Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 20, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TREX | |
Entity Registrant Name | TREX CO INC | |
Entity Central Index Key | 1,069,878 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,866,899 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 2,532 | $ 9,544 |
Accounts receivable, net | 80,396 | 36,391 |
Inventories | 16,955 | 23,747 |
Prepaid expenses and other current assets | 4,879 | 6,288 |
Deferred income taxes | 9,860 | 9,271 |
Total current assets | 114,622 | 85,241 |
Property, plant and equipment, net | 105,944 | 98,716 |
Goodwill and other intangibles | 10,528 | 10,534 |
Other assets | 1,537 | 1,333 |
Total assets | 232,631 | 195,824 |
Current liabilities: | ||
Accounts payable | 10,146 | 20,050 |
Accrued expenses | 22,548 | 20,660 |
Accrued warranty | 7,744 | 8,744 |
Line of credit | 48,500 | |
Total current liabilities | 88,938 | 49,454 |
Deferred income taxes | 3,708 | 3,708 |
Non-current accrued warranty | 28,211 | 25,097 |
Other long-term liabilities | 3,774 | 4,180 |
Total liabilities | $ 124,631 | $ 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; 34,779,891 and 34,800,552 shares issued and 30,865,162 and 32,020,123 shares outstanding at September 30, 2015 and December 31, 2014, respectively | $ 348 | $ 348 |
Additional paid-in capital | 116,571 | 116,740 |
Retained earnings | 111,309 | 71,297 |
Treasury stock, at cost, 3,914,729 and 2,780,429 shares at September 30, 2015 and December 31, 2014, respectively | (120,228) | (75,000) |
Total stockholders' equity | 108,000 | 113,385 |
Total liabilities and stockholders' equity | $ 232,631 | $ 195,824 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 | 34,779,891 | 34,800,552 |
Common stock, shares outstanding | 30,865,162 | 32,020,123 |
Treasury stock, shares | 3,914,729 | 2,780,429 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 94,023 | $ 95,502 | $ 351,602 | $ 317,458 |
Cost of sales | 71,880 | 65,133 | 228,688 | 203,897 |
Gross profit | 22,143 | 30,369 | 122,914 | 113,561 |
Selling, general and administrative expenses | 15,698 | 15,902 | 58,763 | 54,468 |
Income from operations | 6,445 | 14,467 | 64,151 | 59,093 |
Interest expense, net | 157 | 167 | 482 | 791 |
Income before income taxes | 6,288 | 14,300 | 63,669 | 58,302 |
Provision for income taxes | 2,544 | 5,387 | 23,657 | 21,934 |
Net income | $ 3,744 | $ 8,913 | $ 40,012 | $ 36,368 |
Basic earnings per common share | $ 0.12 | $ 0.28 | $ 1.27 | $ 1.12 |
Basic weighted average common shares outstanding | 31,227,643 | 31,606,264 | 31,547,212 | 32,538,832 |
Diluted earnings per common share | $ 0.12 | $ 0.28 | $ 1.25 | $ 1.10 |
Diluted weighted average common shares outstanding | 31,537,010 | 32,008,781 | 31,923,255 | 32,966,317 |
Comprehensive income | $ 3,744 | $ 8,913 | $ 40,012 | $ 36,368 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income | $ 40,012 | $ 36,368 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,920 | 11,449 |
Deferred income taxes | (589) | |
Stock-based compensation | 4,021 | 3,672 |
Loss on disposal of property, plant and equipment | 168 | 169 |
Excess tax benefits from stock compensation | (2,437) | (12,677) |
Other non-cash adjustments | (269) | (245) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (44,005) | (7,698) |
Inventories | 6,792 | 7,789 |
Prepaid expenses and other assets | (310) | (415) |
Accounts payable | (9,904) | (2,027) |
Accrued expenses and other liabilities | 3,626 | (3,690) |
Income taxes receivable/payable | 4,126 | 12,630 |
Net cash provided by operating activities | 12,151 | 45,325 |
Investing Activities | ||
Expenditures for property, plant and equipment | (18,279) | (8,794) |
Proceeds from sales of property, plant and equipment | 35 | 48 |
Purchase of acquired company, net of cash acquired | (32) | (44) |
Notes receivable, net | 59 | |
Net cash used in investing activities | (18,276) | (8,731) |
Financing Activities | ||
Borrowings under line of credit | 199,000 | 139,000 |
Principal payments under line of credit | (150,500) | (136,000) |
Repurchases of common stock | (52,081) | (52,892) |
Proceeds from employee stock purchase and option plans | 257 | 690 |
Excess tax benefits from stock compensation | 2,437 | 12,677 |
Net cash used in financing activities | (887) | (36,525) |
Net (decrease) increase in cash and cash equivalents | (7,012) | 69 |
Cash and cash equivalents, beginning of period | 9,544 | 3,772 |
Cash and cash equivalents, end of period | 2,532 | 3,841 |
Supplemental Disclosure: | ||
Cash paid for interest, net of capitalized interest | 390 | 498 |
Cash paid for income taxes, net | $ 20,164 | $ 9,342 |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. BUSINESS AND ORGANIZATION Trex Company, Inc. (Company) is the world’s largest manufacturer of wood-alternative decking and railing products, which are marketed under the brand name Trex ® |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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. Certain prior year amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. The consolidated results of operations for the nine months ended September 30, 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 U.S. Securities and Exchange Commission (SEC). 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 | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | 3. NEW ACCOUNTING STANDARDS In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, “ Revenue from Contracts with Customers. Revenue From Contracts with Customers (Topic 606): Deferral of the Effective Date, On April 7, 2015, the FASB issued Accounting Standards Update No. 2015-03, “ Simplifying the Presentation of Debt Issuance Costs |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. INVENTORIES Inventories, at LIFO (last-in, first-out) value, consist of the following (in thousands): September 30, December 31, Finished goods $ 21,655 $ 32,756 Raw materials 20,599 16,290 Total FIFO (first-in, first-out) inventories 42,254 49,046 Reserve to adjust inventories to LIFO value (25,299 ) (25,299 ) Total LIFO inventories $ 16,955 $ 23,747 The Company utilizes the LIFO method of accounting for inventory, which generally provides for the 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 nine months ended September 30, 2015 or 2014. Since inventory levels and costs are subject to factors beyond management’s control, interim results are subject to the final year-end LIFO inventory valuation. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 5. ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): September 30, December 31, Accrued sales and marketing $ 10,456 $ 5,963 Accrued compensation and benefits 7,548 9,201 Accrued manufacturing expenses 1,062 1,307 Accrued rent obligations 909 1,372 Other 2,573 2,817 Total accrued expenses $ 22,548 $ 20,660 |
Debt
Debt | 9 Months Ended |
Sep. 30, 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 and Restated 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, and a maximum principal amount of $100 million from July 1 through December 31 of each year throughout the term, which ends November 20, 2019. The Company had $48.5 million of outstanding borrowings under its revolving credit facility and remaining available borrowing capacity of approximately $51.5 million at September 30, 2015. Compliance with Debt Covenants and Restrictions The Company’s ability to make scheduled principal and interest payments, 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 September 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income available to common shareholders $ 3,744 $ 8,913 $ 40,012 $ 36,368 Denominator: Basic weighted average shares outstanding 31,227,643 31,606,264 31,547,212 32,538,832 Effect of dilutive securities: Stock appreciation rights and options 182,082 237,602 216,276 268,016 Restricted stock 127,285 164,915 159,767 159,469 Diluted weighted average shares outstanding 31,537,010 32,008,781 31,923,255 32,966,317 Basic earnings per share $ 0.12 $ 0.28 $ 1.27 $ 1.12 Diluted earnings per share $ 0.12 $ 0.28 $ 1.25 $ 1.10 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 Nine Months Ended 2015 2014 2015 2014 Restricted stock and stock options 2,004 10,444 668 3,511 Stock appreciation rights 7,726 3,340 2,575 2,625 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 (Stock Repurchase Program). This authorization had no expiration date. During the three months ended September 30, 2015, the Company repurchased 1,134,300 shares for $45.2 million under the Stock Repurchase Program. On October 22, 2015, the Company’s Board of Directors terminated the Stock Repurchase Program adopted on October 23, 2014, and adopted a new stock repurchase program of up to three million one hundred fifty thousand (3,150,000) shares of the Company’s outstanding common stock (2015 Stock Repurchase Program). This authorization has a termination date of December 31, 2016. As of October 27, 2015, no shares have been purchased under the 2015 Stock Repurchase Program. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 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 (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 September 30, 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 for 1 year, cumulative 2 years and cumulative 3 years, respectively. The number of shares that vest, with respect to each vesting, 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 nine months ended September 30, 2015 and 2014, respectively, the assumptions shown in the following table were used: Nine Months Ended September 30, 2015 2014 Weighted-average fair value of grants $ 16.26 $ 18.02 Dividend yield 0 % 0 % Average risk-free interest rate 1.6 % 1.7 % Expected term (years) 5 5 Expected volatility 43 % 53 % The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2015: Nine Months Ended September 30, 2015 Stock Awards Granted Weighted-Average Per Share Time-based restricted stock 57,408 $ 43.84 Performance-based restricted stock 34,638 $ 43.89 Stock appreciation rights 15,585 $ 41.19 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 and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Stock appreciation rights $ 111 $ 222 $ 400 $ 813 Time-based restricted stock 750 769 2,245 2,247 Performance-based restricted stock 432 205 1,320 570 Employee stock purchase plan 11 21 56 42 Total stock-based compensation $ 1,304 $ 1,217 $ 4,021 $ 3,672 Total unrecognized compensation cost related to unvested awards as of September 30, 2015 was $3.2 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES The Company’s effective tax rate for the nine months ended September 30, 2015 and 2014 was 37.2% and 37.6% respectively, which resulted in expense of $23.7 million and $21.9 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 September 30, 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 nine months ended September 30, 2015, the Company realized $2.4 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 September 30, 2015, federal tax years 2012 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 | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 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 agreement obligates the Company to lease 55,047 square feet of office space through June 30, 2019. As of September 30, 2015, the Company has executed subleases for 49,756 square feet of the leased space and is currently marketing the remaining portion of the space to find suitable tenants. 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 nine months ended September 30, 2015 and 2014, the Company recorded charges of $0.2 million and $1.0 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 September 30, 2015, 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 $0.5 million, $1.9 million, $1.9 million, $2.0 million and $1.0 million, respectively. Net minimum receipts remaining under the Company’s existing subleases over the years ending December 31, 2015, 2016, 2017, 2018 and 2019 are $0.0 million, $1.1 million, $1.2 million, $1.3 million and $0.7 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 (903 ) (281 ) Accretion of discount 173 125 Increase in net estimated contract termination costs 206 1,018 Ending balance, September 30 $ 2,509 $ 2,649 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 ® ® ® ® The Company continues to receive and settle surface flaking claims related to material produced at its Nevada facility prior to 2007 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. 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 (collectively, elements). Estimates for these elements 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. 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. Typically, a majority of surface flaking claims received in a year are received during the summer outdoor season, which spans the second and third quarters. It has been the Company’s practice to utilize the actuarial techniques discussed above during the third quarter, after a significant portion of all claims has been received for the fiscal year and variances to annual claims expectations are more meaningful. The number of surface flaking claims received continues to decline each year and amounts paid to settle such claims during 2015 are significantly lower than during 2014. However, through the third quarter of 2015, both the number of claims received and the average cost per claim were slightly higher than expectations. As a result and after actuarial review, the Company revised its estimate and recorded an increase to the warranty reserve of $5.4 million during the third quarter. The Company believes that its reserve at September 30, 2015 is sufficient to cover future surface flaking obligations. The Company’s analysis is based on currently known facts and a number of assumptions, as discussed above. 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 flows. The Company estimates that the annual number of claims received will continue to decline over time and that the average cost per claim will increase slightly, primarily due to inflation. If the level of claims received or average cost per claim differs materially from expectations, it could result in additional increases or decreases to the warranty reserve and a decrease or increase in 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 $3.2 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 5,426 — Settlements made during the period (5,286 ) (6,647 ) Ending balance, September 30 $ 31,559 $ 33,665 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) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014. |
Share-based Compensation | The Company has one stock-based compensation plan, the 2014 Stock Incentive Plan (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 September 30, 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 for 1 year, cumulative 2 years and cumulative 3 years, respectively. The number of shares that vest, with respect to each vesting, will be between 0% and 200% of the target number of shares. |
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 agreement obligates the Company to lease 55,047 square feet of office space through June 30, 2019. As of September 30, 2015, the Company has executed subleases for 49,756 square feet of the leased space and is currently marketing the remaining portion of the space to find suitable tenants. 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 nine months ended September 30, 2015 and 2014, the Company recorded charges of $0.2 million and $1.0 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 ® ® ® ® The Company continues to receive and settle surface flaking claims related to material produced at its Nevada facility prior to 2007 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. 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 (collectively, elements). Estimates for these elements 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. 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) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, at LIFO Value | Inventories, at LIFO (last-in, first-out) value, consist of the following (in thousands): September 30, December 31, Finished goods $ 21,655 $ 32,756 Raw materials 20,599 16,290 Total FIFO (first-in, first-out) inventories 42,254 49,046 Reserve to adjust inventories to LIFO value (25,299 ) (25,299 ) Total LIFO inventories $ 16,955 $ 23,747 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses consist of the following (in thousands): September 30, December 31, Accrued sales and marketing $ 10,456 $ 5,963 Accrued compensation and benefits 7,548 9,201 Accrued manufacturing expenses 1,062 1,307 Accrued rent obligations 909 1,372 Other 2,573 2,817 Total accrued expenses $ 22,548 $ 20,660 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income available to common shareholders $ 3,744 $ 8,913 $ 40,012 $ 36,368 Denominator: Basic weighted average shares outstanding 31,227,643 31,606,264 31,547,212 32,538,832 Effect of dilutive securities: Stock appreciation rights and options 182,082 237,602 216,276 268,016 Restricted stock 127,285 164,915 159,767 159,469 Diluted weighted average shares outstanding 31,537,010 32,008,781 31,923,255 32,966,317 Basic earnings per share $ 0.12 $ 0.28 $ 1.27 $ 1.12 Diluted earnings per share $ 0.12 $ 0.28 $ 1.25 $ 1.10 |
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 Nine Months Ended 2015 2014 2015 2014 Restricted stock and stock options 2,004 10,444 668 3,511 Stock appreciation rights 7,726 3,340 2,575 2,625 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2015 and 2014, respectively, the assumptions shown in the following table were used: Nine Months Ended September 30, 2015 2014 Weighted-average fair value of grants $ 16.26 $ 18.02 Dividend yield 0 % 0 % Average risk-free interest rate 1.6 % 1.7 % Expected term (years) 5 5 Expected volatility 43 % 53 % |
Summary of Stock-Based Compensation Grants | The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2015: Nine Months Ended September 30, 2015 Stock Awards Granted Weighted-Average Per Share Time-based restricted stock 57,408 $ 43.84 Performance-based restricted stock 34,638 $ 43.89 Stock appreciation rights 15,585 $ 41.19 |
Summary of Stock-Based Compensation Expense | The following table summarizes the Company’s stock-based compensation expense for the three months and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Stock appreciation rights $ 111 $ 222 $ 400 $ 813 Time-based restricted stock 750 769 2,245 2,247 Performance-based restricted stock 432 205 1,320 570 Employee stock purchase plan 11 21 56 42 Total stock-based compensation $ 1,304 $ 1,217 $ 4,021 $ 3,672 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 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 (903 ) (281 ) Accretion of discount 173 125 Increase in net estimated contract termination costs 206 1,018 Ending balance, September 30 $ 2,509 $ 2,649 |
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 5,426 — Settlements made during the period (5,286 ) (6,647 ) Ending balance, September 30 $ 31,559 $ 33,665 |
Business and Organization - Add
Business and Organization - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Accounting Policies [Abstract] | |
Number of operating segments of business | 1 |
Inventories - Summary of Invent
Inventories - Summary of Inventories, at LIFO Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 21,655 | $ 32,756 |
Raw materials | 20,599 | 16,290 |
Total FIFO (first-in, first-out) inventories | 42,254 | 49,046 |
Reserve to adjust inventories to LIFO value | (25,299) | (25,299) |
Total LIFO inventories | $ 16,955 | $ 23,747 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Inventory Disclosure [Abstract] | ||
LIFO inventory liquidations | $ 0 | $ 0 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued sales and marketing | $ 10,456 | $ 5,963 |
Accrued compensation and benefits | 7,548 | 9,201 |
Accrued manufacturing expenses | 1,062 | 1,307 |
Accrued rent obligations | 909 | 1,372 |
Other | 2,573 | 2,817 |
Total accrued expenses | $ 22,548 | $ 20,660 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Second Amended and Restated Credit Agreement [Member] | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Line of Credit Facility [Line Items] | |
Termination date of the Credit Agreement | Nov. 20, 2019 |
Remaining available borrowing capacity | $ 51,500,000 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding borrowings under the revolver loans | 48,500,000 |
Revolver Loans Portion Effective January 1 through June 30 [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] | |
Line of Credit Facility [Line Items] | |
Revolving loans in a collective maximum principal amount | $ 100,000,000 |
Stockholders' Equity - Computat
Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income available to common shareholders | $ 3,744 | $ 8,913 | $ 40,012 | $ 36,368 |
Denominator: | ||||
Basic weighted average shares outstanding | 31,227,643 | 31,606,264 | 31,547,212 | 32,538,832 |
Effect of dilutive securities: | ||||
Diluted weighted average shares outstanding | 31,537,010 | 32,008,781 | 31,923,255 | 32,966,317 |
Basic earnings per share | $ 0.12 | $ 0.28 | $ 1.27 | $ 1.12 |
Diluted earnings per share | $ 0.12 | $ 0.28 | $ 1.25 | $ 1.10 |
Stock Appreciation Rights and Options [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 182,082 | 237,602 | 216,276 | 268,016 |
Restricted Stock [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 127,285 | 164,915 | 159,767 | 159,469 |
Stockholders' Equity - Antidilu
Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | 2,004 | 10,444 | 668 | 3,511 |
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 | 7,726 | 3,340 | 2,575 | 2,625 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | Oct. 27, 2015 | Oct. 22, 2015 | Sep. 30, 2015 | Oct. 23, 2014 |
Common Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchase program, authorized shares | 2,000,000 | |||
Stock Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased by the Company | 1,134,300 | |||
Value of shares repurchased by the Company | $ 45.2 | |||
Subsequent Event [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchase program, termination date | Oct. 22, 2015 | |||
Subsequent Event [Member] | 2015 Stock Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased by the Company | 0 | |||
Common stock repurchase program, termination date | Dec. 31, 2016 | |||
Subsequent Event [Member] | 2015 Stock Repurchase Program [Member] | Common Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchase program, authorized shares | 3,150,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)Planshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock based compensation plans | Plan | 1 |
Unrecognized compensation cost related to unvested awards | $ | $ 3.2 |
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 |
Performance-Based Restricted Stock [Member] | Share-Based Compensation Award, Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation vesting percentage | 33.33% |
Performance-Based Restricted Stock [Member] | Share-Based Compensation Award, Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation vesting percentage | 33.33% |
Performance-Based Restricted Stock [Member] | Share-Based Compensation Award, Tranche Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation vesting percentage | 33.33% |
Stock Appreciation Rights [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value assumptions method used | Black-Scholes option-pricing formula |
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% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) - Stock Appreciation Rights [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ||
Weighted-average fair value of grants | $ 16.26 | $ 18.02 |
Dividend yield | 0.00% | 0.00% |
Average risk-free interest rate | 1.60% | 1.70% |
Expected term (years) | 5 years | 5 years |
Expected volatility | 43.00% | 53.00% |
Stock-Based Compensation - Su34
Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Detail) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Time-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards Granted | shares | 57,408 |
Weighted-Average Grant Price Per Share | $ 43.84 |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards Granted | shares | 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 | shares | 15,585 |
Weighted-Average Grant Price Per Share | $ 41.19 |
Stock-Based Compensation - Su35
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,304 | $ 1,217 | $ 4,021 | $ 3,672 |
Stock Appreciation Rights [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 111 | 222 | 400 | 813 |
Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 750 | 769 | 2,245 | 2,247 |
Performance-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 432 | 205 | 1,320 | 570 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 11 | $ 21 | $ 56 | $ 42 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 37.20% | 37.60% | ||
Income tax expense | $ 2,544 | $ 5,387 | $ 23,657 | $ 21,934 |
Valuation allowance | $ 4,500 | 4,500 | ||
Excess tax benefits from stock-based awards | $ 2,400 | |||
Earliest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax years subject to examination | 2,012 | |||
Latest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax years subject to examination | 2,014 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)ft² | Sep. 30, 2014USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Charge recorded | $ 206 | $ 1,018 |
Surface Flaking Warranty Reserve [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Estimate increase to the warranty reserve | $ 5,426 | |
Percentage change in warranty claims used as a threshold for disclosure | 10.00% | |
Change in warranty reserve for disclosure purposes only | $ 3,200 | |
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 | |
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 | |
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 | |
Sublease [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Lease square feet | ft² | 49,756 | |
Net minimum receipts remaining under the Company's existing subleases for 2015 | $ 0 | |
Net minimum receipts remaining under the Company's existing subleases for 2016 | 1,100 | |
Net minimum receipts remaining under the Company's existing subleases for 2017 | 1,200 | |
Net minimum receipts remaining under the Company's existing subleases for 2018 | 1,300 | |
Net minimum receipts remaining under the Company's existing subleases for 2019 | $ 700 | |
Contract Termination [Member] | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Lease square feet | ft² | 55,047 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2015 | $ 500 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2016 | 1,900 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2017 | 1,900 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2018 | 2,000 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2019 | $ 1,000 |
Commitments and Contingencies38
Commitments and Contingencies - Summary of Liability Related to Lease (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 3,033 | $ 1,787 |
Net rental payments | (903) | (281) |
Accretion of discount | 173 | 125 |
Increase in net estimated contract termination costs | 206 | 1,018 |
Ending balance | $ 2,509 | $ 2,649 |
Commitments and Contingencies39
Commitments and Contingencies - Summary of Reconciliation of Company's Surface Flaking Warranty Reserve (Detail) - Surface Flaking Warranty Reserve [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Product Warranty Liability [Line Items] | ||
Beginning balance | $ 31,419 | $ 40,312 |
Changes in estimates related to pre-existing warranties | 5,426 | |
Settlements made during the period | (5,286) | (6,647) |
Ending balance | $ 31,559 | $ 33,665 |