Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-50924 | |
Entity Registrant Name | BEACON ROOFING SUPPLY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-4173371 | |
Entity Address, Address Line One | 505 Huntmar Park Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Herndon | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 20170 | |
City Area Code | 571 | |
Local Phone Number | 323-3939 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | BECN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,871,374 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Entity Central Index Key | 0001124941 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 76.6 | $ 84 | $ 65.8 |
Accounts receivable, less allowance of $16.8, $15.0, and $17.0 as of June 30, 2024, December 31, 2023, and June 30, 2023, respectively | 1,570.8 | 1,140.2 | 1,361.7 |
Inventories, net | 1,611.5 | 1,227.9 | 1,352.8 |
Prepaid expenses and other current assets | 531.3 | 444.6 | 512.1 |
Total current assets | 3,790.2 | 2,896.7 | 3,292.4 |
Property and equipment, net | 483.3 | 436.4 | 380.8 |
Goodwill | 2,017.7 | 1,952.6 | 1,922.9 |
Intangibles, net | 445.7 | 403.5 | 415.8 |
Operating lease right-of-use assets, net | 581.8 | 503.6 | 470.3 |
Deferred income taxes, net | 2.1 | 2.1 | 6.8 |
Other assets, net | 16.1 | 12.8 | 11.3 |
Total assets | 7,336.9 | 6,207.7 | 6,500.3 |
Current liabilities: | |||
Accounts payable | 1,322.6 | 942.8 | 1,317.4 |
Accrued expenses | 532.7 | 498.6 | 498 |
Current portion of operating lease liabilities | 96.1 | 89.7 | 97.2 |
Current portion of finance lease liabilities | 31.3 | 26.2 | 20.4 |
Current portion of long-term debt | 12.8 | 10 | 10 |
Total current liabilities | 1,995.5 | 1,567.3 | 1,943 |
Borrowings under revolving lines of credit, net | 464.6 | 80 | 67.5 |
Long-term debt, net | 2,485.4 | 2,192.3 | 1,603.2 |
Deferred income taxes, net | 25.1 | 20.1 | 0.5 |
Other long-term liabilities | 1.6 | 0.5 | 0.2 |
Operating lease liabilities | 498.7 | 423.7 | 385.1 |
Finance lease liabilities | 112.4 | 100.3 | 78.9 |
Total liabilities | 5,583.3 | 4,384.2 | 4,078.4 |
Commitments and contingencies (Note 0.000013) | |||
Convertible Preferred Stock (voting); $0.01 par value; aggregate liquidation preference $400.0; 0.0, 0.0 and 0.4 shares authorized, issued and outstanding as of June 30, 2024, December 31, 2023, and June 30, 2023, respectively (Note 5) | 0 | 0 | 399.2 |
Stockholders' equity: | |||
Common stock (voting); $0.01 par value; 100.0 shares authorized; 61.9, 63.3, and 63.4 shares issued and outstanding as of June 30, 2024, December 31, 2023, and June 30, 2023, respectively | 0.6 | 0.6 | 0.6 |
Undesignated preferred stock; 5.0 shares authorized, none issued or outstanding | 0 | 0 | 0 |
Additional paid-in capital | 1,196.6 | 1,218.4 | 1,208.1 |
Retained earnings | 571.5 | 618.8 | 820.1 |
Accumulated other comprehensive income (loss) | (15.1) | (14.3) | (6.1) |
Total stockholders' equity | 1,753.6 | 1,823.5 | 2,022.7 |
Total liabilities and stockholders' equity | $ 7,336.9 | $ 6,207.7 | $ 6,500.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowances | $ 16.8 | $ 15 | $ 17 |
Convertible preferred stock, par value ( in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Convertible preferred stock. aggregate liquidation preference | $ 400 | $ 400 | $ 400 |
Convertible preferred stock, shares authorized ( in shares) | 0 | 0 | 400,000 |
Convertible preferred stock, shares issued ( in shares) | 0 | 0 | 400,000 |
Convertible preferred stock, shares outstanding ( in shares) | 0 | 0 | 400,000 |
Common stock (voting), par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock (voting), shares authorized ( in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock (voting), issued ( in shares) | 61,900,000 | 63,300,000 | 63,400,000 |
Common Stock (voting), outstanding ( in shares) | 61,900,000 | 63,300,000 | 63,400,000 |
Undesignated Preferred Stock, shares authorized ( in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Undesignated Preferred Stock, issued ( in shares) | 0 | 0 | 0 |
Undesignated Preferred Stock, outstanding ( in shares) | 0 | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,674.6 | $ 2,503.7 | $ 4,587 | $ 4,236 |
Cost of products sold | 1,990.9 | 1,867.5 | 3,430.1 | 3,157.9 |
Gross profit | 683.7 | 636.2 | 1,156.9 | 1,078.1 |
Operating expense: | ||||
Selling, general and administrative | 418.5 | 358.7 | 800 | 697 |
Depreciation | 26.5 | 21.8 | 52 | 42.5 |
Amortization | 22.9 | 21.4 | 44 | 43.7 |
Total operating expense | 467.9 | 401.9 | 896 | 783.2 |
Income (loss) from operations | 215.8 | 234.3 | 260.9 | 294.9 |
Interest expense, financing costs and other, net | 45.4 | 26 | 84 | 53.8 |
Loss on debt extinguishment | 0 | 0 | 2.4 | 0 |
Income (loss) before provision for income taxes | 170.4 | 208.3 | 174.5 | 241.1 |
Provision for (benefit from) income taxes | 43.2 | 54.5 | 41.7 | 62.5 |
Net income (loss) | 127.2 | 153.8 | 132.8 | 178.6 |
Reconciliation of net income (loss) to net income (loss) attributable to common stockholders: | ||||
Net income (loss) | 127.2 | 153.8 | 132.8 | 178.6 |
Dividends on Preferred Stock | 0 | (6) | 0 | (12) |
Undistributed income allocated to participating securities | 0 | (19.5) | 0 | (21.9) |
Net income (loss) attributable to common stockholders | $ 127.2 | $ 128.3 | $ 132.8 | $ 144.7 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 62.7 | 63.7 | 63.1 | 64 |
Diluted ( in shares) | 63.9 | 65.1 | 64.3 | 65.3 |
Net income (loss) per common share: | ||||
Basic (in usd per share) | $ 2.03 | $ 2.02 | $ 2.10 | $ 2.26 |
Diluted (in usd per share) | $ 1.99 | $ 1.97 | $ 2.07 | $ 2.22 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 127.2 | $ 153.8 | $ 132.8 | $ 178.6 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (1.2) | 2.5 | (4.3) | 2.3 |
Unrealized gain (loss) due to change in fair value of derivative financial instruments, net of tax | 0.1 | 7.9 | 5.2 | 5.1 |
Derivative financial instruments reclassified to earnings, net of tax | (0.9) | (0.8) | (1.7) | (1) |
Total other comprehensive income (loss) | (2) | 9.6 | (0.8) | 6.4 |
Comprehensive income (loss) | $ 125.2 | $ 163.4 | $ 132 | $ 185 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | APIC | Retained Earnings | AOCI | [2] | |||||
Beginning balance at Dec. 31, 2022 | $ 1,904.1 | $ 0.6 | $ 1,187.2 | [1] | $ 728.8 | $ (12.5) | |||||
Balance (in shares) at Dec. 31, 2022 | 64.2 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Repurchase and retirement of common stock, net | $ (75.3) | [3] | $ 0 | (75.3) | [3] | ||||||
Repurchase and retirement of common stock, net ( in shares) | (1.2) | (1.1) | [3] | ||||||||
Issuance of common stock, net of shares withheld for taxes | $ 6.6 | $ 0 | 6.6 | [1] | |||||||
Issuance of common stock, net of shares withheld for taxes ( in shares) | 0.3 | ||||||||||
Stock-based compensation | 14.3 | 14.3 | [1] | ||||||||
Other comprehensive income (loss) | 6.4 | 6.4 | |||||||||
Net income (loss) | 178.6 | 178.6 | |||||||||
Dividends on Preferred Stock | (12) | (12) | |||||||||
Ending balance at Jun. 30, 2023 | 2,022.7 | $ 0.6 | 1,208.1 | [1] | 820.1 | (6.1) | |||||
Balance (in shares) at Jun. 30, 2023 | 63.4 | ||||||||||
Beginning balance at Mar. 31, 2023 | 1,906.6 | $ 0.6 | 1,197.2 | [1] | 724.5 | (15.7) | |||||
Balance (in shares) at Mar. 31, 2023 | 64 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Repurchase and retirement of common stock, net | $ (52.2) | [3] | $ 0 | (52.2) | [3] | ||||||
Repurchase and retirement of common stock, net ( in shares) | (0.8) | (0.7) | [3] | ||||||||
Issuance of common stock, net of shares withheld for taxes | $ 2.6 | $ 0 | 2.6 | [1] | |||||||
Issuance of common stock, net of shares withheld for taxes ( in shares) | 0.1 | ||||||||||
Stock-based compensation | 8.3 | 8.3 | [1] | ||||||||
Other comprehensive income (loss) | 9.6 | 9.6 | |||||||||
Net income (loss) | 153.8 | 153.8 | |||||||||
Dividends on Preferred Stock | (6) | (6) | |||||||||
Ending balance at Jun. 30, 2023 | 2,022.7 | $ 0.6 | 1,208.1 | [1] | 820.1 | (6.1) | |||||
Balance (in shares) at Jun. 30, 2023 | 63.4 | ||||||||||
Beginning balance at Dec. 31, 2023 | 1,823.5 | $ 0.6 | 1,218.4 | [1] | 618.8 | (14.3) | |||||
Balance (in shares) at Dec. 31, 2023 | 63.3 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Repurchase and retirement of common stock, net | $ (180.1) | [3] | $ 0 | (180.1) | [3] | ||||||
Repurchase and retirement of common stock, net ( in shares) | (1.9) | (1.9) | [3] | ||||||||
Equity forward contract | [3] | $ (45) | (45) | ||||||||
Issuance of common stock, net of shares withheld for taxes | 7.5 | $ 0 | 7.5 | [1] | |||||||
Issuance of common stock, net of shares withheld for taxes ( in shares) | 0.5 | ||||||||||
Stock-based compensation | 15.7 | 15.7 | [1] | ||||||||
Other comprehensive income (loss) | (0.8) | (0.8) | |||||||||
Net income (loss) | 132.8 | 132.8 | |||||||||
Ending balance at Jun. 30, 2024 | 1,753.6 | $ 0.6 | 1,196.6 | [1] | 571.5 | (15.1) | |||||
Balance (in shares) at Jun. 30, 2024 | 61.9 | ||||||||||
Beginning balance at Mar. 31, 2024 | 1,840.5 | $ 0.6 | 1,228.6 | [1] | 624.4 | (13.1) | |||||
Balance (in shares) at Mar. 31, 2024 | 63.6 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Repurchase and retirement of common stock, net | $ (180.1) | [3] | $ 0 | (180.1) | [3] | ||||||
Repurchase and retirement of common stock, net ( in shares) | (1.9) | (1.9) | [3] | ||||||||
Equity forward contract | [3] | $ (45) | (45) | ||||||||
Issuance of common stock, net of shares withheld for taxes | 4.7 | $ 0 | 4.7 | ||||||||
Issuance of common stock, net of shares withheld for taxes ( in shares) | 0.2 | ||||||||||
Stock-based compensation | 8.3 | 8.3 | [1] | ||||||||
Other comprehensive income (loss) | (2) | (2) | |||||||||
Net income (loss) | 127.2 | 127.2 | |||||||||
Ending balance at Jun. 30, 2024 | $ 1,753.6 | $ 0.6 | $ 1,196.6 | [1] | $ 571.5 | $ (15.1) | |||||
Balance (in shares) at Jun. 30, 2024 | 61.9 | ||||||||||
[1] Additional Paid-in Capital (“APIC”). Accumulated Other Comprehensive Income (Loss) (“AOCI”). |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities | ||
Net income (loss) | $ 132.8 | $ 178.6 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 96 | 86.2 |
Stock-based compensation | 15.7 | 14.3 |
Certain interest expense and other financing costs | 0.8 | 1.3 |
Loss on debt extinguishment | 2.4 | 0 |
Gain on sale of fixed assets and other | (3.7) | (9.5) |
Deferred income taxes | 4.2 | 1.6 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (394) | (346.5) |
Inventories | (353.2) | (19.5) |
Prepaid expenses and other current assets | (76.7) | (87.2) |
Accounts payable and accrued expenses | 385 | 539.2 |
Other assets and liabilities | 1.5 | 0.2 |
Net cash provided by (used in) operating activities | (189.2) | 358.7 |
Investing Activities | ||
Capital expenditures | (61.5) | (60.3) |
Acquisition of business, net | (204.7) | (30.5) |
Proceeds from sale of assets | 4 | 10.7 |
Purchases of investments | (1) | (0.9) |
Net cash provided by (used in) investing activities | (263.2) | (81) |
Financing Activities | ||
Borrowings under revolving lines of credit | 1,715.2 | 840.7 |
Payments under revolving lines of credit | (1,331.5) | (1,028.8) |
Borrowings under term loan | 300 | 0 |
Payments under term loan | (6.4) | (5) |
Payment of debt issuance costs | (0.2) | 0 |
Payments under equipment financing facilities and finance leases | (13.7) | (9.1) |
Payment of fees for the repurchase of convertible Preferred Stock | (0.1) | 0 |
Repurchase and retirement of common stock, net | (180) | (72.4) |
Advance payment for equity forward contract | (45) | 0 |
Proceeds from employee stock purchase plan | 8.3 | 0 |
Payment of dividends on Preferred Stock | 0 | (12) |
Proceeds from issuance of common stock related to equity awards | 6.2 | 8.1 |
Payment of taxes related to net share settlement of equity awards | (7) | (1.5) |
Net cash provided by (used in) financing activities | 445.8 | (280) |
Effect of exchange rate changes on cash and cash equivalents | (0.8) | 0.4 |
Net increase (decrease) in cash and cash equivalents | (7.4) | (1.9) |
Cash and cash equivalents, beginning of period | 84 | 67.7 |
Cash and cash equivalents, end of period | 76.6 | 65.8 |
Supplemental Cash Flow Information | ||
Interest | 83 | 53.4 |
Income taxes, net of refunds | 36 | 31.3 |
Supplemental Disclosure of Non-Cash Activities | ||
Amounts accrued for repurchases of common stock, inclusive of excise tax | $ 0 | $ 2.9 |
Company Overview
Company Overview | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Company Overview Beacon Roofing Supply, Inc. (“Beacon” or the “Company”) was incorporated in the state of Delaware on July 16, 1997 and is the largest publicly traded distributor of roofing materials and complementary building products, such as siding and waterproofing, in North America. The Company operates its business primarily under the trade name “Beacon Building Products” and services customers in all 50 states throughout the U.S. and seven provinces in Canada. The Company’s material subsidiaries are Beacon Sales Acquisition, Inc. and Beacon Roofing Supply Canada Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Company prepared the condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the requirements of the Securities and Exchange Commission (“SEC”). As permitted under those rules, certain footnotes or other financial information have been condensed or omitted. Certain prior period amounts have been reclassified to conform to current period presentation. The balance sheet as of June 30, 2023 has been presented for a better understanding of the impact of seasonal fluctuations on the Company’s financial condition. The three-month periods ended June 30, 2024 and 2023 each had 64 business days. The six-month periods ended June 30, 2024 and 2023 each had 130 business days. In management’s opinion, the unaudited condensed consolidated financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the twelve months ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Recent Accounting Pronouncements — Not Yet Adopted In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements – Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This standard affects a wide variety of Topics in the Codification. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. Early adoption is prohibited. The Company does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improving Reportable Segment Disclosures (Topic 280).” The standard is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The standard requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The standard also requires all annual disclosures currently required by ASC Topic 280 to be included in interim periods. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions The following table presents the Company’s acquisitions between January 1, 2023 and June 30, 2024. The Company acquired 100% of the equity or substantially all of the net assets in each case. The Company has not provided pro forma results of operations for any of the transactions below, as the transactions individually and in the aggregate for the respective year are not material to the Company. The results of operations for these transactions are included in the Company’s condensed consolidated statements of operations from the date of the acquisition (dollars in millions): Date Acquired Company Name Region Branches Goodwill Recognized 1 Intangible Assets Acquired 1 May 1, 2024 Smalley & Company Colorado, Arizona, California, Nevada, New Mexico, and Utah 11 $ 4.2 $ 25.8 April 15, 2024 General Roofing & Siding Supply, Co. Nebraska, Iowa, and North Dakota 5 $ 4.0 $ 8.8 February 12, 2024 Metro Sealant & Waterproofing Supply, Inc. Virginia and Maryland 4 $ 22.6 $ 25.2 February 1, 2024 Roofers Supply of Greenville South Carolina and North Carolina 3 $ 35.1 $ 26.6 November 1, 2023 H&H Roofing Supply, LLC California 1 $ 1.1 $ 1.0 October 2, 2023 Garvin Construction Products Maryland, New York, Connecticut, New Jersey, and Massachusetts 5 $ 17.6 $ 10.1 September 5, 2023 S&H Building Material Corporation New York 1 $ 5.3 $ 4.1 August 1, 2023 All American Vinyl Siding Supply, LLC Mississippi 1 $ 0.7 $ 0.8 July 11, 2023 Crossroads Roofing Supply, Inc. Oklahoma 5 $ 2.9 $ 11.1 June 12, 2023 Silver State Building Materials, Inc. Nevada 1 $ 0.6 $ 0.9 March 31, 2023 Al's Roofing Supply, Inc. California 4 $ 3.7 $ 7.1 March 31, 2023 Prince Building Systems, LLC Wisconsin 1 $ 0.3 $ 2.0 January 4, 2023 First Coastal Exteriors, LLC Alabama and Mississippi 2 $ 0.8 $ 1.9 1. For Smalley & Company, General Roofing & Siding Supply, Co., Metro Sealant & Waterproofing Supply, Inc., Roofers Supply of Greenville, H&H Roofing Supply, LLC, Garvin Construction Products, S&H Building Material Corporation, All American Vinyl Siding Supply, LLC, and Crossroads Roofing Supply, Inc., the measurement period is still open and amounts are based on provisional estimates of the fair value of assets acquired and liabilities assumed as of June 30, 2024 . In each company’s respective twelve months prior to being acquired by Beacon, the companies listed above produced aggregate annual sales of approximately $489.9 million. The total transaction costs incurred by the Company for these acquisitions for the three and six months ended June 30, 2024 were $2.6 million and $4.6 million, respectively. Of the $98.9 million of goodwill recognized for these acquisitions, $60.4 million is deductible for tax purposes. |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | Net Sales The following table presents the Company’s net sales by line of business and geography (in millions): U.S. Canada Total Three Months Ended June 30, 2024 Residential roofing products $ 1,306.5 $ 22.4 $ 1,328.9 Non-residential roofing products 686.9 58.2 745.1 Complementary building products 596.1 4.5 600.6 Total net sales $ 2,589.5 $ 85.1 $ 2,674.6 Three Months Ended June 30, 2023 Residential roofing products $ 1,276.1 $ 21.9 $ 1,298.0 Non-residential roofing products 615.7 55.1 670.8 Complementary building products 531.7 3.2 534.9 Total net sales $ 2,423.5 $ 80.2 $ 2,503.7 Six Months Ended June 30, 2024 Residential roofing products $ 2,227.1 $ 29.2 $ 2,256.3 Non-residential roofing products 1,179.0 94.7 1,273.7 Complementary building products 1,050.2 6.8 1,057.0 Total net sales $ 4,456.3 $ 130.7 $ 4,587.0 Six Months Ended June 30, 2023 Residential roofing products $ 2,120.1 $ 28.0 $ 2,148.1 Non-residential roofing products 1,041.8 79.0 1,120.8 Complementary building products 962.5 4.6 967.1 Total net sales $ 4,124.4 $ 111.6 $ 4,236.0 |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of Preferred Stock (as defined below) when outstanding during the period. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit (“RSU”) awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common stockholders by the fully diluted weighted-average number of common shares outstanding during the period. In connection with the acquisition of Allied Building Products Corp. on January 2, 2018, the Company completed the sale of 400,000 shares of Series A Cumulative Convertible Participating Preferred Stock, par value $0.01 per share (the “Preferred Stock”), with an aggregate liquidation preference of $400.0 million, at a purchase price of $1,000 per share, to CD&R Boulder Holdings, L.P. (“CD&R Holdings”). On July 31, 2023 (the “Repurchase Date”), the Company repurchased (the “Repurchase”) all 400,000 issued and outstanding shares of the Preferred Stock held by CD&R Boulder Holdings L.P. (the shares of Preferred Stock held by CD&R Holdings, the “Shares”) pursuant to a letter agreement dated July 6, 2023 (the “Repurchase Letter Agreement”) in cash for $805.4 million, including $0.9 million of accrued but unpaid dividends as of such date (the “Repurchase Price”). In connection with the Repurchase, CD&R Holdings agreed that for as long as Philip Knisely or Nathan Sleeper remained a member of the Company’s Board and for a period of six months thereafter, the customary voting, standstill, and transfer restrictions set forth in the original Investment Agreement with respect to the Preferred Stock will continue to apply to CD&R Holdings and its related fund in accordance with their terms. Following the closing of the Repurchase, Mr. Sleeper resigned from the Company’s Board and Mr. Knisely remained a member of the Company’s Board until his resignation on January 23, 2024. The aggregate Repurchase Price and related transaction fees and expenses were financed by a combination of proceeds from the 2030 Senior Notes, which are further described in Note 11, as well as the 2026 ABL and cash on hand. On and after the Repurchase Date, all dividends and distributions ceased to accrue on the Shares, the repurchased Shares are no longer deemed outstanding, and all rights of CD&R Holdings with respect to the repurchased Shares terminated. Before the Repurchase occurred, the Preferred Stock was convertible perpetual participating preferred stock of the Company, and conversion of the Preferred Stock into $0.01 par value shares of the Company’s common stock would have been at a conversion price of $41.26 per share (or 9,694,619 shares of common stock). The Preferred Stock accumulated dividends at a rate of 6.0% per annum (payable quarterly in cash or in-kind, subject to certain conditions). The Preferred Stock was not mandatorily redeemable; therefore, it was classified as mezzanine equity in the Company’s condensed consolidated balance sheets. Holders of Preferred Stock would have participated in dividends on an as-converted basis if declared on common shares. As a result, Preferred Stock was classified as a participating security and thereby required the allocation of income that would have otherwise been available to common stockholders when calculating net income (loss) per common share. For periods in which Preferred Stock is outstanding, diluted net income (loss) per common share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income (loss) attributable to common stockholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules. The following table presents the components and calculations of basic and diluted net income (loss) per common share (in millions, except per share amounts; certain amounts may not recalculate due to rounding): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income (loss) $ 127.2 $ 153.8 $ 132.8 $ 178.6 Dividends on Preferred Stock — (6.0) — (12.0) Undistributed income allocated to participating securities — (19.5) — (21.9) Net income (loss) attributable to common stockholders – Basic and Diluted $ 127.2 $ 128.3 $ 132.8 $ 144.7 Denominator: Weighted-average common shares outstanding – Basic 62.7 63.7 63.1 64.0 Effect of common share equivalents 1.2 1.4 1.2 1.3 Weighted-average common shares outstanding – Diluted 63.9 65.1 64.3 65.3 Net income (loss) per common share: Basic $ 2.03 $ 2.02 $ 2.10 $ 2.26 Diluted $ 1.99 $ 1.97 $ 2.07 $ 2.22 The following table includes the number of shares that may be dilutive common shares in the future (except for the Preferred Stock, which was redeemed in July 2023 and therefore has no dilutive impact in the future as of June 30, 2024). These shares were not included in the computation of diluted net income (loss) per common share because the effect was either anti-dilutive or the requisite performance conditions were not met (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Stock options 0.1 0.3 0.1 0.3 Restricted stock units 0.0 — 0.0 0.1 Preferred Stock — 9.7 — 9.7 Equity forward contract 0.5 — 0.5 — Employee Stock Purchase Plan 0.0 — 0.0 — |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation On April 1, 2024, the Board of Directors of the Company (the “Board”) approved the Beacon Roofing Supply, Inc., 2024 Stock Plan (the “2024 Plan”), subject to stockholder approval, which was subsequently obtained on May 15, 2024 in conjunction with the 2024 Annual Meeting of Stockholders. Upon approval, the 2024 Stock Plan succeeded the Beacon Roofing Supply, Inc. Second Amended and Restated 2014 Stock Plan (the “Prior Plan”) and is the only plan of the Company pursuant to which stock-based awards are currently granted. The 2024 Plan provides for discretionary grants of stock options, stock awards, stock unit awards, and stock appreciation rights (“SARs”) for up to 6,200,000 shares of common stock to key employees and non-employee directors. Stock options and SARs granted under the 2024 Plan, or granted under the Prior Plan after March 6, 2024, will reduce the number of available shares by one share for every share subject to the stock option or SAR, and stock awards and stock unit awards granted under the 2024 Plan, or granted under the Prior Plan after March 6, 2024, will reduce the number of available shares by 2.25 shares for every one share delivered. If (i) there is a lapse, forfeiture, expiration, termination or cancellation of any award for any reason under the 2024 Plan, or under the Prior Plan after March 6, 2024, or (ii) shares subject to a stock award or a stock unit award under the 2024 Plan, or under the Prior Plan after March 6, 2024, are delivered or withheld as payment of any withholding taxes, then in each case such shares will again be available for issuance under the 2024 Plan, to be added back in the same multiple as described in the preceding sentence. Any shares delivered or withheld as payment for the exercise price of a stock option or of any withholding taxes with respect to such stock options or SARs will not be available for issuance pursuant to subsequent awards. As of June 30, 2024, there were 6,251,049 shares of common stock available for issuance pursuant to the 2024 Plan. All unvested employee equity awards contain a “double trigger” change in control mechanism to the extent such employee equity award is continued or assumed after a change in control. If an award is not continued or assumed by a public company in an equitable manner, such award shall become vested immediately prior to a change in control (in the case of a restricted stock unit award with performance conditions at the then-calculable payout percentage for any completed annual performance periods and at 100% for any annual performance periods not yet calculable, and in the case of a restricted stock unit award with market conditions at 100% of the award then earned but not then vested). If an award is so continued or assumed, vesting will continue in accordance with the terms of the award, unless there is a qualifying termination (without cause or for good reason) within one-year following the change in control, in which event the award shall immediately become vested (in the case of a restricted stock unit award with performance conditions at the then-calculable payout percentage for any completed annual performance periods and at 100% for any annual performance periods not yet calculable, and in the case of a restricted stock unit award with market conditions at 100% of the award then earned but not then vested). Stock Options Non-qualified stock options generally expire 10 years after the grant date and, except under certain conditions, the options are subject to continued employment and vest in three annual installments over the three-year period following the grant date. The fair values of the options granted for the periods presented were estimated on the dates of grants using the Black-Scholes option-pricing model with the following weighted-average assumptions: Six Months Ended June 30, 2024 2023 Risk-free interest rate 4.13 % 4.26 % Expected volatility 48.05 % 49.92 % Expected life (in years) 5.08 5.12 Dividend yield — — The following table summarizes all stock option activity for the six months ended June 30, 2024 (in millions, except per share amounts and time periods): Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value 1 Balance as of December 31, 2023 1.1 $ 41.38 5.8 $ 51.3 Granted 0.1 85.18 Exercised (0.2) 34.75 Canceled/Forfeited (0.0) 62.07 Balance as of June 30, 2024 1.0 $ 46.80 5.9 $ 45.4 Vested and expected to vest after June 30, 2024 1.0 $ 46.34 5.8 $ 45.1 Exercisable as of June 30, 2024 0.8 $ 39.15 5.0 $ 41.2 1. Aggregate intrinsic value represents the difference between the closing fair value of the underlying common stock and the exercise price of outstanding, in-the-money options on the date of measurement. During the three months ended June 30, 2024 and 2023, the Company recorded stock-based compensation expense related to stock options of $1.0 million and $1.1 million, respectively. During each of the six months ended June 30, 2024 and 2023, the Company recorded stock-based compensation expense related to stock options of $2.0 million. During the three months ended June 30, 2024 and 2023, the Company recognized a tax benefit related to stock-based compensation expense related to stock options of $0.6 million and $0.3 million, respectively. During the six months ended June 30, 2024 and 2023, the Company recognized a tax benefit related to stock-based compensation expense related to stock options of $1.9 million and $0.7 million, respectively. As of June 30, 2024, there was $6.0 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.9 years. The following table summarizes additional information on stock options (in millions, except per share amounts): Six Months Ended June 30, 2024 2023 Weighted-average fair value per share of stock options granted $ 40.34 $ 31.86 Total grant date fair value of stock options vested $ 2.7 $ 1.9 Total intrinsic value of stock options exercised $ 10.0 $ 5.9 Restricted Stock Units Time-based RSU awards granted to employees are subject to continued employment and generally vest on the third anniversary of the grant date. The Company also grants certain RSU awards to management that additionally may contain market or performance conditions. Market conditions are incorporated into the grant date fair value of the management awards with market conditions using a Monte Carlo valuation model. Compensation expense for management awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. For awards with performance conditions, the actual number of awards that will vest can range from 0% to 200% of the original grant amount, depending upon actual Company performance below or above the established performance metric targets. At each reporting date, the Company estimates performance in relation to the defined targets when determining the projected number of management awards with performance conditions that are expected to vest and calculating the related stock-based compensation expense. Management awards with performance conditions are amortized over the service period if, and to the extent that, it is determined that achievement of the performance condition is probable. If awards with market, performance and/or service conditions are forfeited due to failure to achieve performance conditions or failure to satisfy service conditions, any previously recognized expense for such awards is reversed. RSUs granted to non-employee directors are subject to continued service and vest on the first anniversary of the grant date (except under certain conditions). Generally, the common shares underlying the RSUs are not eligible for distribution until the non-employee director’s service on the Board has terminated, and for non-employee director RSU grants made prior to fiscal year 2014, the share distribution date is six months after the director’s termination of service on the Board. Any non-employee directors who have Beacon equity holdings (defined as common stock and outstanding vested equity awards) with a total fair value that is greater than or equal to five times the annual Board cash retainer may elect to have any future RSU grants settle simultaneously with vesting. The following table summarizes all RSU activity for the six months ended June 30, 2024 (in millions, except grant date fair value amounts): RSUs Outstanding Weighted-Average Grant Date Fair Value Balance as of December 31, 2023 1.2 $ 53.14 Granted 0.4 $ 85.71 Released (0.3) $ 51.87 Canceled/Forfeited (0.1) $ 58.23 Balance as of June 30, 2024 1.2 $ 62.70 Vested and expected to vest after June 30, 2024 1 1.2 $ 62.33 1. As of June 30, 2024, outstanding awards with performance conditions were expected to vest at greater than 100% of their original grant amount. During the three months ended June 30, 2024 and 2023, the Company recorded stock-based compensation expense related to RSUs of $6.8 million and $7.2 million, respectively. During the six months ended June 30, 2024 and 2023, the Company recorded stock-based compensation expense related to RSUs of $12.6 million and $12.3 million, respectively. During the three months ended June 30, 2024 and 2023, the Company recognized a tax benefit related to stock-based compensation expense related to RSUs of $1.4 million and $0.2 million, respectively. During the six months ended June 30, 2024 and 2023, the Company recognized a tax benefit related to stock-based compensation expense related to RSUs of $2.7 million and $0.3 million, respectively. As of June 30, 2024, there was $42.7 million of unrecognized compensation expense related to unvested RSUs (including unrecognized expense for RSUs with performance conditions at their estimated value as of June 30, 2024), which is expected to be recognized over a weighted-average period of 2.1 years. The following table summarizes additional information regarding RSUs (in millions, except per share amounts): Six Months Ended June 30, 2024 2023 Weighted-average fair value per share of RSUs granted $ 85.71 $ 62.98 Total grant date fair value of RSUs vested $ 13.4 $ 4.1 Total intrinsic value of RSUs released $ 25.0 $ 5.3 Employee Stock Purchase Plan On March 20, 2023, the Board adopted the Company’s 2023 Employee Stock Purchase Plan (the “ESPP”), subject to stockholder approval, which was subsequently obtained on May 17, 2023 in conjunction with the 2023 Annual Meeting of Stockholders. The ESPP allows eligible employees to acquire shares of the Company’s common stock through payroll deductions over six-month offering periods. The purchase price per share is equal to 85% of the lesser of (1) the fair market value of a share of the Company’s common stock on the offering date, defined as the first trading day of the offering period, or (2) the fair market value of a share of the Company’s common stock on the purchase date, defined as the last trading day of the offering period; provided that the purchase price is not less than the $0.01 par value per share of the common stock. Participant purchases are limited to a maximum of $12,500 worth of stock per offering period (or $25,000 per calendar year). The Company is authorized to grant up to 1,000,000 shares of its common stock under the ESPP. During the six months ended June 30, 2024, employees purchased 115,281 shares at a weighted average per share price of $72.18. As of June 30, 2024, there were 884,719 shares of common stock available for issuance pursuant to the Company’s ESPP. During the three and six months ended June 30, 2024, the Company recorded stock-based compensation expense related to the ESPP of $0.5 million and $1.1 million, respectively. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program On February 24, 2022, the Company announced a new share repurchase program (the “Repurchase Program”), pursuant to which the Company may purchase up to $500.0 million of its common stock. On February 23, 2023, the Company announced that its Board authorized and approved an increase of the Repurchase Program by approximately $387.9 million, permitting future share repurchases of $500.0 million after considering actual share repurchases as of such re-authorization date. Share repurchases under the Repurchase Program may be made from time to time through various means, including open market purchases (including block trades), privately negotiated transactions, accelerated share repurchase transactions (“ASR”) or through a series of forward purchase agreements, option contracts or similar agreements and contracts (including Rule 10b5-1 plans) adopted by the Company, in each case in accordance with the rules and regulations of the SEC, including, if applicable, Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, volume, and nature of share repurchases pursuant to the Repurchase Program are at the discretion of management and may be suspended or discontinued at any time. Shares repurchased under the Repurchase Program are retired immediately and are included in the category of authorized but unissued shares. Direct and incremental costs associated with the Repurchase Program are deferred and included as a component of the purchase price. The excess of the purchase price over the par value of the common shares is reflected in retained earnings. On May 9, 2024, the Company entered into a Supplemental Confirmation (together with the Company’s March 22, 2022 Variable Tenor ASR Master Agreement, the “May 2024 ASR Agreement”) with Citibank, N.A. (“Citi”) to repurchase $225.0 million (the “ASR Repurchase Price”) of its common stock. Under the terms of the May 2024 ASR Agreement, the Company paid the ASR Repurchase Price to Citi and received an initial share delivery of 1,927,608 shares of its common stock from Citi, representing 80% of the total expected share repurchases under the May 2024 ASR Agreement, based on the closing price of the Company’s common stock of $93.38 on May 9, 2024. The final number of shares to be repurchased pursuant to the May 2024 ASR Agreement will be determined upon settlement based on the daily volume-weighted average price of the Company’s common stock during the term of the May 2024 ASR Agreement, less a discount and subject to adjustments pursuant to the terms of the May 2024 ASR Agreement. At settlement, Citi will deliver additional shares of the Company’s common stock to the Company, or, under certain circumstances, the Company will deliver cash or shares of the Company’s common stock to Citi, with the method of settlement at the Company’s election. As of June 30, 2024, the remaining $45.0 million of the ASR Repurchase Price was evaluated as an unsettled equity forward contract indexed to the Company’s common stock and classified within stockholders’ equity as a reduction to additional paid in capital until the equity forward contract settles. The final settlement of the May 2024 ASR Agreement is expected to be completed in the fourth quarter of 2024. The following table sets forth the Company’s share repurchases (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total number of shares repurchased 1.9 0.8 1.9 1.2 Amount repurchased 1 $ 180.0 $ 51.6 $ 180.0 $ 74.8 Average price per share $ 93.38 $ 66.72 $ 93.38 $ 63.82 1. Amount repurchased for the three and six months ended June 30, 2024 exclude the $45.0 million equity forward contract. Share repurchases for the three and six months ended June 30, 2024 were made pursuant to the May 2024 ASR Agreement. During the three and six months ended June 30, 2024, the Company incurred costs directly attributable to the Repurchase Program of approximately $0.1 million. Share repurchases for the three and six months ended June 30, 2023 were made on the open market through a Rule 10b5-1 repurchase plan. During the three and six months ended June 30, 2023, the Company incurred costs directly attributable to the Repurchase Program of approximately $0.6 million. As of June 30, 2024, the Company had approximately $164.1 million available for repurchases remaining under the Repurchase Program. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets The following table summarizes the significant components of prepaid expenses and other current assets (in millions): June 30, December 31, June 30, 2024 2023 2023 Vendor rebates $ 424.4 $ 371.8 $ 413.7 Other 106.9 72.8 98.4 Total prepaid expenses and other current assets $ 531.3 $ 444.6 $ 512.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth the change in the carrying amount of goodwill during the six months ended June 30, 2024 (in millions): Balance as of December 31, 2023 $ 1,952.6 Acquisitions 66.1 Translation and other adjustments (1.0) Balance as of June 30, 2024 $ 2,017.7 The changes in the carrying amount of goodwill for the six months ended June 30, 2024 were driven primarily by the Company’s recent acquisitions. See Note 3 for additional information. Intangible Assets The intangible asset lives range from 1 to 20 years. The following table summarizes intangible assets by category (in millions, except time periods): June 30, December 31, June 30, Weighted-Average Remaining 2024 2023 2023 Life 1 (Years) Amortizable intangible assets: Customer relationships and other $ 1,325.0 $ 1,238.9 $ 1,210.2 15.8 Trademarks 5.6 5.6 4.5 0.3 Total amortizable intangible assets 1,330.6 1,244.5 1,214.7 15.8 Accumulated amortization (894.7) (850.8) (808.7) Total amortizable intangible assets, net 435.9 393.7 406.0 Indefinite-lived trademarks 9.8 9.8 9.8 Total intangibles, net $ 445.7 $ 403.5 $ 415.8 1. As of June 30, 2024. Amortization expense relating to the above-listed intangible assets for the three months ended June 30, 2024 and 2023 was $22.9 million and $21.4 million, respectively. Amortization expense relating to the above-listed intangible assets for the six months ended June 30, 2024 and 2023 was $44.0 million and $43.7 million, respectively. The following table summarizes the estimated future amortization expense for intangible assets (in millions): Year Ending December 31, 2024 (July - December) $ 42.7 2025 71.4 2026 60.8 2027 51.1 2028 41.7 Thereafter 168.2 Total future amortization expense $ 435.9 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses The following table summarizes the significant components of accrued expenses (in millions): June 30, December 31, June 30, 2024 2023 2023 Inventory $ 222.3 $ 140.5 $ 229.5 Customer rebates 75.8 124.9 63.3 Payroll and employee benefit costs 68.9 101.4 60.4 Selling, general and administrative 117.7 108.5 106.3 Income taxes 14.9 0.1 35.8 Interest and other 33.1 23.2 2.7 Total accrued expenses $ 532.7 $ 498.6 $ 498.0 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The following table summarizes all outstanding debt (presented net of unamortized debt issuance costs) and other financing arrangements (in millions): June 30, December 31, June 30, 2024 2023 2023 Revolving Lines of Credit 2026 ABL: 2026 U.S. Revolver 1 $ 464.6 $ 80.0 $ 67.5 2026 Canada Revolver — — — Borrowings under revolving lines of credit, net $ 464.6 $ 80.0 $ 67.5 Long-term Debt, net Term Loan: 2028 Term Loan 2 $ 1,259.3 $ 964.5 $ 968.3 Current portion (12.8) (10.0) (10.0) Long-term borrowings under term loan 1,246.5 954.5 958.3 Senior Notes: 2026 Senior Notes 3 298.5 298.1 297.8 2029 Senior Notes 4 347.6 347.4 347.1 2030 Senior Notes 5 592.8 592.3 — Long-term borrowings under senior notes 1,238.9 1,237.8 644.9 Long-term debt, net $ 2,485.4 $ 2,192.3 $ 1,603.2 1. Effective rate on borrowings of 6.42%, 6.68%, and 7.21% as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively. 2. Interest rate of 7.34%, 7.97%, and 7.40% as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively. 3. Interest rate of 4.50% for all periods presented. 4. Interest rate of 4.125% for all periods presented. 5. Interest rate of 6.50% as of June 30, 2024 and December 31, 2023, respectively. Debt Refinancing In May 2021, the Company entered into various financing arrangements to refinance certain debt instruments to take advantage of lower market interest rates for the Company’s fixed rate indebtedness and to extend maturities (the “2021 Debt Refinancing”). The transactions included a new $350.0 million issuance of senior notes (the “2029 Senior Notes”). In addition, the Company entered into a second amended and restated credit agreement for its $1.30 billion asset-based revolving line of credit (the “2026 ABL”), and an amended and restated term loan credit agreement for a term loan of $1.00 billion (the “2028 Term Loan”), which together are defined as the “Senior Secured Credit Facilities.” On May 19, 2021, the Company used the net proceeds from the 2029 Senior Notes offering, together with cash on hand and borrowings under the Senior Secured Credit Facilities, to redeem all $1.30 billion aggregate principal amount outstanding of the Company’s 4.875% Senior Notes due 2025 at a redemption price of 102.438%, to refinance all outstanding borrowings under the Company’s previous term loan, and to pay all related accrued interest, fees and expenses. On March 28, 2024, the Company entered into a financing arrangement to refinance the 2028 Term Loan resulting in an increase in the outstanding principal balance from $975.0 million to $1.275 billion. Refer to the discussion below for additional information regarding the refinancing. 2029 Senior Notes On May 10, 2021, the Company and certain subsidiaries of the Company as guarantors completed a private offering of $350.0 million aggregate principal amount of 4.125% senior unsecured notes due 2029 at an issue price equal to par. The 2029 Senior Notes mature on May 15, 2029 and bear interest at a rate of 4.125% per annum, payable on May 15 and November 15 of each year, which commenced on November 15, 2021. The 2029 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active United States subsidiaries. The 2029 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2029 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. The Company capitalized debt issuance costs of $4.0 million related to the 2029 Senior Notes, which are being amortized over the term of the financing arrangements. As of June 30, 2024, the outstanding balance on the 2029 Senior Notes, net of $2.4 million of unamortized debt issuance costs, was $347.6 million. 2026 ABL On May 19, 2021, the Company entered into a $1.30 billion senior secured asset-based revolving credit facility with Wells Fargo Bank, N.A. and a syndicate of other lenders. The 2026 ABL provides for revolving loan commitments in both the United States in an amount up to $1.25 billion (“2026 U.S. Revolver”) and Canada in an amount up to $50.0 million (“2026 Canada Revolver”) (as such amounts may be reallocated pursuant to the terms of the 2026 ABL). The 2026 ABL has a maturity date of May 19, 2026. The 2026 ABL has various borrowing tranches with an interest rate based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. The applicable margin for borrowings is based on the Company’s quarterly average excess availability as determined by reference to a borrowing base and ranges from 0.25% to 0.75% per annum in the case of base rate borrowings and 1.25% to 1.75% per annum in the case of LIBOR borrowings. The unused commitment fees on the 2026 ABL are 0.20% per annum. On June 6, 2023, the Company entered into Amendment No. 2 to the 2026 ABL (the “2026 ABL Amendment No. 2”) with Wells Fargo Bank, N.A., as administrative agent and collateral agent, and the lenders party thereto. The 2026 ABL Amendment No. 2, among other things, (i) replaced the LIBOR interest rate index and its related borrowing mechanics under the 2026 ABL with a SOFR interest rate index and its related borrowing mechanics, and (ii) updated certain other provisions of the 2026 ABL to reflect the transition from LIBOR to SOFR. Except as amended by the 2026 ABL Amendment No. 2, the remaining terms of the 2026 ABL remain in full force and effect. The 2026 ABL contains a springing financial covenant that requires a minimum 1.00:1.00 Fixed Charge Coverage Ratio (consolidated EBITDA less capital expenditures to fixed charges, each as defined in the 2026 ABL credit agreement) as of the end of each fiscal quarter (in each case, calculated on a trailing four fiscal quarter basis). The covenant would become operative if the Company failed to maintain a specified minimum amount of availability to borrow under the 2026 ABL, which was not applicable to the Company as of June 30, 2024. In addition, the Senior Secured Credit Facilities and the 2029 Senior Notes (as well as the 2030 Senior Notes and the 2026 Senior Notes, each as defined below) are subject to negative covenants that, among other things and subject to certain exceptions, limit the Company’s ability and the ability of its restricted subsidiaries to: (i) incur indebtedness (including guarantee obligations); (ii) incur liens; (iii) engage in mergers or other fundamental changes; (iv) dispose of certain property or assets; (v) make certain payments, dividends or other distributions; (vi) make certain acquisitions, investments, loans and advances; (vii) prepay certain indebtedness; (viii) change the nature of their business; (ix) engage in certain transactions with affiliates; (x) engage in sale-leaseback transactions; and (xi) enter into certain other restrictive agreements. The 2026 ABL is secured by a first priority lien over substantially all of the Company’s and each guarantor’s accounts and other receivables, chattel paper, deposit accounts (excluding any such account containing identifiable proceeds of Term Priority Collateral (as defined below)), inventory, and, to the extent related to the foregoing and other ABL Priority Collateral, general intangibles (excluding equity interests in any subsidiary of the Company and all intellectual property), instruments, investment property (but not equity interests in any subsidiary of the Company), commercial tort claims, letters of credit, supporting obligations and letter of credit rights, together with all books, records and documents related to, and all proceeds and products of, the foregoing, subject to certain customary exceptions (the “ABL Priority Collateral”), and a second priority lien over substantially all of the Company’s and each guarantor’s other assets, including all of the equity interests of any subsidiary held by the Company or any guarantor, subject to certain customary exceptions (the “Term Priority Collateral”). Beacon Sales Acquisition, Inc., a Delaware corporation and subsidiary of the Company, is a U.S. Borrower under the 2026 ABL and Beacon Roofing Supply Canada Company, an unlimited liability company organized under the laws of Nova Scotia and subsidiary of the Company, is a Canadian borrower under the 2026 ABL. The 2026 ABL is fully and unconditionally guaranteed, on a joint and several basis, by the Company’s active U.S. subsidiaries. The Company capitalized debt issuance costs of $8.3 million related to the 2026 ABL, which are being amortized over the term of the financing arrangements. As of June 30, 2024, the outstanding balance on the 2026 ABL, net of $3.1 million of unamortized debt issuance costs, was $464.6 million. The Company also had outstanding standby letters of credit related to the 2026 U.S. Revolver in the amount of $15.8 million as of June 30, 2024. 2028 Term Loan On May 19, 2021, the Company entered into a $1.00 billion senior secured term loan B facility with Citi and a syndicate of other lenders. The 2028 Term Loan requires quarterly principal payments in the amount of $2.5 million, with the remaining outstanding principal to be paid on its May 19, 2028 maturity date. The interest rate is based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. The applicable margin for the 2028 Term Loan ranges, depending on the Company’s consolidated total leverage ratio (consolidated total indebtedness to consolidated EBITDA, each as defined in the 2028 Term Loan credit agreement), from 1.25% to 1.50% per annum in the case of base rate borrowings and 2.25% to 2.50% per annum in the case of LIBOR borrowings. On July 3, 2023, the Company entered into Amendment No. 2 to the 2028 Term Loan (the “2028 Term Loan Amendment No. 2”) with Citi, as administrative agent and collateral agent, and the lenders party thereto. The 2028 Term Loan Amendment No. 2, among other things, (i) replaced the LIBOR interest rate index and its related borrowing mechanics under the 2028 Term Loan with a SOFR interest rate index and its related borrowing mechanics, and (ii) updated certain other provisions of the 2028 Term Loan to reflect the transition from LIBOR to SOFR. Except as amended by the 2028 Term Loan Amendment No. 2, the remaining terms of the 2028 Term Loan remain in full force and effect. On March 28, 2024, the Company entered into Amendment No. 3 to the 2028 Term Loan (the “2028 Term Loan Amendment No. 3”) with Citi, as administrative agent and collateral agent, and the lenders party thereto. The 2028 Term Loan Amendment No. 3, among other things, (i) increases the aggregate outstanding amount of outstanding term loans to $1.275 billion, (ii) reduces the interest rate to a rate per annum equal to Term SOFR with a 0.00% floor, plus a margin equal to 2.00%, and (iii) increases the required quarterly principal payments from $2.5 million to $3.2 million starting March 31, 2024 (the “2028 Term Loan Refinancing”). Except as amended by the 2028 Term Loan Amendment No. 3, the remaining terms of the 2028 Term Loan remain in full force and effect. The Company evaluated the 2028 Term Loan Refinancing on a lender-by-lender basis to determine whether the transaction should be accounted for as either a debt extinguishment or debt modification. As a result, the Company recognized a loss on debt extinguishment of $2.4 million during the six months ended June 30, 2024. In addition, unamortized historical debt issuance costs of $9.7 million and new debt issuance costs of $0.1 million related to the 2028 Term Loan continue to be amortized over the term of the financing arrangement. The 2028 Term Loan is secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2028 Term Loan is fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active U.S. subsidiaries. On March 16, 2023, the Company novated and amended its interest rate swap agreement related to the 2028 Term Loan. For additional information, see Note 17. As of June 30, 2024, the outstanding balance on the 2028 Term Loan, net of $9.3 million of unamortized debt issuance costs, was $1.26 billion. 2030 Senior Notes On July 31, 2023, the Company, and certain subsidiaries of the Company as guarantors, completed a private offering of $600.0 million aggregate principal amount of 6.500% Senior Secured Notes due 2030 (the “2030 Senior Notes”) at an issue price equal to par. The 2030 Senior Notes mature on August 1, 2030 and bear interest at a rate of 6.500% per annum, payable on February 1 and August 1 of each year, commencing on February 1, 2024. The 2030 Senior Notes and related subsidiary guarantees are secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2030 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active U.S. subsidiaries. The 2030 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act, to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2030 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. On July 31, 2023 the Company used net proceeds from the offering, together with cash on hand and available borrowings under the 2026 ABL to complete the Repurchase of the Preferred Stock. The Company capitalized debt issuance costs of $8.1 million related to the 2030 Senior Notes, which are being amortized over the term of the financing arrangement. As of June 30, 2024, the outstanding balance on the 2030 Senior Notes, net of $7.2 million of unamortized debt issuance costs, was $592.8 million. 2026 Senior Notes On October 9, 2019, the Company, and certain subsidiaries of the Company as guarantors, completed a private offering of $300.0 million aggregate principal amount of 4.50% Senior Secured Notes due 2026 (the “2026 Senior Notes”) at an issue price equal to par. The 2026 Senior Notes mature on November 15, 2026 and bear interest at a rate of 4.50% per annum, payable on May 15 and November 15 of each year, commencing on May 15, 2020. The 2026 Senior Notes and related subsidiary guarantees are secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2026 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active U.S. subsidiaries. The 2026 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act, to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2026 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. On October 28, 2019, the Company used the net proceeds from the offering, together with cash on hand and available borrowings under the Company’s previous asset-based revolving credit facility, to redeem all $300.0 million aggregate principal amount outstanding of the Company’s 6.375% Senior Notes due 2023. The Company capitalized debt issuance costs of $4.7 million related to the 2026 Senior Notes, which are being amortized over the term of the financing arrangements. As of June 30, 2024, the outstanding balance on the 2026 Senior Notes, net of $1.5 million of unamortized debt issuance costs, was $298.5 million. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes components of lease costs recognized in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease costs $ 35.6 $ 30.6 $ 69.7 $ 60.6 Finance lease costs: Amortization of right-of-use assets 8.1 5.2 15.7 9.8 Interest on lease obligations 2.1 1.3 4.1 2.4 Variable lease costs 3.8 3.1 7.3 5.9 Total lease costs $ 49.6 $ 40.1 $ 96.8 $ 78.7 The following table presents supplemental cash flow information related to the Company’s leases (in millions): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in measurement of lease obligations: Operating cash outflows from operating leases $ 67.1 $ 57.7 Operating cash outflows from finance leases $ 4.3 $ 2.3 Financing cash outflows from finance leases $ 13.7 $ 9.1 Right-of-use assets obtained in exchange for new finance lease liabilities $ 31.5 $ 25.3 Right-of-use assets obtained in exchange for new operating lease liabilities $ 57.0 $ 22.5 As of June 30, 2024, the Company’s operating leases had a weighted-average remaining lease term of 6.2 years and a weighted-average discount rate of 5.77%, and the Company’s finance leases had a weighted-average remaining lease term of 4.6 years and a weighted-average discount rate of 6.15%. The following table summarizes future lease payments as of June 30, 2024 (in millions): Year Ending December 31, Operating Leases Finance Leases 2024 (July - December) $ 58.9 $ 19.6 2025 135.2 39.0 2026 122.5 38.1 2027 105.0 33.0 2028 87.3 22.0 Thereafter 206.7 13.2 Total future lease payments 715.6 164.9 Imputed interest (120.8) (21.2) Total lease liabilities $ 594.8 $ 143.7 |
Leases | Leases The following table summarizes components of lease costs recognized in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease costs $ 35.6 $ 30.6 $ 69.7 $ 60.6 Finance lease costs: Amortization of right-of-use assets 8.1 5.2 15.7 9.8 Interest on lease obligations 2.1 1.3 4.1 2.4 Variable lease costs 3.8 3.1 7.3 5.9 Total lease costs $ 49.6 $ 40.1 $ 96.8 $ 78.7 The following table presents supplemental cash flow information related to the Company’s leases (in millions): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in measurement of lease obligations: Operating cash outflows from operating leases $ 67.1 $ 57.7 Operating cash outflows from finance leases $ 4.3 $ 2.3 Financing cash outflows from finance leases $ 13.7 $ 9.1 Right-of-use assets obtained in exchange for new finance lease liabilities $ 31.5 $ 25.3 Right-of-use assets obtained in exchange for new operating lease liabilities $ 57.0 $ 22.5 As of June 30, 2024, the Company’s operating leases had a weighted-average remaining lease term of 6.2 years and a weighted-average discount rate of 5.77%, and the Company’s finance leases had a weighted-average remaining lease term of 4.6 years and a weighted-average discount rate of 6.15%. The following table summarizes future lease payments as of June 30, 2024 (in millions): Year Ending December 31, Operating Leases Finance Leases 2024 (July - December) $ 58.9 $ 19.6 2025 135.2 39.0 2026 122.5 38.1 2027 105.0 33.0 2028 87.3 22.0 Thereafter 206.7 13.2 Total future lease payments 715.6 164.9 Imputed interest (120.8) (21.2) Total lease liabilities $ 594.8 $ 143.7 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to loss contingencies pursuant to various federal, state, and local environmental laws and regulations; however, the Company is not aware of any reasonably possible losses that would have a material impact on its results of operations, financial position, or liquidity. Potential environmental loss contingencies include possible obligations to remove or mitigate the effects on the environment of the placement, storage, disposal, or release of certain chemical or other substances by the Company or by other parties. Historically, environmental liabilities have not had a material impact on the Company’s results of operations, financial position, or liquidity. The Company is subject to litigation and governmental investigations from time to time in the ordinary course of business; however, the Company does not expect the results, if any, to have a material adverse impact on its results of operations, financial position, or liquidity. The Company accrues a liability for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The Company also considers whether an insurance recovery receivable is applicable and appropriate based on the specific legal claim. The actual costs of resolving legal claims and governmental investigations may be substantially higher or lower than the amounts accrued for those activities. In December 2018, a Company vehicle was involved in an accident that resulted in a fatality. The estate of the decedent and two bystanders filed a lawsuit in October 2019 in the Fourth Judicial District Court for Utah County, Provo Division, against the driver and the Company. Trial was held in late August 2022; the jury determined that the truck driver was not liable for the accident. The plaintiffs filed post-trial motions seeking a judgment as a matter of law or for a new trial. In April 2023, the trial court ruled on the plaintiffs’ motions, granting plaintiffs judgment against the driver and ordering that the second phase of the trial proceed. On June 29, 2023, the Utah appeals court granted the Company’s petition for an interlocutory appeal. There is not a probable loss with respect to this matter and any potential loss in regard to this matter is not reasonably estimable. Accordingly, the Company has not accrued any amounts related to this matter within its financial statements as of June 30, 2024. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) is composed of certain gains and losses that are excluded from net income under GAAP and instead recorded as a separate element of stockholders’ equity. The following table summarizes the components of, and changes in, AOCI (in millions): Foreign Currency Translation Derivative Financial Instruments AOCI Balance as of December 31, 2023 $ (19.5) $ 5.2 $ (14.3) Other comprehensive income (loss) before reclassifications (4.3) 5.2 0.9 Reclassifications out of other comprehensive income (loss) — (1.7) (1.7) Balance as of June 30, 2024 $ (23.8) $ 8.7 $ (15.1) Gains (losses) on derivative instruments are reclassified in the condensed consolidated statements of operations in interest expense, financing costs and other, net in the period in which the hedged transaction affects earnings. |
Geographic Data
Geographic Data | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Geographic Data | Geographic Data The following table summarizes certain geographic information (in millions): June 30, December 31, June 30, 2024 2023 2023 Long-lived assets: U.S. $ 911.3 $ 821.8 $ 786.2 Canada 16.8 15.6 11.9 Total long-lived assets $ 928.1 $ 837.4 $ 798.1 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement As of June 30, 2024, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable, and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1). As of June 30, 2024, based upon recent trading prices (Level 2), the fair values of the Company’s $300.0 million 2026 Senior Notes, $350.0 million 2029 Senior Notes, and $600.0 million 2030 Senior Notes were $291.4 million, $319.4 million, and $605.3 million, respectively. |
Financial Derivatives
Financial Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivatives | Financial Derivatives The Company uses interest rate derivative instruments to manage the risk related to fluctuating cash flows from interest rate changes by converting a portion of its variable-rate borrowings into fixed-rate borrowings. On September 11, 2019, the Company entered into two interest rate swap agreements to manage the interest rate risk associated with the variable rate on the Company’s previous term loan. Each swap agreement has a notional amount of $250.0 million. As part of the 2021 Debt Refinancing, the Company refinanced its previous term loan, resulting in the issuance of the 2028 Term Loan; the two interest rate swaps were designed and executed such that they continue to hedge against a total notional amount of $500.0 million related to the refinanced 2028 Term Loan. One agreement (the “5-year swap”) was scheduled to expire on August 30, 2024 and swaps the thirty-day LIBOR with a fixed-rate of 1.49%. The second agreement (the “3-year swap”) expired on August 30, 2022 and swapped the thirty-day LIBOR with a fixed-rate of 1.50%. At the inception of the swap agreements, the Company determined that both swaps qualified for cash flow hedge accounting under ASC 815. Therefore, changes in the fair value of the swaps, net of taxes, were recognized in other comprehensive income each period, then reclassified into the condensed consolidated statements of operations as a component of interest expense, financing costs and other, net in the period in which the hedged transaction affected earnings. On March 16, 2023, the Company novated its 5-year swap agreement to another counterparty and, in connection with such novation, amended the interest rate swap agreement. The amendment changed the index rate from LIBOR to SOFR, increased the total notional amount of the interest rate swap to $500.0 million, and extended the termination date to March 31, 2027 (the “2027 interest rate swap”). Specifically, the fixed rate of 1.49% indexed to LIBOR was modified to 3.00% indexed to SOFR. The Company used a strategy commonly referred to as “blend and extend” which allows the asset position of the novated 5-year swap agreement of approximately $9.9 million to be effectively blended into the new 2027 interest rate swap agreement. As a result of this transaction, on March 16, 2023, the 5-year swap agreement was de-designated and the unrealized gain of $9.9 million included within accumulated other comprehensive income was frozen and will be ratably reclassified as a reduction to interest expense, financing costs and other, net over the original term of the 5-year swap, or through August 30, 2024 as the hedged transactions affect earnings. Additionally, the 2027 interest rate swap had a fair value of $9.9 million at inception and will be ratably recorded to accumulated other comprehensive income and reclassified to interest expense, financing costs and other, net over the term of the 2027 interest rate swap, or through March 31, 2027 as the hedged transactions affect earnings. At the inception of the 2027 interest rate swap, the Company determined that the swap qualified for cash flow hedge accounting under ASC 815. Therefore, changes in the fair value of the swap, net of taxes, will be recognized in other comprehensive income each period, then reclassified into the condensed consolidated statements of operations as a component of interest expense, financing costs and other, net in the period in which the hedged transaction affects earnings. The 2027 interest rate swap is the only swap agreement outstanding as of June 30, 2024. The effectiveness of the outstanding 2027 interest rate swap will be assessed qualitatively by the Company during the life of the hedge by (i) comparing the current terms of the hedge with the related hedged debt to assure they continue to coincide and (ii) through an evaluation of the ability of the counterparty to the hedge to honor its obligations under the hedge. The Company performed a qualitative analysis as of June 30, 2024 and concluded that the outstanding 2027 interest rate swap continues to meet the requirements under ASC 815 to qualify for cash flow hedge accounting. As of June 30, 2024, the fair value of the 2027 interest rate swap, net of tax, was $13.0 million in favor of the Company. During the three and six months ended June 30, 2024, the Company reclassified gains of $0.9 million and $1.7 million out of accumulated other comprehensive income (loss) and to interest expense, financing costs and other, net, respectively. Approximately $9.7 million of net gains included in accumulated other comprehensive income (loss) at June 30, 2024 is expected to be reclassified into earnings within the next 12 months as interest payments are made on the Company’s Term Loan and amortization of the frozen AOCI on the 5-year swap and inception date fair value of the 2027 interest rate swap occurs. The Company records any differences paid or received on its interest rate hedges to interest expense, financing costs and other, net within the condensed consolidated statements of operations. The fair value of the interest rate swap is determined through the use of a pricing model, which utilizes verifiable inputs such as market interest rates that are observable at commonly quoted intervals (generally referred to as the “forward curve”) for the full terms of the hedge agreements. These values reflect a Level 2 measurement under the applicable fair value hierarchy. The following table summarizes the combined fair values, net of tax, of the interest rate derivative instrument (in millions): Net Assets (Liabilities) as of June 30, December 31, June 30, Instrument Fair Value Hierarchy 2024 2023 2023 Designated interest rate swaps 1 Level 2 $ 13.0 $ 7.8 $ 14.8 1. Assets are included in the condensed consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses. The following table summarizes the amounts of gain (loss) on the change in fair value of the designated interest rate swaps recognized in other comprehensive income (in millions): Three Months Ended June 30, Six Months Ended June 30, Instrument 2024 2023 2024 2023 Designated interest rate swaps $ 0.1 $ 7.9 $ 5.2 $ 5.1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 127.2 | $ 153.8 | $ 132.8 | $ 178.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Jason L. Taylor [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Jason L. Taylor, President, West Division, entered into a Rule 10b5-1 trading arrangement on June 12, 2024. Mr. Taylor’s trading arrangement provides for the potential sale of up to 7,700 shares of our common stock through June 1, 2025. This trading arrangement is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. | |
Name | Jason L. Taylor | |
Title | President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 12, 2024 | |
Expiration Date | June 1, 2025 | |
Arrangement Duration | 354 days | |
Aggregate Available | 7,700 | 7,700 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepared the condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the requirements of the Securities and Exchange Commission (“SEC”). As permitted under those rules, certain footnotes or other financial information have been condensed or omitted. Certain prior period amounts have been reclassified to conform to current period presentation. The balance sheet as of June 30, 2023 has been presented for a better understanding of the impact of seasonal fluctuations on the Company’s financial condition. The three-month periods ended June 30, 2024 and 2023 each had 64 business days. The six-month periods ended June 30, 2024 and 2023 each had 130 business days. In management’s opinion, the unaudited condensed consolidated financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the twelve months ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023. |
Recent Accounting Pronouncements - Not Yet Adopted | Recent Accounting Pronouncements — Not Yet Adopted In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements – Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This standard affects a wide variety of Topics in the Codification. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. Early adoption is prohibited. The Company does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improving Reportable Segment Disclosures (Topic 280).” The standard is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The standard requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The standard also requires all annual disclosures currently required by ASC Topic 280 to be included in interim periods. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The results of operations for these transactions are included in the Company’s condensed consolidated statements of operations from the date of the acquisition (dollars in millions): Date Acquired Company Name Region Branches Goodwill Recognized 1 Intangible Assets Acquired 1 May 1, 2024 Smalley & Company Colorado, Arizona, California, Nevada, New Mexico, and Utah 11 $ 4.2 $ 25.8 April 15, 2024 General Roofing & Siding Supply, Co. Nebraska, Iowa, and North Dakota 5 $ 4.0 $ 8.8 February 12, 2024 Metro Sealant & Waterproofing Supply, Inc. Virginia and Maryland 4 $ 22.6 $ 25.2 February 1, 2024 Roofers Supply of Greenville South Carolina and North Carolina 3 $ 35.1 $ 26.6 November 1, 2023 H&H Roofing Supply, LLC California 1 $ 1.1 $ 1.0 October 2, 2023 Garvin Construction Products Maryland, New York, Connecticut, New Jersey, and Massachusetts 5 $ 17.6 $ 10.1 September 5, 2023 S&H Building Material Corporation New York 1 $ 5.3 $ 4.1 August 1, 2023 All American Vinyl Siding Supply, LLC Mississippi 1 $ 0.7 $ 0.8 July 11, 2023 Crossroads Roofing Supply, Inc. Oklahoma 5 $ 2.9 $ 11.1 June 12, 2023 Silver State Building Materials, Inc. Nevada 1 $ 0.6 $ 0.9 March 31, 2023 Al's Roofing Supply, Inc. California 4 $ 3.7 $ 7.1 March 31, 2023 Prince Building Systems, LLC Wisconsin 1 $ 0.3 $ 2.0 January 4, 2023 First Coastal Exteriors, LLC Alabama and Mississippi 2 $ 0.8 $ 1.9 1. For Smalley & Company, General Roofing & Siding Supply, Co., Metro Sealant & Waterproofing Supply, Inc., Roofers Supply of Greenville, H&H Roofing Supply, LLC, Garvin Construction Products, S&H Building Material Corporation, All American Vinyl Siding Supply, LLC, and Crossroads Roofing Supply, Inc., the measurement period is still open and amounts are based on provisional estimates of the fair value of assets acquired and liabilities assumed as of June 30, 2024 . |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Net Sales by Product Line and Geography | The following table presents the Company’s net sales by line of business and geography (in millions): U.S. Canada Total Three Months Ended June 30, 2024 Residential roofing products $ 1,306.5 $ 22.4 $ 1,328.9 Non-residential roofing products 686.9 58.2 745.1 Complementary building products 596.1 4.5 600.6 Total net sales $ 2,589.5 $ 85.1 $ 2,674.6 Three Months Ended June 30, 2023 Residential roofing products $ 1,276.1 $ 21.9 $ 1,298.0 Non-residential roofing products 615.7 55.1 670.8 Complementary building products 531.7 3.2 534.9 Total net sales $ 2,423.5 $ 80.2 $ 2,503.7 Six Months Ended June 30, 2024 Residential roofing products $ 2,227.1 $ 29.2 $ 2,256.3 Non-residential roofing products 1,179.0 94.7 1,273.7 Complementary building products 1,050.2 6.8 1,057.0 Total net sales $ 4,456.3 $ 130.7 $ 4,587.0 Six Months Ended June 30, 2023 Residential roofing products $ 2,120.1 $ 28.0 $ 2,148.1 Non-residential roofing products 1,041.8 79.0 1,120.8 Complementary building products 962.5 4.6 967.1 Total net sales $ 4,124.4 $ 111.6 $ 4,236.0 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Components and Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the components and calculations of basic and diluted net income (loss) per common share (in millions, except per share amounts; certain amounts may not recalculate due to rounding): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income (loss) $ 127.2 $ 153.8 $ 132.8 $ 178.6 Dividends on Preferred Stock — (6.0) — (12.0) Undistributed income allocated to participating securities — (19.5) — (21.9) Net income (loss) attributable to common stockholders – Basic and Diluted $ 127.2 $ 128.3 $ 132.8 $ 144.7 Denominator: Weighted-average common shares outstanding – Basic 62.7 63.7 63.1 64.0 Effect of common share equivalents 1.2 1.4 1.2 1.3 Weighted-average common shares outstanding – Diluted 63.9 65.1 64.3 65.3 Net income (loss) per common share: Basic $ 2.03 $ 2.02 $ 2.10 $ 2.26 Diluted $ 1.99 $ 1.97 $ 2.07 $ 2.22 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table includes the number of shares that may be dilutive common shares in the future (except for the Preferred Stock, which was redeemed in July 2023 and therefore has no dilutive impact in the future as of June 30, 2024). These shares were not included in the computation of diluted net income (loss) per common share because the effect was either anti-dilutive or the requisite performance conditions were not met (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Stock options 0.1 0.3 0.1 0.3 Restricted stock units 0.0 — 0.0 0.1 Preferred Stock — 9.7 — 9.7 Equity forward contract 0.5 — 0.5 — Employee Stock Purchase Plan 0.0 — 0.0 — |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Fair Values of Options, Black-Scholes Option-Pricing Model, Weighted-Average Assumptions | The fair values of the options granted for the periods presented were estimated on the dates of grants using the Black-Scholes option-pricing model with the following weighted-average assumptions: Six Months Ended June 30, 2024 2023 Risk-free interest rate 4.13 % 4.26 % Expected volatility 48.05 % 49.92 % Expected life (in years) 5.08 5.12 Dividend yield — — |
Stock Options Outstanding and Activity During the Period | The following table summarizes all stock option activity for the six months ended June 30, 2024 (in millions, except per share amounts and time periods): Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value 1 Balance as of December 31, 2023 1.1 $ 41.38 5.8 $ 51.3 Granted 0.1 85.18 Exercised (0.2) 34.75 Canceled/Forfeited (0.0) 62.07 Balance as of June 30, 2024 1.0 $ 46.80 5.9 $ 45.4 Vested and expected to vest after June 30, 2024 1.0 $ 46.34 5.8 $ 45.1 Exercisable as of June 30, 2024 0.8 $ 39.15 5.0 $ 41.2 1. |
Stock Option Grants, Vesting, and Exercises | The following table summarizes additional information on stock options (in millions, except per share amounts): Six Months Ended June 30, 2024 2023 Weighted-average fair value per share of stock options granted $ 40.34 $ 31.86 Total grant date fair value of stock options vested $ 2.7 $ 1.9 Total intrinsic value of stock options exercised $ 10.0 $ 5.9 |
Restricted Shares and Units Outstanding and Activity During the Period | The following table summarizes all RSU activity for the six months ended June 30, 2024 (in millions, except grant date fair value amounts): RSUs Outstanding Weighted-Average Grant Date Fair Value Balance as of December 31, 2023 1.2 $ 53.14 Granted 0.4 $ 85.71 Released (0.3) $ 51.87 Canceled/Forfeited (0.1) $ 58.23 Balance as of June 30, 2024 1.2 $ 62.70 Vested and expected to vest after June 30, 2024 1 1.2 $ 62.33 1. As of June 30, 2024, outstanding awards with performance conditions were expected to vest at greater than 100% of their original grant amount. |
Schedule Of Restricted Stock Units Additional Information | The following table summarizes additional information regarding RSUs (in millions, except per share amounts): Six Months Ended June 30, 2024 2023 Weighted-average fair value per share of RSUs granted $ 85.71 $ 62.98 Total grant date fair value of RSUs vested $ 13.4 $ 4.1 Total intrinsic value of RSUs released $ 25.0 $ 5.3 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table sets forth the Company’s share repurchases (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total number of shares repurchased 1.9 0.8 1.9 1.2 Amount repurchased 1 $ 180.0 $ 51.6 $ 180.0 $ 74.8 Average price per share $ 93.38 $ 66.72 $ 93.38 $ 63.82 1. Amount repurchased for the three and six months ended June 30, 2024 exclude the $45.0 million equity forward contract. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Current Assets | The following table summarizes the significant components of prepaid expenses and other current assets (in millions): June 30, December 31, June 30, 2024 2023 2023 Vendor rebates $ 424.4 $ 371.8 $ 413.7 Other 106.9 72.8 98.4 Total prepaid expenses and other current assets $ 531.3 $ 444.6 $ 512.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in goodwill | The following table sets forth the change in the carrying amount of goodwill during the six months ended June 30, 2024 (in millions): Balance as of December 31, 2023 $ 1,952.6 Acquisitions 66.1 Translation and other adjustments (1.0) Balance as of June 30, 2024 $ 2,017.7 |
Summary of Intangible Assets | The following table summarizes intangible assets by category (in millions, except time periods): June 30, December 31, June 30, Weighted-Average Remaining 2024 2023 2023 Life 1 (Years) Amortizable intangible assets: Customer relationships and other $ 1,325.0 $ 1,238.9 $ 1,210.2 15.8 Trademarks 5.6 5.6 4.5 0.3 Total amortizable intangible assets 1,330.6 1,244.5 1,214.7 15.8 Accumulated amortization (894.7) (850.8) (808.7) Total amortizable intangible assets, net 435.9 393.7 406.0 Indefinite-lived trademarks 9.8 9.8 9.8 Total intangibles, net $ 445.7 $ 403.5 $ 415.8 1. |
Summary of Estimated Future Amortization | The following table summarizes the estimated future amortization expense for intangible assets (in millions): Year Ending December 31, 2024 (July - December) $ 42.7 2025 71.4 2026 60.8 2027 51.1 2028 41.7 Thereafter 168.2 Total future amortization expense $ 435.9 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The following table summarizes the significant components of accrued expenses (in millions): June 30, December 31, June 30, 2024 2023 2023 Inventory $ 222.3 $ 140.5 $ 229.5 Customer rebates 75.8 124.9 63.3 Payroll and employee benefit costs 68.9 101.4 60.4 Selling, general and administrative 117.7 108.5 106.3 Income taxes 14.9 0.1 35.8 Interest and other 33.1 23.2 2.7 Total accrued expenses $ 532.7 $ 498.6 $ 498.0 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt Presented Net of Unamortized Debt Issuance Costs and Other Financing Arrangements | The following table summarizes all outstanding debt (presented net of unamortized debt issuance costs) and other financing arrangements (in millions): June 30, December 31, June 30, 2024 2023 2023 Revolving Lines of Credit 2026 ABL: 2026 U.S. Revolver 1 $ 464.6 $ 80.0 $ 67.5 2026 Canada Revolver — — — Borrowings under revolving lines of credit, net $ 464.6 $ 80.0 $ 67.5 Long-term Debt, net Term Loan: 2028 Term Loan 2 $ 1,259.3 $ 964.5 $ 968.3 Current portion (12.8) (10.0) (10.0) Long-term borrowings under term loan 1,246.5 954.5 958.3 Senior Notes: 2026 Senior Notes 3 298.5 298.1 297.8 2029 Senior Notes 4 347.6 347.4 347.1 2030 Senior Notes 5 592.8 592.3 — Long-term borrowings under senior notes 1,238.9 1,237.8 644.9 Long-term debt, net $ 2,485.4 $ 2,192.3 $ 1,603.2 1. Effective rate on borrowings of 6.42%, 6.68%, and 7.21% as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively. 2. Interest rate of 7.34%, 7.97%, and 7.40% as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively. 3. Interest rate of 4.50% for all periods presented. 4. Interest rate of 4.125% for all periods presented. 5. Interest rate of 6.50% as of June 30, 2024 and December 31, 2023, respectively. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Components of Operating Lease Costs Recognized in Condensed Consolidated Statements of Operations Amounts Include Both Continuing and Discontinued Operations | The following table summarizes components of lease costs recognized in the condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease costs $ 35.6 $ 30.6 $ 69.7 $ 60.6 Finance lease costs: Amortization of right-of-use assets 8.1 5.2 15.7 9.8 Interest on lease obligations 2.1 1.3 4.1 2.4 Variable lease costs 3.8 3.1 7.3 5.9 Total lease costs $ 49.6 $ 40.1 $ 96.8 $ 78.7 |
Summary of Supplemental Cash Flow Information Related to Leases | The following table presents supplemental cash flow information related to the Company’s leases (in millions): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in measurement of lease obligations: Operating cash outflows from operating leases $ 67.1 $ 57.7 Operating cash outflows from finance leases $ 4.3 $ 2.3 Financing cash outflows from finance leases $ 13.7 $ 9.1 Right-of-use assets obtained in exchange for new finance lease liabilities $ 31.5 $ 25.3 Right-of-use assets obtained in exchange for new operating lease liabilities $ 57.0 $ 22.5 |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes future lease payments as of June 30, 2024 (in millions): Year Ending December 31, Operating Leases Finance Leases 2024 (July - December) $ 58.9 $ 19.6 2025 135.2 39.0 2026 122.5 38.1 2027 105.0 33.0 2028 87.3 22.0 Thereafter 206.7 13.2 Total future lease payments 715.6 164.9 Imputed interest (120.8) (21.2) Total lease liabilities $ 594.8 $ 143.7 |
Finance Lease, Liability, Fiscal Year Maturity | The following table summarizes future lease payments as of June 30, 2024 (in millions): Year Ending December 31, Operating Leases Finance Leases 2024 (July - December) $ 58.9 $ 19.6 2025 135.2 39.0 2026 122.5 38.1 2027 105.0 33.0 2028 87.3 22.0 Thereafter 206.7 13.2 Total future lease payments 715.6 164.9 Imputed interest (120.8) (21.2) Total lease liabilities $ 594.8 $ 143.7 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the components of, and changes in, AOCI (in millions): Foreign Currency Translation Derivative Financial Instruments AOCI Balance as of December 31, 2023 $ (19.5) $ 5.2 $ (14.3) Other comprehensive income (loss) before reclassifications (4.3) 5.2 0.9 Reclassifications out of other comprehensive income (loss) — (1.7) (1.7) Balance as of June 30, 2024 $ (23.8) $ 8.7 $ (15.1) |
Geographic Data (Tables)
Geographic Data (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Information | The following table summarizes certain geographic information (in millions): June 30, December 31, June 30, 2024 2023 2023 Long-lived assets: U.S. $ 911.3 $ 821.8 $ 786.2 Canada 16.8 15.6 11.9 Total long-lived assets $ 928.1 $ 837.4 $ 798.1 |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Combined Fair Values, Net of Tax of Interest Rate Derivative Instruments | The following table summarizes the combined fair values, net of tax, of the interest rate derivative instrument (in millions): Net Assets (Liabilities) as of June 30, December 31, June 30, Instrument Fair Value Hierarchy 2024 2023 2023 Designated interest rate swaps 1 Level 2 $ 13.0 $ 7.8 $ 14.8 1. Assets are included in the condensed consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the amounts of gain (loss) on the change in fair value of the designated interest rate swaps recognized in other comprehensive income (in millions): Three Months Ended June 30, Six Months Ended June 30, Instrument 2024 2023 2024 2023 Designated interest rate swaps $ 0.1 $ 7.9 $ 5.2 $ 5.1 |
Company Overview - Additional I
Company Overview - Additional Information (Detail) | Jun. 30, 2024 Province State |
U.S. | |
Company Overview [Line Items] | |
Number of states in which entity operates | State | 50 |
Canada | |
Company Overview [Line Items] | |
Number of provinces in which entity operates | Province | 7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||||||
Jun. 30, 2024 | Jun. 30, 2024 | May 01, 2024 | Apr. 15, 2024 | Feb. 12, 2024 | Feb. 01, 2024 | Dec. 31, 2023 | Nov. 01, 2023 | Oct. 02, 2023 | Sep. 05, 2023 | Aug. 01, 2023 | Jul. 11, 2023 | Jun. 30, 2023 | Jun. 12, 2023 | Mar. 31, 2023 | Jan. 04, 2023 | |
Business Acquisition [Line Items] | ||||||||||||||||
Prior to acquisition annual sales | $ 489.9 | $ 489.9 | ||||||||||||||
Business combination, acquisition related costs | 2.6 | 4.6 | ||||||||||||||
Goodwill recognized | $ 2,017.7 | $ 2,017.7 | $ 1,952.6 | $ 1,922.9 | ||||||||||||
Smalley & Company | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 4.2 | |||||||||||||||
General Roofing & Siding Supply, Co. | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 4 | |||||||||||||||
Metro Sealant & Waterproofing Supply, Inc. | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 22.6 | |||||||||||||||
Roofers Supply of Greenville | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 35.1 | |||||||||||||||
H&H Roofing Supply, LLC | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 1.1 | |||||||||||||||
Garvin Construction Products | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 17.6 | |||||||||||||||
S&H Building Material Corporation | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 5.3 | |||||||||||||||
All American Vinyl Siding Supply, LLC | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 0.7 | |||||||||||||||
Crossroads Roofing Supply, Inc. | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 2.9 | |||||||||||||||
Silver State Building Materials, Inc. | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 0.6 | |||||||||||||||
Al's Roofing Supply, Inc. | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 3.7 | |||||||||||||||
Prince Building Systems, LLC | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 0.3 | |||||||||||||||
First Coastal Exteriors, LLC | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, percentage of equity interests acquired | 100% | 100% | ||||||||||||||
Goodwill recognized | $ 0.8 | |||||||||||||||
Series of Individually Immaterial Business Acquisitions | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill recognized | $ 98.9 | $ 98.9 | ||||||||||||||
Business acquisition, goodwill, tax deductible amount | $ 60.4 | $ 60.4 |
Acquisitions - Finite-Lived and
Acquisitions - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) $ in Millions | Jun. 30, 2024 USD ($) | May 01, 2024 USD ($) branch | Apr. 15, 2024 USD ($) branch | Feb. 12, 2024 USD ($) branch | Feb. 01, 2024 USD ($) branch | Dec. 31, 2023 USD ($) | Nov. 01, 2023 USD ($) branch | Oct. 02, 2023 USD ($) branch | Sep. 05, 2023 USD ($) branch | Aug. 01, 2023 USD ($) branch | Jul. 11, 2023 USD ($) branch | Jun. 30, 2023 USD ($) | Jun. 12, 2023 USD ($) branch | Mar. 31, 2023 USD ($) branch | Jan. 04, 2023 USD ($) branch |
Business Acquisition [Line Items] | |||||||||||||||
Goodwill recognized | $ 2,017.7 | $ 1,952.6 | $ 1,922.9 | ||||||||||||
Smalley & Company | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 11,000,000 | ||||||||||||||
Goodwill recognized | $ 4.2 | ||||||||||||||
Intangible Assets Acquired | $ 25.8 | ||||||||||||||
General Roofing & Siding Supply, Co. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 5,000,000 | ||||||||||||||
Goodwill recognized | $ 4 | ||||||||||||||
Intangible Assets Acquired | $ 8.8 | ||||||||||||||
Metro Sealant & Waterproofing Supply, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 4,000,000 | ||||||||||||||
Goodwill recognized | $ 22.6 | ||||||||||||||
Intangible Assets Acquired | $ 25.2 | ||||||||||||||
Roofers Supply of Greenville | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 3,000,000 | ||||||||||||||
Goodwill recognized | $ 35.1 | ||||||||||||||
Intangible Assets Acquired | $ 26.6 | ||||||||||||||
H&H Roofing Supply, LLC | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 1,000,000 | ||||||||||||||
Goodwill recognized | $ 1.1 | ||||||||||||||
Intangible Assets Acquired | $ 1 | ||||||||||||||
Garvin Construction Products | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 5 | ||||||||||||||
Goodwill recognized | $ 17.6 | ||||||||||||||
Intangible Assets Acquired | $ 10.1 | ||||||||||||||
S&H Building Material Corporation | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 1 | ||||||||||||||
Goodwill recognized | $ 5.3 | ||||||||||||||
Intangible Assets Acquired | $ 4.1 | ||||||||||||||
All American Vinyl Siding Supply, LLC | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 1 | ||||||||||||||
Goodwill recognized | $ 0.7 | ||||||||||||||
Intangible Assets Acquired | $ 0.8 | ||||||||||||||
Crossroads Roofing Supply, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 5 | ||||||||||||||
Goodwill recognized | $ 2.9 | ||||||||||||||
Intangible Assets Acquired | $ 11.1 | ||||||||||||||
Silver State Building Materials, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 1 | ||||||||||||||
Goodwill recognized | $ 0.6 | ||||||||||||||
Intangible Assets Acquired | $ 0.9 | ||||||||||||||
Al's Roofing Supply, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 4 | ||||||||||||||
Goodwill recognized | $ 3.7 | ||||||||||||||
Intangible Assets Acquired | $ 7.1 | ||||||||||||||
Prince Building Systems, LLC | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 1 | ||||||||||||||
Goodwill recognized | $ 0.3 | ||||||||||||||
Intangible Assets Acquired | $ 2 | ||||||||||||||
First Coastal Exteriors, LLC | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Branches | branch | 2 | ||||||||||||||
Goodwill recognized | $ 0.8 | ||||||||||||||
Intangible Assets Acquired | $ 1.9 |
Net Sales - Summary of Net Sale
Net Sales - Summary of Net Sales by Product Line and Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 2,674.6 | $ 2,503.7 | $ 4,587 | $ 4,236 |
Residential roofing products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 1,328.9 | 1,298 | 2,256.3 | 2,148.1 |
Non-residential roofing products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 745.1 | 670.8 | 1,273.7 | 1,120.8 |
Complementary building products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 600.6 | 534.9 | 1,057 | 967.1 |
U.S. | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 2,589.5 | 2,423.5 | 4,456.3 | 4,124.4 |
U.S. | Residential roofing products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 1,306.5 | 1,276.1 | 2,227.1 | 2,120.1 |
U.S. | Non-residential roofing products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 686.9 | 615.7 | 1,179 | 1,041.8 |
U.S. | Complementary building products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 596.1 | 531.7 | 1,050.2 | 962.5 |
Canada | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 85.1 | 80.2 | 130.7 | 111.6 |
Canada | Residential roofing products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 22.4 | 21.9 | 29.2 | 28 |
Canada | Non-residential roofing products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 58.2 | 55.1 | 94.7 | 79 |
Canada | Complementary building products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 4.5 | $ 3.2 | $ 6.8 | $ 4.6 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Additional Information (Details) - USD ($) | Jul. 31, 2023 | Jan. 02, 2018 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Sales Of Shares A Cumulative Convertible Participating Preferred Stock [Line Items] | |||||
Preferred stock, issuance (in shares) | 0 | 0 | 0 | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Allied Acquisition | Investment Agreement | Series A Cumulative Convertible Participating Preferred Stock | |||||
Sales Of Shares A Cumulative Convertible Participating Preferred Stock [Line Items] | |||||
Preferred stock, issuance (in shares) | 400,000 | ||||
Preferred stock, par value (in usd per share) | $ 0.01 | ||||
Preferred stock, liquidation preference value | $ 400,000,000 | ||||
Preferred stock, liquidation purchase price per share (in usd per share) | $ 1,000 | ||||
Stock repurchased during period (in shares) | 400,000 | ||||
Repurchase of preferred stock | $ 805,400,000 | ||||
Dividends payable | $ 900,000 | ||||
Common stock, par value (in usd per share) | 0.01 | ||||
Preferred stock conversion price per share (in usd per share) | $ 41.26 | ||||
Common stock to be issued upon conversion of convertible preferred stock (in shares) | 9,694,619 | ||||
Preferred stock dividend rate | 6% |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Components and Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net income (loss) | $ 127.2 | $ 153.8 | $ 132.8 | $ 178.6 |
Dividends on Preferred Stock | 0 | (6) | 0 | (12) |
Undistributed income allocated to participating securities | 0 | (19.5) | 0 | (21.9) |
Net income (loss) attributable to common stockholders - Basic | 127.2 | 128.3 | 132.8 | 144.7 |
Net income (loss) attributable to common stockholders - Diluted | $ 127.2 | $ 128.3 | $ 132.8 | $ 144.7 |
Denominator: | ||||
Weighted-average common shares outstanding - Basic (in shares) | 62.7 | 63.7 | 63.1 | 64 |
Effect of common share equivalents (in shares) | 1.2 | 1.4 | 1.2 | 1.3 |
Weighted-average common shares outstanding - Diluted (in shares) | 63.9 | 65.1 | 64.3 | 65.3 |
Net income (loss) per common share: | ||||
Basic (in usd per share) | $ 2.03 | $ 2.02 | $ 2.10 | $ 2.26 |
Diluted (in usd per share) | $ 1.99 | $ 1.97 | $ 2.07 | $ 2.22 |
Net Income (Loss) Per Common _5
Net Income (Loss) Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity forward contract | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0.5 | 0 | 0.5 | 0 |
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0.1 | 0.3 | 0.1 | 0.3 |
Restricted stock units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0 | 0 | 0 | 0.1 |
Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0 | 9.7 | 0 | 9.7 |
Employee Stock Purchase Plan | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share ( in shares) | 0 | 0 | 0 | 0 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
May 17, 2023 | Jun. 30, 2024 USD ($) installment $ / shares shares | Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2024 USD ($) installment $ / shares shares | Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | shares | 6,200,000 | 6,200,000 | ||||
Authorized share reserve reduction in stock options or share appreciation rights available for issue, conversion ratio (in shares) | shares | 2.25 | 2.25 | ||||
Stock-based compensation number of shares authorized (in shares) | shares | 6,251,049 | 6,251,049 | ||||
Number of annual installments | installment | 3 | 3 | ||||
Tax benefit related to compensation expense | $ 600,000 | $ 300,000 | $ 1,900,000 | $ 700,000 | ||
Unrecognized compensation cost related to unvested stock | $ 6,000,000 | $ 6,000,000 | ||||
Weighted average remaining contractual term | 5 years 10 months 24 days | 5 years 9 months 18 days | ||||
Common stock (voting), par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Restricted Stock Unit Award with Performance Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of shares that will vest | 100% | |||||
Restricted Stock Unit Award with Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of shares that will vest | 100% | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Non-qualified options granted expiration period | 10 years | |||||
Vesting period | 3 years | |||||
Allocated stock-based compensation expense | $ 1,000,000 | $ 1,100,000 | $ 2,000,000 | $ 2,000,000 | ||
Weighted average remaining contractual term | 1 year 10 months 24 days | |||||
Phantom Share Units (PSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of shares that will vest | 0% | |||||
Phantom Share Units (PSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of shares that will vest | 200% | |||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated stock-based compensation expense | $ 6,800,000 | 7,200,000 | $ 12,600,000 | 12,300,000 | ||
Tax benefit related to compensation expense | 1,400,000 | $ 200,000 | 2,700,000 | $ 300,000 | ||
Unrecognized compensation cost related to unvested stock | $ 42,700,000 | $ 42,700,000 | ||||
Weighted average period to recognize performance conditions | 2 years 1 month 6 days | |||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | shares | 1,000,000 | 1,000,000 | ||||
Stock-based compensation number of shares authorized (in shares) | shares | 884,719 | 884,719 | ||||
Allocated stock-based compensation expense | $ 500,000 | $ 1,100,000 | ||||
Share-base payment award, purchase period | 6 months | |||||
Purchase price per share, percent | 85% | |||||
Maximum purchase amount | $ 12,500 | |||||
Maximum purchase amount per year | $ 25,000 | |||||
Shares of common stock issues (in shares) | shares | 115,281 | |||||
Price per share purchase (in dollar per share) | $ / shares | $ 72.18 | $ 72.18 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Values of Options, Black-Scholes Option-Pricing Model, Weighted-Average Assumptions (Detail) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 4.13% | 4.26% |
Expected volatility | 48.05% | 49.92% |
Expected life (in years) | 5 years 29 days | 5 years 1 month 13 days |
Dividend yield | 0% | 0% |
Stock-based compensation - Stoc
Stock-based compensation - Stock Options Outstanding and Activity During the Period (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Options Outstanding | ||
Beginning Balance (in shares) | 1.1 | |
Granted (in shares) | 0.1 | |
Exercised (in shares) | (0.2) | |
Canceled/Forfeited (in shares) | 0 | |
Ending Balance (in shares) | 1 | 1.1 |
Vested and expected to vest (in shares) | 1 | |
Exercisable (in shares) | 0.8 | |
Weighted-Average Exercise Price | ||
Beginning Balance (in usd per share) | $ 41.38 | |
Granted (in usd per share) | 85.18 | |
Exercised (in usd per share) | 34.75 | |
Canceled/Forfeited (in usd per share) | 62.07 | |
Ending Balance (in usd per share) | 46.80 | $ 41.38 |
Vested and expected to vest (in usd per share) | 46.34 | |
Exercisable (in usd per share) | $ 39.15 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Balance | 5 years 10 months 24 days | 5 years 9 months 18 days |
Vested and expected to vest | 5 years 9 months 18 days | |
Exercisable | 5 years | |
Aggregate Intrinsic Value | ||
Balance | $ 45.4 | $ 51.3 |
Vested and expected to vest | 45.1 | |
Exercisable | $ 41.2 |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Grants, Vesting, and Exercises (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Weighted-average fair value per share of stock options granted (in usd per share) | $ 40.34 | $ 31.86 |
Total grant date fair value of stock options vested | $ 2.7 | $ 1.9 |
Total intrinsic value of stock options exercised | $ 10 | $ 5.9 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Shares and Units Outstanding and Activity During the Period (Detail) - $ / shares shares in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Weighted-Average Grant Date Fair Value | ||
Granted (in usd per share) | $ 85.71 | $ 62.98 |
Restricted stock units | ||
RSUs Outstanding | ||
Beginning Balance (in shares) | 1.2 | |
Granted (in shares) | 0.4 | |
Released (in shares) | (0.3) | |
Canceled/Forfeited (in shares) | (0.1) | |
Ending Balance (in shares) | 1.2 | |
Vested and expected to vest (in shares) | 1.2 | |
Weighted-Average Grant Date Fair Value | ||
Beginning Balance (in usd per share) | $ 53.14 | |
Granted (in usd per share) | 85.71 | |
Released (in usd per share) | 51.87 | |
Canceled/Forfeited (in usd per share) | 58.23 | |
Ending Balance (in usd per share) | 62.70 | |
Vested and expected to vest (in usd per share) | $ 62.33 | |
Performance Conditions | Minimum | ||
Weighted-Average Grant Date Fair Value | ||
Percentage of shares expected to be vested | 100% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule Of Restricted Stock Units Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Weighted-average fair value per share of RSUs granted (in usd per share) | $ 85.71 | $ 62.98 |
Total grant date fair value of RSUs vested | $ 13.4 | $ 4.1 |
Total intrinsic value of RSUs released | $ 25 | $ 5.3 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
May 09, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Feb. 24, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Remaining repurchase amount | $ 164,100,000 | $ 164,100,000 | ||||
Accelerated share repurchase program, cost | 100,000 | $ 600,000 | 100,000 | $ 600,000 | ||
Repurchase Program | Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase of common stock | $ 500,000,000 | |||||
Increased authorized amount | 387,900,000 | |||||
Repurchase Program | Maximum | Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase of common stock | $ 500,000,000 | |||||
ASR Agreement | Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase of common stock | $ 225,000,000 | |||||
Remaining repurchase amount | $ 45,000,000 | $ 45,000,000 | ||||
ASR Agreement | Common Stock | Related Party | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Initial shares received under accelerated shares repurchases (in shares) | 1,927,608 | |||||
Percent of expected share repurchase on closing price of common stock | 80% | |||||
Closing price (in usd per share) | $ 93.38 |
Share Repurchase Program - Clas
Share Repurchase Program - Class of Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Total number of shares repurchased (in shares) | 1.9 | 0.8 | 1.9 | 1.2 |
Average price per share (in usd per share) | $ 93.38 | $ 66.72 | $ 93.38 | $ 63.82 |
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Amount repurchased | $ 180 | $ 51.6 | $ 180 | $ 74.8 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Other Income and Expenses [Abstract] | |||
Vendor rebates | $ 424.4 | $ 371.8 | $ 413.7 |
Other | 106.9 | 72.8 | 98.4 |
Total prepaid expenses and other current assets | $ 531.3 | $ 444.6 | $ 512.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in goodwill (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,952.6 |
Acquisitions | 66.1 |
Translation and other adjustments | (1) |
Ending balance | $ 2,017.7 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 22.9 | $ 21.4 | $ 44 | $ 43.7 |
Minimum | ||||
Goodwill [Line Items] | ||||
Useful life | 1 year | 1 year | ||
Maximum | ||||
Goodwill [Line Items] | ||||
Useful life | 20 years | 20 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets: | $ 1,330.6 | $ 1,244.5 | $ 1,214.7 |
Accumulated amortization | (894.7) | (850.8) | (808.7) |
Total future amortization expense | 435.9 | 393.7 | 406 |
Indefinite-lived trademarks | 9.8 | 9.8 | 9.8 |
Total intangibles, net | $ 445.7 | 403.5 | 415.8 |
Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Life (Years) | 15 years 9 months 18 days | ||
Customer relationships and other | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets: | $ 1,325 | 1,238.9 | 1,210.2 |
Customer relationships and other | Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Life (Years) | 15 years 9 months 18 days | ||
Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets: | $ 5.6 | $ 5.6 | $ 4.5 |
Trademarks | Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Life (Years) | 3 months 18 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Estimated Future Amortization (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2024 (July - December) | $ 42.7 | ||
2025 | 71.4 | ||
2026 | 60.8 | ||
2027 | 51.1 | ||
2028 | 41.7 | ||
Thereafter | 168.2 | ||
Total future amortization expense | $ 435.9 | $ 393.7 | $ 406 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Payables and Accruals [Abstract] | |||
Inventory | $ 222.3 | $ 140.5 | $ 229.5 |
Customer rebates | 75.8 | 124.9 | 63.3 |
Payroll and employee benefit costs | 68.9 | 101.4 | 60.4 |
Selling, general and administrative | 117.7 | 108.5 | 106.3 |
Income taxes | 14.9 | 0.1 | 35.8 |
Interest and other | 33.1 | 23.2 | 2.7 |
Total accrued expenses | $ 532.7 | $ 498.6 | $ 498 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Outstanding Debt Presented Net of Unamortized Debt Issuance Costs and Other Financing Arrangements (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jul. 31, 2023 | Jun. 30, 2023 | May 31, 2021 | May 10, 2021 | Oct. 28, 2019 | Oct. 09, 2019 |
Debt Instrument [Line Items] | ||||||||
Borrowings under revolving lines of credit/term loans, net | $ 464.6 | $ 80 | $ 67.5 | |||||
Long-term borrowings under senior notes | 1,238.9 | 1,237.8 | 644.9 | |||||
Long-term debt, net | $ 2,485.4 | $ 2,192.3 | $ 1,603.2 | |||||
2028 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate at period end | 7.34% | 7.97% | 7.40% | |||||
2026 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 298.5 | $ 298.1 | $ 297.8 | |||||
Debt interest rate at period end | 4.50% | 6.375% | 4.50% | |||||
2029 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 347.6 | 347.4 | 347.1 | |||||
Debt interest rate at period end | 4.125% | 4.125% | ||||||
2030 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | 592.3 | 0 | ||||||
Debt interest rate at period end | 6.50% | |||||||
Revolving Lines of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings under revolving lines of credit/term loans, net | $ 464.6 | 80 | 67.5 | |||||
Revolving Lines of Credit | 2026 Revolver | U.S. | ||||||||
Debt Instrument [Line Items] | ||||||||
Total borrowings under revolving lines of credit/term loans | $ 464.6 | $ 80 | $ 67.5 | |||||
Line of credit facility, interest rate at period end | 6.42% | 6.68% | 7.21% | |||||
Revolving Lines of Credit | 2026 Revolver | Canada | ||||||||
Debt Instrument [Line Items] | ||||||||
Total borrowings under revolving lines of credit/term loans | $ 0 | $ 0 | $ 0 | |||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Current portion | (12.8) | (10) | (10) | |||||
Borrowings under revolving lines of credit/term loans, net | 1,246.5 | 954.5 | 958.3 | |||||
Term Loan | 2028 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Total borrowings under revolving lines of credit/term loans | $ 1,259.3 | $ 964.5 | $ 968.3 | $ 1,000 |
Financing Arrangements - Debt R
Financing Arrangements - Debt Refinancing - Additional Information (Detail) - USD ($) | May 19, 2021 | Jun. 30, 2024 | Mar. 28, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | May 31, 2021 | May 10, 2021 |
Senior Notes, Matures May 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 350,000,000 | $ 350,000,000 | |||||
Repayments of senior debt | $ 1,300,000,000 | ||||||
Debt interest rate at period end | 4.125% | 4.125% | |||||
Debt redemption price percentage of principal amount | 102.438% | ||||||
2026 ABL Facility | Revolving Lines of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 1,300,000,000 | 1,300,000,000 | |||||
2028 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate at period end | 7.34% | 7.97% | 7.40% | ||||
2028 Term Loan | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 1,275,000,000 | $ 1,275,000,000 | 975,000,000 | ||||
Long-term line of credit | $ 1,259,300,000 | $ 964,500,000 | $ 968,300,000 | $ 1,000,000,000 | |||
2025 Senior Note | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate at period end | 4.875% |
Financing Arrangements - 2029 S
Financing Arrangements - 2029 Senior Notes - Additional Information (Detail) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Jul. 31, 2023 | Jun. 30, 2023 | May 31, 2021 | May 19, 2021 | May 10, 2021 |
Debt Instrument [Line Items] | |||||||
Capitalized debt issuance costs | $ 8,100,000 | $ 8,300,000 | $ 4,000,000 | ||||
Senior Notes, Matures May 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 350,000,000 | $ 350,000,000 | |||||
Debt instrument interest rate | 4.125% | 4.125% | |||||
Debt issuance costs | $ 2,400,000 | ||||||
Senior notes payable | $ 347,600,000 | $ 347,400,000 | $ 347,100,000 |
Financing Arrangements - 2026 A
Financing Arrangements - 2026 ABL - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||||
May 19, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | Jul. 31, 2023 | Jun. 30, 2023 | May 31, 2021 | May 10, 2021 | |
Debt Instrument [Line Items] | |||||||
Capitalized debt issuance costs | $ 8,300,000 | $ 8,100,000 | $ 4,000,000 | ||||
Borrowings under revolving lines of credit/term loans, net | $ 464,600,000 | $ 80,000,000 | $ 67,500,000 | ||||
Revolving Lines of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings under revolving lines of credit/term loans, net | $ 464,600,000 | $ 80,000,000 | $ 67,500,000 | ||||
Revolving Lines of Credit | 2026 ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 1,300,000,000 | $ 1,300,000,000 | |||||
Line of credit facility, unused fees | 0.20% | ||||||
Fixed charge coverage ratio | 1% | ||||||
Debt issuance costs | $ 3,100,000 | ||||||
Standby letters of credit outstanding | $ 15,800,000 | ||||||
Revolving Lines of Credit | U.S. | 2026 ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 1,250,000,000 | ||||||
Revolving Lines of Credit | Canada | 2026 ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||||
Base Rate | Revolving Lines of Credit | Minimum | 2026 ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Base rate borrowings | 0.25% | ||||||
Base Rate | Revolving Lines of Credit | Maximum | 2026 ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Base rate borrowings | 0.75% | ||||||
London Interbank Offered Rate (LIBOR) | Revolving Lines of Credit | Minimum | 2026 ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Base rate borrowings | 1.25% | ||||||
London Interbank Offered Rate (LIBOR) | Revolving Lines of Credit | Maximum | 2026 ABL Facility | |||||||
Debt Instrument [Line Items] | |||||||
Base rate borrowings | 1.75% |
Financing Arrangements - 2028 T
Financing Arrangements - 2028 Term Loan - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Mar. 31, 2024 | May 19, 2021 | Jun. 30, 2024 | Jun. 30, 2024 | Mar. 28, 2024 | Dec. 31, 2023 | Jul. 31, 2023 | Jun. 30, 2023 | May 31, 2021 | May 10, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Capitalized debt issuance costs | $ 8.3 | $ 8.1 | $ 4 | |||||||
Term Loan | Term Loan, Matures 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 1,000 | |||||||||
Debt instrument, periodic payment | $ 3.2 | $ 2.5 | ||||||||
Term Loan | Term Loan, Matures 2028 | Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base rate borrowings | 1.25% | |||||||||
Term Loan | Term Loan, Matures 2028 | Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base rate borrowings | 1.50% | |||||||||
Term Loan | Term Loan, Matures 2028 | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base rate borrowings | 2.25% | |||||||||
Term Loan | Term Loan, Matures 2028 | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Base rate borrowings | 2.50% | |||||||||
Term Loan | 2028 Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 1,259.3 | $ 1,259.3 | $ 964.5 | $ 968.3 | $ 1,000 | |||||
Base rate borrowings | 2% | |||||||||
Debt instrument, aggregate principal amount | $ 1,275 | 1,275 | $ 1,275 | $ 975 | ||||||
Interest rate floor | 0% | |||||||||
Loss on debt extinguishment | 2.4 | |||||||||
Capitalized debt issuance costs | $ 9.7 | $ 0.1 | 0.1 | |||||||
Debt issuance costs | $ 9.3 | $ 9.3 |
Financing Arrangements - 2030 S
Financing Arrangements - 2030 Senior Notes -Additional Information (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Jul. 31, 2023 | Jun. 30, 2023 | May 19, 2021 | May 10, 2021 |
Debt Instrument [Line Items] | ||||||
Capitalized debt issuance costs | $ 8,100,000 | $ 8,300,000 | $ 4,000,000 | |||
Senior Secured Notes Due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, aggregate principal amount | $ 600,000,000 | |||||
Debt interest rate at period end | 6.50% | |||||
Senior notes | $ 592,300,000 | $ 0 | ||||
Senior Secured Notes Due 2030 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate at period end | 6.50% | 6.50% | ||||
Unamortized debt issuance costs | $ 7,200,000 | |||||
Senior notes | $ 592,800,000 |
Financing Arrangements - 2026 S
Financing Arrangements - 2026 Senior Notes - Additional Information (Detail) - USD ($) | 6 Months Ended | ||||
Oct. 28, 2019 | Oct. 09, 2019 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Payments of debt issuance costs | $ 200,000 | $ 0 | |||
Senior Notes, Matures November 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 300,000,000 | ||||
Debt instrument interest rate | 6.375% | 4.50% | 4.50% | ||
Repayments of senior debt | $ 300,000,000 | ||||
Payments of debt issuance costs | $ 4,700,000 | ||||
Senior notes payable | $ 298,500,000 | $ 297,800,000 | $ 298,100,000 | ||
Senior Notes, Matures November 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 1,500,000 |
Leases - Components of Operatin
Leases - Components of Operating Lease Costs Recognized in Condensed Consolidated Statements of Operations Amounts Include Both Continuing and Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease costs | $ 35.6 | $ 30.6 | $ 69.7 | $ 60.6 |
Finance lease costs: | ||||
Amortization of right-of-use assets | 8.1 | 5.2 | 15.7 | 9.8 |
Interest on lease obligations | 2.1 | 1.3 | 4.1 | 2.4 |
Variable lease costs | 3.8 | 3.1 | 7.3 | 5.9 |
Total lease costs | $ 49.6 | $ 40.1 | $ 96.8 | $ 78.7 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 67.1 | $ 57.7 |
Operating cash outflows from finance leases | 4.3 | 2.3 |
Financing cash outflows from finance leases | 13.7 | 9.1 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 31.5 | 25.3 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 57 | $ 22.5 |
Leases - Additional Information
Leases - Additional Information (Detail) | Jun. 30, 2024 |
Leases [Abstract] | |
Operating lease, weighted-average remaining lease term | 6 years 2 months 12 days |
Operating lease, weighted-average discount rate | 5.77% |
Financing lease, weighted-average remaining lease term | 4 years 7 months 6 days |
Financing lease, weighted-average discount rate | 6.15% |
Leases - Finance Lease and Less
Leases - Finance Lease and Lessee, Operating Lease, Liability, Fiscal Year Maturity (Detail) $ in Millions | Jun. 30, 2024 USD ($) |
Operating Leases | |
2024 (July - December) | $ 58.9 |
2025 | 135.2 |
2026 | 122.5 |
2027 | 105 |
2028 | 87.3 |
Thereafter | 206.7 |
Total future lease payments | 715.6 |
Imputed interest | (120.8) |
Total lease liabilities | 594.8 |
Finance Leases | |
2024 (July - December) | 19.6 |
2025 | 39 |
2026 | 38.1 |
2027 | 33 |
2028 | 22 |
Thereafter | 13.2 |
Total future lease payments | 164.9 |
Imputed interest | (21.2) |
Total lease liabilities | $ 143.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,823.5 | |
Other comprehensive income (loss) before reclassifications | 0.9 | |
Reclassifications out of other comprehensive income (loss) | (1.7) | |
Ending balance | 1,753.6 | |
AOCI | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (14.3) | [1] |
Ending balance | (15.1) | [1] |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (19.5) | |
Other comprehensive income (loss) before reclassifications | (4.3) | |
Reclassifications out of other comprehensive income (loss) | 0 | |
Ending balance | (23.8) | |
Derivative Financial Instruments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 5.2 | |
Other comprehensive income (loss) before reclassifications | 5.2 | |
Reclassifications out of other comprehensive income (loss) | (1.7) | |
Ending balance | $ 8.7 | |
[1] Accumulated Other Comprehensive Income (Loss) (“AOCI”). |
Geographic Data - Schedule Of G
Geographic Data - Schedule Of Geographic Information (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 928.1 | $ 837.4 | $ 798.1 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 911.3 | 821.8 | 786.2 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 16.8 | $ 15.6 | $ 11.9 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - Fair Value, Inputs Level 2 $ in Millions | Jun. 30, 2024 USD ($) |
Carrying Value | 2026 Senior Notes | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | $ 300 |
Carrying Value | 2029 Senior Notes | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | 350 |
Carrying Value | Senior Secured Notes Due 2030 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | 600 |
Fair Value | 2026 Senior Notes | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | 291.4 |
Fair Value | 2029 Senior Notes | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | 319.4 |
Fair Value | Senior Secured Notes Due 2030 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | $ 605.3 |
Financial Derivatives - Additio
Financial Derivatives - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 16, 2023 USD ($) | Sep. 11, 2019 USD ($) Agreement | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Derivative [Line Items] | ||||||
Number of interest rate swap agreements | Agreement | 2 | |||||
Reclassified gain (loss) | $ 0.9 | $ 0.8 | $ 1.7 | $ 1 | ||
Interest rate cash flow hedge gain | 9.7 | $ 9.7 | ||||
5-Year Swap | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 500 | $ 250 | ||||
Term of derivative agreement | 5 years | 5 years | 5 years | |||
Derivative, fixed interest rate | 1.49% | |||||
Unrealized gain on derivatives | $ 9.9 | |||||
Fair value of unrealized gain on derivatives | $ 9.9 | |||||
Designed interest rate swaps | $ 13 | $ 13 | ||||
5-Year Swap | London Interbank Offered Rate (LIBOR) | ||||||
Derivative [Line Items] | ||||||
Derivative, fixed interest rate | 1.49% | |||||
5-Year Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Derivative [Line Items] | ||||||
Derivative, fixed interest rate | 3% | |||||
3-Year Swap | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 250 | |||||
Term of derivative agreement | 3 years | |||||
Derivative, fixed interest rate | 1.50% | |||||
2028 Term Loan | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 500 |
Financial Derivatives - Summary
Financial Derivatives - Summary of Combined Fair Values, Net of Tax of Interest Rate Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Designated as Hedging Instrument | Interest Rate Swaps | Fair Value, Inputs Level 2 | |||
Derivative [Line Items] | |||
Designed interest rate swaps | $ 13 | $ 7.8 | $ 14.8 |
Financial Derivatives - Schedul
Financial Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
Designated interest rate swaps | $ 0.1 | $ 7.9 | $ 5.2 | $ 5.1 |
Designated as Hedging Instrument | Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Designated interest rate swaps | $ 0.1 | $ 7.9 | $ 5.2 | $ 5.1 |