Builders FirstSource (BLDR) 10-Q 2 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Trading Symbol	BLDR
Entity Registrant Name	Builders FirstSource, Inc.
Entity Central Index Key	1,316,835
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		114,724,995

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Sales	$ 2,118,467	$ 1,878,909	$ 5,908,791	$ 5,255,270
Cost of sales	1,595,686	1,419,587	4,478,630	3,959,099
Gross margin	522,781	459,322	1,430,161	1,296,171
Selling, general and administrative expenses	400,993	370,638	1,151,670	1,075,869
Income from operations	121,788	88,684	278,491	220,302
Interest expense, net	29,106	33,836	84,805	103,703
Income before income taxes	92,682	54,848	193,686	116,599
Income tax expense	19,354	15,098	40,516	35,117
Net income	73,328	39,750	153,170	81,482
Comprehensive income	$ 73,328	$ 39,750	$ 153,170	$ 81,482
Net income per share:
Basic	$ 0.64	$ 0.35	$ 1.34	$ 0.73
Diluted	$ 0.63	$ 0.34	$ 1.31	$ 0.71
Weighted average common shares:
Basic	114,707	112,688	114,480	112,368
Diluted	116,456	115,871	116,614	115,310

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 34,446	$ 57,533
Accounts receivable, less allowances of $13,470 and $11,771 at September 30, 2018 and December 31, 2017, respectively	805,317	631,992
Other receivables	59,389	71,232
Inventories, net	679,471	601,547
Other current assets	35,351	33,564
Total current assets	1,613,974	1,395,868
Property, plant and equipment, net	665,732	639,303
Assets held for sale	7,874	5,273
Goodwill	740,411	740,411
Intangible assets, net	111,266	132,567
Deferred income taxes	38,760	75,105
Other assets, net	15,568	17,597
Total assets	3,193,585	3,006,124
Current liabilities:
Checks outstanding	13,531
Accounts payable	487,775	514,282
Accrued liabilities	255,836	271,597
Current maturities of long-term debt and lease obligations	14,620	12,475
Total current liabilities	771,762	798,354
Long-term debt and lease obligations, net of current maturities, debt discount and debt issuance costs	1,826,962	1,771,945
Other long-term liabilities	56,546	59,616
Total liabilities	2,655,270	2,629,915
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding
Common stock, $0.01 par value, 200,000 shares authorized; 114,725 and 113,572 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	1,147	1,136
Additional paid-in capital	554,223	546,766
Accumulated deficit	(17,055)	(171,693)
Total stockholders' equity	538,315	376,209
Total liabilities and stockholders' equity	$ 3,193,585	$ 3,006,124

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Allowances on trade accounts receivable	$ 13,470	$ 11,771
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	114,725,000	113,572,000
Common stock, shares outstanding	114,725,000	113,572,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 153,170	$ 81,482
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	72,691	70,796
Amortization and write-off of debt issuance costs and debt discount	3,479	5,163
Deferred income taxes	35,829	29,060
Stock compensation expense	9,929	9,916
Net (gain) loss on sale of assets and asset impairments	(480)	5,079
Changes in assets and liabilities:
Receivables	(151,092)	(158,617)
Inventories	(86,639)	(85,313)
Other current assets	(1,786)	2,837
Other assets and liabilities	1,442	3,776
Accounts payable and checks outstanding	(12,792)	71,247
Accrued liabilities	(14,219)	(43,024)
Net cash provided by (used in) operating activities	9,532	(7,598)
Cash flows from investing activities:
Purchases of property, plant and equipment	(78,693)	(48,060)
Proceeds from sale of property, plant and equipment	1,890	4,802
Net cash used in investing activities	(76,803)	(43,258)
Cash flows from financing activities:
Borrowings under revolving credit facility	1,243,000	894,000
Repayments under revolving credit facility	(1,189,000)	(839,000)
Repayments of long-term debt and other loans	(11,173)	(8,555)
Proceeds from long-term debt and other loans	3,818
Payments of loan costs		(2,799)
Exercise of stock options	2,394	4,574
Repurchase of common stock	(4,855)	(2,476)
Net cash provided by financing activities	44,184	45,744
Net change in cash and cash equivalents	(23,087)	(5,112)
Cash and cash equivalents at beginning of period	57,533	14,449
Cash and cash equivalents at end of period	$ 34,446	$ 9,337

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Statement Of Cash Flows [Abstract]
Non cash retirement of assets related to lease finance obligations	$ 0.6	$ 15
Non cash extinguishment of related lease finance obligation	0.7	12.9
Equipment purchased and financed through capital lease obligations	9	14.2
Purchases of property, plant and equipment included in accounts payable	$ 2.5	$ 1

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid in Capital	Accumulated Deficit
Balance at Dec. 31, 2017	$ 376,209	$ 1,136	$ 546,766	$ (171,693)
Balance, shares at Dec. 31, 2017	113,572	113,572
Vesting of restricted stock units		$ 8	(8)
Vesting of restricted stock units, shares		821
Stock compensation expense	$ 9,929		9,929
Exercise of stock options	2,394	$ 5	2,389
Exercise of stock options, shares		568
Repurchase of common stock	(4,855)	$ (2)	(4,853)
Repurchase of common stock, shares		(236)
Cumulative effect adjustment (Note 1)	1,468			1,468
Net income	153,170			153,170
Balance at Sep. 30, 2018	$ 538,315	$ 1,147	$ 554,223	$ (17,055)
Balance, shares at Sep. 30, 2018	114,725	114,725

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation Builders FirstSource, Inc., a Delaware corporation formed in 1998, is a leading supplier and manufacturer of building materials, manufactured components and construction services to professional homebuilders, sub-contractors, remodelers and consumers. The Company operates 403 locations in 40 states across the United States. In this quarterly report, references to the “Company,” “we,” “our,” “ours” or “us” refer to Builders FirstSource, Inc. and its consolidated subsidiaries unless otherwise stated or the context otherwise requires. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the dates and periods presented. Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. Intercompany transactions are eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2017 is derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. This condensed consolidated balance sheet as of December 31, 2017 and the unaudited condensed consolidated financial statements included herein should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 31, 2017 included in our most recent annual report on Form 10-K. Accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in our Form 10-K. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued an update to the existing guidance under the Intangibles-Goodwill and Other In May 2017, the FASB issued an update to the existing guidance under the Compensation-Stock Compensation In January 2017, the FASB issued an update to the existing guidance under the Business Combinations In June 2016, the FASB issued an update to existing guidance under the Investments In February 2016, the FASB issued an update to the existing guidance under the Leases The Company intends to adopt this guidance on January 1, 2019 by applying the transition provisions on a modified retrospective basis as of the effective date. As such, comparative periods will not be restated and will continue to be reported under current guidance. We also intend to elect certain of the transition practical expedients permitted under this new guidance, including the package of practical expedients whereby we will not be required to: i) reassess whether any expired or existing contracts are or contain leases, ii) reassess the lease classification of existing leases and iii) reassess initial direct costs for any existing leases. The Company has a significant number of leases, primarily related to real estate and rolling stock, which are primarily accounted for as operating leases under existing guidance. While we are currently evaluating the impact of this new guidance on our financial statements, we are expecting a significant impact to our balance sheet upon adoption related to the establishment of lease liabilities and the corresponding right-of-use assets. We are also currently assessing and updating our business processes, systems and controls to ensure compliance with the accounting and disclosure requirements of the new standard upon adoption. Through the issuance of a series of updates, the FASB modified the guidance under the Revenue Recognition On January 1, 2018 we adopted this guidance on a modified retrospective basis for contracts which were not completed as of January 1, 2018. Under this updated guidance, revenue related to our contracts with service elements is now recognized over time based on the extent of progress towards completion of the performance obligation because of continuous transfer of control to the customer. We have assessed and updated our business processes, systems and controls to ensure compliance with the recognition and disclosure requirements of the new standard. Results for periods beginning on or after January 1, 2018 are presented in accordance with this new guidance. Results for prior periods have not been adjusted and continue to be presented under previous guidance. Upon adoption, the Company recognized a $2.0 million ($1.5 million net of taxes) impact to the beginning balance of our accumulated deficit through a cumulative effect adjustment related to the unrecognized portion of contracts previously accounted for under the completed contract method of revenue recognition.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2018
Revenue From Contract With Customer [Abstract]
Revenue	2. Revenue We recognize revenue as performance obligations are satisfied by transferring control of a promised good or service to a customer in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We generally classify our revenues into two types: (i) distribution sales; or (ii) sales related to contracts with service elements. Sales related to contracts with service elements represents less than 10% of the Company’s net sales for each period presented. Distribution sales typically consist of the sale of building products we manufacture and the resale of purchased building products. We recognize revenue related to distribution sales at a point in time upon delivery of the ordered goods to our customers. Payment terms related to distribution sales are not significant as payment is generally received shortly after the point of sale. Our contracts with service elements primarily relate to installation and construction services. We evaluate whether multiple contracts should be combined and accounted for as a single contract and whether a single or combined contract should be accounted for as a single performance obligation or multiple performance obligations. If a contract is separated into more than one performance obligation, we allocate the transaction price to each performance obligation generally based on observable standalone selling prices of the underlying goods or services. Revenue related to contracts with service elements is generally recognized over time based on the extent of progress towards completion of the performance obligation because of continuous transfer of control to the customer. We consider costs incurred to be indicative of goods and services delivered to the customer. As such, we use a cost based input method to recognize revenue on our contracts with service elements as it best depicts the transfer of assets to our customers. Payment terms related to sales for contracts with service elements are specific to each customer and contract. However, they are considered to be short-term in nature as payments are normally received either throughout the life of the contract or shortly after the contract is complete. Contract costs include all direct material and labor, equipment costs and those indirect costs related to contract performance. Provisions for estimated losses on uncompleted contracts are recognized in the period in which such losses are determinable. Prepayments for materials or services are deferred until such materials have been delivered or services have been provided. All sales recognized are net of allowances for discounts and estimated returns, based on historical experience. The Company records sales incentives provided to customers as a reduction of revenue. We present all sales tax on a net basis in our consolidated financial statements. Costs to obtain contracts are expensed as incurred as our contracts are typically completed in one year or less, and where applicable, we generally would incur these costs whether or not we ultimately obtain the contract. We do not disclose the value of our remaining performance obligations on uncompleted contracts as our contracts generally have a duration of one year or less. The following table disaggregates our sales by product category (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Lumber & lumber sheet goods $ 818,693 $ 679,902 $ 2,273,761 $ 1,867,613 Manufactured products 385,894 318,565 1,050,963 900,880 Windows, doors & millwork 372,453 347,462 1,080,120 1,016,674 Gypsum, roofing & insulation 146,648 147,960 400,797 409,417 Siding, metal & concrete products 196,591 183,517 528,290 498,935 Other building products & services 198,188 201,503 574,860 561,751 Net sales $ 2,118,467 $ 1,878,909 $ 5,908,791 $ 5,255,270 Information regarding disaggregation of sales by segment is discussed in Note 8 to the condensed consolidated financial statements. The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, contract assets and contract liabilities. Contract asset balances were not significant as of September 30, 2018 or December 31, 2017. Contract liabilities consist of deferred revenue and customer advances and deposits. Contract liability balances are included in accrued liabilities on our consolidated balance sheet and were $47.4 million and $37.2 million as of September 30, 2018 and December 31, 2017, respectively.

Net Income per Common Share

Net Income per Common Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Net Income per Common Share	3. Net Income per Common Share Net income per common share (“EPS”) is calculated in accordance with the Earnings per Share For the purpose of computing diluted EPS, weighted average shares outstanding have been adjusted for common shares underlying 1.5 million options and 2.1 million restricted stock units (“RSUs”) outstanding as of September 30, 2018. Weighted average shares outstanding have been adjusted for common shares underlying 2.7 million options and 2.2 million RSUs outstanding as of September 30, 2017. The table below presents a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average shares for basic EPS 114,707 112,688 114,480 112,368 Dilutive effect of options and RSUs 1,749 3,183 2,134 2,942 Weighted average shares for diluted EPS 116,456 115,871 116,614 115,310

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt	4. Debt Long-term debt and lease obligations consisted of the following (in thousands): September 30, 2018 December 31, 2017 2022 facility (1) $ 404,000 $ 350,000 2024 notes 750,000 750,000 2024 term loan (2) 459,425 462,950 Lease finance obligations 227,390 225,070 Capital lease obligations 17,837 15,431 1,858,652 1,803,451 Unamortized debt discount and debt issuance costs (17,070 ) (19,031 ) 1,841,582 1,784,420 Less: current maturities of long-term debt and lease obligations 14,620 12,475 Long-term debt and lease obligations, net of current maturities $ 1,826,962 $ 1,771,945 (1) The weighted average interest rate was 3.9% and 2.9% as of September 30, 2018 and December 31, 2017, respectively. (2) The weighted average interest rate was 5.1% and 4.3% as of September 30, 2018 and December 31, 2017, respectively. Fair Value As of September 30, 2018 and December 31, 2017 the Company does not have any financial instruments which are measured at fair value on a recurring basis. We have elected to report the value of our 5.625% senior secured notes due 2024 (“2024 notes”), senior secured term loan facility due 2024 (“2024 term loan”) and $900.0 million revolving credit facility (“2022 facility”) at amortized cost. The fair values of the 2024 notes and the 2024 term loan at September 30, 2018 were approximately $722.5 million and $460.4 million, respectively, and were determined using Level 2 inputs based on market prices. The carrying value of the 2022 facility at September 30, 2018 approximates fair value as the rates are comparable to those at which we could currently borrow under similar terms, are variable and incorporate a measure of our credit risk. As such, the fair value of the 2022 facility was also classified as Level 2 in the hierarchy. We were not in violation of any covenants or restrictions imposed by any of our debt agreements at September 30, 2018.

Employee Stock-Based Compensati

Employee Stock-Based Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Employee Stock-Based Compensation	5. Employee Stock-Based Compensation Time Based Restricted Stock Unit Grants In the first nine months of 2018, our board of directors granted 461,000 RSUs to employees and eligible directors under our 2014 Incentive Plan for which vesting is based solely on continuous employment over the requisite service period. 269,000 of the RSUs vest at 33% per year at each anniversary of the grant date over the next three years, 74,000 RSUs cliff vest on the third anniversary of the grant date, 64,000 of the RSUs cliff vest on the fourth anniversary of the grant date and 54,000 of the RSUs cliff vest on the first anniversary of the grant date. The weighted average grant date fair value for these RSUs was $20.33 per unit, which was based on the closing stock price on the grant date. Performance and Service Condition Based Restricted Stock Unit Grants In the first nine months of 2018, our board of directors granted 135,000 RSUs to employees under our 2014 Incentive Plan, that vest if the compound annual growth rate of the Company’s total sales in 2020 over 2017 exceeds a composite annual growth rate based on single-family housing starts, multi-family housing starts, and growth in repair and remodeling sales over the same period. Assuming continued employment and if the performance vesting condition is achieved, these awards will cliff vest on the third anniversary of the grant date. The weighted average grant date fair value for these RSUs was $21.19 per unit, which was based on the closing stock price on the grant date. Market and Service Condition Based Restricted Stock Unit Grants In the first nine months of 2018, our board of directors granted 135,000 RSUs to employees under our 2014 Incentive Plan for which vesting is contingent upon the Company’s total shareholder return being equal to or exceeding 75% of the median total shareholder return of the Company’s peer group if the median return of the Company’s peer group is positive, or being equal to or better than 125% of the median total shareholder return if the median return of the Company’s peer group is negative. In each case, the measurement will take place over a three year period. Assuming continued employment and if the market vesting condition is met, these awards will cliff vest on the third anniversary of the grant date. The actual number of shares of common stock that may be earned ranges from zero to a maximum of 150% of the RSUs granted. The average grant date fair value for these RSUs was $22.57 per unit, which was determined using the Monte Carlo simulation model using the following assumptions: Expected volatility (company) 53.9% Expected volatility (peer group median) 28.4% Correlation between the company and peer group median 0.39 Expected dividend yield 0.00% Risk-free rate 2.3% The expected volatilities and correlation are based on the historical daily returns of our common stock and the common stocks of the constituents of the Company’s peer group over the most recent period equal to the measurement period. The expected dividend yield is based on our history of not paying regular dividends in the past and our current intention to not pay regular dividends in the foreseeable future. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant and has a term equal to the measurement period.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Statutory federal income tax rate 21. % 35.0 % 21 .0 % 35.0 % State income taxes, net of federal income tax 5.0 8.1 5.0 6.5 Valuation allowance — (0.3 ) — (3.3 ) Stock compensation windfall benefit — (1.7 ) (2.2 ) (2.6 ) Permanent differences - credits (6.3 ) (14.5 ) (3.9 ) (6.9 ) Permanent differences – other 1.0 0.9 0.9 1.2 Other 0.2 — 0.1 0.2 20.9 % 27.5 % 20.9 % 30.1 % We base our estimate of deferred tax assets and liabilities on current tax laws and rates. In certain cases, we also base our estimate on business plan forecasts and other expectations about future outcomes. Changes in existing tax laws or rates could affect our actual tax results, and future business results may affect the amount of our deferred tax liabilities or the valuation of our deferred tax assets over time. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, as well as the residential homebuilding industry’s cyclicality and sensitivity to changes in economic conditions, it is possible that actual results could differ from the estimates used in previous analyses. Accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on our consolidated results of operations or financial position.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies The Company has a number of known and threatened construction defect legal claims. While these claims are generally covered under the Company’s existing insurance programs to the extent any loss exceeds the deductible, there is a reasonable possibility of loss that is not able to be estimated at this time because (i) many of the proceedings are in the discovery stage, (ii) the outcome of future litigation is uncertain, and/or (iii) the complex nature of the claims. Although the Company cannot estimate a reasonable range of loss based on currently available information, the resolution of these matters could have a material adverse effect on the Company's financial position, results of operations or cash flows. In addition, we are involved in various other claims and lawsuits incidental to the conduct of our business in the ordinary course. We carry insurance coverage in such amounts in excess of our self-insured retention as we believe to be reasonable under the circumstances and that may or may not cover any or all of our liabilities in respect of such claims and lawsuits. Although the ultimate disposition of these other proceedings cannot be predicted with certainty, management believes the outcome of any such claims that are pending or threatened, either individually or on a combined basis, will not have a material adverse effect on our consolidated financial position, cash flows or results of operations. However, there can be no assurances that future adverse judgments and costs would not be material to our results of operations or liquidity for a particular period.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Information	8. Segment Information We offer an integrated solution to our customers providing manufacturing, supply, and installation of a full range of structural and related building products. We provide a wide variety of building products and services directly to homebuilder customers. We manufacture floor trusses, roof trusses, wall panels, stairs, millwork, windows, and doors. We also provide a full range of construction services. These product and service offerings are distributed across 403 locations operating in 40 states across the United States, which are organized into nine geographical regions. Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) before income taxes basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”). The Company has nine operating segments aligned with its nine geographical regions (Regions 1 through 9). While all of our operating segments have products, distribution methods and customers of a similar nature, certain of our operating segments have been aggregated due to also containing similar economic characteristics, resulting in the following composition of reportable segments: • Regions 1 and 2 have been aggregated to form the “Northeast” reportable segment • Regions 3 and 5 have been aggregated to form the “Southeast” reportable segment • Regions 4 and 6 have been aggregated to form the “South” reportable segment • Region 7, 8 and 9 have been aggregated to form the “West” reportable segment In addition to our reportable segments, our consolidated results include corporate overhead, other various operating activities that are not internally allocated to a geographical region nor separately reported as a single unit to the CODM, and certain reconciling items primarily related to allocations of corporate overhead and rent expense, which have collectively been presented as “All Other”. The accounting policies of the segments are consistent with those referenced in Note 1, except for noted reconciling items. The following tables present Net sales, income before income taxes and certain other measures for the reportable segments, reconciled to total consolidated operations, for the periods indicated (in thousands): Three months ended September 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 366,179 $ 3,454 $ 6,614 $ 13,304 Southeast 456,313 3,073 6,985 19,646 South 547,173 5,428 7,099 33,391 West 705,170 7,014 11,414 38,871 Total reportable segments 2,074,835 18,969 32,112 105,212 All other 43,632 6,135 (3,006 ) (12,530 ) Total consolidated $ 2,118,467 $ 25,104 $ 29,106 $ 92,682 Three months ended September 30, 2017 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 341,188 $ 3,233 $ 5,442 $ 11,875 Southeast 389,431 2,688 6,078 10,613 South 463,645 4,993 5,898 21,451 West 635,573 6,600 8,610 34,489 Total reportable segments 1,829,837 17,514 26,028 78,428 All other 49,072 5,517 7,808 (23,580 ) Total consolidated $ 1,878,909 $ 23,031 $ 33,836 $ 54,848 Nine months ended September 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,022,131 $ 10,259 $ 18,446 $ 25,830 Southeast 1,303,126 8,627 19,467 46,789 South 1,564,446 15,935 19,986 76,254 West 1,894,311 20,179 31,073 83,954 Total reportable segments 5,784,014 55,000 88,972 232,827 All other 124,777 17,691 (4,167 ) (39,141 ) Total consolidated $ 5,908,791 $ 72,691 $ 84,805 $ 193,686 Nine months ended September 30, 2017 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 949,484 $ 10,186 $ 15,694 $ 26,665 Southeast 1,133,575 7,881 17,275 34,964 South 1,394,597 14,799 17,659 67,779 West 1,633,851 20,663 23,774 67,702 Total reportable segments 5,111,507 53,529 74,402 197,110 All other 143,763 17,267 29,301 (80,511 ) Total consolidated $ 5,255,270 $ 70,796 $ 103,703 $ 116,599 Asset information by segment is not reported internally or otherwise reviewed by the CODM nor does the Company earn revenues or have long-lived assets located in foreign countries.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	9. Related Party Transactions Transactions between the Company and related parties occur in the ordinary course of business. Certain members of the Company’s board of directors serve on the board of directors for one of our suppliers, PGT, Inc. Further, the Company has entered into certain leases of land and buildings with certain employees or non-affiliate stockholders. However, the Company carefully monitors and assesses related party relationships. Management does not believe that any of its transactions with related parties had a material impact on the Company’s results for the three and nine months ended September 30, 2018 or 2017.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue From Contract With Customer [Abstract]
Schedule of Sales by Product Category	The following table disaggregates our sales by product category (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Lumber & lumber sheet goods $ 818,693 $ 679,902 $ 2,273,761 $ 1,867,613 Manufactured products 385,894 318,565 1,050,963 900,880 Windows, doors & millwork 372,453 347,462 1,080,120 1,016,674 Gypsum, roofing & insulation 146,648 147,960 400,797 409,417 Siding, metal & concrete products 196,591 183,517 528,290 498,935 Other building products & services 198,188 201,503 574,860 561,751 Net sales $ 2,118,467 $ 1,878,909 $ 5,908,791 $ 5,255,270

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS	The table below presents a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average shares for basic EPS 114,707 112,688 114,480 112,368 Dilutive effect of options and RSUs 1,749 3,183 2,134 2,942 Weighted average shares for diluted EPS 116,456 115,871 116,614 115,310

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Long-Term Debt and Lease Obligation	Long-term debt and lease obligations consisted of the following (in thousands): September 30, 2018 December 31, 2017 2022 facility (1) $ 404,000 $ 350,000 2024 notes 750,000 750,000 2024 term loan (2) 459,425 462,950 Lease finance obligations 227,390 225,070 Capital lease obligations 17,837 15,431 1,858,652 1,803,451 Unamortized debt discount and debt issuance costs (17,070 ) (19,031 ) 1,841,582 1,784,420 Less: current maturities of long-term debt and lease obligations 14,620 12,475 Long-term debt and lease obligations, net of current maturities $ 1,826,962 $ 1,771,945 (1) The weighted average interest rate was 3.9% and 2.9% as of September 30, 2018 and December 31, 2017, respectively. (2) The weighted average interest rate was 5.1% and 4.3% as of September 30, 2018 and December 31, 2017, respectively.

Employee Stock-Based Compensa_2

Employee Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Market and Service Condition Based Restricted Stock Unit Grants
Schedule of Share-based Payment Award, Restricted Stock Unit, Valuation Assumptions	The average grant date fair value for these RSUs was $22.57 per unit, which was determined using the Monte Carlo simulation model using the following assumptions: Expected volatility (company) 53.9% Expected volatility (peer group median) 28.4% Correlation between the company and peer group median 0.39 Expected dividend yield 0.00% Risk-free rate 2.3%

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Reconciliation of Statutory Federal Income Tax Rate to Our Effective Rate for Continuing Operations	A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Statutory federal income tax rate 21. % 35.0 % 21 .0 % 35.0 % State income taxes, net of federal income tax 5.0 8.1 5.0 6.5 Valuation allowance — (0.3 ) — (3.3 ) Stock compensation windfall benefit — (1.7 ) (2.2 ) (2.6 ) Permanent differences - credits (6.3 ) (14.5 ) (3.9 ) (6.9 ) Permanent differences – other 1.0 0.9 0.9 1.2 Other 0.2 — 0.1 0.2 20.9 % 27.5 % 20.9 % 30.1 %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of Reconciling Information by Reportable Segments	The following tables present Net sales, income before income taxes and certain other measures for the reportable segments, reconciled to total consolidated operations, for the periods indicated (in thousands): Three months ended September 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 366,179 $ 3,454 $ 6,614 $ 13,304 Southeast 456,313 3,073 6,985 19,646 South 547,173 5,428 7,099 33,391 West 705,170 7,014 11,414 38,871 Total reportable segments 2,074,835 18,969 32,112 105,212 All other 43,632 6,135 (3,006 ) (12,530 ) Total consolidated $ 2,118,467 $ 25,104 $ 29,106 $ 92,682 Three months ended September 30, 2017 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 341,188 $ 3,233 $ 5,442 $ 11,875 Southeast 389,431 2,688 6,078 10,613 South 463,645 4,993 5,898 21,451 West 635,573 6,600 8,610 34,489 Total reportable segments 1,829,837 17,514 26,028 78,428 All other 49,072 5,517 7,808 (23,580 ) Total consolidated $ 1,878,909 $ 23,031 $ 33,836 $ 54,848 Nine months ended September 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,022,131 $ 10,259 $ 18,446 $ 25,830 Southeast 1,303,126 8,627 19,467 46,789 South 1,564,446 15,935 19,986 76,254 West 1,894,311 20,179 31,073 83,954 Total reportable segments 5,784,014 55,000 88,972 232,827 All other 124,777 17,691 (4,167 ) (39,141 ) Total consolidated $ 5,908,791 $ 72,691 $ 84,805 $ 193,686 Nine months ended September 30, 2017 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 949,484 $ 10,186 $ 15,694 $ 26,665 Southeast 1,133,575 7,881 17,275 34,964 South 1,394,597 14,799 17,659 67,779 West 1,633,851 20,663 23,774 67,702 Total reportable segments 5,111,507 53,529 74,402 197,110 All other 143,763 17,267 29,301 (80,511 ) Total consolidated $ 5,255,270 $ 70,796 $ 103,703 $ 116,599

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2018StoreStates	Jan. 01, 2018USD ($)
Basis Of Presentation [Line Items]
Entity formed, year	1,998
Number of Locations | Store	403
Number of states | States	40
Usual completion period for contracts with service elements	30 days
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Basis Of Presentation [Line Items]
Cumulative effect adjustment to beginning balance accumulated deficit including tax		$ 2
Cumulative effect adjustment to beginning balance accumulated deficit net of tax		$ 1.5

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Revenue performance obligation description of good or service	We recognize revenue as performance obligations are satisfied by transferring control of a promised good or service to a customer in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We generally classify our revenues into two types: (i) distribution sales; or (ii) sales related to contracts with service elements. Sales related to contracts with service elements represents less than 10% of the Company’s net sales for each period presented.
Revenue performance obligation satisfied over time, method used, explanation	We consider costs incurred to be indicative of goods and services delivered to the customer.
Revenue performance obligation satisfied over time, method used, description	As such, we use a cost based input method to recognize revenue on our contracts with service elements as it best depicts the transfer of assets to our customers.
Revenue practical expedient, incremental cost of obtaining contract	true
Revenue practical expedient remaining performance obligation	true
Contract liability	$ 47.4	$ 37.2
Transferred over Time
Disaggregation Of Revenue [Line Items]
Revenue performance obligation description of payment terms	Payment terms related to sales for contracts with service elements are specific to each customer and contract. However, they are considered to be short-term in nature as payments are normally received either throughout the life of the contract or shortly after the contract is complete.
Transferred over Time | Maximum
Disaggregation Of Revenue [Line Items]
Percentage of sales related to contracts with service	10.00%
Transferred at Point in Time
Disaggregation Of Revenue [Line Items]
Revenue performance obligation description of payment terms	Payment terms related to distribution sales are not significant as payment is generally received shortly after the point of sale.

Revenue - Sales by Product Cate

Revenue - Sales by Product Category (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Entity Wide Information Revenue From External Customer [Line Items]
Net sales	$ 2,118,467	$ 1,878,909	$ 5,908,791	$ 5,255,270
Lumber and Lumber Sheet Goods
Entity Wide Information Revenue From External Customer [Line Items]
Net sales	818,693	679,902	2,273,761	1,867,613
Manufactured Products
Entity Wide Information Revenue From External Customer [Line Items]
Net sales	385,894	318,565	1,050,963	900,880
Windows, Doors and Millwork
Entity Wide Information Revenue From External Customer [Line Items]
Net sales	372,453	347,462	1,080,120	1,016,674
Gypsum, Roofing and Insulation
Entity Wide Information Revenue From External Customer [Line Items]
Net sales	146,648	147,960	400,797	409,417
Siding, Metal and Concrete Products
Entity Wide Information Revenue From External Customer [Line Items]
Net sales	196,591	183,517	528,290	498,935
Other Building Products and Services
Entity Wide Information Revenue From External Customer [Line Items]
Net sales	$ 198,188	$ 201,503	$ 574,860	$ 561,751

Net Income per Common Share - A

Net Income per Common Share - Additional Information (Detail) - shares shares in Millions	Sep. 30, 2018	Sep. 30, 2017
Stock Options
Earnings Per Share [Line Items]
Securities included in the computation of diluted EPS	1.5	2.7
Restricted Stock Units (RSUs)
Earnings Per Share [Line Items]
Securities included in the computation of diluted EPS	2.1	2.2

Net Income per Common Share - R

Net Income per Common Share - Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reconciliation of weighted average common shares used in calculation of basic and diluted EPS
Weighted average shares for basic EPS	114,707	112,688	114,480	112,368
Dilutive effect of options and RSUs	1,749	3,183	2,134	2,942
Weighted average shares for diluted EPS	116,456	115,871	116,614	115,310

Debt - Long-Term Debt and Lease

Debt - Long-Term Debt and Lease Obligation (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt instrument carrying amount	$ 1,858,652	$ 1,803,451
Unamortized debt discount and debt issuance costs	(17,070)	(19,031)
Long-term debt and lease obligation	1,841,582	1,784,420
Less: current maturities of long-term debt and lease obligations	14,620	12,475
Long-term debt and lease obligations, net of current maturities	1,826,962	1,771,945
2022 Facility
Debt Instrument [Line Items]
Debt instrument carrying amount	404,000	350,000
2024 Notes
Debt Instrument [Line Items]
Debt instrument carrying amount	750,000	750,000
2024 Term Loan
Debt Instrument [Line Items]
Debt instrument carrying amount	459,425	462,950
Lease Finance Obligations
Debt Instrument [Line Items]
Debt instrument carrying amount	227,390	225,070
Capital Lease Obligations
Debt Instrument [Line Items]
Debt instrument carrying amount	$ 17,837	$ 15,431

Debt - Long-Term Debt and Lea_2

Debt - Long-Term Debt and Lease Obligation (Parenthetical) (Detail)	Sep. 30, 2018	Dec. 31, 2017
2022 Facility
Debt Instrument [Line Items]
Weighted average interest rate	3.90%	2.90%
2024 Term Loan
Debt Instrument [Line Items]
Weighted average interest rate	5.10%	4.30%

Debt - Fair Value - Additional

Debt - Fair Value - Additional Information (Detail)	Sep. 30, 2018USD ($)
2024 Notes
Debt Instrument [Line Items]
Private offered aggregate principal amount rate	5.625%
2024 Notes | Level 2
Debt Instrument [Line Items]
Fair value of long term debt	$ 722,500,000
2024 Term Loan | Level 2
Debt Instrument [Line Items]
Fair value of long term debt	460,400,000
2022 Facility
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity	$ 900,000,000

Employee Stock-Based Compensa_3

Employee Stock-Based Compensation - Additional Information (Detail) - 2014 Incentive Plan	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Time Based Restricted Stock Unit Grants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	461,000
Weighted average grant date fair value, granted | $ / shares	$ 20.33
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Vesting Over Three Years
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	269,000
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock award vesting percentage	33.00%
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock award vesting percentage	33.00%
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Tranche Three
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock award vesting percentage	33.00%
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Vesting On Third Anniversary
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	74,000
Stock award granted vesting period	3 years
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Vesting On Fourth Anniversary
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	64,000
Stock award granted vesting period	4 years
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Vesting On First Anniversary
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	54,000
Performance and Service Condition Based Restricted Stock Unit Grants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	135,000
Weighted average grant date fair value, granted | $ / shares	$ 21.19
Market and Service Condition Based Restricted Stock Unit Grants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	135,000
Stock award granted vesting period	3 years
Weighted average grant date fair value, granted | $ / shares	$ 22.57
Market and Service Condition Based Restricted Stock Unit Grants | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of number of shares of common stock earned	0.00%
Market and Service Condition Based Restricted Stock Unit Grants | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of number of shares of common stock earned	150.00%
Market and Service Condition Based Restricted Stock Unit Grants | Vesting Based On Market And Service Contingent On Positive Total Shareholder Return Of Peer Group Measure
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shareholder return	75.00%
Market and Service Condition Based Restricted Stock Unit Grants | Vesting Based On Market And Service Contingent On Negative Total Shareholder Return Of Peer Group Measure
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shareholder return	125.00%

Employee Stock-Based Compensa_4

Employee Stock-Based Compensation - Restricted Stock Unit Valuation (Detail) - Market and Service Condition Based Restricted Stock Unit Grants	9 Months Ended
	Sep. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility (company)	53.90%
Expected volatility (peer group median)	28.40%
Correlation between the company and peer group median	0.39
Expected dividend yield	0.00%
Risk-free rate	2.30%

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Our Effective Rate for Continuing Operations (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]
Statutory federal income tax rate	21.00%	35.00%	21.00%	35.00%
State income taxes, net of federal income tax	5.00%	8.10%	5.00%	6.50%
Valuation allowance		(0.30%)		(3.30%)
Stock compensation windfall benefit		(1.70%)	(2.20%)	(2.60%)
Permanent differences - credits	(6.30%)	(14.50%)	(3.90%)	(6.90%)
Permanent differences – other	1.00%	0.90%	0.90%	1.20%
Other	0.20%		0.10%	0.20%
Total effective rate for continuing operations	20.90%	27.50%	20.90%	30.10%

Segment Information - Additiona

Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018StoreStatesRegionSegment
Segment Reporting [Abstract]
Number of Locations | Store	403
Number of states | States	40
Number of geographic regions | Region	9
Number of operating segments | Segment	9

Segment Information - Schedule

Segment Information - Schedule of Reconciling Information by Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Net Sales	$ 2,118,467	$ 1,878,909	$ 5,908,791	$ 5,255,270
Depreciation & Amortization	25,104	23,031	72,691	70,796
Interest	29,106	33,836	84,805	103,703
Income before income taxes	92,682	54,848	193,686	116,599
Operating Segments
Segment Reporting Information [Line Items]
Net Sales	2,074,835	1,829,837	5,784,014	5,111,507
Depreciation & Amortization	18,969	17,514	55,000	53,529
Interest	32,112	26,028	88,972	74,402
Income before income taxes	105,212	78,428	232,827	197,110
Operating Segments | Northeast
Segment Reporting Information [Line Items]
Net Sales	366,179	341,188	1,022,131	949,484
Depreciation & Amortization	3,454	3,233	10,259	10,186
Interest	6,614	5,442	18,446	15,694
Income before income taxes	13,304	11,875	25,830	26,665
Operating Segments | Southeast
Segment Reporting Information [Line Items]
Net Sales	456,313	389,431	1,303,126	1,133,575
Depreciation & Amortization	3,073	2,688	8,627	7,881
Interest	6,985	6,078	19,467	17,275
Income before income taxes	19,646	10,613	46,789	34,964
Operating Segments | South
Segment Reporting Information [Line Items]
Net Sales	547,173	463,645	1,564,446	1,394,597
Depreciation & Amortization	5,428	4,993	15,935	14,799
Interest	7,099	5,898	19,986	17,659
Income before income taxes	33,391	21,451	76,254	67,779
Operating Segments | West
Segment Reporting Information [Line Items]
Net Sales	705,170	635,573	1,894,311	1,633,851
Depreciation & Amortization	7,014	6,600	20,179	20,663
Interest	11,414	8,610	31,073	23,774
Income before income taxes	38,871	34,489	83,954	67,702
All Other
Segment Reporting Information [Line Items]
Net Sales	43,632	49,072	124,777	143,763
Depreciation & Amortization	6,135	5,517	17,691	17,267
Interest	(3,006)	7,808	(4,167)	29,301
Income before income taxes	$ (12,530)	$ (23,580)	$ (39,141)	$ (80,511)