased to 24.4% for the nine months ended June 24, 2022 compared to 24.8% for the nine months ended June 25, 2021. The decrease in the six month period effective tax rate was primarily due to an increase in the excess tax benefit associated with stock compensation.


29


SEGMENT RESULTS

Electrical
Nine months ended
(in thousands)June 24, 2022June 25, 2021Change% Change
Net sales$2,220,482 $1,535,808 $684,674 44.6 %
Adjusted EBITDA$961,983 $589,923 $372,060 63.1 %
Adjusted EBITDA margin43.3 %38.4 %

Net sales
% Change
Volume(4.1)%
Average selling prices45.547.5 %
Foreign exchange1.1 (0.5)%
Acquisitions4.01.7 %
Other0.1 %
Net sales55.644.6 %

Net sales increased by $716.3$684.7 million, or 55.6%44.6%, to $2,004.3$2,220.5 million for the nine months ended June 24, 2022 compared to $1,535.8 million for the nine months ended June 25, 2021, compared to $1,288.0 million for the nine months ended June 26, 2020.2021. The increase in net sales is primarily attributed to increased average selling prices of $586.6$729.5 million which were mostly driven by the PVC electricalpipe and conduit and fittings product category within the Electrical segment and increased net sales of $51.4$26.7 million from the acquisitionscompanies acquired during fiscal 2021 and fiscal 2022. These increases were partially offset by decreased sales volume of Queen City Plastics and FRE Composites Group.$64.0 million. Pricing for PVC products, as well as other parts of the business, are expected to return to more normal historical levels over time, but that time is uncertain. The increase in net sales was also driven by increases in sales volumes across the majority of product categories in both the Electrical and the Safety & Infrastructure segments.

Cost of sales
% Change
Volume5.0 %
Average input costs21.5 %
Foreign exchange1.2 %
Acquisitions2.3 %
Other1.0 %
Cost of sales31.0 %

Cost of sales increased by $292.2 million, or 31.0% to $1,236.0 million for the nine months ended June 25, 2021 compared to $943.7 million for the nine months ended June 26, 2020. The increase was primarily due to higher sales volumes
28


of $47.1 million, higher input costs for steel, copper and resin of $202.8 million and the acquisitions of Queen City Plastics and FRE Composites Group of $21.5 million.
Selling, general and administrative
Selling, general and administrative expenses increased by $45.5 million, or 27.6% to $210.3 million for the nine months ended June 25, 2021 compared to $164.7 million for the nine months ended June 26, 2020. The increase was primarily due to higher sales commission expense of $12.3 million, higher variable compensation of $13.6 million, higher stock compensation expense of $4.8 million and the acquisitions of Queen City Plastics and the FRE Composites Group of $3.0 million, partially offset by productivity efficiencies of $5.4 million. The majority of the remaining increase was primarily driven by the tight controls on expenditures put into place in the prior year at the onset of the COVID-19 pandemic.

    Intangible asset amortization

Intangible asset amortization expense increased to $25.1 million for the nine months ended June 25, 2021 compared to $24.2 million for the nine months ended June 26, 2020.

Interest expense, net

Interest expense, net, decreased by $5.8 million, or 19.1% to $24.8 million for the nine months ended June 25, 2021 compared to $30.6 million for the nine months ended June 26, 2020. The decrease is primarily due to the Company’s principal prepayments in fiscal 2020 and 2021, resulting in a lower principal balance in fiscal 2021 from which interest expense was derived.

    Other income, net

Other income, net increased by $5.7 million to $8.2 million for the nine months ended June 25, 2021 compared to $2.5 million for the nine months ended June 26, 2020. The increase was primarily due to a $6.0 million business interruption insurance recovery from a flood at one of the Company’s manufacturing facilities. See Note 14, “Commitments and Contingencies” to the accompanying condensed consolidated financial statements included elsewhere in this Quarterly Report.

Income tax expense

The Company’s income tax rate increased to 24.8% for the nine months ended June 25, 2021 compared to 22.9% for the nine months ended June 26, 2020. The increase in the nine month period effective tax rate was primarily due to a smaller impact in the net discrete tax benefit compared to the increase in earnings period over period.
Segment Results

ElectricalAdjusted EBITDA
Nine months ended
($ in thousands)June 25, 2021June 26, 2020Change% Change
Net sales$1,535,808 $919,916 $615,892 67.0 %
Adjusted EBITDA$589,923 $200,901 $389,022 193.6 %
Adjusted EBITDA margin38.4 %21.8 %
29



    Net sales
% Change
Volume4.0 %
Average selling prices55.8 %
Foreign exchange1.5 %
Acquisitions5.6 %
Other0.1 %
Net sales67.0 %

Net sales increased by $615.9 million, or 67.0%, to $1,535.8 million for the nine months ended June 25, 2021 compared to $919.9 million for the nine months ended June 26, 2020. The increase in net sales is primarily attributed to increased average selling prices of $513.3 million which were mostly driven by the PVC electrical conduit and fittings and the metal electrical conduit and fittings product categories, increased sales volume across most product categories and increased net sales of $51.2 million from the acquisitions of Queen City Plastics and FRE Composites Group.

    Adjusted EBITDA

Adjusted EBITDA for the nine months ended June 25, 202124, 2022 increased by $389.0$372.1 million, or 193.6%63.1%, to $589.9$962.0 million from $200.9$589.9 million for the nine months ended June 26, 2020.25, 2021. Adjusted EBITDA margins increased to 43.3% for the nine months ended June 24, 2022 compared to 38.4% for the nine months ended June 25, 2021 compared to 21.8% for the nine months ended June 26, 2020.2021. The increase in Adjusted EBITDA and Adjusted EBITDA margins was largely due to higher average selling prices in relation to changes in input costs, operational efficiencies and contributions from the acquisitions of Queen City Plastics and FRE Composites Group.acquisitions.

Safety & Infrastructure
Nine months ended
(in thousands)June 24, 2022June 25, 2021Change% Change
Net sales$666,704 $470,957 $195,747 41.6 %
Adjusted EBITDA$102,018 $52,810 $49,208 93.2 %
Adjusted EBITDA margin15.3 %11.2 %

Safety & Infrastructure
Nine months ended
($ in thousands)June 25, 2021June 26, 2020Change% Change
Net sales$470,957 $370,018 $100,939 27.3 %
Adjusted EBITDA$52,810 $50,765 $2,045 4.0 %
Adjusted EBITDA margin11.2 %13.7 %







30


Net sales

Change (%)
Volume7.2 (8.3)%
Average selling prices19.847.0 %
Acquisitions0.12.7 %
Other0.2 %
Net sales27.341.6 %

Net sales increased by $100.9$195.7 million, or 27.3%41.6%, for the nine months ended June 25, 202124, 2022 to $471.0$666.7 million compared to $370.0$471.0 million for the nine months ended June 26, 2020.25, 2021. The increase is primarily attributed to increased average selling prices of $73.3$221.3 million primarily driven by higher input costs and increased net sales of steel as well as increases in sales$12.5 million from companies acquired during fiscal 2022 partially offset by lower volumes of $39.2 million primarily across mostvarious steel product categories.

Adjusted EBITDA

Adjusted EBITDA increased $2.0$49.2 million, or 4.0%93.2%, to $102.0 million for the nine months ended June 24, 2022 compared to $52.8 million for the nine months ended June 25, 2021 compared2021. Adjusted EBITDA margins increased to $50.8 million15.3% for the nine months ended June 26, 2020. Adjusted EBITDA margins decreased24, 2022 compared to 11.2% for the nine months ended June 25, 2021 compared to 13.7% for the nine months ended June 26, 2020.2021. The Adjusted EBITDA increase wasis primarily due to the increase in sales volume andhigher average selling prices discussed above.
30


over input costs.


Liquidity and Capital ResourcesLIQUIDITY AND CAPITAL RESOURCES

We believe we have sufficient liquidity to support our ongoing operations and to invest in future growth and create value for stockholders. Our cash and cash equivalents were $397.1$186.7 million as of June 25, 2021,24, 2022, of which $69.1$46.8 million was held at non-U.S. subsidiaries. Those cash balances at foreign subsidiaries may be subject to withholding or local country taxes if the Company’sCompanys intention to permanently reinvest such income were to change and cash was repatriated to the United States.

In general, we require cash to fund working capital investments, acquisitions, capital expenditures, debt repayment, interest payments, taxes and share repurchases. We have access to the ABL Credit Facility to fund operational needs. As of June 25, 2021,24, 2022, there were no outstanding borrowings under the ABL Credit Facility and $9.5$12.1 million of letters of credit issued under the ABL Credit Facility. The borrowing base was estimated to be $325.0 million and approximately $315.5$312.9 million was available under the ABL Credit Facility as of June 25, 2021.24, 2022. Outstanding letters of credit count as utilization of the commitments under the ABL Credit Facility and reduce the amount available for borrowings.
    
The agreements governing the First LienSenior Secured Term Loan Facility and the ABL Credit Facility (collectively, the "Credit Facilities") contain covenants that limit or restrict AII’s ability to incur additional indebtedness, repurchase debt, incur liens, sell assets, make certain payments (including dividends) and enter into transactions with affiliates. AII has been in compliance with the covenants under the agreements for all periods presented.

We may from time to time repurchase our debt or take other steps to reduce our debt. These actions may include open market repurchases, negotiated repurchases or opportunistic refinancing of debt. The amount of debt, if any, that may be repurchased or refinanced will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants and other considerations.

Our use of cash may fluctuate during the year and from year to year due to differences in demand and changes in economic conditions primarily related to the prices of the commodities we purchase.

Capital expenditures have historically been necessary to expand and update the production capacity and improve the productivity of our manufacturing operations.

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Our ongoing liquidity needs are expected to be funded by cash on hand, net cash provided by operating activities and, as required, borrowings under the ABL Credit Facility. We expect that cash provided from operations and available capacity under the ABL Credit Facility will provide sufficient funds to operate our business, make expected capital expenditures and meet our liquidity requirements for at least the next twelve months, including payments of interest and principal on our debt.

There have been no material changes in our contractual obligations and commitments since the filing of our Annual Report on Form 10-K.

Limitations on distributions and dividends by subsidiaries
    
AI, AII, and AIH are each holding companies, and as such have no independent operations or material assets other than ownership of equity interests in their respective subsidiaries. Each company depends on its respective subsidiaries to distribute funds to it so that it may pay obligations and expenses, including satisfying obligations with respect to indebtedness. The ability of our subsidiaries to make distributions and dividends to us depends on their operating results, cash requirements and financial and general business conditions, as well as restrictions under the laws of our subsidiaries' jurisdictions.

The agreements governing the ABL Credit FacilityFacilities significantly restrict the ability of our subsidiaries, including AII, to pay dividends, make loans or otherwise transfer assets from AII and, in turn, to us. Further, AII’sAII's subsidiaries are permitted under the terms of the ABL Credit FacilityFacilities to incur additional indebtedness that may restrict or prohibit the making of distributions, the payment of dividends or the making of loans by such subsidiaries to AII and, in turn, to us. The First LienSenior Secured Term Loan Facility requires AII to meet a certain consolidated coverage ratio on an incurrence basis in connection with additional indebtedness. The ABL Credit Facility contains limits on additional indebtedness based on various conditions for incurring the additional debt. AII has been in compliance with the covenants under the agreements for all periods presented.

The table below summarizes cash flow information derived from our statements of cash flows for the periods indicated:
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Nine months endedNine months ended
(in thousands)(in thousands)June 25, 2021June 26, 2020(in thousands)June 24, 2022June 25, 2021
Cash flows provided by (used in):Cash flows provided by (used in):Cash flows provided by (used in):
Operating activitiesOperating activities$318,621 $156,019 Operating activities$371,776 $318,621 
Investing activitiesInvesting activities(74,303)(24,756)Investing activities(336,693)(74,303)
Financing activitiesFinancing activities(135,412)(16,917)Financing activities(421,241)(135,412)
    
Operating activities
    
During the nine months ended June 25, 2021,24, 2022, the Company was provided $318.6$371.8 million by operating activities compared to $156.0$318.6 million during the nine months ended June 26, 2020.25, 2021. The $162.6$53.2 million increase in cash provided was primarily due to higher cash flows from the increase in operating income of $377.7$404.0 million. This increase in operating income was partially offset primarily by increased income tax impacts of $173.7 million and a $202.0$173.0 million increase in cash used in working capital primarily driven bydue to higher sales.inventory build during the first two quarters of fiscal 2022,

Investing activities

During the nine months ended June 25, 2021,24, 2022, the Company used $74.3$336.7 million in investing activities compared to $24.8$74.3 million during the nine months ended June 26, 2020.25, 2021. Cash used in acquisitions increased in fiscal 2022 by $212.2 million primarily as a result of the acquisition of United Poly in the third quarter of fiscal 2022. The remaining increase in cash used in investing activities is primarily due to the acquisition of Queen City Plastics for $6.2 million and FRE Composites Group for $37.0 million, as well as increased capital expenditure of $8.7 millionwas driven by investments in digital initiatives during the nine months ended June 25, 2021.$47.7 million of additional capital expenditures.
    


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Financing Activities
    
During the nine months ended June 25, 2021,24, 2022, the Company used $135.4$421.2 million in financing activities compared to $16.9$135.4 million used during the nine months ended June 26, 2020.25, 2021. The increase in cash used in financing activities is primarily due to $110.1$286.9 million more cash used to repurchase common stock during the nine months ended June 25, 2021.24, 2022 compared to the same period in the prior year.

Contractual Obligations and Commitments

The following table summarizes material changes to our contractual obligations reported as of September 30, 2020, resulting from the changes in our debt during the three months ended June 25, 2021. These changes resulted from the Company completing the issuance and sale of $400 million aggregate principal amount of the 4.25% Senior Notes due June 2031 and entering into the $400 million New Senior Secured Term Loan Facility which matures on May 26, 2028. Proceeds from the Senior Notes and New Senior Secured Term Loan Facility were used to repay outstanding loans under the previous First Lien Term Loan Facility. See Note 12, “Debt” in the notes to the condensed consolidated financial statements.

($ in thousands)Less than 1 Year1-3 Years3-5 YearsMore than 5 YearsTotal
Senior Notes due June 2031$— $— $— $400,000 $400,000 
New Senior Secured Term Loan Facility Due May 20284,000 8,000 8,000 380,000 $400,000 
Interest payments (a)28,870 60,112 66,131 117,821 272,934 
Total$32,870 $68,112 $74,131 $897,821 $1,072,934 
(a) Interest expense is estimated based on outstanding loan balances assuming principal payments are made according to the payment schedule and interest rates as of June 25, 2021 (4.25% for the Senior Notes, 2.5% for the New Senior Secured Term Loan Facility).


Changes in Critical Accounting Policies and EstimatesCHANGES IN CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no material changes in our critical accounting policies and estimates since the filing of our Annual Report on Form 10-K.

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Recent Accounting StandardsRECENT ACCOUNTING STANDARDS

See Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” to our unaudited condensed consolidated financial statements.    

Forward-Looking Statements
FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and information currently available to management. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this Quarterly Report on Form 10-Q and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial position; results of operations; cash flows; prospects; growth strategies or expectations; customer retention; the outcome (by judgment or settlement) and costs of legal, administrative or regulatory proceedings, investigations or inspections, including, without limitation, collective, representative or class action litigation; and the impact of prevailing economic conditions.

Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report. In addition, even if our results of operations, financial condition and cash flows, and the development of the market in which we operate, are consistent with the forward-looking statements contained in this Quarterly Report, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without limitation, the risks and uncertainties discussed or referenced under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Additional factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation:
declines in, and uncertainty regarding, the general business and economic conditions in the United States and international markets in which we operate;
weakness or another downturn in the United States non-residential construction industry;
widespread outbreak of diseases, such as the novel coronavirus (COVID-19) pandemic;
changes in prices of raw materials;
pricing pressure, reduced profitability, or loss of market share due to intense competition;
availability and cost of third-party freight carriers and energy;
high levels of imports of products similar to those manufactured by us;
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changes in federal, state, local and international governmental regulations and trade policies;
adverse weather conditions;
increased costs relating to future capital and operating expenditures to maintain compliance with environmental, health and safety laws;
reduced spending by, deterioration in the financial condition of, or other adverse developments, including inability or unwillingness to pay our invoices on time, with respect to one or more of our top customers;
increases in our working capital needs, which are substantial and fluctuate based on economic activity and the market prices for our main raw materials, including as a result of failure to collect, or delays in the collection of, cash from the sale of manufactured products;
work stoppage or other interruptions of production at our facilities as a result of disputes under existing collective bargaining agreements with labor unions or in connection with negotiations of new collective bargaining agreements, as a result of supplier financial distress, or for other reasons;
changes in our financial obligations relating to pension plans that we maintain in the United States;
reduced production or distribution capacity due to interruptions in the operations of our facilities or those of our key suppliers;
loss of a substantial number of our third-party agents or distributors or a dramatic deviation from the amount of sales they generate;
security threats, attacks, or other disruptions to our information systems, or failure to comply with complex network security, data privacy and other legal obligations or the failure to protect sensitive information;
possible impairment of goodwill or other long-lived assets as a result of future triggering events, such as declines in our cash flow projections or customer demand and changes in our business and valuation assumptions;
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safety and labor risks associated with the manufacture and in the testing of our products;
product liability, construction defect and warranty claims and litigation relating to our various products, as well as government inquiries and investigations, and consumer, employment, tort and other legal proceedings;
our ability to protect our intellectual property and other material proprietary rights;
risks inherent in doing business internationally;
changes in foreign laws and legal systems, including as a result of Brexit;
our inability to introduce new products effectively or implement our innovation strategies;
our inability to continue importing raw materials, component parts or finished goods;
the incurrence of liabilities and the issuance of additional debt or equity in connection with acquisitions, joint ventures or divestitures and the failure of indemnification provisions in our acquisition agreements to fully protect us from unexpected liabilities;
failure to manage acquisitions successfully, including identifying, evaluating, and valuing acquisition targets and integrating acquired companies, businesses or assets;
the incurrence of additional expenses, increases in the complexity of our supply chain and potential damage to our reputation with customers resulting from regulations related to “conflict minerals”;
disruptions or impediments to the receipt of sufficient raw materials resulting from various anti-terrorism security measures;
restrictions contained in our debt agreements;
failure to generate cash sufficient to pay the principal of, interest on, or other amounts due on our debt;
challenges attracting and retaining key personnel or high-quality employees;
future changes to tax legislation;
failure to generate sufficient cash flow from operations or to raise sufficient funds in the capital markets to satisfy existing obligations and support the development of our business; and
other risks and factors described in this Quarterly Report and from time to time in documents that we file with the SEC.

You should read this Quarterly Report completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements attributable to us or persons acting on our behalf that are made in this Quarterly Report are qualified in their entirety by
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these cautionary statements. These forward-looking statements are made only as of the date of this Quarterly Report, and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.

Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data.


Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to the quantitative and qualitative disclosures about market risks previously disclosed in our Annual Report on Form 10-K.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q were effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such
34


information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes to our internal control over financial reporting in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) under the Exchange Act during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

For a discussion of certain litigation involving the Company, see Note 14, “Commitments and Contingencies” to our unaudited condensed consolidated financial statements.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K.
    
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

On January 28,November 16, 2021, the board of directors approved a share repurchase program, under which the Company may repurchase up to $100.0$400.0 million of its outstanding common stock. The Company made no repurchases under thisOn April 26, 2022, the board of directors approved an amendment to the aforementioned plan, during the second quarterextending it to a total repurchase of the current fiscal year.Company’s outstanding common stock of $800.0 million. As of June 25, 2021,24, 2022, there was $25$403.2 million of purchases remaining under the plan. The share repurchase program will be funded from the Company’sCompanys available cash balances. This share repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be terminated at any time at the Company’sCompanys discretion.

The following table shows our purchases of our common stock under this plan during fiscal 20212022 (in thousands, except per share data):

PeriodTotal Number Of Shares PurchasedAvg Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced Program(1)Maximum Value of Shares that May Yet Be Purchased Under the Program(1)
March 27, 2021 to April 23, 2021— $— — $— 
April 24, 2021 to May 28, 2021860 $81.99 860$29,486 
May 29, 2021 to June 25, 202158$78.02 58$24,974 
Total918918
Period
(4-5-4 calendar)
Total Number Of Shares PurchasedAvg Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced ProgramMaximum Value of Shares that May Yet Be Purchased Under the Program
March 26, 2022 to April 22, 2022708 $95.32 708 $71,479 
April 23, 2022 to May 27, 2022388 $102.63 388 $431,642 
May 28, 2022 to June 24, 2022278 $102.33 278 $403,206 
Total1,374 1,374 

Item 3. Defaults Upon Senior Securities
Not applicable.

Item 4. Mine Safety Disclosures
Not applicable.

Item 5. Other Information
None.

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Item 6. Exhibits

4.1#
10.1#
10.2#
31.1#
31.2#
32.1#
32.2#
101.INS#XBRL Instance Document (formatted as inline XBRL)
101.SCH#XBRL Taxonomy Schema Linkbase Document (formatted as inline XBRL)
101.CAL#XBRL Taxonomy Calculation Linkbase Document
101.DEF#XBRL Taxonomy Definition Linkbase Document
101.LAB#XBRL Taxonomy Labels Linkbase Document
101.PRE#XBRL Taxonomy Presentation Linkbase Document
104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
#Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ATKORE INC.
(Registrant)
Date:August 3, 20212, 2022By:/s/ David P. Johnson
Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
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