Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TREX | |
Entity Registrant Name | TREX CO INC | |
Entity Central Index Key | 1069878 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,079,980 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $2,556 | $9,544 |
Accounts receivable, net | 136,993 | 36,391 |
Inventories | 22,920 | 23,747 |
Prepaid expenses and other current assets | 2,137 | 6,288 |
Deferred income taxes | 9,271 | 9,271 |
Total current assets | 173,877 | 85,241 |
Property, plant and equipment, net | 104,163 | 98,716 |
Goodwill and other intangibles | 10,532 | 10,534 |
Other assets | 1,311 | 1,333 |
Total assets | 289,883 | 195,824 |
Current liabilities: | ||
Accounts payable | 12,785 | 20,050 |
Accrued expenses | 20,951 | 20,660 |
Accrued warranty | 8,738 | 8,744 |
Line of credit | 84,000 | |
Total current liabilities | 126,474 | 49,454 |
Deferred income taxes | 3,708 | 3,708 |
Non-current accrued warranty | 24,045 | 25,097 |
Other long-term liabilities | 4,117 | 4,180 |
Total liabilities | 158,344 | 82,439 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value, 80,000,000 shares authorized; 34,860,283 and 34,800,552 shares issued and 32,079,854 and 32,020,123 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 349 | 348 |
Additional paid-in capital | 117,340 | 116,740 |
Retained earnings | 88,850 | 71,297 |
Treasury stock, at cost, 2,780,429 shares at March 31, 2015 and December 31, 2014 | -75,000 | -75,000 |
Total stockholders' equity | 131,539 | 113,385 |
Total liabilities and stockholders' equity | $289,883 | $195,824 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 34,860,283 | 34,800,552 |
Common stock, shares outstanding | 32,079,854 | 32,020,123 |
Treasury stock, shares | 2,780,429 | 2,780,429 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $120,800 | $100,645 |
Cost of sales | 72,553 | 62,478 |
Gross profit | 48,247 | 38,167 |
Selling, general and administrative expenses | 20,593 | 18,222 |
Income from operations | 27,654 | 19,945 |
Interest expense, net | 137 | 323 |
Income before income taxes | 27,517 | 19,622 |
Provision for income taxes | 9,964 | 7,327 |
Net income | 17,553 | 12,295 |
Basic earnings per common share | $0.55 | $0.37 |
Basic weighted average common shares outstanding | 31,683,672 | 33,128,676 |
Diluted earnings per common share | $0.55 | $0.37 |
Diluted weighted average common shares outstanding | 32,094,828 | 33,599,438 |
Comprehensive income | $17,553 | $12,295 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $17,553 | $12,295 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 3,636 | 3,797 |
Deferred income taxes | 352 | |
Stock-based compensation | 1,454 | 1,170 |
Gain on disposal of property, plant and equipment | -37 | |
Excess tax benefits from stock compensation | -1,035 | -6,507 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -100,602 | -79,152 |
Inventories | 827 | -7,785 |
Prepaid expenses and other assets | 888 | -82 |
Accounts payable | -7,265 | -3,892 |
Accrued expenses and other liabilities | -5,666 | -9,068 |
Income taxes receivable/payable | 9,166 | 6,884 |
Net cash used in operating activities | -81,044 | -82,025 |
Investing Activities | ||
Expenditures for property, plant and equipment | -9,060 | -3,188 |
Proceeds from sales of property, plant and equipment | 37 | |
Purchase of acquired company, net of cash acquired | -31 | -44 |
Notes receivable, net | 19 | |
Net cash used in investing activities | -9,091 | -3,176 |
Financing Activities | ||
Borrowings under line of credit | 84,000 | 85,000 |
Principal payments under line of credit | -5,000 | |
Repurchases of common stock | -2,015 | -1,433 |
Proceeds from employee stock purchase and option plans | 127 | 84 |
Excess tax benefits from stock compensation | 1,035 | 6,507 |
Net cash provided by financing activities | 83,147 | 85,158 |
Net decrease in cash and cash equivalents | -6,988 | -43 |
Cash and cash equivalents at beginning of period | 9,544 | 3,772 |
Cash and cash equivalents at end of period | 2,556 | 3,729 |
Supplemental Disclosure: | ||
Cash paid for interest, net of capitalized interest | 59 | 99 |
Cash paid for income taxes, net | $799 | $91 |
Business_and_Organization
Business and Organization | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Policies [Abstract] | |||
Business and Organization | 1 | BUSINESS AND ORGANIZATION | |
Trex Company, Inc. (the “Company”) is the world’s largest manufacturer of wood-alternative decking and railing products, which are marketed under the brand name Trex®. The Company is incorporated in Delaware. The principal executive offices are located at 160 Exeter Drive, Winchester, Virginia 22603, and the telephone number at that address is (540) 542-6300. The Company operates in one business segment. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Policies [Abstract] | |||
Basis of Presentation | 2 | BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments except as otherwise described herein) considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. All common stock share and per share data for all historical periods presented have been retroactively adjusted to reflect a two-for-one stock split distributed on May 7, 2014. The consolidated results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2014 and 2013 and for each of the three years in the period ended December 31, 2014 included in the annual report of Trex Company, Inc. on Form 10-K, as filed with the Securities and Exchange Commission. | |||
The Company’s critical accounting policies are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Changes and Error Corrections [Abstract] | |||
New Accounting Standards | 3 | NEW ACCOUNTING STANDARDS | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers.” The new standard provides a single, comprehensive model for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new standard requires an entity to recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and allows for either full retrospective or modified retrospective application. No early adoption is permitted. The Company is currently assessing the impact of the adoption of this new standard on its consolidated financial statements and footnote disclosures and has not yet selected a method of adoption. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 4 | INVENTORIES | |||||||
Inventories, at LIFO (last-in, first-out) value, consist of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished goods | $ | 32,537 | $ | 32,756 | |||||
Raw materials | 15,682 | 16,290 | |||||||
Total FIFO inventories | 48,219 | 49,046 | |||||||
Reserve to adjust inventories to LIFO value | (25,299 | ) | (25,299 | ) | |||||
Total LIFO inventories | $ | 22,920 | $ | 23,747 | |||||
The Company utilizes the last-in, first-out (“LIFO”) method of accounting for inventory, which generally provides matching of current costs with current revenues. However, under the LIFO method, reductions in annual inventory balances cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs (“LIFO liquidation”). Reductions in interim inventory balances expected to be replenished by year-end do not result in a LIFO liquidation. Accordingly, interim LIFO calculations are based, in part, on management’s estimates of expected year-end inventory levels and costs which may differ from actual results. There were no LIFO inventory liquidations or related impact on cost of sales in the three months ended March 31, 2015 or 2014. |
Accrued_Expenses
Accrued Expenses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | 5 | ACCRUED EXPENSES | |||||||
Accrued expenses consist of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation and benefits | $ | 6,027 | $ | 9,201 | |||||
Income taxes payable | 4,868 | — | |||||||
Accrued sales and marketing | 4,618 | 5,963 | |||||||
Accrued rent obligations | 1,377 | 1,372 | |||||||
Accrued manufacturing expenses | 1,215 | 1,307 | |||||||
Other | 2,846 | 2,817 | |||||||
Total accrued expenses | $ | 20,951 | $ | 20,660 | |||||
Debt
Debt | 3 Months Ended | ||
Mar. 31, 2015 | |||
Debt Disclosure [Abstract] | |||
Debt | 6 | DEBT | |
The Company’s outstanding debt consists of a revolving credit facility. | |||
Revolving Credit Facility | |||
The Company currently has a Second Amended Credit Agreement that provides the Company with one or more revolving loans in a collective maximum principal amount of $150 million from January 1 through June 30 of each year, reducing to a maximum principal amount of $100 million from July 1 through December 31 of each year throughout the term, which ends November 20, 2019. | |||
At March 31, 2015, the Company had $84 million of outstanding borrowings under its revolving credit facility and remaining available borrowing capacity of approximately $66 million. | |||
Compliance with Debt Covenants and Restrictions | |||
The Company’s ability to make scheduled principal and interest payments and to borrow and repay amounts under any outstanding revolving credit facility, and continue to comply with any loan covenants depends primarily on the Company’s ability to generate sufficient cash flow from operations. | |||
As of March 31, 2015, the Company was in compliance with all of the covenants contained in its debt agreements. Failure to comply with the loan covenants might cause lenders to accelerate the repayment obligations under the credit facility, which may be declared payable immediately based on a default. |
Financial_Instruments
Financial Instruments | 3 Months Ended | ||
Mar. 31, 2015 | |||
Investments, All Other Investments [Abstract] | |||
Financial Instruments | 7 | FINANCIAL INSTRUMENTS | |
The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities to approximate the fair value of the respective assets and liabilities at March 31, 2015 and December 31, 2014. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Stockholders' Equity | 8 | STOCKHOLDERS’ EQUITY | |||||||
Earnings Per Share | |||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income available to common shareholders | $ | 17,553 | $ | 12,295 | |||||
Denominator: | |||||||||
Basic weighted average shares outstanding | 31,683,672 | 33,128,676 | |||||||
Effect of dilutive securities: | |||||||||
SARs and options | 240,066 | 302,914 | |||||||
Restricted stock | 171,090 | 167,848 | |||||||
Diluted weighted average shares outstanding | 32,094,828 | 33,599,438 | |||||||
Basic earnings per share | $ | 0.55 | $ | 0.37 | |||||
Diluted earnings per share | $ | 0.55 | $ | 0.37 | |||||
Diluted earnings per share is computed using the weighted average number of shares determined for the basic earnings per share computation plus the dilutive effect of common stock equivalents using the treasury stock method. The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Restricted stock and stock options | — | 88 | |||||||
Stock appreciation rights | — | 1,196 | |||||||
Stock Repurchase Programs | |||||||||
On October 23, 2014, the Company’s Board of Directors authorized a common stock repurchase program of up to two million shares of the Company’s outstanding common stock (the “October 2014 Stock Repurchase Program”). This authorization has no expiration date. As of March 31, 2015, the Company made no repurchases under the October 2014 Stock Repurchase Program. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-Based Compensation | 9 | STOCK-BASED COMPENSATION | |||||||
The Company has one stock-based compensation plan, the 2014 Stock Incentive Plan (the “Plan”), approved by the Company’s stockholders in April 2014. The Plan amended and restated in its entirety the Trex Company, Inc. 2005 Stock Incentive Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the Plan. The Plan provides for grants of stock options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), and unrestricted stock. As of March 31, 2015, the total aggregate number of shares of the Company’s common stock that may be issued under the Plan is 6,420,000. | |||||||||
In 2014, the Company began granting performance-based restricted stock in addition to the time-based restricted stock it previously granted. The performance-based restricted shares have a three-year vesting period, vesting one-third each year based on target earnings before interest, taxes, depreciation and amortization, or “EBITDA”, for 1 year, cumulative 2 years and cumulative 3 years, respectively. With respect to each vesting, the number of shares that will vest will be between 0% and 200% of the target number of shares. | |||||||||
The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the three months ended March 31, 2015 and 2014, respectively, the assumptions shown in the following table were used: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted-average fair value of grants | $ | 17.1 | $ | 18.7 | |||||
Dividend yield | 0 | % | 0 | % | |||||
Average risk-free interest rate | 1.7 | % | 1.8 | % | |||||
Expected term (years) | 5 | 5 | |||||||
Expected volatility | 44 | % | 54 | % | |||||
The following table summarizes the Company’s stock-based compensation grants for the three months ended March 31, 2015: | |||||||||
Stock Awards Granted | Weighted-Average | ||||||||
Grant Price | |||||||||
Per Share | |||||||||
Time-based restricted stock | 43,738 | $ | 43.89 | ||||||
Performance-based restricted stock | 34,638 | $ | 43.89 | ||||||
Stock appreciation rights | 201 | $ | 42.47 | ||||||
The Company recognizes stock-based compensation expense ratably over the period from the grant date to the earlier of: (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For performance-based restricted stock, expense is recognized ratably over the performance and vesting period of each tranche based on management’s judgment of the ultimate award that is likely to be paid out based on the achievement of the predetermined performance measures. The following table summarizes the Company’s stock-based compensation expense for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Time-based restricted stock | $ | 833 | $ | 708 | |||||
Performance-based restricted stock | 399 | 82 | |||||||
Stock appreciation rights | 189 | 370 | |||||||
Employee stock purchase plan | 33 | 10 | |||||||
Total stock-based compensation | $ | 1,454 | $ | 1,170 | |||||
Total unrecognized compensation cost related to unvested awards as of March 31, 2015 was $7.2 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award. |
Income_Taxes
Income Taxes | 3 Months Ended | ||
Mar. 31, 2015 | |||
Income Tax Disclosure [Abstract] | |||
Income Taxes | 10 | INCOME TAXES | |
The Company’s effective tax rate for the three months ended March 31, 2015 and 2014 was 36.2% and 37.3% respectively, which resulted in expense of $10.0 million and $7.3 million, respectively. | |||
The Company analyzes its deferred tax assets in each reporting period, considering all available positive and negative evidence, in determining the expected realization of those deferred tax assets. As of March 31, 2015, the Company maintains a valuation allowance of $4.5 million against deferred tax assets related to state tax credits it estimates will expire before they are realized. | |||
During the three months ended March 31, 2015, the Company realized $1.0 million of excess tax benefits from stock-based awards and, accordingly, recorded an increase to additional paid-in capital. | |||
The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company accrues a liability when it believes that it is more likely than not that benefits of tax positions will not be realized. The Company believes that adequate provisions have been made for all tax returns subject to examination. As of March 31, 2015, federal tax years 2011 through 2014 remain subject to examination. Sales made to foreign distributors are not taxable in any foreign jurisdictions as the Company does not have a taxable presence in any foreign jurisdiction. |
Seasonality
Seasonality | 3 Months Ended | ||
Mar. 31, 2015 | |||
Text Block [Abstract] | |||
Seasonality | 11 | SEASONALITY | |
The Company’s operating results have historically varied from quarter to quarter, often attributable to seasonal trends in the demand for Trex products. The Company has historically experienced lower net sales during the fourth quarter because holidays and adverse weather conditions in certain regions reduce the level of home improvement and construction activity. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | 12 | COMMITMENTS AND CONTINGENCIES | |||||||
Contract Termination Costs | |||||||||
In anticipation of relocating its corporate headquarters, the Company entered into a lease agreement in 2005. The Company reconsidered and decided not to move its headquarters. The lease obligates the Company to lease 55,047 square feet of office space through June 30, 2019. As of March 31, 2015, the Company has executed subleases for 24,732 square feet of the leased space and is currently marketing the remaining portion of the space to find a suitable tenant. The Company estimates that the present value of the estimated future sublease receipts, net of transaction costs, will be less than the remaining minimum lease payment obligations under its lease and has recorded a liability for the expected shortfall. During the three months ended March 31, 2015 and March 31, 2014, the Company recorded charges of $0.1 million and $0.6 million, respectively, to selling, general and administrative expenses due to changes in its estimate of future sublease receipts. | |||||||||
To estimate future sublease receipts, the Company has assumed that existing subleases will be renewed or new subleases will be executed at rates consistent with rental rates in the current subleases or estimated market rates and that existing vacancies will be filled within one year. However, management cannot be certain that the timing of future subleases or the rental rates contained in future subleases will not differ from current estimates. Factors such as the availability of commercial office space, market conditions and subtenant preferences will influence the terms achieved in future subleases. The inability to sublet the office space in the future or unfavorable changes to key assumptions used in the estimate of the future sublease receipts may result in material charges to selling, general and administrative expenses in future periods. | |||||||||
As of March 31, 2015, the minimum payments remaining under the Company’s lease relating to its reconsidered corporate relocation over the years ending December 31, 2015, 2016, 2017, 2018 and 2019 are $1.4 million, $1.9 million, $2.0 million, $2.0 million and $1.0 million, respectively. The minimum receipts remaining under the Company’s existing subleases over the years ending December 31, 2015, 2016, 2017, 2018 and 2019 are $0.5 million, $0.6 million, $0.6 million, $0.6 million and $0.4 million, respectively. | |||||||||
The following table provides information about the Company’s liability related to the lease (in thousands): | |||||||||
2015 | 2014 | ||||||||
Beginning balance, January 1 | $ | 3,033 | $ | 1,787 | |||||
Net rental payments | (249 | ) | (162 | ) | |||||
Accretion of discount | 59 | 35 | |||||||
Increase in net estimated contract termination costs | 129 | 567 | |||||||
Ending balance, March 31 | $ | 2,972 | $ | 2,227 | |||||
Product Warranty | |||||||||
The Company warrants that its products will be free from material defects in workmanship and materials. This warranty generally extends for a period of 25 years for residential use and 10 years for commercial use. (With respect to TrexTrim™ and Trex Reveal® Railing, the warranty period is 25 years for both residential and commercial use.) With respect to the Company’s Transcend®, Enhance®, Select® and Universal Fascia product, the Company further warrants that the product will not fade in color more than a certain amount and will be resistant to permanent staining from food substances or mold (provided the stain is cleaned within seven days of appearance). This warranty extends for a period of 25 years for residential use and 10 years for commercial use. If there is a breach of such warranties, the Company has an obligation either to replace the defective product or refund the purchase price. | |||||||||
Historically, the Company has not had material numbers of claims submitted or settled under the provisions of its product warranties, with the exception of claims related to material produced at its Nevada facility prior to 2007 that exhibits surface flaking. The Company continues to receive and settle surface flaking claims and maintains a warranty reserve to provide for the settlement of these claims. Estimating the warranty reserve for surface flaking claims requires management to estimate (1) the number of claims to be settled with payment and (2) the average cost to settle each claim, both of which are subject to variables that are difficult to estimate. | |||||||||
To estimate the number of claims to be settled with payment, the Company utilizes actuarial techniques to quantify both the expected number of claims to be received and the percentage of those claims that will ultimately require payment. Estimates for both of these elements (number and percentage of claims that will ultimately require payment) are quantified using a range of assumptions derived from claim count history and the identification of factors influencing the claim counts, including the downward trend in received claims due to the passage of time since production of the suspect material. For each of the various parameters used in the analysis, the assumed values in the actuarial valuation produce results that represent the Company’s best estimate for the ultimate number of claims to be settled with payment. The cost per claim varies due to a number of factors, including the size of affected decks, the type of replacement material used, the cost of production of replacement material and the method of claim settlement. | |||||||||
The Company monitors surface flaking claims activity each quarter for indications that its estimates require revision. Due to extensive use of decks during the summer outdoor season, variances to annual claims expectations are typically more meaningful during the latter part of the fiscal year. Through the first quarter of 2015, the average cost per claim was consistent with the Company’s expectations. The number of claims received during the first quarter of 2015 was higher than the Company’s expectations and higher than the claims received in the first quarter of 2014. Although the Company cannot fully measure its impact, improved weather conditions in the claims region during the first quarter of 2015, compared to the first quarter of 2014, likely accelerated some claims that otherwise would be received later in the year. The Company believes that its reserve at March 31, 2015 is sufficient to cover future surface flaking obligations. | |||||||||
The Company’s analysis is based on currently known facts and a number of assumptions. Projecting future events such as the number of claims to be received, the number of claims that will require payment and the average cost of claims could cause the actual warranty liabilities to be higher or lower than those projected which could materially affect the Company’s financial condition, results of operations or cash flow. The Company estimates that the annual number of claims received will continue to decline over time and that the average cost per claim will remain relatively stable. If the level of claims received or average cost per claim differs materially from expectations, it could result in additional increases to the warranty reserve and reduced earnings and cash flows in future periods. The Company estimates that a 10% change in the expected number of remaining claims to be settled with payment or the expected cost to settle claims may result in approximately a $3.0 million change in the surface flaking warranty reserve. | |||||||||
The following is a reconciliation of the Company’s surface flaking warranty reserve (in thousands): | |||||||||
2015 | 2014 | ||||||||
Beginning balance, January 1 | $ | 31,419 | $ | 40,312 | |||||
Changes in estimates related to pre-existing warranties | — | — | |||||||
Settlements made during the period | (1,359 | ) | (2,010 | ) | |||||
Ending balance, March 31 | $ | 30,060 | $ | 38,302 | |||||
The remainder of the Company’s warranty reserve represents amounts accrued for non-surface flaking claims. | |||||||||
Legal Matters | |||||||||
The Company has lawsuits, as well as other claims, pending against it which are ordinary routine litigation and claims incidental to the business. Management has evaluated the merits of these lawsuits and claims, and believes that their ultimate resolution will not have a material effect on the Company’s consolidated financial condition, results of operations, liquidity or competitive position. |
Financial_Instruments_Policies
Financial Instruments (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments | The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities to approximate the fair value of the respective assets and liabilities at March 31, 2015 and December 31, 2014. |
Share-based Compensation | The Company has one stock-based compensation plan, the 2014 Stock Incentive Plan (the “Plan”), approved by the Company’s stockholders in April 2014. The Plan amended and restated in its entirety the Trex Company, Inc. 2005 Stock Incentive Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the Plan. The Plan provides for grants of stock options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), and unrestricted stock. As of March 31, 2015, the total aggregate number of shares of the Company’s common stock that may be issued under the Plan is 6,420,000. |
The Company recognizes stock-based compensation expense ratably over the period from the grant date to the earlier of: (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For performance-based restricted stock, expense is recognized ratably over the performance and vesting period of each tranche based on management’s judgment of the ultimate award that is likely to be paid out based on the achievement of the predetermined performance measures. | |
Contract Termination Costs | Contract Termination Costs |
In anticipation of relocating its corporate headquarters, the Company entered into a lease agreement in 2005. The Company reconsidered and decided not to move its headquarters. The lease obligates the Company to lease 55,047 square feet of office space through June 30, 2019. As of March 31, 2015, the Company has executed subleases for 24,732 square feet of the leased space and is currently marketing the remaining portion of the space to find a suitable tenant. The Company estimates that the present value of the estimated future sublease receipts, net of transaction costs, will be less than the remaining minimum lease payment obligations under its lease and has recorded a liability for the expected shortfall. During the three months ended March 31, 2015 and March 31, 2014, the Company recorded charges of $0.1 million and $0.6 million, respectively, to selling, general and administrative expenses due to changes in its estimate of future sublease receipts. | |
To estimate future sublease receipts, the Company has assumed that existing subleases will be renewed or new subleases will be executed at rates consistent with rental rates in the current subleases or estimated market rates and that existing vacancies will be filled within one year. However, management cannot be certain that the timing of future subleases or the rental rates contained in future subleases will not differ from current estimates. Factors such as the availability of commercial office space, market conditions and subtenant preferences will influence the terms achieved in future subleases. The inability to sublet the office space in the future or unfavorable changes to key assumptions used in the estimate of the future sublease receipts may result in material charges to selling, general and administrative expenses in future periods. | |
Product Warranty | Product Warranty |
The Company warrants that its products will be free from material defects in workmanship and materials. This warranty generally extends for a period of 25 years for residential use and 10 years for commercial use. (With respect to TrexTrim™ and Trex Reveal® Railing, the warranty period is 25 years for both residential and commercial use.) With respect to the Company’s Transcend®, Enhance®, Select® and Universal Fascia product, the Company further warrants that the product will not fade in color more than a certain amount and will be resistant to permanent staining from food substances or mold (provided the stain is cleaned within seven days of appearance). This warranty extends for a period of 25 years for residential use and 10 years for commercial use. If there is a breach of such warranties, the Company has an obligation either to replace the defective product or refund the purchase price. | |
Historically, the Company has not had material numbers of claims submitted or settled under the provisions of its product warranties, with the exception of claims related to material produced at its Nevada facility prior to 2007 that exhibits surface flaking. The Company continues to receive and settle surface flaking claims and maintains a warranty reserve to provide for the settlement of these claims. Estimating the warranty reserve for surface flaking claims requires management to estimate (1) the number of claims to be settled with payment and (2) the average cost to settle each claim, both of which are subject to variables that are difficult to estimate. | |
To estimate the number of claims to be settled with payment, the Company utilizes actuarial techniques to quantify both the expected number of claims to be received and the percentage of those claims that will ultimately require payment. Estimates for both of these elements (number and percentage of claims that will ultimately require payment) are quantified using a range of assumptions derived from claim count history and the identification of factors influencing the claim counts, including the downward trend in received claims due to the passage of time since production of the suspect material. For each of the various parameters used in the analysis, the assumed values in the actuarial valuation produce results that represent the Company’s best estimate for the ultimate number of claims to be settled with payment. The cost per claim varies due to a number of factors, including the size of affected decks, the type of replacement material used, the cost of production of replacement material and the method of claim settlement. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Summary of Inventories, at LIFO Value | Inventories, at LIFO (last-in, first-out) value, consist of the following (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished goods | $ | 32,537 | $ | 32,756 | |||||
Raw materials | 15,682 | 16,290 | |||||||
Total FIFO inventories | 48,219 | 49,046 | |||||||
Reserve to adjust inventories to LIFO value | (25,299 | ) | (25,299 | ) | |||||
Total LIFO inventories | $ | 22,920 | $ | 23,747 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Summary of Accrued Expenses | Accrued expenses consist of the following (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation and benefits | $ | 6,027 | $ | 9,201 | |||||
Income taxes payable | 4,868 | — | |||||||
Accrued sales and marketing | 4,618 | 5,963 | |||||||
Accrued rent obligations | 1,377 | 1,372 | |||||||
Accrued manufacturing expenses | 1,215 | 1,307 | |||||||
Other | 2,846 | 2,817 | |||||||
Total accrued expenses | $ | 20,951 | $ | 20,660 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income available to common shareholders | $ | 17,553 | $ | 12,295 | |||||
Denominator: | |||||||||
Basic weighted average shares outstanding | 31,683,672 | 33,128,676 | |||||||
Effect of dilutive securities: | |||||||||
SARs and options | 240,066 | 302,914 | |||||||
Restricted stock | 171,090 | 167,848 | |||||||
Diluted weighted average shares outstanding | 32,094,828 | 33,599,438 | |||||||
Basic earnings per share | $ | 0.55 | $ | 0.37 | |||||
Diluted earnings per share | $ | 0.55 | $ | 0.37 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Restricted stock and stock options | — | 88 | |||||||
Stock appreciation rights | — | 1,196 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Assumptions Used to Estimate Fair Value of Each SAR | For SARs issued in the three months ended March 31, 2015 and 2014, respectively, the assumptions shown in the following table were used: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted-average fair value of grants | $ | 17.1 | $ | 18.7 | |||||
Dividend yield | 0 | % | 0 | % | |||||
Average risk-free interest rate | 1.7 | % | 1.8 | % | |||||
Expected term (years) | 5 | 5 | |||||||
Expected volatility | 44 | % | 54 | % | |||||
Summary of Stock-Based Compensation Grants | The following table summarizes the Company’s stock-based compensation grants for the three months ended March 31, 2015: | ||||||||
Stock Awards Granted | Weighted-Average | ||||||||
Grant Price | |||||||||
Per Share | |||||||||
Time-based restricted stock | 43,738 | $ | 43.89 | ||||||
Performance-based restricted stock | 34,638 | $ | 43.89 | ||||||
Stock appreciation rights | 201 | $ | 42.47 | ||||||
Summary of Stock-Based Compensation Expense | The following table summarizes the Company’s stock-based compensation expense for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Time-based restricted stock | $ | 833 | $ | 708 | |||||
Performance-based restricted stock | 399 | 82 | |||||||
Stock appreciation rights | 189 | 370 | |||||||
Employee stock purchase plan | 33 | 10 | |||||||
Total stock-based compensation | $ | 1,454 | $ | 1,170 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Summary of Liability Related to Lease | The following table provides information about the Company’s liability related to the lease (in thousands): | ||||||||
2015 | 2014 | ||||||||
Beginning balance, January 1 | $ | 3,033 | $ | 1,787 | |||||
Net rental payments | (249 | ) | (162 | ) | |||||
Accretion of discount | 59 | 35 | |||||||
Increase in net estimated contract termination costs | 129 | 567 | |||||||
Ending balance, March 31 | $ | 2,972 | $ | 2,227 | |||||
Summary of Reconciliation of Company's Surface Flaking Warranty Reserve | The following is a reconciliation of the Company’s surface flaking warranty reserve (in thousands): | ||||||||
2015 | 2014 | ||||||||
Beginning balance, January 1 | $ | 31,419 | $ | 40,312 | |||||
Changes in estimates related to pre-existing warranties | — | — | |||||||
Settlements made during the period | (1,359 | ) | (2,010 | ) | |||||
Ending balance, March 31 | $ | 30,060 | $ | 38,302 | |||||
Business_and_Organization_Addi
Business and Organization - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Accounting Policies [Abstract] | |
Number of operating segments of business | 1 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | 0 Months Ended |
7-May-14 | |
Accounting Policies [Abstract] | |
Retroactively adjusted stock split | 2 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories, at LIFO Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $32,537 | $32,756 |
Raw materials | 15,682 | 16,290 |
Total FIFO inventories | 48,219 | 49,046 |
Reserve to adjust inventories to LIFO value | -25,299 | -25,299 |
Total LIFO inventories | $22,920 | $23,747 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Inventory Disclosure [Abstract] | ||
LIFO inventory liquidations | $0 | $0 |
Accrued_Expenses_Summary_of_Ac
Accrued Expenses - Summary of Accrued Expenses (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $6,027 | $9,201 |
Income taxes payable | 4,868 | |
Accrued sales and marketing | 4,618 | 5,963 |
Accrued rent obligations | 1,377 | 1,372 |
Accrued manufacturing expenses | 1,215 | 1,307 |
Other | 2,846 | 2,817 |
Total accrued expenses | $20,951 | $20,660 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Nov. 20, 2014 | |
Line of Credit Facility [Line Items] | ||
Outstanding borrowings under the revolver loans | $84,000,000 | |
Second Amended Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Termination date of the Credit Agreement | 20-Nov-19 | |
Outstanding borrowings under the revolver loans | 84,000,000 | |
Remaining available borrowing capacity | 66,000,000 | |
Revolver Loans Portion Effective January 1 through June 30 [Member] | Second Amended Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving loans in a collective maximum principal amount | 150,000,000 | |
Revolver Loans Portion Effective July 1 through December 31 [Member] | Second Amended Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving loans in a collective maximum principal amount | $100,000,000 |
Stockholders_Equity_Computatio
Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income available to common shareholders | $17,553 | $12,295 |
Denominator: | ||
Basic weighted average shares outstanding | 31,683,672 | 33,128,676 |
Effect of dilutive securities: | ||
SARs and options | 240,066 | 302,914 |
Restricted stock | 171,090 | 167,848 |
Diluted weighted average shares outstanding | 32,094,828 | 33,599,438 |
Basic earnings per share | $0.55 | $0.37 |
Diluted earnings per share | $0.55 | $0.37 |
Stockholders_Equity_Antidiluti
Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock and Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from the computation of diluted earnings per share | 88 |
Stock Appreciation Rights [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from the computation of diluted earnings per share | 1,196 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (October 2014 Stock Repurchase Program [Member]) | 0 Months Ended | |
Mar. 31, 2015 | Oct. 23, 2014 | |
October 2014 Stock Repurchase Program [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Common stock repurchase program, authorized shares | 2,000,000 | |
Number of shares repurchased by the Company | 0 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock based compensation plans | 1 |
Unrecognized compensation cost related to unvested awards | $7.20 |
2014 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total aggregate number of shares of common stock that may be issued | 6,420,000 |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Share-Based Compensation Award, Tranche One [Member] | Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation vesting percentage | 33.33% |
Share-Based Compensation Award, Tranche Two [Member] | Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation vesting percentage | 33.33% |
Share-Based Compensation Award, Tranche Three [Member] | Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation vesting percentage | 33.33% |
Minimum [Member] | Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target number of shares that will vest | 0.00% |
Maximum [Member] | Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target number of shares that will vest | 200.00% |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted-average fair value of grants | $17.10 | $18.70 |
Dividend yield | 0.00% | 0.00% |
Average risk-free interest rate | 1.70% | 1.80% |
Expected term (years) | 5 years | 5 years |
Expected volatility | 44.00% | 54.00% |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Time-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards Granted | 43,738 |
Weighted-Average Grant Price Per Share | $43.89 |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards Granted | 34,638 |
Weighted-Average Grant Price Per Share | $43.89 |
Stock Appreciation Rights [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards Granted | 201 |
Weighted-Average Grant Price Per Share | $42.47 |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $1,454 | $1,170 |
Time-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 833 | 708 |
Performance-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 399 | 82 |
Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 189 | 370 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $33 | $10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Examination [Line Items] | ||
Effective tax rate | 36.20% | 37.30% |
Income tax expense | $9,964,000 | $7,327,000 |
Valuation allowance | 4,500,000 | |
Excess tax benefits from stock compensation | $1,000,000 | |
Earliest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2011 | |
Latest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2014 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Charge recorded | $129,000 | $567,000 |
Surface Flaking Warranty Reserve [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Percentage change in warranty claims used as a threshold for disclosure | 10.00% | |
Change in warranty reserve for disclosure purposes only | 3,000,000 | |
Residential Use [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Warranty period | 25 years | |
Commercial Use [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Warranty period | 10 years | |
Transcend, Enhance, Select and Universal Fascia Product [Member] | Residential Use [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Warranty period | 25 years | |
Transcend, Enhance, Select and Universal Fascia Product [Member] | Commercial Use [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Warranty period | 10 years | |
TrexTrim and Trex Reveal Railing [Member] | Residential Use [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Warranty period | 25 years | |
TrexTrim and Trex Reveal Railing [Member] | Commercial Use [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Warranty period | 25 years | |
Sublease [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Lease square feet | 24,732 | |
Contract Termination [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Lease square feet | 55,047 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2015 | 1,400,000 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2016 | 1,900,000 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2017 | 2,000,000 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2018 | 2,000,000 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2019 | 1,000,000 | |
Minimum receipts remaining under the Company's existing subleases for 2015 | 500,000 | |
Minimum receipts remaining under the Company's existing subleases for 2016 | 600,000 | |
Minimum receipts remaining under the Company's existing subleases for 2017 | 600,000 | |
Minimum receipts remaining under the Company's existing subleases for 2018 | 600,000 | |
Minimum receipts remaining under the Company's existing subleases for 2019 | $400,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Summary of Liability Related to Lease (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $3,033 | $1,787 |
Net rental payments | -249 | -162 |
Accretion of discount | 59 | 35 |
Increase in net estimated contract termination costs | 129 | 567 |
Ending balance | $2,972 | $2,227 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Summary of Reconciliation of Company's Surface Flaking Warranty Reserve (Detail) (Surface Flaking Warranty Reserve [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Surface Flaking Warranty Reserve [Member] | ||
Warranties [Line Items] | ||
Beginning balance | $31,419 | $40,312 |
Changes in estimates related to pre-existing warranties | 0 | 0 |
Settlements made during the period | -1,359 | -2,010 |
Ending balance | $30,060 | $38,302 |