Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 26, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Builders FirstSource, Inc. | ||
Entity Central Index Key | 1,316,835 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BLDR | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 2,058.5 | ||
Entity Common Stock, Shares Outstanding | 115,359,616 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Sales | $ 7,724,771 | $ 7,034,209 | $ 6,367,284 |
Cost of sales | 5,801,831 | 5,306,818 | 4,770,536 |
Gross margin | 1,922,940 | 1,727,391 | 1,596,748 |
Selling, general and administrative expenses | 1,553,972 | 1,442,288 | 1,360,412 |
Income from operations | 368,968 | 285,103 | 236,336 |
Interest expense, net | 108,213 | 193,174 | 214,667 |
Income before income taxes | 260,755 | 91,929 | 21,669 |
Income tax expense (benefit) | 55,564 | 53,148 | (122,672) |
Net income | 205,191 | 38,781 | 144,341 |
Comprehensive income | $ 205,191 | $ 38,781 | $ 144,341 |
Net income per share: | |||
Basic | $ 1.79 | $ 0.34 | $ 1.30 |
Diluted | $ 1.76 | $ 0.34 | $ 1.27 |
Weighted average common shares outstanding: | |||
Basic | 114,586 | 112,587 | 110,754 |
Diluted | 116,554 | 115,597 | 113,585 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 10,127 | $ 57,533 |
Accounts receivable, less allowances of $13,054 and $11,771 at December 31, 2018 and 2017, respectively | 654,170 | 631,992 |
Other receivables | 68,637 | 71,232 |
Inventories, net | 596,896 | 601,547 |
Other current assets | 43,921 | 33,564 |
Total current assets | 1,373,751 | 1,395,868 |
Property, plant and equipment, net | 670,075 | 639,303 |
Goodwill | 740,411 | 740,411 |
Intangible assets, net | 103,154 | 132,567 |
Deferred income taxes | 22,766 | 75,105 |
Other assets, net | 22,152 | 22,870 |
Total assets | 2,932,309 | 3,006,124 |
Current liabilities: | ||
Accounts payable | 423,168 | 514,282 |
Accrued liabilities | 292,526 | 271,597 |
Current maturities of long-term debt and lease obligations | 15,565 | 12,475 |
Total current liabilities | 731,259 | 798,354 |
Long-term debt and lease obligations, net of current maturities, debt discount, and debt issuance costs | 1,545,729 | 1,771,945 |
Other long-term liabilities | 58,983 | 59,616 |
Total liabilities | 2,335,971 | 2,629,915 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding at December 31, 2018 and 2017 | ||
Common stock, $0.01 par value, 200,000 shares authorized; 115,078 and 113,572 shares issued and outstanding at December 31, 2018 and 2017, respectively | 1,151 | 1,136 |
Additional paid-in capital | 560,221 | 546,766 |
Retained earnings (accumulated deficit) | 34,966 | (171,693) |
Total stockholders’ equity | 596,338 | 376,209 |
Total liabilities and stockholders’ equity | $ 2,932,309 | $ 3,006,124 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowances on trade accounts receivable | $ 13,054 | $ 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 | 115,078,000 | 113,572,000 |
Common stock, shares outstanding | 115,078,000 | 113,572,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 205,191 | $ 38,781 | $ 144,341 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 97,906 | 92,993 | 109,793 |
Amortization and write-off of debt issuance costs and debt discount | 4,642 | 6,092 | 7,502 |
(Gain) loss on extinguishment of debt | (3,170) | 56,657 | 55,776 |
Payment of original issue discount | (1,259) | ||
Deferred income taxes | 51,823 | 49,104 | (124,787) |
Stock compensation expense | 14,420 | 13,508 | 10,549 |
Net (gain) loss on sales of assets and asset impairments | (1,393) | 6,965 | (336) |
Changes in assets and liabilities | |||
Receivables | (9,221) | (75,673) | (44,552) |
Inventories | (5,425) | (60,645) | (33,965) |
Other current assets | (10,356) | 8 | (4,873) |
Other assets and liabilities | 5,637 | 8,315 | (828) |
Accounts payable | (89,392) | 65,764 | 36,585 |
Accrued liabilities | 22,168 | (23,341) | 4,281 |
Net cash provided by operating activities | 282,830 | 178,528 | 158,227 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (101,411) | (62,407) | (42,662) |
Proceeds from sale of property, plant and equipment | 4,753 | 2,981 | 8,305 |
Cash used for acquisitions, net | (3,970) | ||
Net cash used in investing activities | (96,658) | (59,426) | (38,327) |
Cash flows from financing activities: | |||
Borrowings under revolving credit facility | 1,662,000 | 1,370,000 | 907,000 |
Payments under revolving credit facility | (1,833,000) | (1,020,000) | (967,000) |
Proceeds from issuance of notes | 750,000 | ||
Repayments of long-term debt and other loans | (65,312) | (379,926) | (807,517) |
Proceeds from long-term debt and other loans | 3,818 | ||
Payments of debt extinguishment costs | (134) | (48,704) | (42,869) |
Payments of loan costs | (2,799) | (15,663) | |
Exercise of stock options | 3,945 | 8,055 | 6,627 |
Repurchase of common stock | (4,895) | (2,644) | (1,092) |
Net cash used in financing activities | (233,578) | (76,018) | (170,514) |
Net (decrease) increase in cash and cash equivalents | (47,406) | 43,084 | (50,614) |
Cash and cash equivalents at beginning of period | 57,533 | 14,449 | 65,063 |
Cash and cash equivalents at end of period | $ 10,127 | $ 57,533 | $ 14,449 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Cash Flows [Abstract] | |||
Non cash retirement of assets subject to other finance obligations | $ 0.6 | $ 14 | $ 38.1 |
Non cash extinguishment of other finance obligations | 0.7 | 11.7 | 41.2 |
Equipment purchased and financed through capital lease obligations | 10.2 | 14.2 | 8.1 |
Purchases of property, plant and equipment included in accounts payable | $ 2.4 | $ 3.9 | $ 1.8 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings (Accumulated Deficit) |
Balance at Dec. 31, 2015 | $ 149,195 | $ 1,097 | $ 511,802 | $ (363,704) |
Balance, shares at Dec. 31, 2015 | 109,726 | |||
Vesting of restricted stock units | $ 5 | (5) | ||
Vesting of restricted stock units, shares | 505 | |||
Stock compensation expense | 10,549 | 10,549 | ||
Exercise of stock options | 6,627 | $ 15 | 6,612 | |
Exercise of stock options, shares | 1,496 | |||
Repurchase of common stock | (1,092) | $ (2) | (1,090) | |
Repurchase of common stock, shares | (163) | |||
Net income | 144,341 | 144,341 | ||
Balance at Dec. 31, 2016 | 309,620 | $ 1,115 | 527,868 | (219,363) |
Balance, shares at Dec. 31, 2016 | 111,564 | |||
Vesting of restricted stock units | $ 8 | (8) | ||
Vesting of restricted stock units, shares | 772 | |||
Stock compensation expense | 13,508 | 13,508 | ||
Exercise of stock options | 8,055 | $ 15 | 8,040 | |
Exercise of stock options, shares | 1,449 | |||
Repurchase of common stock | (2,644) | $ (2) | (2,642) | |
Repurchase of common stock, shares | (213) | |||
Cumulative effect adjustment (Note 2) | 8,889 | 8,889 | ||
Net income | 38,781 | 38,781 | ||
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 | $ 10 | (10) | ||
Vesting of restricted stock units, shares | 975 | |||
Stock compensation expense | $ 14,420 | 14,420 | ||
Exercise of stock options | $ 3,945 | $ 7 | 3,938 | |
Exercise of stock options, shares | 770 | 770 | ||
Repurchase of common stock | $ (4,895) | $ (2) | (4,893) | |
Repurchase of common stock, shares | (239) | |||
Cumulative effect adjustment (Note 2) | 1,468 | 1,468 | ||
Net income | 205,191 | 205,191 | ||
Balance at Dec. 31, 2018 | $ 596,338 | $ 1,151 | $ 560,221 | $ 34,966 |
Balance, shares at Dec. 31, 2018 | 115,078 | 115,078 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of the Business | 1. Description of the Business Builders FirstSource, Inc., a Delaware corporation formed in 1998, is a leading supplier of building materials, manufactured components and construction services to professional contractors, sub-contractors, and consumers. The company operates 401 locations in 39 states across the United States. In this annual 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements present the results of operations, financial position, and cash flows of Builders FirstSource, Inc. and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Estimates are used when accounting for items such as revenue, vendor rebates, allowance for returns, discounts and doubtful accounts, employee compensation programs, depreciation and amortization periods, income taxes, inventory values, insurance programs, goodwill, other intangible assets and long-lived assets. Revenue Recognition 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. 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. Cash and Cash Equivalents & Checks Outstanding Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity date of three months or less. Also included in cash and cash equivalents are proceeds due from credit card transactions that generally settle within two business days. We maintain cash at financial institutions in excess of federally insured limits. Further, we maintain various banking relationships with different financial institutions. Accordingly, when there is a negative net book cash balance resulting from outstanding checks that had not yet been paid by any single financial institution, they are reflected in accounts payable on the accompanying consolidated balance sheets. Accounts Receivable We extend credit to qualified professional homebuilders and contractors, in many cases on a non-collateralized basis. Accounts receivable potentially expose us to concentrations of credit risk. Because our customers are dispersed among our various markets, our credit risk to any one customer or geographic economy is not significant. Our customer mix is a balance of large national homebuilders, regional homebuilders, local and custom homebuilders and repair and remodeling contractors as well as multi-family builders. For the year ended December 31, 2018, our top 10 customers accounted for approximately 16.8% of our sales, and no single customer accounted for more than 5% of sales. The allowance for doubtful accounts is based on management’s assessment of the amount which may become uncollectible in the future and is estimated using specific review of problem accounts, overall portfolio quality, current economic conditions that may affect the customer’s ability to pay, and historical experience. Accounts receivable are written off when deemed uncollectible. Other receivables consist primarily of vendor rebates receivable. We also establish reserves for credit memos and customer returns. The reserve balance was $6.9 million and $6.8 million at December 31, 2018 and 2017, respectively. The activity in this reserve was not significant for each year presented. Accounts receivable consisted of the following at December 31: 2018 2017 (In thousands) Accounts Receivable $ 667,224 $ 643,763 Less: allowances for returns and doubtful accounts 13,054 11,771 Accounts receivable, net $ 654,170 $ 631,992 The following table shows the changes in our allowance for doubtful accounts: 2018 2017 2016 (In thousands) Balance at January 1, $ 4,973 $ 5,922 $ 4,245 Additions 5,284 197 1,390 Deductions (write-offs, net of recoveries) (4,062 ) (1,146 ) 287 Balance at December 31, $ 6,195 $ 4,973 $ 5,922 Inventories Inventories consist principally of materials purchased for resale, including lumber, lumber sheet goods, windows, doors and millwork, as well as certain manufactured products and are stated at the lower of cost and net realizable value. Cost is determined using the weighted average method, the use of which approximates the first-in, first-out method. We accrue for shrink based on the actual historical shrink results of our most recent physical inventories adjusted, if necessary, for current economic conditions. These estimates are compared with actual results as physical inventory counts are taken and reconciled to the general ledger. During the year, we monitor our inventory levels by market and record provisions for excess inventories based on slower moving inventory. We define potential excess inventory as the amount of inventory on hand in excess of the historical usage, excluding special order items purchased in the last six months. We then apply our judgment as to forecasted demand and other factors, including liquidation value, to determine the required adjustments to net realizable value. Our inventories are generally not susceptible to technological obsolescence. Our arrangements with vendors provide for rebates of a specified amount of consideration, payable when certain measures, generally related to a stipulated level of purchases, have been achieved. We account for estimated rebates as a reduction of the prices of the vendor’s inventory until the product is sold, at which time such rebates reduce cost of sales in the accompanying consolidated statement of operations and comprehensive income. Throughout the year we estimate the amount of the rebates based upon the expected level of purchases. We continually evaluate and revise these estimates as necessary based on actual purchase levels. We source products from a large number of suppliers. No materials purchased from any single supplier represented more than 8% of our total materials purchased in 2018. Shipping and Handling Costs Handling costs incurred in manufacturing activities are included in cost of sales. All other shipping and handling costs are included in selling, general and administrative expenses in the accompanying consolidated statement of operations and comprehensive income and totaled $322.9 million, $296.2 million and $269.8 million in 2018, 2017 and 2016, respectively. Income Taxes We account for income taxes utilizing the liability method described in the Income Taxes Warranty Expense We have warranty obligations with respect to most manufactured products; however, the liability for the warranty obligations is not significant as a result of third-party inspection and acceptance processes. Debt Issuance Costs and Debt Discount Loan costs are capitalized upon the issuance of long-term debt and amortized over the life of the related debt. Debt issuance costs associated with term debt are presented as a reduction to long-term debt. Debt issuance costs associated with revolving debt arrangements are presented as a component of other assets. Debt issuance costs incurred in connection with revolving debt arrangements are amortized using the straight-line method. Debt issuance costs incurred in connection with term debt are amortized using the effective interest method. Debt discount is amortized over the life of the related debt using the effective interest method. Amortization of debt issuance costs and the debt discount are included in interest expense. Upon changes to our debt structure, we evaluate debt issuance costs in accordance with the Debt Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. The estimated lives of the various classes of assets are as follows: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Furniture and fixtures 3 to 5 years Leasehold improvements The shorter of the estimated useful life or the remaining lease term Major additions and improvements are capitalized, while maintenance and repairs that do not extend the useful life of the property are charged to expense as incurred. Gains or losses from dispositions of property, plant and equipment are recorded in the period incurred. We also capitalize certain costs of computer software developed or obtained for internal use, including interest, provided that those costs are not research and development, and certain other criteria are met. Internal use computer software costs are included in machinery and equipment and generally depreciated using the straight-line method over the estimated useful lives of the assets, generally three years. We periodically evaluate the commercial and strategic operation of the land, related buildings and improvements of our facilities. In connection with these evaluations, some facilities may be consolidated, and others may be sold or leased. Nonoperating assets primarily related to land and building real estate assets associated with location closures that are actively being marketed for sale within a year are classified as assets held for sale and recorded at fair value, usually the quoted market price obtained from an independent third-party less the cost to sell. Until the assets are sold, an estimate of the fair value is reassessed at each reporting period. Net gains or losses related to the sale of real estate and equipment or impairment adjustments related to assets held for sale are recorded as selling, general and administrative expenses in the accompanying consolidated statement of operations and comprehensive income. Long-Lived Assets We evaluate our long-lived assets, other than goodwill, for impairment when events or changes in circumstances indicate, in our judgment, that the carrying value of such assets may not be recoverable. The determination of whether or not impairment exists is based on our estimate of undiscounted future cash flows before interest attributable to the assets as compared to the net carrying value of the assets. If impairment is indicated, the amount of the impairment recognized is determined by estimating the fair value of the assets based on estimated discounted future cash flows and recording a provision for loss if the carrying value is greater than estimated fair value. The net carrying value of assets identified to be disposed of in the future is compared to their estimated fair value, usually the quoted market price obtained from an independent third-party less the cost to sell, to determine if impairment exists. Until the assets are disposed of, an estimate of the fair value is reassessed when related events or circumstances change. Insurance We have established insurance programs to cover certain insurable risks consisting primarily of physical loss to property, business interruptions resulting from such loss, workers’ compensation, employee healthcare, and comprehensive general and auto liability. Third party insurance coverage is obtained for exposures above predetermined deductibles as well as for those risks required to be insured by law or contract. On a quarterly basis, we engage an external actuarial professional to independently assess and estimate the total liability outstanding. Provisions for losses are developed from these valuations which rely upon our past claims experience, which considers both the frequency and settlement of claims. We discount our workers’ compensation liability based upon estimated future payment streams at our risk-free rate. Our total insurance reserve balances were $84.7 million and $78.0 million as of December 31, 2018 and 2017, respectively. Of these balances $49.4 million and $45.6 million were recorded as other long-term liabilities as of December 31, 2018 and 2017, respectively. Included in these reserve balances as of December 31, 2018 and 2017, were approximately $9.1 million and $8.9 million, respectively, of claims that exceeded stop-loss limits and are expected to be recovered under insurance policies which are also recorded as other receivables and other assets in the accompanying consolidated balance sheet. Net Income per Common Share Net income per common share, or earnings per share (“EPS”), is calculated in accordance with the Earnings per Share The table below presents a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for the years ended December 31: 2018 2017 2016 (In thousands) Weighted average shares for basic EPS 114,586 112,587 110,754 Dilutive effect of options and RSUs 1,968 3,010 2,831 Weighted average shares for diluted EPS 116,554 115,597 113,585 For the purpose of computing diluted EPS, weighted average shares outstanding have been adjusted for common shares underlying 1,332,000 options to purchase common stock and 1,964,000 restricted stock units (“RSUs”) outstanding as of December 31, 2018. Weighted average shares outstanding have been adjusted for common shares underlying 2,104,000 options and 2,249,000 RSUs outstanding as of December 31, 2017 and 3,515,000 options and 2,177,000 RSUs outstanding as of December, 31, 2016. Goodwill and Other Intangible Assets Intangibles subject to amortization We recognize an acquired intangible asset apart from goodwill whenever the intangible asset arises from contractual or other legal rights, or whenever it can be separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset or liability. Impairment losses are recognized if the carrying value of an intangible asset subject to amortization is not recoverable from expected future cash flows and its carrying amount exceeds its estimated fair value. Goodwill We recognize goodwill as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is tested for impairment on an annual basis and between annual tests whenever impairment is indicated. This annual test takes place as of December 31 each year. Impairment losses are recognized whenever the carrying amount of a reporting unit exceeds its fair value. Stock-based Compensation We have four stock-based employee compensation plans, which are described more fully in Note 10. We issue new common stock shares upon exercises of stock options and vesting of RSUs. We recognize the effect of pre-vesting forfeitures in the period they actually occur. The fair value of RSU awards subject to market conditions is estimated on the date of grant using the Monte Carlo simulation model with the following weighted average assumptions for the year ended December 31: 2018 2017 2016 Expected volatility (company) 53.9% 73.7% 53.6% Expected volatility (peer group median) 28.4% 33.8% 17.3% Correlation between the company and peer group median 0.39 0.33 0.47 Expected dividend yield 0.00% 0.00% 0.00% Risk-free rate 2.30% 1.50% 1.29% 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. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for the year ended December 31: 2017 2016 Expected life 6.0 years 6.0 years Expected volatility 59.2% 60.9% Expected dividend yield 0.00% 0.00% Risk-free rate 2.20% 1.41% The expected life represents the period of time the options are expected to be outstanding. Historically, we used the simplified method for determining the expected life assumption due to limited historical exercise experience on our stock options. The expected volatility is based on the historical volatility of our common stock over the most recent period equal to the expected life of the option. 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 expected life of the options. We did not grant any options during the year ended December 31, 2018. Fair Value The Fair Value Measurements and Disclosures Level 1 — unadjusted quoted prices for identical assets or liabilities in active markets accessible by us Level 2 — inputs that are observable in the marketplace other than those inputs classified as Level 1 Level 3 — inputs that are unobservable in the marketplace and significant to the valuation If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. As of December 31, 2018 and 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”), $458.3 million 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 December 31, 2018 were approximately $649.2 million and $430.8 million, respectively, and were determined using Level 2 inputs based on market prices. The carrying value of the 2022 facility at December 31, 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. Supplemental Cash Flow Information Supplemental cash flow information was as follows for the years ended December 31: 2018 2017 2016 (In thousands) Cash payments for interest (1) $ 107,668 $ 193,429 $ 197,384 Cash payments for income taxes 3,153 5,643 2,875 (1) Includes $0.1 million, $48.7 million and $42.9 million in payments of debt extinguishment costs which are classified as financing outflows in the accompanying consolidated statement of cash flows for the years ended December 31 2018, 2017, and 2016, respectively. These payments were recorded to interest expense in the accompanying consolidated statement of operations and comprehensive income for their respective years. Comprehensive Income Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It consists of net income and other gains and losses affecting stockholders’ equity that, under GAAP, are excluded from net income. We had no items of other comprehensive income for the years ended December 31, 2018, 2017, and 2016. Recently Issued 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 Leas The Company will adopt this guidance on January 1, 2019 by applying the provisions of this guidance on a modified retrospective basis as of the effective date. As such, comparative periods will not be restated and the disclosures required under the new standard will not be provided for periods prior to January 1, 2019. We will elect 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. We will not elect to utilize the hindsight practical expedient or the practical expedient related to land easements. Upon adoption of the new standard we will elect to account for non-lease components as a part of the related lease components for all of our leases. We will also elect to not recognize leases with an initial term of 12 months or less on our balance sheet. We have assessed and updated our business processes, systems and controls to ensure compliance with the accounting and disclosure requirements of the new standard upon adoption. 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. The adoption of this new guidance will result in a material impact to our balance sheet in the range of approximately $250.0 million to $300.0 million related to the establishment of operating lease liabilities and the corresponding operating lease right-of-use assets. Further, the adoption of this guidance had no impact to our remaining other finance obligations as they failed to meet the sale-leaseback requirements of the new standard. The adoption of this guidance will not have a significant impact on our consolidated statement of operations and comprehensive income or on our consolidated statement of cash flows as our leases will retain their classifications as determined under current guidance. Through the issuance of a series of updates, the FASB modified the guidance under the Revenue Recognition topic of the Codification which provided for a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under previous guidance, we recognized sales from contracts with service elements on the completed contract method when these contracts were completed within 30 days. The remaining contracts with service elements were recognized under the percentage of completion method. 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 retained earnings 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 | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue The following table disaggregates our sales by product category for the years ended December 31: 2018 2017 2016 (In thousands) Lumber & lumber sheet goods $ 2,902,155 $ 2,510,945 $ 2,131,394 Manufactured products 1,392,043 1,208,555 1,097,665 Windows, doors & millwork 1,445,858 1,360,567 1,286,151 Gypsum, roofing & insulation 528,439 538,378 520,007 Siding, metal & concrete products 697,744 655,889 622,344 Other building & product services 758,532 759,875 709,723 Total sales $ 7,724,771 $ 7,034,209 $ 6,367,284 Information regarding disaggregation of sales by segment is discussed in Note 14 to the condensed consolidated financial statements. Sales related to contracts with service elements represents less than 10% of the Company’s net sales for each period presented. 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 December 31, 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 $42.1 million and $37.2 million as of December 31, 2018 and December 31, 2017, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment consisted of the following at December 31: 2018 2017 (In thousands) Land $ 198,304 $ 188,551 Buildings and improvements 358,411 337,536 Machinery and equipment 403,765 352,529 Furniture and fixtures 78,910 61,310 Construction in progress 20,810 24,228 Property, plant and equipment 1,060,200 964,154 Less: accumulated depreciation 390,125 324,851 Property, plant and equipment, net $ 670,075 $ 639,303 Depreciation expense was $74.4 million, $71.1 million and $87.2 million, of which $18.6 million, $9.8 million and $9.5 million was included in cost of sales, for the years ended December 31, 2018, 2017, and 2016, respectively. Included in property, plant and equipment are certain assets held under capital leases and other finance obligations. These assets are recorded at the present value of minimum lease payments and include land, buildings and equipment. Amortization charges associated with assets held under capital leases and other finance obligations are included in depreciation expense. The following balances held under capital lease and other finance obligations are included on the accompanying consolidated balance sheet: 2018 2017 (In thousands) Land $ 118,677 $ 114,010 Buildings and improvements 142,345 142,941 Machinery and equipment 27,188 21,875 Assets held under capital leases and other finance obligations 288,210 278,826 Less: accumulated amortization 21,786 15,367 Assets held under capital leases and other finance obligations, net $ 266,424 $ 263,459 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 5. Goodwill The following table sets forth the changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2018 and 2017 (in thousands): Northeast Southeast South West Total Balance as of December 31, 2017 Goodwill $ 97,102 $ 60,691 $ 329,662 $ 297,592 $ 785,047 Accumulated impairment losses (494 ) (615 ) (43,527 ) — (44,636 ) 96,608 60,076 286,135 297,592 740,411 Balance as of December 31, 2018 Goodwill $ 97,102 $ 60,691 $ 329,662 $ 297,592 $ 785,047 Accumulated impairment losses (494 ) (615 ) (43,527 ) — (44,636 ) $ 96,608 $ 60,076 $ 286,135 $ 297,592 $ 740,411 We closely monitor trends in economic factors and their effects on operating results to determine if an impairment trigger was present that would warrant a reassessment of the recoverability of the carrying amount of goodwill prior to the required annual impairment test in accordance with the Intangibles – Goodwill and Other The process of evaluating goodwill for impairment involves the determination of fair value of our reporting units. Inherent in such fair value determinations are certain judgments and estimates relating to future cash flows, including our interpretation of current economic indicators and market valuations and assumptions about our strategic plans with regard to our operations. Due to the uncertainties associated with such estimates, actual results could differ from such estimates resulting in further impairment of goodwill. In performing our impairment analysis, we developed a range of fair values for our reporting units using a discounted cash flow methodology. The discounted cash flow methodology establishes fair value by estimating the present value of the projected future cash flows to be generated from the reporting unit. The discount rate applied to the projected future cash flows to arrive at the present value is intended to reflect all risks of ownership and the associated risks of realizing the stream of projected future cash flows. The discounted cash flow methodology uses our projections of financial performance for a five-year period. The most significant assumptions used in the discounted cash flow methodology are the discount rate, the terminal value and the expected future revenues, gross margins and operating expenses, which vary among reporting units. Significant assumptions used in our financial projections include housing starts and lumber commodity prices. We recorded no goodwill impairment charges in 2018, 2017, and 2016. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets The following table presents intangible assets as of December 31: 2018 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Customer relationships $ 149,045 $ (63,187 ) $ 149,045 $ (48,925 ) Trade names 51,361 (34,065 ) 51,361 (22,554 ) Non-compete agreements 1,379 (1,379 ) 1,379 (1,081 ) Favorable lease intangibles 6,409 (6,409 ) 6,409 (3,067 ) Total intangible assets $ 208,194 $ (105,040 ) $ 208,194 $ (75,627 ) Unfavorable lease obligations (included in Accrued liabilities and Other long-term liabilities) $ (19,597 ) $ 19,597 $ (19,597 ) $ 13,666 During the years ended December 31, 2018, 2017, and 2016, we recorded amortization expense in relation to the above-listed intangible assets of $23.5 million, $21.9 million, and $22.6 million, respectively. We did not record any significant impairment charges related to our intangible assets for the years ended December 31, 2018, 2017 or 2016. The following table presents the estimated amortization expense for these intangible assets for the years ending December 31 (in thousands): 2019 $ 14,784 2020 13,164 2021 11,903 2022 10,923 2023 10,034 Thereafter 42,346 Total future net intangible amortization expense $ 103,154 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 31, 2018 December 31, 2017 Accrued payroll and other employee related expenses $ 145,313 $ 127,745 Contract liabilities 42,054 37,237 Customer obligations 11,762 9,657 Self-insurance reserves 35,304 32,424 Accrued business taxes 28,954 28,460 Accrued interest 13,164 14,403 Other 15,975 21,671 Total accrued liabilities $ 292,526 $ 271,597 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Long-term debt consisted of the following (in thousands): December 31, 2018 December 31, 2017 2022 facility (1) $ 179,000 $ 350,000 2024 notes 696,361 750,000 2024 term loan (2) 458,250 462,950 Other finance obligations (Note 9) 227,071 225,070 Capital lease obligations (Note 9) 16,445 15,431 1,577,127 1,803,451 Unamortized debt discount and debt issuance costs (15,833 ) (19,031 ) 1,561,294 1,784,420 Less: current maturities of long-term debt and lease obligations 15,565 12,475 Long-term debt, net of current maturities $ 1,545,729 $ 1,771,945 (1) The weighted average interest rate was 3.9% and 2.9% as of December 31, 2018 and 2017, respectively. (2) The weighted average interest rate was 5.2% and 4.3% as of December 31, 2018 and 2017, respectively. 2016 Debt Transactions During the year ended December 31, 2016, the Company executed several debt transactions which are described in more detail below. These transactions include two debt exchanges, complete extinguishment of our 7.625% senior secured notes due 2021 (the “2021 notes”), repricing and partially repaying our previous term loan and a cash tender offer in which we reduced the aggregate principal amount of our previously outstanding 10.75% senior unsecured notes due 2023 ( ) Note Exchange Transactions On February 12, 2016, we completed separate privately negotiated note exchange transactions in which $218.6 million in aggregate principal amount of our 2023 notes was exchanged for $207.6 million in aggregate principal amount of our previously outstanding 2021 notes. On February 29, 2016, we completed additional separate privately negotiated note exchange transactions in which $63.8 million in aggregate principal amount of our 2023 notes was exchanged for $60.0 million in aggregate principal amount of our previously outstanding 2021 notes. The note exchange transactions were considered to be debt extinguishments. As such, we recognized a net gain of $7.8 million which was recorded as an offset to interest expense in the accompanying consolidated statement of operations and comprehensive income for the year ended December 31, 2016. Of this $7.8 million gain, $14.8 million was attributable to the reduction in outstanding principal which was partially offset by the write-off of $7.0 million of unamortized debt issuance costs associated with the 2023 notes which were extinguished in the exchange transactions. In connection with issuance of the 2021 notes in the exchange transactions, we incurred $4.9 million of various third-party fees and expenses. These costs were previously recorded as a reduction to long-term debt and were subsequently written off to interest expense in the third quarter of 2016 in connection with the extinguishment of the 2021 notes as described in the “2016 Refinancing Transactions” section below. Note Redemption Transaction In May 2016, the Company exercised its contractual right to redeem $35.0 million in aggregate principal amount of 2021 notes at a price of 103.0%, plus accrued and unpaid interest. The redemption transaction was considered to be a debt extinguishment. As such, we recognized a loss of $1.7 million which was recorded as a component of interest expense in the accompanying consolidated statement of operations and comprehensive income for the year ended December 31, 2016. Of this $1.7 million loss, 2016 Refinancing Transactions In August 2016, we completed a private offering of $750.0 million in aggregate principal amount of 5.625% senior secured notes due 2024 (“2024 notes”) at an issue price equal to 100% of their face value. At the same time the Company also repriced its previous term loan. This repricing lowered the applicable margin to 3.75% in the case of Eurodollar loans and 2.75% in the case of base rate loans. This reduction represented a 1.25% decrease in the applicable margin for both Eurodollar and base rate loans. In connection with the repricing, the mandatory quarterly principal repayments were reduced from $1.375 million to $1.175 million. The proceeds from the issuance of the 2024 notes were used, together with cash on hand and borrowings under our previous revolving credit facility, to fully redeem the $582.6 million in aggregate outstanding principal amount of 2021 notes, to pay down $125.9 million of our previous term loan and to pay related transaction fees and expenses. The redemption of the 2021 notes was considered to be a debt extinguishment. As such, we recognized a loss of $43.9 million which was recorded as a component of interest expense in the accompanying consolidated statement of operations and comprehensive income for the year ended December 31, 2016. Of this $43.9 million loss, In connection with the issuance of the 2024 notes and the repricing of our previous term loan, we incurred approximately $12.0 million of various third-party fees and expenses. Of these costs $10.5 million were allocated to the 2024 notes and have been recorded as a reduction to long-term debt. These costs are being amortized over the contractual life of the 2024 notes using the effective interest method. The remaining $1.5 million in costs incurred were allocated to our previous term loan. Of this $1.5 million, $1.2 million was recorded to interest expense in the third quarter of 2016. The remaining $0.3 million of new third-party costs together with $10.9 million in remaining unamortized debt discount and debt issuance costs have been recorded as a reduction of long-term debt and are being amortized over the remaining contractual life of the term loan using the effective interest method. Tender Offer In October 2016, we purchased $50.0 million in aggregate principal amount of our 2023 notes pursuant to the terms of a cash tender offer at a price of 117.0% of par value plus accrued and unpaid interest. The purchase of the 2023 notes was funded with cash on hand and borrowings under our previous revolving credit facility. The tender offer transaction was considered to be a debt extinguishment. As such, we recognized a loss on extinguishment of $9.7 million which was recorded as a component of interest expense in the accompanying consolidated statement of operations and comprehensive income for the year ended December 31, 2016. Of this loss, approximately $8.5 million was attributable to the purchase premium paid to the lenders and $1.2 million was attributable to the write-off of unamortized debt issuance costs associated with the redeemed notes. In addition to the loss described above, we incurred approximately $0.1 million in third party costs which were recorded to selling, general, and administrative expense in the fourth quarter of 2016. 2017 Debt Transactions During the year ended December 31, 2017, the Company executed several debt transactions which are described in more detail below. These transactions included a repricing and extension of our previous term loan as well as increasing the borrowing capacity and extending the maturity of our previous revolving facility and the complete extinguishment of our 2023 notes. Our 2017 and 2016 debt transactions extended our debt maturity profile and reduced our annual cash interest on a go forward basis. Term Loan Amendment On February 23, 2017, we repriced our previous term loan through an amendment and extension of the term loan credit agreement providing for a $467.7 million senior secured term loan facility due 2024 (“2024 term loan”). This repricing reduced the interest rate by 0.75% and extended the maturity by 19 months to February 29, 2024. Deutsche Bank AG New York Branch continues to serve as administrative agent and collateral agent under the 2024 term loan agreement. In connection with the 2024 term loan amendment we recognized $0.4 million in interest expense for the year ended December 31, 2017 related to the write-off of unamortized debt discount and debt issuance costs. We incurred $1.2 million in lender fees which, together with $10.0 million in remaining unamortized debt discount and debt issuance costs, have been recorded as a reduction of long-term debt and are being amortized over the remaining contractual life of the 2024 term loan using the effective interest method. In addition, we also incurred $1.4 million in various third-party fees and expenses related to the 2024 term loan amendment which were recorded to interest expense for the year ended December 31, 2017. Revolving Credit Facility Amendment On March 22, 2017, the Company extended the maturity date and increased the revolving commitments under its previous revolving credit facility. This transaction resulted in an amended and restated $900.0 million revolving credit facility (“2022 facility”) and extended the maturity by 20 months to March 22, 2022. SunTrust Bank continues to serve as administrative agent and collateral agent under the 2022 facility agreement. All other material terms of the 2022 facility remain unchanged from those of the previous agreement. In connection with the 2022 facility amendment, we recognized $0.6 million in interest expense for the year ended December 31, 2017 related to the write-off of unamortized debt issuance costs. We incurred $1.6 million in lender and third-party fees which, together with $8.5 million in remaining unamortized debt issuance costs, have been recorded as other assets and are being amortized over the remaining contractual life of the 2022 facility on a straight-line basis. 2023 Notes Redemption In December 2017, the Company exercised its contractual right to redeem $367.6 million in aggregate principal amount of 2023 Notes at a total redemption price of 113.249%, plus accrued and unpaid interest. The redemption of the 2023 Notes was funded with a combination of borrowings under the 2022 facility and cash on hand. The redemption of the 2023 notes was considered to be a debt extinguishment. As such, we recognized a loss on extinguishment of $56.3 million which was recorded as a component of interest expense in the accompanying consolidated statement of operations and comprehensive income for the year ended December 31, 2017. Of this $56.3 million loss, 2018 Debt Transactions In the fourth quarter of 2018, the Company executed a series of open market purchases of its 2024 notes. These transactions resulted in $53.6 million in aggregate principal amount of the 2024 notes being repurchased at prices ranging from 91.5% to 94.25% of par value. Following these transactions, there was $696.4 million of 2024 notes which remain outstanding. These repurchases of the 2024 notes were considered to be debt extinguishments. As such, we recognized a gain on debt extinguishment of $3.2 million which was recorded as a component of interest expense in the accompanying consolidated statement of operations and comprehensive income for the year ended December 31, 2018. Of this gain, approximately $3.7 million was attributable to the repurchase of the notes at a discount to par value which was partially offset by a $0.5 million write-off of unamortized debt issuance costs associated with the 2024 Notes repurchased. In February 2019, we repurchased an additional $20.4 million in aggregate principal amount of the 2024 notes at prices ranging from 94.9% to 95.9% of par value. Following these repurchases we have $675.9 million of 2024 notes which remain outstanding. 2024 Term Loan Credit Agreement As of December 31, 2018, we have $458.3 million outstanding under the 2024 term loan, which matures on February 29, 2024. The 2024 term loan bears interest based on either a eurodollar or base rate (a rate equal to the highest of an agreed commercially available benchmark rate, the federal funds effective rate plus 0.50% or the eurodollar rate plus 1.0%, as selected by the Company) plus, in each case, an applicable margin. The applicable margin in the 2024 term loan is (x) 3% in the case of Eurodollar rate loans and (y) 2% in the case of base rate loans. The 2024 term loan has mandatory quarterly principal repayments of $1.175 million payable in March, June, September, and December of each year, provided that each such payment is subject to reduction as a result of certain prepayments of the loans in accordance with the loan documentation. 2022 Revolving Credit Facility The 2022 facility provides for a $900.0 million revolving credit line to be used for working capital, general corporate purposes and funding capital expenditures and growth opportunities. In addition, we may use the 2022 facility to facilitate debt repayment and consolidation. The available borrowing capacity, or borrowing base, is derived from a percentage of the Company’s eligible receivables and inventory, as defined by the agreement, subject to certain reserves. As of December 31, 2018, we had $179.0 million in outstanding borrowings under our 2022 facility and our net excess borrowing availability was $585.4 million after being reduced by outstanding letters of credit of approximately $82.2 million. Borrowings under the 2022 facility bear interest, at our option, at either a eurodollar rate or a base rate, plus, in each case an applicable margin. The applicable margin ranges from 1.25% to 1.75% per annum in the case of eurodollar rate loans and 0.25% to 0.75% per annum in the case of base rate loans. The margin in either case is based on a measure of availability under the 2022 facility. A variable commitment fee, currently 0.25% per annum, is charged on the unused amount of the revolver based on quarterly average loan utilization. Letters of credit under the 2022 facility are assessed at a rate equal to the applicable eurodollar margin, currently 1.25%, as well as a fronting fee at a rate of 0.125% per annum. These fees are payable quarterly in arrears at the end of March, June, September, and December. All obligations under the 2024 term loan and 2022 facility will be guaranteed jointly and severally by the Company and all other subsidiaries that guarantee the 2024 notes. All obligations and the guarantees of those obligations will be secured by substantially all of the assets of the Company and the guarantors subject to certain exceptions and permitted liens, including (i) with respect to the 2024 term loan, a first-priority security interest in such assets that constitute Notes Collateral (as defined below) and a second priority security interest in such assets that constitute ABL Collateral (as defined below), and (ii) with respect to the 2022 facility, a first-priority security interest in such assets that constitute ABL Collateral and a second-priority security interest in such assets that constitute Notes Collateral. “ABL Collateral” includes substantially all presently owned and after-acquired accounts receivable, inventory, rights of unpaid vendors with respect to inventory, deposit accounts, commodity accounts, securities accounts and lock boxes, investment property, cash and cash equivalents, and general intangibles, books and records, supporting obligations and documents and related letters of credit, commercial tort claims or other claims related to and proceeds of each of the foregoing. “Notes Collateral” includes all collateral which is not ABL collateral. The 2024 term loan and the 2022 facility contain restrictive covenants which, among other things, limit the Company’s ability to incur additional indebtedness, incur liens, engage in mergers or other fundamental changes, sell certain assets, pay dividends, make acquisitions or investments, prepay certain indebtedness, change the nature of our business, and engage in certain transactions with affiliates. In addition, the 2022 facility also contains a financial covenant requiring the satisfaction of a minimum fixed charge ratio of 1.00 to 1.00 if our excess availability falls below the greater of $80.0 million or 10% of the maximum borrowing amount, which was $84.7 million as of December 31, 2018. Senior Secured Notes due 2024 As of December 31, 2018 we have $696.4 million outstanding in aggregate principal amount of the 2024 notes which mature on September 1, 2024. Interest accrues on the 2024 notes at a rate of 5.625% per annum and is payable semi-annually on March 1 and September 1 of each year. The terms of the 2024 notes are governed by the indenture, dated as of August 22, 2016 (the “Indenture”), among the Company, the guarantors named therein (the “Guarantors”) and Wilmington Trust, National Association, as trustee (the “Trustee”) and notes collateral agent (the “Notes Collateral Agent”). The 2024 notes, subject to certain exceptions, are guaranteed, jointly and severally, on a senior secured basis, by certain of our direct and indirect wholly owned subsidiaries. All obligations under the 2024 notes, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and the Guarantors subject to certain exceptions and permitted liens, including a first-priority security interest in such assets that constitute Notes Collateral (as defined above) and a second-priority security interest in such assets that constitute ABL Collateral (as defined above). The Notes Collateral Agent became a party to the ABL/Bond Intercreditor Agreement, dated as of May 29, 2013, among SunTrust Bank, as agent under the Company’s 2022 facility, the Wilmington Trust, National Association, the Company and the Guarantors, and the Pari Passu Intercreditor Agreement, dated as of July 31, 2015, among Deutsche Bank AG New York Branch, as term collateral agent under the Company’s 2024 term loan, Wilmington Trust, National Association, the Company and the Guarantors. These documents govern all arrangements in respect of the priority of the security interests in the ABL Collateral and the Notes Collateral among the parties to the Indenture, the 2022 facility and the 2024 term loan. The 2024 notes constitute senior secured obligations of the Company and Guarantors, rank senior in right of payment to all future debt of the Company and Guarantors that is expressly subordinated in right of payment to the 2024 notes, and rank equally in right of payment with all existing and future liabilities of the Company and Guarantors that are not so subordinated, including the 2022 facility. The Indenture contains restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional debt or issue preferred stock; create liens; create restrictions on the Company’s subsidiaries’ ability to make payments to the Company; pay dividends and make other distributions in respect of the Company’s and its subsidiaries’ capital stock; make certain investments or certain other restricted payments; guarantee indebtedness; designate unrestricted subsidiaries; sell certain kinds of assets; enter into certain types of transactions with affiliates; and effect mergers and consolidations. At any time prior to September 1, 2019, the Company may redeem the 2024 notes in whole or in part at a redemption price equal to 100% of the principal amount of the 2024 notes plus the “applicable premium” set forth in the Indenture. At any time on or after September 1, 2019, the Company may redeem the 2024 notes at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to the redemption date. At any time and from time to time during the 36-month period following August 22, 2016 (“the Closing Date”), the Company may redeem up to 10% of the aggregate principal amount of the 2024 notes during each twelve-month period commencing on the Closing Date at a redemption price of 103% of the aggregate principal amount thereof plus accrued and unpaid interest to the redemption date. In addition, at any time prior to September 1, 2019, the Company may redeem up to 40% of the aggregate principal amount of the 2024 notes with the net cash proceeds of one or more equity offerings, as described in the Indenture, at a price equal to 105.625% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date. If the Company experiences certain change of control events, holders of the 2024 notes may require it to repurchase all or part of their 2024 notes at 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the repurchase date. As of December 31, 2018 we were not in violation of any covenants or restrictions imposed by any of our debt agreements. Future maturities of long-term debt as of December 31, 2018 were as follows (in thousands): Year ending December 31, 2019 $ 4,700 2020 4,700 2021 4,700 2022 4,700 2023 183,700 Thereafter 1,131,111 Total long-term debt (including current maturities) $ 1,333,611 |
Leases and Other Finance Obliga
Leases and Other Finance Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases and Other Finance Obligations | 9. Leases and Other Finance Obligations Operating Lease Obligations We lease certain land, buildings and equipment used in operations. These leases are generally accounted for as operating leases with initial terms ranging from one to 15 years and they generally contain renewal options. Certain operating leases are subject to contingent rentals based on various measures, primarily consumer price index increases. We also lease certain properties from related parties, including current employees and non-affiliate stockholders. Total rent expense under operating leases was approximately $83.9 million, $77.9 million and $68.7 million for the years ended December 31, 2018, 2017, and 2016, respectively. In addition, we have residual value guarantees on certain equipment leases. Under these leases we have the option of (a) purchasing the equipment at the end of the lease term, (b) arranging for the sale of the equipment to a third party, or (c) returning the equipment to the lessor to sell the equipment. If the sales proceeds in any case are less than the residual value, we are required to reimburse the lessor for the deficiency up to a specified level as stated in each lease agreement. If the sales proceeds exceed the residual value, we are entitled to all of such excess amounts. The guarantees under these leases for the residual values of equipment at the end of the respective operating lease periods approximated $5.7 million as of December 31, 2018. Based upon the expectation that none of these leased assets will have a residual value at the end of the lease term that is materially less than the value specified in the related operating lease agreement or that we will purchase the equipment at the end of the lease term, we do not believe it is probable that we will be required to fund any amounts under the terms of these guarantee arrangements. Accordingly, no accruals have been recognized for these guarantees. Future minimum commitments for noncancelable operating leases with initial or remaining lease terms in excess of one year are as follows: Related Party Total* (In thousands) Year ending December 31, 2019 $ 1,061 $ 77,297 2020 1,053 63,633 2021 712 51,804 2022 580 37,054 2023 60 23,327 Thereafter 261 57,000 $ 3,727 $ 310,115 * Includes related party future minimum commitments for noncancelable operating leases. Capital Lease Obligations The Company leases certain property and equipment under capital leases expiring through 2021. These leases require monthly payments of principal and interest, imputed at various interest rates. Future minimum lease payments as of December 31, 2018 are as follows (in thousands): Years ending December 31, 2019 $ 10,784 2020 5,392 2021 1,242 Thereafter — Total minimum lease payments 17,418 Less: amount representing interest (973 ) Present value of net minimum payments 16,445 Less: current portion (10,039 ) Long-term capital lease obligations, net of current portion $ 6,406 Other Finance Obligations The Company is party to 140 individual property lease agreements with a single lessor as of December 31, 2018. These lease agreements have initial terms ranging from nine to fifteen years (expiring through 2021) and renewal options in five-year increments providing for up to approximately 30-year remaining total lease terms. A related agreement between the lessor and the Company gives the Company the right to acquire a limited number of the leased facilities at fair market value. These purchase rights represent a form of continuing involvement with these properties which precluded sale-leaseback accounting. As a result, the Company treats all of the properties that it leases from this lessor as a financing arrangement. The Company is also party to certain additional agreements with the same lessor which commit the Company to perform certain repair and maintenance obligations under the leases in a specified manner and timeframe. We were deemed the owner of certain of our facilities during their construction period based on an evaluation made in accordance with the Leases As of December 31, 2018, other finance obligations consist of $227.1 million, with cash payments of $21.7 million for the year ended December 31, 2018. These other finance obligations are included on the consolidated balance sheet as a component of long-term debt and lease obligations. The related assets are recorded as components of property, plant, and equipment on the consolidated balance sheet. Future minimum commitments for other finance obligations as of December 31, 2018 were as follows (in thousands): Year ending December 31, 2019 $ 18,715 2020 18,632 2021 17,960 2022 17,849 2023 17,860 Thereafter 222,821 Total $ 313,837 |
Employee Stock-Based Compensati
Employee Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock-Based Compensation | 10. Employee Stock-Based Compensation 2014 Incentive Plan Under our 2014 Incentive Plan (“2014 Plan”), the Company is authorized to grant awards in the form of incentive stock options, non-qualified stock options, restricted stock shares, restricted stock units, other common stock-based awards and cash-based awards. In May 2016, our shareholders approved an amendment to our 2014 Plan that increased the number of shares of common stock reserved for the grant of awards under the 2014 Plan from 5.0 million shares to 8.5 million shares, subject to adjustment as provided by the 2014 Plan. All 8.5 million shares under the Plan may be made subject to options, stock appreciation rights (“SARs”), or stock-based awards. Stock options and SARs granted under the 2014 Plan may not have a term exceeding 10 years from the date of grant. The 2014 Plan also provides that all awards will become fully vested and/or exercisable upon a change in control (as defined in the 2014 Plan) if those awards (i) are not assumed or equitably substituted by the surviving entity or (ii) have been assumed or equitably substituted by the surviving entity, and the grantee’s employment is terminated under certain circumstances. Other specific terms for awards granted under the 2014 Plan shall be determined by our Compensation Committee (or the board of directors if so determined by the board of directors). Awards granted under the 2014 Plan generally vest ratably over a three to four year period. As of December 31, 2018, 4.9 million shares were available for issuance under the 2014 Plan. 2007 Incentive Plan Under our 2007 Incentive Plan (“2007 Plan”), the Company was authorized to grant awards in the form of incentive stock options, non-qualified stock options, restricted stock, other common stock-based awards and cash-based awards. Stock options and SARs granted under the 2007 Plan may not have a term exceeding 10 years from the date of grant. The 2007 Plan also provided that all awards will become fully vested and/or exercisable upon a change in control (as defined in the 2007 Plan). Historically, awards granted under the 2007 Plan generally vested ratably over a three to four-year period. As of May 24, 2017, no further grants will be made under the 2007 plan. 2005 Equity Incentive Plan Under our 2005 Equity Incentive Plan (“2005 Plan”), we were authorized to grant stock-based awards in the form of incentive stock options, non-qualified stock options, restricted stock and other common stock-based awards. Stock options and SARs granted under the 2005 Plan could not have a term exceeding 10 years from the date of grant. The 2005 Plan also provided that all awards become fully vested and/or exercisable upon a change in control (as defined in the 2005 Plan). Historically, awards granted under the 2005 Plan generally vested ratably over a three-year period. As of June 27, 2015, no further grants will be made under the 2005 Plan. 1998 Stock Incentive Plan Under the Builders FirstSource, Inc. 1998 Stock Incentive Plan (“1998 Plan”), we were authorized to issue shares of common stock pursuant to awards granted in various forms, including incentive stock options, non-qualified stock options and other stock-based awards. The 1998 Plan also authorized the sale of common stock on terms determined by our board of directors. Historically, stock options granted under the 1998 Plan generally cliff vested after a period of seven to nine years with certain option grants subject to acceleration if certain financial targets were met. As of January 1, 2005, no further grants will be made under the 1998 Plan. Stock Options The following table summarizes our stock option activity: Options Weighted Weighted Aggregate (In thousands) (In thousands) Outstanding at December 31, 2017 2,104 $ 5.66 Granted — $ — Exercised (770 ) $ 5.13 Forfeited (2 ) $ 9.72 Outstanding at December 31, 2018 1,332 $ 5.97 4.4 $ 6,581 Exercisable at December 31, 2018 1,229 $ 5.71 4.1 $ 6,386 The outstanding options at December 31, 2018 include 199,000 options under the 2014 plan, 696,000 options under the 2007 Plan, 247,000 options under the 2005 Plan and 190,000 options under the 1998 Plan. As of December 31, 2018, 96,000 options under the 2014 Plan, 696,000 options under the 2007 Plan, 247,000 options under the 2005 Plan and 190,000 options under the 1998 Plan were exercisable. The weighted average grant date fair value of options granted during the years ended December 31, 2017 and 2016 were $7.26 and $3.71, respectively. There were no options granted during the year ended December 31, 2018. The total intrinsic value of options exercised during the years ended December 31, 2018, 2017 and 2016 were $10.9 million, $16.4 million and $11.6 million, respectively. Vesting of all of our stock options is contingent solely on continuous employment over the requisite service period. Outstanding and exercisable stock options at December 31, 2018 were as follows (shares in thousands): Outstanding Exercisable Range of Exercise Prices Shares Weighted Weighted Shares Weighted $3.15 190 $ 3.15 5.0 190 $ 3.15 $3.19 336 $ 3.19 1.1 336 $ 3.19 $6.35 - $6.59 146 $ 6.44 6.5 84 $ 6.42 $7.67- $12.94 660 $ 8.09 5.4 619 $ 7.77 $3.15 - $12.94 1,332 $ 5.97 4.4 1,229 $ 5.71 Restricted Stock Units The outstanding restricted stock units (“RSUs”) at December 31, 2018 include 1,857,000 units granted under the 2014 Plan and 107,000 units granted under the 2007 Plan. The following table summarizes activity for RSUs subject solely to service conditions for the year ended December 31, 2018 (shares in thousands): Shares Weighted Nonvested at December 31, 2017 1,331 $ 10.77 Granted 504 $ 20.23 Vested (889 ) $ 10.37 Forfeited (38 ) $ 14.27 Nonvested at December 31, 2018 908 $ 16.25 The weighted average grant date fair value of RSUs for which vesting is subject solely to service conditions granted during the years ended December 31, 2018, 2017 and 2016 were $20.23, $14.60, and $10.68, respectively. The following table summarizes activity for RSUs subject to both performance and service conditions for the year ended December 31, 2018 (shares in thousands): Shares Weighted Nonvested at December 31, 2017 487 $ 13.04 Granted 159 $ 21.15 Vested (43 ) $ 14.49 Forfeited (47 ) $ 14.21 Nonvested at December 31, 2018 556 $ 15.16 The weighted average grant date fair value of RSUs for which vesting is subject to both performance and service conditions granted during the years ended December 31, 2018, 2017 and 2016 were $21.15, $15.38 and $10.96, respectively. The following table summarizes activity for RSUs subject to both market and service conditions for the year ended December 31, 2018 (shares in thousands): Shares Weighted Nonvested at December 31, 2017 431 $ 9.16 Granted 159 $ 21.96 Vested (43 ) $ 12.30 Forfeited (47 ) $ 11.22 Nonvested at December 31, 2018 500 $ 12.78 The weighted average grant date fair value of RSUs for which vesting is subject to both market and service conditions granted during the years ended December 31, 2018, 2017 and 2016 were $21.96, $11.49, and $7.58, respectively. Our results of operations include stock compensation expense of $14.4 million ($10.7 million net of taxes), $13.5 million ($8.2 million net of taxes) and $10.5 million ($6.3 million net of taxes) for the years ended December 31, 2018, 2017 and 2016, respectively. We recognized excess tax benefits for stock options exercised and RSUs vested of $4.2 million and $5.1 million for the years ended December 31, 2018 and 2017, respectively. We recognized no excess tax benefits for stock options exercised or RSUs vested during the year ended December 31, 2016. The total fair value of options vested during the years ended December 31, 2018, 2017, and 2016 were $2.7 million, $2.7 million and $2.8 million, respectively. The total fair value of RSUs vested during the years ended December 31, 2018, 2017 and 2016 were $10.4 million, $6.9 million and $3.9 million, respectively. As of December 31, 2018, there was $14.9 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plans. That cost is expected to be recognized over a weighted-average period of 2.0 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The components of income tax expense (benefit) included in continuing operations were as follows for the years ended December 31: 2018 2017 2016 (In thousands) Current: Federal $ (1,831 ) $ 1,831 $ — State 5,572 2,213 2,115 3,741 4,044 2,115 Deferred: Federal 45,934 49,710 (110,720 ) State 5,889 (606 ) (14,067 ) 51,823 49,104 (124,787 ) Income tax expense (benefit) $ 55,564 $ 53,148 $ (122,672 ) Temporary differences, which give rise to deferred tax assets and liabilities, were as follows as of December 31: 2018 2017 (In thousands) Deferred tax assets related to: Accrued expenses $ 10,019 $ 9,615 Insurance reserves 13,245 11,299 Stock-based compensation expense 4,770 4,702 Accounts receivable 3,892 3,355 Inventories 13,348 11,370 Operating loss and credit carryforwards 38,813 68,066 84,087 108,407 Valuation allowance (2,409 ) (2,409 ) Total deferred tax assets 81,678 105,998 Deferred tax liabilities related to: Prepaid expenses (2,845 ) (2,706 ) Goodwill and other intangible assets (28,055 ) (19,431 ) Property, plant and equipment (26,670 ) (8,593 ) Other (1,342 ) (163 ) Total deferred tax liabilities (58,912 ) (30,893 ) Net deferred tax asset $ 22,766 $ 75,105 A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below for the years ended December 31: 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal income tax 4.3 7.7 6.1 Valuation allowance — (3.1 ) (607.9 ) Stock compensation windfall benefit (1.6 ) (5.5 ) — Enactment of federal income tax rate change — 31.5 — Permanent difference – 162(m) limitation 0.6 0.8 0.6 Permanent difference – credits (4.6 ) (9.6 ) (1.2 ) Permanent difference – other 1.4 0.9 0.4 Other 0.2 0.1 0.9 21.3 % 57.8 % (566.1 )% On December 22, 2017, the President signed into law the 2017 Tax Act. The 2017 Tax Act reduced the statutory federal corporate tax rate from 35% to 21% for periods beginning after December 31, 2017. The Income Taxes At December 31, 2018 and 2017, the Company had deferred tax assets, net of deferred tax liabilities, of $25.2 million and $77.5 million, respectively, offset by valuation allowances of $2.4 million and $2.4 million, respectively. We have $302.8 million of state net operating loss carryforwards and $3.0 million of state tax credit carryforwards expiring at various dates through 2038. We also have $15.6 million of federal net operating loss carryforwards and $20.4 million of federal tax credit carryforwards expiring at various dates through 2038. As of December 31, 2018, the Company needed to generate approximately $63.5 million of pre-tax income in future periods to realize its federal deferred tax assets. We evaluate our deferred tax assets on a quarterly basis to determine whether a valuation allowance is required. In accordance with the Income Taxes We recorded a full valuation allowance in 2008 due to our cumulative three-year loss position at that time, compounded by the negative industry-wide business trends and outlook. We remained in a cumulative three-year loss position until the second quarter of 2016. In the third quarter of 2016, management determined that there was sufficient positive evidence to conclude that it was more likely than not that the valuation allowance should be released against our net federal and some state deferred tax assets. As a result, for the year ended December 31, 2016 we recorded a cumulative reduction to the valuation allowance against our net deferred tax assets of $131.7 million. During 2017, as a result of various activities and tax initiatives that impacted our assessment of the future utilization and realizability of our state net operating losses (“NOLs”) we recorded a reduction to the associated valuation allowance of $2.8 million for the year ended December 31, 2017. Section 382 of the Internal Revenue Code imposes annual limitations on the utilization of NOL carryforwards, other tax carryforwards, and certain built-in losses upon an ownership change as defined under that section. In general terms, an ownership change may result from transactions that increase the aggregate ownership of certain stockholders in the Company’s stock by more than 50 percentage points over a three year testing period (“Section 382 Ownership Change”). In 2017, affiliates of a significant shareholder sold their investment in the Company, which triggered a Section 382 Ownership Change. As a result of triggering a Section 382 Ownership Change, an annual limitation is now imposed on the Company’s tax attributes, including its NOLs and other credits. The Company has evaluated the impact of this limitation on its NOLs and other credits and does not expect it to have a material impact on their future utilization or realizability. 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. The following table shows the changes in our valuation allowance: 2018 2017 2016 (In thousands) Balance at January 1, $ 2,409 $ 4,821 $ 136,548 Additions charged to expense — — — Reductions credited to expense — (2,839 ) (131,727 ) Enactment of federal income tax rate change — 427 — Deductions — — — Balance at December 31, $ 2,409 $ 2,409 $ 4,821 The balance for uncertain tax positions, excluding penalties and interest, was $0.3 million, $0.3 million and $0.2 million as of December 31, 2018, 2017 and 2016, respectively with no significant impact recorded in the Company’s consolidated statement of operations and comprehensive income for the years ended December 31, 2018, 2017 or 2016. We accrue interest and penalties on our uncertain tax positions as a component of our provision for income taxes. We accrued no significant interest and penalties in 2018, 2017 or 2016. We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. Based on completed examinations and the expiration of statutes of limitations, we have concluded all U.S. federal income tax matters for years through 2014. We report in 41 states with various years open to examination. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans We maintain one active defined contribution 401(k) plan. Our employees are eligible to participate in the plans subject to certain employment eligibility provisions. Participants can contribute up to 75% of their annual compensation, subject to federally mandated maximums. Participants are immediately vested in their own contributions. We match a certain percentage of the contributions made by participating employees, subject to IRS limitations. Our matching contributions are subject to a pro-rata five-year vesting schedule. We recognized expense of $6.8 million, $4.6 million and $4.6 million in 2018, 2017 and 2016, respectively, for contributions to the plan. The Company contributes to multiple collectively bargained union retirement plans including multiemployer plans. The Company does not administer the multiemployer plans, and contributions are determined in accordance with the provisions of negotiated labor contracts. The risks of participating in multiemployer plans are different from single-employer plans. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to a multiemployer plan, the unfunded obligations of that multiemployer plan may be borne by the remaining participating employers. If the Company chooses to stop participating in a multiemployer plan, the Company may be required to pay that plan an amount (“withdrawal liability”) based on the plan’s formula and the underfunded status of the plan attributable to the Company. Contributions to the plans for the years ended December 31, 2018, 2017 and 2016 were not significant. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies As of December 31, 2018, we had outstanding letters of credit totaling $82.2 million under our 2022 facility that principally support our self-insurance programs. 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 and Product Information
Segment and Product Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Product Information | 14. Segment and Product 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 401 locations operating in 39 states across the United States, which have been organized into nine geographical regions. Centralized financial and operational oversight, including resource allocation and assessment of performance on an income from continuing operations 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 similar nature of products, distribution methods and customers, 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 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 described in Note 2, 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 consolidated total operations, for the years ended December 31, (in thousands): 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,340,637 $ 13,582 $ 23,786 $ 33,496 Southeast 1,704,313 11,746 25,733 66,191 South 2,050,961 21,422 26,367 110,613 West 2,461,585 27,405 40,223 105,906 Total reportable segments 7,557,496 74,155 116,109 316,206 All other 167,275 23,751 (7,896 ) (55,451 ) Total consolidated $ 7,724,771 $ 97,906 $ 108,213 $ 260,755 2017 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,285,286 $ 13,255 $ 20,893 $ 40,358 Southeast 1,542,330 10,457 22,939 49,738 South 1,855,425 19,724 23,320 90,230 West 2,188,696 26,901 32,058 85,629 Total reportable segments 6,871,737 70,337 99,210 265,955 All other 162,472 22,656 93,964 (174,026 ) Total consolidated $ 7,034,209 $ 92,993 $ 193,174 $ 91,929 2016 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,204,100 $ 18,220 $ 18,660 $ 35,347 Southeast 1,362,259 11,242 19,768 40,256 South 1,699,371 21,822 22,303 71,806 West 1,939,206 33,764 27,130 72,810 Total reportable segments 6,204,936 85,048 87,861 220,219 All other 162,348 24,745 126,806 (198,550 ) Total consolidated $ 6,367,284 $ 109,793 $ 214,667 $ 21,669 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 | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. 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 years ended December 31, 2018, 2017 or 2016. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | 16. Unaudited Quarterly Financial Data The following tables summarize the consolidated quarterly results of operations for 2018 and 2017 (in thousands, except per share amounts): 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,700,436 $ 2,089,888 $ 2,118,467 $ 1,815,980 Gross margin 411,052 496,328 522,781 492,779 Net income 23,220 56,622 73,328 52,021 (1) Net income per share Basic $ 0.20 $ 0.49 $ 0.64 $ 0.45 (1) Diluted $ 0.20 $ 0.49 $ 0.63 $ 0.45 (1) 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,533,064 $ 1,843,297 $ 1,878,909 $ 1,778,939 Gross margin 376,052 460,797 459,322 431,220 Net income (loss) 3,822 (2) 37,910 (3) 39,750 (4) (42,701 ) (5) Net income (loss) per share Basic $ 0.03 (2) $ 0.34 (3) $ 0.35 (4) $ (0.38 ) (5) Diluted $ 0.03 (2) $ 0.33 (3) $ 0.34 (4) $ (0.38 ) (5) (1) Includes a gain on debt extinguishment of $3.2 million as discussed in Note 8. (2) Includes the write-off of debt discount and debt issuance costs of $1.0 million and financing costs of $1.4 million as discussed in Note 8. (3) Includes a valuation allowance of $(3.7) million as discussed in Note 11. (4) Includes a valuation allowance of $(0.1) million as discussed in Note 11. (5) Includes a loss on debt extinguishment of $56.3 million as discussed in Note 8, income tax expense of $29.0 million due to the enactment of a federal income tax rate change in December 2017, and a valuation allowance of $1.0 million as discussed in Note 11. Earnings per share is computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the annual earnings per share. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements present the results of operations, financial position, and cash flows of Builders FirstSource, Inc. and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Estimates are used when accounting for items such as revenue, vendor rebates, allowance for returns, discounts and doubtful accounts, employee compensation programs, depreciation and amortization periods, income taxes, inventory values, insurance programs, goodwill, other intangible assets and long-lived assets. |
Revenue Recognition | Revenue Recognition 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. 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. |
Cash and Cash Equivalents & Check Outstanding | Cash and Cash Equivalents & Checks Outstanding Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity date of three months or less. Also included in cash and cash equivalents are proceeds due from credit card transactions that generally settle within two business days. We maintain cash at financial institutions in excess of federally insured limits. Further, we maintain various banking relationships with different financial institutions. Accordingly, when there is a negative net book cash balance resulting from outstanding checks that had not yet been paid by any single financial institution, they are reflected in accounts payable on the accompanying consolidated balance sheets. |
Accounts Receivable | Accounts Receivable We extend credit to qualified professional homebuilders and contractors, in many cases on a non-collateralized basis. Accounts receivable potentially expose us to concentrations of credit risk. Because our customers are dispersed among our various markets, our credit risk to any one customer or geographic economy is not significant. Our customer mix is a balance of large national homebuilders, regional homebuilders, local and custom homebuilders and repair and remodeling contractors as well as multi-family builders. For the year ended December 31, 2018, our top 10 customers accounted for approximately 16.8% of our sales, and no single customer accounted for more than 5% of sales. The allowance for doubtful accounts is based on management’s assessment of the amount which may become uncollectible in the future and is estimated using specific review of problem accounts, overall portfolio quality, current economic conditions that may affect the customer’s ability to pay, and historical experience. Accounts receivable are written off when deemed uncollectible. Other receivables consist primarily of vendor rebates receivable. We also establish reserves for credit memos and customer returns. The reserve balance was $6.9 million and $6.8 million at December 31, 2018 and 2017, respectively. The activity in this reserve was not significant for each year presented. Accounts receivable consisted of the following at December 31: 2018 2017 (In thousands) Accounts Receivable $ 667,224 $ 643,763 Less: allowances for returns and doubtful accounts 13,054 11,771 Accounts receivable, net $ 654,170 $ 631,992 The following table shows the changes in our allowance for doubtful accounts: 2018 2017 2016 (In thousands) Balance at January 1, $ 4,973 $ 5,922 $ 4,245 Additions 5,284 197 1,390 Deductions (write-offs, net of recoveries) (4,062 ) (1,146 ) 287 Balance at December 31, $ 6,195 $ 4,973 $ 5,922 |
Inventories | Inventories Inventories consist principally of materials purchased for resale, including lumber, lumber sheet goods, windows, doors and millwork, as well as certain manufactured products and are stated at the lower of cost and net realizable value. Cost is determined using the weighted average method, the use of which approximates the first-in, first-out method. We accrue for shrink based on the actual historical shrink results of our most recent physical inventories adjusted, if necessary, for current economic conditions. These estimates are compared with actual results as physical inventory counts are taken and reconciled to the general ledger. During the year, we monitor our inventory levels by market and record provisions for excess inventories based on slower moving inventory. We define potential excess inventory as the amount of inventory on hand in excess of the historical usage, excluding special order items purchased in the last six months. We then apply our judgment as to forecasted demand and other factors, including liquidation value, to determine the required adjustments to net realizable value. Our inventories are generally not susceptible to technological obsolescence. Our arrangements with vendors provide for rebates of a specified amount of consideration, payable when certain measures, generally related to a stipulated level of purchases, have been achieved. We account for estimated rebates as a reduction of the prices of the vendor’s inventory until the product is sold, at which time such rebates reduce cost of sales in the accompanying consolidated statement of operations and comprehensive income. Throughout the year we estimate the amount of the rebates based upon the expected level of purchases. We continually evaluate and revise these estimates as necessary based on actual purchase levels. We source products from a large number of suppliers. No materials purchased from any single supplier represented more than 8% of our total materials purchased in 2018. |
Shipping and Handling Costs | Shipping and Handling Costs Handling costs incurred in manufacturing activities are included in cost of sales. All other shipping and handling costs are included in selling, general and administrative expenses in the accompanying consolidated statement of operations and comprehensive income and totaled $322.9 million, $296.2 million and $269.8 million in 2018, 2017 and 2016, respectively. |
Income Taxes | Income Taxes We account for income taxes utilizing the liability method described in the Income Taxes |
Warranty Expense | Warranty Expense We have warranty obligations with respect to most manufactured products; however, the liability for the warranty obligations is not significant as a result of third-party inspection and acceptance processes. |
Debt Issuance Costs and Debt Discount | Debt Issuance Costs and Debt Discount Loan costs are capitalized upon the issuance of long-term debt and amortized over the life of the related debt. Debt issuance costs associated with term debt are presented as a reduction to long-term debt. Debt issuance costs associated with revolving debt arrangements are presented as a component of other assets. Debt issuance costs incurred in connection with revolving debt arrangements are amortized using the straight-line method. Debt issuance costs incurred in connection with term debt are amortized using the effective interest method. Debt discount is amortized over the life of the related debt using the effective interest method. Amortization of debt issuance costs and the debt discount are included in interest expense. Upon changes to our debt structure, we evaluate debt issuance costs in accordance with the Debt |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. The estimated lives of the various classes of assets are as follows: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Furniture and fixtures 3 to 5 years Leasehold improvements The shorter of the estimated useful life or the remaining lease term Major additions and improvements are capitalized, while maintenance and repairs that do not extend the useful life of the property are charged to expense as incurred. Gains or losses from dispositions of property, plant and equipment are recorded in the period incurred. We also capitalize certain costs of computer software developed or obtained for internal use, including interest, provided that those costs are not research and development, and certain other criteria are met. Internal use computer software costs are included in machinery and equipment and generally depreciated using the straight-line method over the estimated useful lives of the assets, generally three years. We periodically evaluate the commercial and strategic operation of the land, related buildings and improvements of our facilities. In connection with these evaluations, some facilities may be consolidated, and others may be sold or leased. Nonoperating assets primarily related to land and building real estate assets associated with location closures that are actively being marketed for sale within a year are classified as assets held for sale and recorded at fair value, usually the quoted market price obtained from an independent third-party less the cost to sell. Until the assets are sold, an estimate of the fair value is reassessed at each reporting period. Net gains or losses related to the sale of real estate and equipment or impairment adjustments related to assets held for sale are recorded as selling, general and administrative expenses in the accompanying consolidated statement of operations and comprehensive income. |
Long-Lived Assets | Long-Lived Assets We evaluate our long-lived assets, other than goodwill, for impairment when events or changes in circumstances indicate, in our judgment, that the carrying value of such assets may not be recoverable. The determination of whether or not impairment exists is based on our estimate of undiscounted future cash flows before interest attributable to the assets as compared to the net carrying value of the assets. If impairment is indicated, the amount of the impairment recognized is determined by estimating the fair value of the assets based on estimated discounted future cash flows and recording a provision for loss if the carrying value is greater than estimated fair value. The net carrying value of assets identified to be disposed of in the future is compared to their estimated fair value, usually the quoted market price obtained from an independent third-party less the cost to sell, to determine if impairment exists. Until the assets are disposed of, an estimate of the fair value is reassessed when related events or circumstances change. |
Insurance | Insurance We have established insurance programs to cover certain insurable risks consisting primarily of physical loss to property, business interruptions resulting from such loss, workers’ compensation, employee healthcare, and comprehensive general and auto liability. Third party insurance coverage is obtained for exposures above predetermined deductibles as well as for those risks required to be insured by law or contract. On a quarterly basis, we engage an external actuarial professional to independently assess and estimate the total liability outstanding. Provisions for losses are developed from these valuations which rely upon our past claims experience, which considers both the frequency and settlement of claims. We discount our workers’ compensation liability based upon estimated future payment streams at our risk-free rate. Our total insurance reserve balances were $84.7 million and $78.0 million as of December 31, 2018 and 2017, respectively. Of these balances $49.4 million and $45.6 million were recorded as other long-term liabilities as of December 31, 2018 and 2017, respectively. Included in these reserve balances as of December 31, 2018 and 2017, were approximately $9.1 million and $8.9 million, respectively, of claims that exceeded stop-loss limits and are expected to be recovered under insurance policies which are also recorded as other receivables and other assets in the accompanying consolidated balance sheet. |
Net Income per Common Share | Net Income per Common Share Net income per common share, or earnings per share (“EPS”), is calculated in accordance with the Earnings per Share The table below presents a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS for the years ended December 31: 2018 2017 2016 (In thousands) Weighted average shares for basic EPS 114,586 112,587 110,754 Dilutive effect of options and RSUs 1,968 3,010 2,831 Weighted average shares for diluted EPS 116,554 115,597 113,585 For the purpose of computing diluted EPS, weighted average shares outstanding have been adjusted for common shares underlying 1,332,000 options to purchase common stock and 1,964,000 restricted stock units (“RSUs”) outstanding as of December 31, 2018. Weighted average shares outstanding have been adjusted for common shares underlying 2,104,000 options and 2,249,000 RSUs outstanding as of December 31, 2017 and 3,515,000 options and 2,177,000 RSUs outstanding as of December, 31, 2016. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangibles subject to amortization We recognize an acquired intangible asset apart from goodwill whenever the intangible asset arises from contractual or other legal rights, or whenever it can be separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset or liability. Impairment losses are recognized if the carrying value of an intangible asset subject to amortization is not recoverable from expected future cash flows and its carrying amount exceeds its estimated fair value. Goodwill We recognize goodwill as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is tested for impairment on an annual basis and between annual tests whenever impairment is indicated. This annual test takes place as of December 31 each year. Impairment losses are recognized whenever the carrying amount of a reporting unit exceeds its fair value. |
Stock-based Compensation | Stock-based Compensation We have four stock-based employee compensation plans, which are described more fully in Note 10. We issue new common stock shares upon exercises of stock options and vesting of RSUs. We recognize the effect of pre-vesting forfeitures in the period they actually occur. The fair value of RSU awards subject to market conditions is estimated on the date of grant using the Monte Carlo simulation model with the following weighted average assumptions for the year ended December 31: 2018 2017 2016 Expected volatility (company) 53.9% 73.7% 53.6% Expected volatility (peer group median) 28.4% 33.8% 17.3% Correlation between the company and peer group median 0.39 0.33 0.47 Expected dividend yield 0.00% 0.00% 0.00% Risk-free rate 2.30% 1.50% 1.29% 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. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for the year ended December 31: 2017 2016 Expected life 6.0 years 6.0 years Expected volatility 59.2% 60.9% Expected dividend yield 0.00% 0.00% Risk-free rate 2.20% 1.41% The expected life represents the period of time the options are expected to be outstanding. Historically, we used the simplified method for determining the expected life assumption due to limited historical exercise experience on our stock options. The expected volatility is based on the historical volatility of our common stock over the most recent period equal to the expected life of the option. 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 expected life of the options. We did not grant any options during the year ended December 31, 2018. |
Fair Value | Fair Value The Fair Value Measurements and Disclosures Level 1 — unadjusted quoted prices for identical assets or liabilities in active markets accessible by us Level 2 — inputs that are observable in the marketplace other than those inputs classified as Level 1 Level 3 — inputs that are unobservable in the marketplace and significant to the valuation If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. As of December 31, 2018 and 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”), $458.3 million 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 December 31, 2018 were approximately $649.2 million and $430.8 million, respectively, and were determined using Level 2 inputs based on market prices. The carrying value of the 2022 facility at December 31, 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. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information was as follows for the years ended December 31: 2018 2017 2016 (In thousands) Cash payments for interest (1) $ 107,668 $ 193,429 $ 197,384 Cash payments for income taxes 3,153 5,643 2,875 (1) Includes $0.1 million, $48.7 million and $42.9 million in payments of debt extinguishment costs which are classified as financing outflows in the accompanying consolidated statement of cash flows for the years ended December 31 2018, 2017, and 2016, respectively. These payments were recorded to interest expense in the accompanying consolidated statement of operations and comprehensive income for their respective years. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It consists of net income and other gains and losses affecting stockholders’ equity that, under GAAP, are excluded from net income. We had no items of other comprehensive income for the years ended December 31, 2018, 2017, and 2016. |
Recently Issued Accounting Pronouncements | Recently Issued 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 Leas The Company will adopt this guidance on January 1, 2019 by applying the provisions of this guidance on a modified retrospective basis as of the effective date. As such, comparative periods will not be restated and the disclosures required under the new standard will not be provided for periods prior to January 1, 2019. We will elect 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. We will not elect to utilize the hindsight practical expedient or the practical expedient related to land easements. Upon adoption of the new standard we will elect to account for non-lease components as a part of the related lease components for all of our leases. We will also elect to not recognize leases with an initial term of 12 months or less on our balance sheet. We have assessed and updated our business processes, systems and controls to ensure compliance with the accounting and disclosure requirements of the new standard upon adoption. 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. The adoption of this new guidance will result in a material impact to our balance sheet in the range of approximately $250.0 million to $300.0 million related to the establishment of operating lease liabilities and the corresponding operating lease right-of-use assets. Further, the adoption of this guidance had no impact to our remaining other finance obligations as they failed to meet the sale-leaseback requirements of the new standard. The adoption of this guidance will not have a significant impact on our consolidated statement of operations and comprehensive income or on our consolidated statement of cash flows as our leases will retain their classifications as determined under current guidance. Through the issuance of a series of updates, the FASB modified the guidance under the Revenue Recognition topic of the Codification which provided for a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under previous guidance, we recognized sales from contracts with service elements on the completed contract method when these contracts were completed within 30 days. The remaining contracts with service elements were recognized under the percentage of completion method. 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 retained earnings through a cumulative effect adjustment related to the unrecognized portion of contracts previously accounted for under the completed contract method of revenue recognition. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |
Reconciliation of Accounts Receivable - Classified | Accounts receivable consisted of the following at December 31: 2018 2017 (In thousands) Accounts Receivable $ 667,224 $ 643,763 Less: allowances for returns and doubtful accounts 13,054 11,771 Accounts receivable, net $ 654,170 $ 631,992 |
Rollforward of Allowance for Doubtful Accounts | The following table shows the changes in our allowance for doubtful accounts: 2018 2017 2016 (In thousands) Balance at January 1, $ 4,973 $ 5,922 $ 4,245 Additions 5,284 197 1,390 Deductions (write-offs, net of recoveries) (4,062 ) (1,146 ) 287 Balance at December 31, $ 6,195 $ 4,973 $ 5,922 |
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 for the years ended December 31: 2018 2017 2016 (In thousands) Weighted average shares for basic EPS 114,586 112,587 110,754 Dilutive effect of options and RSUs 1,968 3,010 2,831 Weighted average shares for diluted EPS 116,554 115,597 113,585 |
Supplemental Cash Flow Information | Supplemental cash flow information was as follows for the years ended December 31: 2018 2017 2016 (In thousands) Cash payments for interest (1) $ 107,668 $ 193,429 $ 197,384 Cash payments for income taxes 3,153 5,643 2,875 (1) Includes $0.1 million, $48.7 million and $42.9 million in payments of debt extinguishment costs which are classified as financing outflows in the accompanying consolidated statement of cash flows for the years ended December 31 2018, 2017, and 2016, respectively. These payments were recorded to interest expense in the accompanying consolidated statement of operations and comprehensive income for their respective years. |
Market Condition Based Restricted Stock Unit Grants | |
Significant Accounting Policies [Line Items] | |
Schedule of Share-based Payment Award, Restricted Stock Unit, Valuation Assumptions | The fair value of RSU awards subject to market conditions is estimated on the date of grant using the Monte Carlo simulation model with the following weighted average assumptions for the year ended December 31: 2018 2017 2016 Expected volatility (company) 53.9% 73.7% 53.6% Expected volatility (peer group median) 28.4% 33.8% 17.3% Correlation between the company and peer group median 0.39 0.33 0.47 Expected dividend yield 0.00% 0.00% 0.00% Risk-free rate 2.30% 1.50% 1.29% |
Stock Options | |
Significant Accounting Policies [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for the year ended December 31: 2017 2016 Expected life 6.0 years 6.0 years Expected volatility 59.2% 60.9% Expected dividend yield 0.00% 0.00% Risk-free rate 2.20% 1.41% |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Sales by Product Category | The following table disaggregates our sales by product category for the years ended December 31: 2018 2017 2016 (In thousands) Lumber & lumber sheet goods $ 2,902,155 $ 2,510,945 $ 2,131,394 Manufactured products 1,392,043 1,208,555 1,097,665 Windows, doors & millwork 1,445,858 1,360,567 1,286,151 Gypsum, roofing & insulation 528,439 538,378 520,007 Siding, metal & concrete products 697,744 655,889 622,344 Other building & product services 758,532 759,875 709,723 Total sales $ 7,724,771 $ 7,034,209 $ 6,367,284 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31: 2018 2017 (In thousands) Land $ 198,304 $ 188,551 Buildings and improvements 358,411 337,536 Machinery and equipment 403,765 352,529 Furniture and fixtures 78,910 61,310 Construction in progress 20,810 24,228 Property, plant and equipment 1,060,200 964,154 Less: accumulated depreciation 390,125 324,851 Property, plant and equipment, net $ 670,075 $ 639,303 |
Schedule of Capital Leased Assets | The following balances held under capital lease and other finance obligations are included on the accompanying consolidated balance sheet: 2018 2017 (In thousands) Land $ 118,677 $ 114,010 Buildings and improvements 142,345 142,941 Machinery and equipment 27,188 21,875 Assets held under capital leases and other finance obligations 288,210 278,826 Less: accumulated amortization 21,786 15,367 Assets held under capital leases and other finance obligations, net $ 266,424 $ 263,459 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill | The following table sets forth the changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2018 and 2017 (in thousands): Northeast Southeast South West Total Balance as of December 31, 2017 Goodwill $ 97,102 $ 60,691 $ 329,662 $ 297,592 $ 785,047 Accumulated impairment losses (494 ) (615 ) (43,527 ) — (44,636 ) 96,608 60,076 286,135 297,592 740,411 Balance as of December 31, 2018 Goodwill $ 97,102 $ 60,691 $ 329,662 $ 297,592 $ 785,047 Accumulated impairment losses (494 ) (615 ) (43,527 ) — (44,636 ) $ 96,608 $ 60,076 $ 286,135 $ 297,592 $ 740,411 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents intangible assets as of December 31: 2018 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Customer relationships $ 149,045 $ (63,187 ) $ 149,045 $ (48,925 ) Trade names 51,361 (34,065 ) 51,361 (22,554 ) Non-compete agreements 1,379 (1,379 ) 1,379 (1,081 ) Favorable lease intangibles 6,409 (6,409 ) 6,409 (3,067 ) Total intangible assets $ 208,194 $ (105,040 ) $ 208,194 $ (75,627 ) Unfavorable lease obligations (included in Accrued liabilities and Other long-term liabilities) $ (19,597 ) $ 19,597 $ (19,597 ) $ 13,666 |
Estimated Amortization Expense for Intangible Assets | The following table presents the estimated amortization expense for these intangible assets for the years ending December 31 (in thousands): 2019 $ 14,784 2020 13,164 2021 11,903 2022 10,923 2023 10,034 Thereafter 42,346 Total future net intangible amortization expense $ 103,154 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2018 December 31, 2017 Accrued payroll and other employee related expenses $ 145,313 $ 127,745 Contract liabilities 42,054 37,237 Customer obligations 11,762 9,657 Self-insurance reserves 35,304 32,424 Accrued business taxes 28,954 28,460 Accrued interest 13,164 14,403 Other 15,975 21,671 Total accrued liabilities $ 292,526 $ 271,597 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following (in thousands): December 31, 2018 December 31, 2017 2022 facility (1) $ 179,000 $ 350,000 2024 notes 696,361 750,000 2024 term loan (2) 458,250 462,950 Other finance obligations (Note 9) 227,071 225,070 Capital lease obligations (Note 9) 16,445 15,431 1,577,127 1,803,451 Unamortized debt discount and debt issuance costs (15,833 ) (19,031 ) 1,561,294 1,784,420 Less: current maturities of long-term debt and lease obligations 15,565 12,475 Long-term debt, net of current maturities $ 1,545,729 $ 1,771,945 (1) The weighted average interest rate was 3.9% and 2.9% as of December 31, 2018 and 2017, respectively. (2) The weighted average interest rate was 5.2% and 4.3% as of December 31, 2018 and 2017, respectively. |
Future Maturities of Long-Term Debt | Future maturities of long-term debt as of December 31, 2018 were as follows (in thousands): Year ending December 31, 2019 $ 4,700 2020 4,700 2021 4,700 2022 4,700 2023 183,700 Thereafter 1,131,111 Total long-term debt (including current maturities) $ 1,333,611 |
Leases and Other Finance Obli_2
Leases and Other Finance Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Noncancelable Operating Leases Payments | Future minimum commitments for noncancelable operating leases with initial or remaining lease terms in excess of one year are as follows: Related Party Total* (In thousands) Year ending December 31, 2019 $ 1,061 $ 77,297 2020 1,053 63,633 2021 712 51,804 2022 580 37,054 2023 60 23,327 Thereafter 261 57,000 $ 3,727 $ 310,115 * Includes related party future minimum commitments for noncancelable operating leases. |
Future Minimum Lease Payments for Capital Lease Obligations | The Company leases certain property and equipment under capital leases expiring through 2021. These leases require monthly payments of principal and interest, imputed at various interest rates. Future minimum lease payments as of December 31, 2018 are as follows (in thousands): Years ending December 31, 2019 $ 10,784 2020 5,392 2021 1,242 Thereafter — Total minimum lease payments 17,418 Less: amount representing interest (973 ) Present value of net minimum payments 16,445 Less: current portion (10,039 ) Long-term capital lease obligations, net of current portion $ 6,406 |
Future Minimum Lease Payments for Other Finance Obligations | Future minimum commitments for other finance obligations as of December 31, 2018 were as follows (in thousands): Year ending December 31, 2019 $ 18,715 2020 18,632 2021 17,960 2022 17,849 2023 17,860 Thereafter 222,821 Total $ 313,837 |
Employee Stock-Based Compensa_2
Employee Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Option Activity | The following table summarizes our stock option activity: Options Weighted Weighted Aggregate (In thousands) (In thousands) Outstanding at December 31, 2017 2,104 $ 5.66 Granted — $ — Exercised (770 ) $ 5.13 Forfeited (2 ) $ 9.72 Outstanding at December 31, 2018 1,332 $ 5.97 4.4 $ 6,581 Exercisable at December 31, 2018 1,229 $ 5.71 4.1 $ 6,386 |
Outstanding and Exercisable Stock Options | Outstanding and exercisable stock options at December 31, 2018 were as follows (shares in thousands): Outstanding Exercisable Range of Exercise Prices Shares Weighted Weighted Shares Weighted $3.15 190 $ 3.15 5.0 190 $ 3.15 $3.19 336 $ 3.19 1.1 336 $ 3.19 $6.35 - $6.59 146 $ 6.44 6.5 84 $ 6.42 $7.67- $12.94 660 $ 8.09 5.4 619 $ 7.77 $3.15 - $12.94 1,332 $ 5.97 4.4 1,229 $ 5.71 |
Service Condition Based Restricted Stock Unit Grants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Unit Activity | The following table summarizes activity for RSUs subject solely to service conditions for the year ended December 31, 2018 (shares in thousands): Shares Weighted Nonvested at December 31, 2017 1,331 $ 10.77 Granted 504 $ 20.23 Vested (889 ) $ 10.37 Forfeited (38 ) $ 14.27 Nonvested at December 31, 2018 908 $ 16.25 |
Performance and Service Condition Based Restricted Stock Unit Grants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Unit Activity | The following table summarizes activity for RSUs subject to both performance and service conditions for the year ended December 31, 2018 (shares in thousands): Shares Weighted Nonvested at December 31, 2017 487 $ 13.04 Granted 159 $ 21.15 Vested (43 ) $ 14.49 Forfeited (47 ) $ 14.21 Nonvested at December 31, 2018 556 $ 15.16 |
Market and Service Condition Based Restricted Stock Unit Grants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Unit Activity | The following table summarizes activity for RSUs subject to both market and service conditions for the year ended December 31, 2018 (shares in thousands): Shares Weighted Nonvested at December 31, 2017 431 $ 9.16 Granted 159 $ 21.96 Vested (43 ) $ 12.30 Forfeited (47 ) $ 11.22 Nonvested at December 31, 2018 500 $ 12.78 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) Included in Continuing Operations | The components of income tax expense (benefit) included in continuing operations were as follows for the years ended December 31: 2018 2017 2016 (In thousands) Current: Federal $ (1,831 ) $ 1,831 $ — State 5,572 2,213 2,115 3,741 4,044 2,115 Deferred: Federal 45,934 49,710 (110,720 ) State 5,889 (606 ) (14,067 ) 51,823 49,104 (124,787 ) Income tax expense (benefit) $ 55,564 $ 53,148 $ (122,672 ) |
Reconciliation of Deferred Tax Assets and Liabilities | Temporary differences, which give rise to deferred tax assets and liabilities, were as follows as of December 31: 2018 2017 (In thousands) Deferred tax assets related to: Accrued expenses $ 10,019 $ 9,615 Insurance reserves 13,245 11,299 Stock-based compensation expense 4,770 4,702 Accounts receivable 3,892 3,355 Inventories 13,348 11,370 Operating loss and credit carryforwards 38,813 68,066 84,087 108,407 Valuation allowance (2,409 ) (2,409 ) Total deferred tax assets 81,678 105,998 Deferred tax liabilities related to: Prepaid expenses (2,845 ) (2,706 ) Goodwill and other intangible assets (28,055 ) (19,431 ) Property, plant and equipment (26,670 ) (8,593 ) Other (1,342 ) (163 ) Total deferred tax liabilities (58,912 ) (30,893 ) Net deferred tax asset $ 22,766 $ 75,105 |
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 for the years ended December 31: 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal income tax 4.3 7.7 6.1 Valuation allowance — (3.1 ) (607.9 ) Stock compensation windfall benefit (1.6 ) (5.5 ) — Enactment of federal income tax rate change — 31.5 — Permanent difference – 162(m) limitation 0.6 0.8 0.6 Permanent difference – credits (4.6 ) (9.6 ) (1.2 ) Permanent difference – other 1.4 0.9 0.4 Other 0.2 0.1 0.9 21.3 % 57.8 % (566.1 )% |
Changes in Valuation Allowance | The following table shows the changes in our valuation allowance: 2018 2017 2016 (In thousands) Balance at January 1, $ 2,409 $ 4,821 $ 136,548 Additions charged to expense — — — Reductions credited to expense — (2,839 ) (131,727 ) Enactment of federal income tax rate change — 427 — Deductions — — — Balance at December 31, $ 2,409 $ 2,409 $ 4,821 |
Segment and Product Informati_2
Segment and Product Information (Tables) | 12 Months Ended |
Dec. 31, 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 consolidated total operations, for the years ended December 31, (in thousands): 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,340,637 $ 13,582 $ 23,786 $ 33,496 Southeast 1,704,313 11,746 25,733 66,191 South 2,050,961 21,422 26,367 110,613 West 2,461,585 27,405 40,223 105,906 Total reportable segments 7,557,496 74,155 116,109 316,206 All other 167,275 23,751 (7,896 ) (55,451 ) Total consolidated $ 7,724,771 $ 97,906 $ 108,213 $ 260,755 2017 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,285,286 $ 13,255 $ 20,893 $ 40,358 Southeast 1,542,330 10,457 22,939 49,738 South 1,855,425 19,724 23,320 90,230 West 2,188,696 26,901 32,058 85,629 Total reportable segments 6,871,737 70,337 99,210 265,955 All other 162,472 22,656 93,964 (174,026 ) Total consolidated $ 7,034,209 $ 92,993 $ 193,174 $ 91,929 2016 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 1,204,100 $ 18,220 $ 18,660 $ 35,347 Southeast 1,362,259 11,242 19,768 40,256 South 1,699,371 21,822 22,303 71,806 West 1,939,206 33,764 27,130 72,810 Total reportable segments 6,204,936 85,048 87,861 220,219 All other 162,348 24,745 126,806 (198,550 ) Total consolidated $ 6,367,284 $ 109,793 $ 214,667 $ 21,669 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following tables summarize the consolidated quarterly results of operations for 2018 and 2017 (in thousands, except per share amounts): 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,700,436 $ 2,089,888 $ 2,118,467 $ 1,815,980 Gross margin 411,052 496,328 522,781 492,779 Net income 23,220 56,622 73,328 52,021 (1) Net income per share Basic $ 0.20 $ 0.49 $ 0.64 $ 0.45 (1) Diluted $ 0.20 $ 0.49 $ 0.63 $ 0.45 (1) 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,533,064 $ 1,843,297 $ 1,878,909 $ 1,778,939 Gross margin 376,052 460,797 459,322 431,220 Net income (loss) 3,822 (2) 37,910 (3) 39,750 (4) (42,701 ) (5) Net income (loss) per share Basic $ 0.03 (2) $ 0.34 (3) $ 0.35 (4) $ (0.38 ) (5) Diluted $ 0.03 (2) $ 0.33 (3) $ 0.34 (4) $ (0.38 ) (5) (1) Includes a gain on debt extinguishment of $3.2 million as discussed in Note 8. (2) Includes the write-off of debt discount and debt issuance costs of $1.0 million and financing costs of $1.4 million as discussed in Note 8. (3) Includes a valuation allowance of $(3.7) million as discussed in Note 11. (4) Includes a valuation allowance of $(0.1) million as discussed in Note 11. (5) Includes a loss on debt extinguishment of $56.3 million as discussed in Note 8, income tax expense of $29.0 million due to the enactment of a federal income tax rate change in December 2017, and a valuation allowance of $1.0 million as discussed in Note 11. |
Description of the Business - A
Description of the Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018StoreStates | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Entity formed, year | 1,998 |
Number of Locations | Store | 401 |
Number of states | States | 39 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||||
Dec. 31, 2018USD ($)Customershares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | Feb. 23, 2017USD ($) | Aug. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||||||
Sales return reserve | $ 6,900,000 | $ 6,800,000 | |||||
Insurance reserve balance | $ 84,700,000 | $ 78,000,000 | |||||
Securities included in the computation of diluted EPS | shares | 1,332,000 | 2,104,000 | |||||
Debt instrument carrying amount | $ 1,577,127,000 | $ 1,803,451,000 | |||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect adjustment to beginning balance retained earnings including tax | $ 2,000,000 | ||||||
Cumulative effect adjustment to beginning balance retained earnings net of tax | $ 1,500,000 | ||||||
2024 Notes | |||||||
Significant Accounting Policies [Line Items] | |||||||
Private offered aggregate principal amount rate | 5.625% | 5.625% | |||||
Debt instrument carrying amount | $ 696,361,000 | 750,000,000 | $ 750,000,000 | ||||
2024 Notes | Level 2 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Fair value of long term debt | 649,200,000 | ||||||
2024 Term Loan | |||||||
Significant Accounting Policies [Line Items] | |||||||
Debt instrument carrying amount | $ 458,300 | $ 458,300,000 | |||||
2024 Term Loan | Level 2 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Fair value of long term debt | 430,800,000 | ||||||
2022 Facility | |||||||
Significant Accounting Policies [Line Items] | |||||||
Line of credit facility maximum borrowing capacity | $ 900,000,000 | ||||||
Stock Options | |||||||
Significant Accounting Policies [Line Items] | |||||||
Securities included in the computation of diluted EPS | shares | 1,332,000 | 2,104,000 | 3,515,000 | ||||
Restricted Stock Units (RSUs) | |||||||
Significant Accounting Policies [Line Items] | |||||||
Securities included in the computation of diluted EPS | shares | 1,964,000 | 2,249,000 | 2,177,000 | ||||
Other Long-term Liabilities | |||||||
Significant Accounting Policies [Line Items] | |||||||
Insurance reserve balance | $ 49,400,000 | $ 45,600,000 | |||||
Other Receivables and Other Assets | |||||||
Significant Accounting Policies [Line Items] | |||||||
Insurance receivable for claims that exceeds stop-loss limits | $ 9,100,000 | 8,900,000 | |||||
Leasehold Improvements | |||||||
Significant Accounting Policies [Line Items] | |||||||
Leasehold improvements | The shorter of the estimated useful life or the remaining lease term | ||||||
Computer Software | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives | 3 years | ||||||
Minimum | Subsequent Event | |||||||
Significant Accounting Policies [Line Items] | |||||||
Operating lease liability | $ 250,000,000 | ||||||
Operating lease, right-of-use assets | 250,000,000 | ||||||
Minimum | Buildings and Improvements | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives | 10 years | ||||||
Minimum | Machinery and Equipment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives | 3 years | ||||||
Minimum | Furniture and Fixtures | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives | 3 years | ||||||
Maximum | Subsequent Event | |||||||
Significant Accounting Policies [Line Items] | |||||||
Operating lease liability | 300,000,000 | ||||||
Operating lease, right-of-use assets | $ 300,000,000 | ||||||
Maximum | Buildings and Improvements | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives | 40 years | ||||||
Maximum | Machinery and Equipment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives | 10 years | ||||||
Maximum | Furniture and Fixtures | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives | 5 years | ||||||
Shipping and Handling Costs | |||||||
Significant Accounting Policies [Line Items] | |||||||
Shipping and handling costs | $ 322,900,000 | $ 296,200,000 | $ 269,800,000 | ||||
Customer Concentration Risk | Sales Revenue, Net | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of top sales customers | Customer | 10 | ||||||
Percentage of net revenue from major customers | 16.80% | ||||||
Maximum sale to single customer, percentage | 5.00% | ||||||
Supplier Concentration Risk | Cost of Goods Sold | |||||||
Significant Accounting Policies [Line Items] | |||||||
Maximum purchases from single supplier, percentage | 8.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Accounts Receivable - Classified (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Reconciliation of accounts receivable - classified | ||
Accounts Receivable | $ 667,224 | $ 643,763 |
Less: allowances for returns and doubtful accounts | 13,054 | 11,771 |
Accounts receivable, net | $ 654,170 | $ 631,992 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Rollforward of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Rollforward of allowance for doubtful accounts | |||
Beginning Balance | $ 4,973 | $ 5,922 | $ 4,245 |
Additions | 5,284 | 197 | 1,390 |
Deductions (write-offs, net of recoveries) | (4,062) | (1,146) | 287 |
Ending Balance | $ 6,195 | $ 4,973 | $ 5,922 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of weighted average common shares used in calculation of basic and diluted EPS | |||
Weighted average shares for basic EPS | 114,586 | 112,587 | 110,754 |
Dilutive effect of options and RSUs | 1,968 | 3,010 | 2,831 |
Weighted average shares for diluted EPS | 116,554 | 115,597 | 113,585 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Restricted Stock Unit Valuation (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of fair value option award of weighted average assumptions | |||
Expected volatility (company) | 59.20% | 60.90% | |
Market Condition Based Restricted Stock Unit Grants | |||
Schedule of fair value option award of weighted average assumptions | |||
Expected volatility (company) | 53.90% | 73.70% | 53.60% |
Expected volatility (peer group median) | 28.40% | 33.80% | 17.30% |
Correlation between the company and peer group median | 0.39 | 0.33 | 0.47 |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free rate | 2.30% | 1.50% | 1.29% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Stock Option Valuation (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Expected life | 6 years | 6 years |
Expected volatility | 59.20% | 60.90% |
Expected dividend yield | 0.00% | 0.00% |
Risk-free rate | 2.20% | 1.41% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash payments for interest | $ 107,668 | $ 193,429 | $ 197,384 |
Cash payments for income taxes | $ 3,153 | $ 5,643 | $ 2,875 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Payments of debt extinguishment costs classified as financing outflows | $ 134 | $ 48,704 | $ 42,869 |
Revenue - Sales by Product Cate
Revenue - Sales by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Total sales | $ 1,815,980 | $ 2,118,467 | $ 2,089,888 | $ 1,700,436 | $ 1,778,939 | $ 1,878,909 | $ 1,843,297 | $ 1,533,064 | $ 7,724,771 | $ 7,034,209 | $ 6,367,284 |
Lumber and Lumber Sheet Goods | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Total sales | 2,902,155 | 2,510,945 | 2,131,394 | ||||||||
Manufactured Products | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Total sales | 1,392,043 | 1,208,555 | 1,097,665 | ||||||||
Windows, Doors and Millwork | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Total sales | 1,445,858 | 1,360,567 | 1,286,151 | ||||||||
Gypsum, Roofing and Insulation | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Total sales | 528,439 | 538,378 | 520,007 | ||||||||
Siding, Metal and Concrete Products | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Total sales | 697,744 | 655,889 | 622,344 | ||||||||
Other Building Products and Services | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Total sales | $ 758,532 | $ 759,875 | $ 709,723 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Contract liability | $ 42,054 | $ 37,237 |
Transferred over Time | Maximum | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage of sales related to contracts with service | 10.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | $ 1,060,200 | $ 964,154 |
Less: accumulated depreciation | 390,125 | 324,851 |
Property, plant and equipment, net | 670,075 | 639,303 |
Land | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 198,304 | 188,551 |
Buildings and Improvements | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 358,411 | 337,536 |
Machinery and Equipment | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 403,765 | 352,529 |
Furniture and Fixtures | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 78,910 | 61,310 |
Construction in Progress | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | $ 20,810 | $ 24,228 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 74.4 | $ 71.1 | $ 87.2 |
Depreciation expense included in cost of goods | $ 18.6 | $ 9.8 | $ 9.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Assets Held Under Lease (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Assets held under capital leases and other finance obligations | $ 288,210 | $ 278,826 |
Less: accumulated amortization | 21,786 | 15,367 |
Assets held under capital leases and other finance obligations, net | 266,424 | 263,459 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Assets held under capital leases and other finance obligations | 118,677 | 114,010 |
Buildings and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Assets held under capital leases and other finance obligations | 142,345 | 142,941 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Assets held under capital leases and other finance obligations | $ 27,188 | $ 21,875 |
Goodwill - Schedule of Change i
Goodwill - Schedule of Change in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 785,047 | $ 785,047 |
Accumulated impairment losses | (44,636) | (44,636) |
Goodwill, net | 740,411 | 740,411 |
Northeast | ||
Goodwill [Line Items] | ||
Goodwill | 97,102 | 97,102 |
Accumulated impairment losses | (494) | (494) |
Goodwill, net | 96,608 | 96,608 |
Southeast | ||
Goodwill [Line Items] | ||
Goodwill | 60,691 | 60,691 |
Accumulated impairment losses | (615) | (615) |
Goodwill, net | 60,076 | 60,076 |
South | ||
Goodwill [Line Items] | ||
Goodwill | 329,662 | 329,662 |
Accumulated impairment losses | (43,527) | (43,527) |
Goodwill, net | 286,135 | 286,135 |
West | ||
Goodwill [Line Items] | ||
Goodwill | 297,592 | 297,592 |
Goodwill, net | $ 297,592 | $ 297,592 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Period of projection of financial performance | 5 years | ||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 208,194 | $ 208,194 |
Accumulated Amortization | (105,040) | (75,627) |
Unfavorable Lease Obligation Gross | (19,597) | (19,597) |
Unfavorable Lease Obligation Accumulated Amortization | 19,597 | 13,666 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 149,045 | 149,045 |
Accumulated Amortization | (63,187) | (48,925) |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 51,361 | 51,361 |
Accumulated Amortization | (34,065) | (22,554) |
Noncompete Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,379 | 1,379 |
Accumulated Amortization | (1,379) | (1,081) |
Favorable Lease Intangibles | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,409 | 6,409 |
Accumulated Amortization | $ (6,409) | $ (3,067) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization Expenses | $ 23,500,000 | $ 21,900,000 | $ 22,600,000 |
Impairment charge against intangible assets | $ 0 | $ 0 | $ 0 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense for Intangible Assets (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,019 | $ 14,784 |
2,020 | 13,164 |
2,021 | 11,903 |
2,022 | 10,923 |
2,023 | 10,034 |
Thereafter | 42,346 |
Total future net intangible amortization expense | $ 103,154 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of accrued liabilities | ||
Accrued payroll and other employee related expenses | $ 145,313 | $ 127,745 |
Contract liability | 42,054 | 37,237 |
Customer obligations | 11,762 | 9,657 |
Self-insurance reserves | 35,304 | 32,424 |
Accrued business taxes | 28,954 | 28,460 |
Accrued interest | 13,164 | 14,403 |
Other | 15,975 | 21,671 |
Total accrued liabilities | $ 292,526 | $ 271,597 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2016 |
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | $ 1,577,127 | $ 1,803,451 | |
Unamortized debt discount and debt issuance costs | (15,833) | (19,031) | |
Long-term debt and capital lease obligation | 1,561,294 | 1,784,420 | |
Less: current maturities of long-term debt and lease obligations | 15,565 | 12,475 | |
Long-term debt, net of current maturities | 1,545,729 | 1,771,945 | |
2022 Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | 179,000 | 350,000 | |
2024 Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | 696,361 | 750,000 | $ 750,000 |
2024 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | 458,250 | 462,950 | |
Other Finance Obligations | |||
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | 227,071 | 225,070 | |
Capital Lease Obligations | |||
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | $ 16,445 | $ 15,431 |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 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 | 5.20% | 4.30% |
Long-Term Debt - 2016 Debt Tran
Long-Term Debt - 2016 Debt Transactions - Additional Information (Detail) | Dec. 31, 2016 |
2021 notes | |
Debt Instrument [Line Items] | |
Private offered aggregate principal amount rate | 7.625% |
2023 notes | |
Debt Instrument [Line Items] | |
Private offered aggregate principal amount rate | 10.75% |
Long-Term Debt - Note Exchange
Long-Term Debt - Note Exchange Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 12, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2016 |
Debt Instrument [Line Items] | ||||||||||
Gain (loss) on extinguishment of debt | $ 3,200 | $ (56,300) | $ 3,170 | $ (56,657) | $ (55,776) | |||||
Write off of unamortized deferred loan cost | $ 1,000 | |||||||||
Debt issuance costs | $ 12,000 | |||||||||
2023 notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of debt extinguishment | $ 63,800 | $ 218,600 | ||||||||
Gain (loss) on extinguishment of debt | $ (9,700) | 7,800 | ||||||||
Reduction in Principal from Debt Extinguishment | 8,500 | 14,800 | ||||||||
Write off of unamortized deferred loan cost | 1,200 | 7,000 | ||||||||
2021 notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 60,000 | $ 207,600 | ||||||||
Reduction in Principal from Debt Extinguishment | 33,300 | |||||||||
Write off of unamortized deferred loan cost | 10,600 | |||||||||
Debt issuance costs | $ 4,900 | $ 4,900 |
Long-Term Debt - Note Redemptio
Long-Term Debt - Note Redemption Transaction - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2016 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||||||
Gain (loss) on extinguishment of debt | $ 3,200 | $ (56,300) | $ 3,170 | $ (56,657) | $ (55,776) | |||
Write off of unamortized deferred issuance cost | $ 1,000 | |||||||
2021 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Purchase of notes, aggregate principal amount | $ 582,600 | |||||||
Reduction in Principal from Debt Extinguishment | 33,300 | |||||||
Write off of unamortized deferred issuance cost | 10,600 | |||||||
2021 notes | Note Redemption Transaction | ||||||||
Debt Instrument [Line Items] | ||||||||
Purchase of notes, aggregate principal amount | $ 35,000 | |||||||
Purchase price, Percentage of principal amount | 103.00% | |||||||
Gain (loss) on extinguishment of debt | (1,700) | |||||||
Reduction in Principal from Debt Extinguishment | 1,100 | |||||||
Write off of unamortized deferred issuance cost | $ 600 |
Long-Term Debt - 2016 Refinanci
Long-Term Debt - 2016 Refinancing Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2016 | Aug. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||
Debt instrument carrying amount | $ 1,577,127 | $ 1,803,451 | $ 1,577,127 | $ 1,803,451 | |||||
Gain (loss) on extinguishment of debt | 3,200 | (56,300) | 3,170 | (56,657) | $ (55,776) | ||||
Write off of unamortized deferred loan cost | $ 1,000 | ||||||||
Debt issuance costs | $ 12,000 | ||||||||
Unamortized debt discount and debt issuance costs | 15,833 | 19,031 | 15,833 | 19,031 | |||||
2024 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument carrying amount | $ 750,000 | $ 696,361 | $ 750,000 | $ 696,361 | $ 750,000 | ||||
Private offered aggregate principal amount rate | 5.625% | 5.625% | 5.625% | ||||||
Net percentage of proceeds from debt issuance | 100.00% | ||||||||
Debt issuance costs | $ 10,500 | ||||||||
Previous Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Mandatory principal repayment amount | $ 1,375 | 1,175 | |||||||
Repayment of term loan | 125,900 | ||||||||
Gain (loss) on extinguishment of debt | $ (8,200) | ||||||||
Debt issuance costs | $ 1,500 | 300 | |||||||
Debt issuance costs recorded to interest expense | 1,200 | ||||||||
Unamortized debt discount and debt issuance costs | $ 10,900 | ||||||||
Previous Term Loan | Eurodollar Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument applicable rate | 3.75% | ||||||||
Debt instrument decrease in applicable margin | 1.25% | ||||||||
Previous Term Loan | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument applicable rate | 2.75% | ||||||||
Debt instrument decrease in applicable margin | 1.25% | ||||||||
2021 notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Private offered aggregate principal amount rate | 7.625% | ||||||||
Purchase of notes, aggregate principal amount | $ 582,600 | ||||||||
Reduction in Principal from Debt Extinguishment | $ 33,300 | ||||||||
Write off of unamortized deferred loan cost | 10,600 | ||||||||
Debt issuance costs | 4,900 | ||||||||
2021 notes | 2016 Refinancing Transactions | |||||||||
Debt Instrument [Line Items] | |||||||||
Gain (loss) on extinguishment of debt | $ (43,900) |
Long-Term Debt - Tender Offer -
Long-Term Debt - Tender Offer - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||||||
Gain (loss) on extinguishment of debt | $ 3,200 | $ (56,300) | $ 3,170 | $ (56,657) | $ (55,776) | |||
Write off of unamortized deferred loan cost | $ 1,000 | |||||||
Other debt extinguishment costs | $ 134 | $ 48,704 | 42,869 | |||||
2015 facility | Selling, General, and Administrative Expense | ||||||||
Debt Instrument [Line Items] | ||||||||
Other debt extinguishment costs | $ 100 | |||||||
2023 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Purchase of notes, aggregate principal amount | $ 50,000 | |||||||
Purchase price, Percentage of principal amount | 117.00% | |||||||
Gain (loss) on extinguishment of debt | (9,700) | 7,800 | ||||||
Reduction in Principal from Debt Extinguishment | 8,500 | 14,800 | ||||||
Write off of unamortized deferred loan cost | $ 1,200 | $ 7,000 |
Long-Term Debt - Term Loan Amen
Long-Term Debt - Term Loan Amendment - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Unamortized debt discount and debt issuance costs | $ 15,833 | $ 19,031 | |
2024 Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan facility amount | $ 467,700 | ||
Interest rate reduced due to repricing of term loan credit agreement | 0.75% | ||
Senior secured term loan extended maturity period | 19 months | ||
Senior secured term loan maturity date | Feb. 29, 2024 | Feb. 29, 2024 | |
Write-off of unamortized debt discount and debt issuance cost | $ 400 | ||
Lender fees paid in connection with 2024 term loan amendment | 1,200 | ||
Unamortized debt discount and debt issuance costs | 10,000 | ||
Debt issuance costs recorded to interest expense | $ 1,400 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility Amendment - Additional Information (Detail) - USD ($) | Mar. 22, 2017 | Mar. 31, 2017 | Aug. 31, 2016 |
Debt Instrument [Line Items] | |||
Write off of unamortized deferred issuance cost | $ 1,000,000 | ||
Debt issuance costs | $ 12,000,000 | ||
2022 Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility maximum borrowing capacity | $ 900,000,000 | ||
Senior secured term loan extended maturity period | 20 months | ||
Senior secured term loan maturity date | Mar. 22, 2022 | ||
Write off of unamortized deferred issuance cost | 600,000 | ||
Debt issuance costs | 1,600,000 | ||
Unamortized debt discount and debt issuance costs | $ 8,500,000 |
Long-Term Debt - 2023 Notes Red
Long-Term Debt - 2023 Notes Redemption - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ 3,200 | $ (56,300) | $ 3,170 | $ (56,657) | $ (55,776) | |
Write off of unamortized deferred loan cost | $ 1,000 | |||||
2023 notes | ||||||
Debt Instrument [Line Items] | ||||||
Purchase of notes, aggregate principal amount | $ 367,600 | |||||
Purchase price, Percentage of principal amount | 113.249% | |||||
Gain (loss) on extinguishment of debt | $ (56,300) | |||||
Reduction in Principal from Debt Extinguishment | 48,700 | |||||
Write off of unamortized deferred loan cost | $ 7,600 |
Long-Term Debt - 2018 Debt Tran
Long-Term Debt - 2018 Debt Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||||
Notes outstanding | $ 1,577,127 | $ 1,803,451 | $ 1,577,127 | $ 1,803,451 | |||
Gain (loss) on extinguishment of debt | 3,200 | $ (56,300) | 3,170 | $ (56,657) | $ (55,776) | ||
Write off of unamortized deferred loan cost | $ 1,000 | ||||||
2024 notes | |||||||
Debt Instrument [Line Items] | |||||||
Notes repurchase amount | 53,600 | 53,600 | |||||
Notes outstanding | $ 696,400 | 696,400 | |||||
Gain (loss) on extinguishment of debt | 3,200 | ||||||
Gain (Loss) on repurchase of debt instrument | 3,700 | ||||||
Write off of unamortized deferred loan cost | $ 500 | ||||||
2024 notes | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Notes repurchase amount | $ 20,400 | ||||||
Notes outstanding | $ 675,900 | ||||||
Minimum | 2024 notes | |||||||
Debt Instrument [Line Items] | |||||||
Purchase price, Percentage of principal amount | 91.50% | ||||||
Minimum | 2024 notes | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Purchase price, Percentage of principal amount | 94.90% | ||||||
Maximum | 2024 notes | |||||||
Debt Instrument [Line Items] | |||||||
Purchase price, Percentage of principal amount | 94.25% | ||||||
Maximum | 2024 notes | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Purchase price, Percentage of principal amount | 95.90% |
Long-Term Debt - 2024 Term Loan
Long-Term Debt - 2024 Term Loan Credit Agreement - Additional Information (Detail) - USD ($) | Feb. 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | $ 1,577,127,000 | $ 1,803,451,000 | |
2024 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | $ 458,300,000 | $ 458,300 | |
Senior secured term loan maturity date | Feb. 29, 2024 | Feb. 29, 2024 | |
Debt instrument interest rate description | The 2024 term loan bears interest based on either a eurodollar or base rate (a rate equal to the highest of an agreed commercially available benchmark rate, the federal funds effective rate plus 0.50% or the eurodollar rate plus 1.0%, as selected by the Company) plus, in each case, an applicable margin. | ||
Mandatory principal repayment amount | $ 1,175,000 | ||
Debt instrument interest rate terms | payable in March, June, September, and December of each year, | ||
2024 Term Loan | Federal Funds Effective Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument applicable margin rate | 0.50% | ||
2024 Term Loan | Eurodollar Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument applicable margin rate | 1.00% | ||
2024 Term Loan | Eurodollar Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument applicable margin rate | 3.00% | ||
2024 Term Loan | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument applicable margin rate | 2.00% |
Long-Term Debt - 2022 Revolving
Long-Term Debt - 2022 Revolving Credit Facility - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Notes outstanding | $ 1,577,127,000 | $ 1,803,451,000 |
Outstanding letters of credit | 82,200,000 | |
2022 Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility maximum borrowing capacity | 900,000,000 | |
Line of credit facility, excess remaining borrowing capacity | 585,400,000 | |
Notes outstanding | 179,000,000 | |
Outstanding letters of credit | $ 82,200,000 | |
Line of credit commitment fee percentage | 0.25% | |
Interest rates of outstanding letters of credit | 1.25% | |
Fronting fee per annum | 0.125% | |
Minimum fixed charge ratio | 1 | |
Debt instrument, covenant description | In addition, the 2022 facility also contains a financial covenant requiring the satisfaction of a minimum fixed charge ratio of 1.00 to 1.00 if our excess availability falls below the greater of $80.0 million or 10% of the maximum borrowing amount, which was $84.7 million as of December 31, 2018. | |
Debt instrument minimum excess availability-dollars | $ 80,000,000 | |
Debt instrument minimum excess availability-percentage | 10.00% | |
Debt instrument covenant maximum borrowing capacity amount | $ 84,700,000 | |
2022 Facility | Minimum | Eurodollar Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument applicable rate | 1.25% | |
2022 Facility | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument applicable rate | 0.25% | |
2022 Facility | Maximum | Eurodollar Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument applicable rate | 1.75% | |
2022 Facility | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument applicable rate | 0.75% |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Notes due 2024 - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2016 | |
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | $ 1,577,127 | $ 1,803,451 | |
2024 Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument carrying amount | $ 696,361 | $ 750,000 | $ 750,000 |
Senior secured term loan maturity date | Sep. 1, 2024 | ||
Private offered aggregate principal amount rate | 5.625% | 5.625% | |
Debt instrument interest rate terms | Payable semi-annually on March 1 and September 1 of each year. | ||
Purchase price, Percentage of principal amount | 101.00% | ||
Redemption period | 36 months | ||
2024 Notes | Redemption Period Prior to September 1, 2019 | |||
Debt Instrument [Line Items] | |||
Purchase price, Percentage of principal amount | 100.00% | ||
2024 Notes | Redemption Period Following August 22, 2016 for Each Twelve-month | |||
Debt Instrument [Line Items] | |||
Purchase price, Percentage of principal amount | 103.00% | ||
2024 Notes | Redemption Price Using Proceeds From Equity Offering | |||
Debt Instrument [Line Items] | |||
Purchase price, Percentage of principal amount | 105.625% | ||
2024 Notes | Maximum | |||
Debt Instrument [Line Items] | |||
Redemption percentage of aggregate principal amount redeemable in each twelve-month period commencing on closing date | 10.00% | ||
Redemption percentage of aggregate principal amount | 40.00% |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Long-Term Debt (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Long Term Debt By Maturity [Abstract] | |
2,019 | $ 4,700 |
2,020 | 4,700 |
2,021 | 4,700 |
2,022 | 4,700 |
2,023 | 183,700 |
Thereafter | 1,131,111 |
Total long-term debt (including current maturities) | $ 1,333,611 |
Leases and Other Finance Obli_3
Leases and Other Finance Obligations - Operating Lease Obligations - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
Rent expenses under operating lease | $ 83.9 | $ 77.9 | $ 68.7 |
Guarantees under lease of residual value | $ 5.7 | ||
Property, Plant and Equipment | Minimum | |||
Operating Leased Assets [Line Items] | |||
Total lease term | 1 year | ||
Property, Plant and Equipment | Maximum | |||
Operating Leased Assets [Line Items] | |||
Total lease term | 15 years |
Leases and Other Finance Obli_4
Leases and Other Finance Obligations - Schedule of Future Noncancelable Operating Leases Payments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2,019 | $ 77,297 |
2,020 | 63,633 |
2,021 | 51,804 |
2,022 | 37,054 |
2,023 | 23,327 |
Thereafter | 57,000 |
Total lease payment | 310,115 |
Related Party | |
Operating Leased Assets [Line Items] | |
2,019 | 1,061 |
2,020 | 1,053 |
2,021 | 712 |
2,022 | 580 |
2,023 | 60 |
Thereafter | 261 |
Total lease payment | $ 3,727 |
Leases and Other Finance Obli_5
Leases and Other Finance Obligations - Capital Lease Obligations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Lease Obligations [Abstract] | |
Leases expiration period for property and equipment | 2,021 |
Leases and Other Finance Obli_6
Leases and Other Finance Obligations - Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Lease Obligations [Abstract] | |
2,019 | $ 10,784 |
2,020 | 5,392 |
2,021 | 1,242 |
Total minimum lease payments | 17,418 |
Less: amount representing interest | (973) |
Present value of net minimum payments | 16,445 |
Less: current portion | (10,039) |
Long-term capital lease obligations, net of current portion | $ 6,406 |
Leases and Other Finance Obli_7
Leases and Other Finance Obligations - Other Finance Obligations - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)Property | |
Other Finance Obligations [Line Items] | |
Number of leased properties with single lessor | Property | 140 |
Master lease agreement description | The Company is party to 140 individual property lease agreements with a single lessor as of December 31, 2018. These lease agreements have initial terms ranging from nine to fifteen years (expiring through 2021) and renewal options in five-year increments providing for up to approximately 30-year remaining total lease terms |
Other finance obligations | $ 227.1 |
Payment of other finance obligation | $ 21.7 |
Maximum | |
Other Finance Obligations [Line Items] | |
Total lease term | 30 years |
Leases and Other Finance Obli_8
Leases and Other Finance Obligations - Future Minimum Commitments for Other Finance Obligations and Lease Payments (Detail) - Other Finance Obligations $ in Thousands | Dec. 31, 2018USD ($) |
Sale Leaseback Transaction [Line Items] | |
2,019 | $ 18,715 |
2,020 | 18,632 |
2,021 | 17,960 |
2,022 | 17,849 |
2,023 | 17,860 |
Thereafter | 222,821 |
Total | $ 313,837 |
Employee Stock-Based Compensa_3
Employee Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 24, 2017 | May 31, 2016 | Apr. 30, 2016 | Jun. 27, 2015 | Jan. 01, 2005 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Option Outstanding | 1,332,000 | 2,104,000 | ||||||
Exercisable Options, Outstanding Number, Ending Balance | 1,229,000 | |||||||
Weighted average grant date fair value of option | $ 7.26 | $ 3.71 | ||||||
Intrinsic value option exercised | $ 10,900,000 | $ 16,400,000 | $ 11,600,000 | |||||
Stock compensation expense | 14,400,000 | 13,500,000 | 10,500,000 | |||||
Stock compensation expense net of taxes | 10,700,000 | 8,200,000 | 6,300,000 | |||||
Recognized excess tax benefits for stock options exercised | 4,200,000 | 5,100,000 | 0 | |||||
Total fair value of options vested | 2,700,000 | $ 2,700,000 | $ 2,800,000 | |||||
Total unrecognized compensation cost | $ 14,900,000 | |||||||
Expected weighted average recognition period | 2 years | |||||||
2014 Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares reserved for share based compensation award | 8,500,000 | 5,000,000 | ||||||
Shares available for issuance | 4,900,000 | |||||||
Option Outstanding | 199,000 | |||||||
Exercisable Options, Outstanding Number, Ending Balance | 96,000 | |||||||
2014 Incentive Plan | Minimum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock award granted vested period | 3 years | |||||||
2014 Incentive Plan | Maximum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock award granted vested period | 4 years | |||||||
2007 Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for issuance | 0 | |||||||
Option Outstanding | 696,000 | |||||||
Exercisable Options, Outstanding Number, Ending Balance | 696,000 | |||||||
2007 Incentive Plan | Minimum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock award granted vested period | 3 years | |||||||
2007 Incentive Plan | Maximum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock award granted vested period | 4 years | |||||||
2005 Equity Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock award granted vested period | 3 years | |||||||
Shares available for issuance | 0 | |||||||
Option Outstanding | 247,000 | |||||||
Exercisable Options, Outstanding Number, Ending Balance | 247,000 | |||||||
1998 Stock Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for issuance | 0 | |||||||
Option Outstanding | 190,000 | |||||||
Exercisable Options, Outstanding Number, Ending Balance | 190,000 | |||||||
1998 Stock Incentive Plan | Minimum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock award granted vested period | 7 years | |||||||
1998 Stock Incentive Plan | Maximum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock award granted vested period | 9 years | |||||||
Stock Options and SARS | 2014 Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Granted term | 10 years | |||||||
Options, Stock Appreciation Rights Or Stock-based Awards | 2014 Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares reserved for share based compensation award | 8,500,000 | |||||||
Options Or Stock Appreciation Rights | 2007 Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Granted term | 10 years | |||||||
Options Or Stock Appreciation Rights | 2005 Equity Incentive Plan | Maximum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Granted term | 10 years | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs Outstanding | 1,964,000 | 2,249,000 | 2,177,000 | |||||
Total fair value of restricted stock/unit | $ 10,400,000 | $ 6,900,000 | $ 3,900,000 | |||||
Restricted Stock Units (RSUs) | 2014 Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs Outstanding | 1,857,000 | |||||||
Restricted Stock Units (RSUs) | 2007 Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs Outstanding | 107,000 | |||||||
Service Condition Based Restricted Stock Unit Grants | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs Outstanding | 908,000 | 1,331,000 | ||||||
Weighted average grant date fair value, granted | $ 20.23 | $ 14.60 | $ 10.68 | |||||
Performance and Service Condition Based Restricted Stock Unit Grants | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs Outstanding | 556,000 | 487,000 | ||||||
Weighted average grant date fair value, granted | $ 21.15 | $ 15.38 | 10.96 | |||||
Market and Service Condition Based Restricted Stock Unit Grants | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs Outstanding | 500,000 | 431,000 | ||||||
Weighted average grant date fair value, granted | $ 21.96 | $ 11.49 | $ 7.58 |
Employee Stock-Based Compensa_4
Employee Stock-Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Summarizes stock option activity | |
Options, Outstanding Number, Beginning Balance | shares | 2,104 |
Options, Exercised | shares | (770) |
Options, Forfeited | shares | (2) |
Options, Outstanding Number, Ending Balance | shares | 1,332 |
Exercisable Options, Outstanding Number, Ending Balance | shares | 1,229 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 5.66 |
Weighted Average Exercise Price, Exercised | $ / shares | 5.13 |
Weighted Average Exercise Price, Forfeited | $ / shares | 9.72 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 5.97 |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 5.71 |
Weighted Average Remaining Years, Outstanding | 4 years 4 months 24 days |
Weighted Average Remaining Years, Exercisable | 4 years 1 month 6 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 6,581 |
Exercisable, Aggregate Intrinsic Value | $ | $ 6,386 |
Employee Stock-Based Compensa_5
Employee Stock-Based Compensation - Outstanding and Exercisable Stock Options (Detail) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding and exercisable stock options | ||
Option Outstanding | 1,332 | 2,104 |
Weighted Average Exercise Price | $ 5.97 | $ 5.66 |
Weighted Average Remaining Years, Outstanding | 4 years 4 months 24 days | |
Options Exercisable | 1,229 | |
Exercisable, Weighted Average Exercise Price | $ 5.71 | |
$ 3.15 | ||
Outstanding and exercisable stock options | ||
Range of Exercise Prices, Upper Range Limit | $ 3.15 | |
Option Outstanding | 190 | |
Weighted Average Exercise Price | $ 3.15 | |
Weighted Average Remaining Years, Outstanding | 5 years | |
Options Exercisable | 190 | |
Exercisable, Weighted Average Exercise Price | $ 3.15 | |
$ 3.19 | ||
Outstanding and exercisable stock options | ||
Range of Exercise Prices, Upper Range Limit | $ 3.19 | |
Option Outstanding | 336 | |
Weighted Average Exercise Price | $ 3.19 | |
Weighted Average Remaining Years, Outstanding | 1 year 1 month 6 days | |
Options Exercisable | 336 | |
Exercisable, Weighted Average Exercise Price | $ 3.19 | |
$6.35 - $6.59 | ||
Outstanding and exercisable stock options | ||
Range of Exercise Prices, Lower Range Limit | 6.35 | |
Range of Exercise Prices, Upper Range Limit | $ 6.59 | |
Option Outstanding | 146 | |
Weighted Average Exercise Price | $ 6.44 | |
Weighted Average Remaining Years, Outstanding | 6 years 6 months | |
Options Exercisable | 84 | |
Exercisable, Weighted Average Exercise Price | $ 6.42 | |
$7.67- $12.94 | ||
Outstanding and exercisable stock options | ||
Range of Exercise Prices, Lower Range Limit | 7.67 | |
Range of Exercise Prices, Upper Range Limit | $ 12.94 | |
Option Outstanding | 660 | |
Weighted Average Exercise Price | $ 8.09 | |
Weighted Average Remaining Years, Outstanding | 5 years 4 months 24 days | |
Options Exercisable | 619 | |
Exercisable, Weighted Average Exercise Price | $ 7.77 | |
$3.15 - $12.94 | ||
Outstanding and exercisable stock options | ||
Range of Exercise Prices, Lower Range Limit | 3.15 | |
Range of Exercise Prices, Upper Range Limit | $ 12.94 | |
Option Outstanding | 1,332 | |
Weighted Average Exercise Price | $ 5.97 | |
Weighted Average Remaining Years, Outstanding | 4 years 4 months 24 days | |
Options Exercisable | 1,229 | |
Exercisable, Weighted Average Exercise Price | $ 5.71 |
Employee Stock-Based Compensa_6
Employee Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Service Condition Based Restricted Stock Unit Grants | |||
Summarizes restricted stock activity | |||
Shares, Nonvested, Beginning balance | 1,331 | ||
Shares, Granted | 504 | ||
Shares, Vested | (889) | ||
Shares, Forfeited | (38) | ||
Shares, Nonvested, Ending balance | 908 | 1,331 | |
Weighted Average Grant Date Fair Value, Nonvested, Beginning Balance | $ 10.77 | ||
Weighted Average Grant Date Fair Value, Granted | 20.23 | $ 14.60 | $ 10.68 |
Weighted Average Grant Date Fair Value, Vested | 10.37 | ||
Weighted Average Grant Date Fair Value, Forfeited | 14.27 | ||
Weighted Average Grant Date Fair Value, Nonvested, Ending Balance | $ 16.25 | $ 10.77 | |
Performance and Service Condition Based Restricted Stock Unit Grants | |||
Summarizes restricted stock activity | |||
Shares, Nonvested, Beginning balance | 487 | ||
Shares, Granted | 159 | ||
Shares, Vested | (43) | ||
Shares, Forfeited | (47) | ||
Shares, Nonvested, Ending balance | 556 | 487 | |
Weighted Average Grant Date Fair Value, Nonvested, Beginning Balance | $ 13.04 | ||
Weighted Average Grant Date Fair Value, Granted | 21.15 | $ 15.38 | 10.96 |
Weighted Average Grant Date Fair Value, Vested | 14.49 | ||
Weighted Average Grant Date Fair Value, Forfeited | 14.21 | ||
Weighted Average Grant Date Fair Value, Nonvested, Ending Balance | $ 15.16 | $ 13.04 | |
Market and Service Condition Based Restricted Stock Unit Grants | |||
Summarizes restricted stock activity | |||
Shares, Nonvested, Beginning balance | 431 | ||
Shares, Granted | 159 | ||
Shares, Vested | (43) | ||
Shares, Forfeited | (47) | ||
Shares, Nonvested, Ending balance | 500 | 431 | |
Weighted Average Grant Date Fair Value, Nonvested, Beginning Balance | $ 9.16 | ||
Weighted Average Grant Date Fair Value, Granted | 21.96 | $ 11.49 | $ 7.58 |
Weighted Average Grant Date Fair Value, Vested | 12.30 | ||
Weighted Average Grant Date Fair Value, Forfeited | 11.22 | ||
Weighted Average Grant Date Fair Value, Nonvested, Ending Balance | $ 12.78 | $ 9.16 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) Included in Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ (1,831) | $ 1,831 | |
State | 5,572 | 2,213 | $ 2,115 |
Total current income tax expense (benefit) | 3,741 | 4,044 | 2,115 |
Deferred: | |||
Federal | 45,934 | 49,710 | (110,720) |
State | 5,889 | (606) | (14,067) |
Total deferred income tax expense (benefit) | 51,823 | 49,104 | (124,787) |
Income tax expense (benefit) | $ 55,564 | $ 53,148 | $ (122,672) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets related to: | ||||
Accrued expenses | $ 10,019 | $ 9,615 | ||
Insurance reserves | 13,245 | 11,299 | ||
Stock-based compensation expense | 4,770 | 4,702 | ||
Accounts receivable | 3,892 | 3,355 | ||
Inventories | 13,348 | 11,370 | ||
Operating loss and credit carryforwards | 38,813 | 68,066 | ||
Total | 84,087 | 108,407 | ||
Valuation allowance | (2,409) | (2,409) | $ (4,821) | $ (136,548) |
Total deferred tax assets | 81,678 | 105,998 | ||
Deferred tax liabilities related to: | ||||
Prepaid expenses | (2,845) | (2,706) | ||
Goodwill and other intangible assets | (28,055) | (19,431) | ||
Property, plant and equipment | (26,670) | (8,593) | ||
Other | (1,342) | (163) | ||
Total deferred tax liabilities | (58,912) | (30,893) | ||
Net deferred tax asset | $ 22,766 | $ 75,105 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Our Effective Rate for Continuing Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax | 4.30% | 7.70% | 6.10% |
Valuation allowance | (3.10%) | (607.90%) | |
Stock compensation windfall benefit | (1.60%) | (5.50%) | |
Enactment of federal income tax rate change | 31.50% | ||
Permanent difference – credits | (4.60%) | (9.60%) | (1.20%) |
Permanent difference – other | 1.40% | 0.90% | 0.40% |
Other | 0.20% | 0.10% | 0.90% |
Total effective rate for continuing operations | 21.30% | 57.80% | (566.10%) |
162(m) Limitation | |||
Income Taxes [Line Items] | |||
Permanent difference | 0.60% | 0.80% | 0.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($)States | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Taxes [Line Items] | |||||||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% | ||||
Income tax expense, related to revaluation of net deferred tax assets | $ 29,000 | $ 29,000 | |||||
Deferred tax assets net of deferred tax liabilities | 77,500 | $ 25,200 | 77,500 | ||||
Valuation allowances | 2,409 | 2,409 | 2,409 | $ 4,821 | $ 136,548 | ||
Pre-tax income, required in future periods to realize federal deferred tax assets | $ 63,500 | ||||||
Valuation allowance related to net deferred tax | 1,000 | $ (100) | $ (3,700) | (2,839) | (131,727) | ||
Ownership change percentage criteria under Section 382 of the Internal Revenue Code | 50.00% | ||||||
Testing Period | 3 years | ||||||
Uncertain tax position benefit affecting effective income tax rate | $ 300 | $ 300 | 300 | 200 | |||
Accrued interest and penalties | $ 0 | $ 0 | $ 0 | ||||
Number of states | States | 41 | ||||||
Federal | |||||||
Income Taxes [Line Items] | |||||||
State and Federal Tax credit carry-forwards | $ 20,400 | ||||||
State and Federal net Operating loss carry-forwards expiration year | 2,038 | ||||||
State and Federal net Operating loss carry-forwards | $ 15,600 | ||||||
State | |||||||
Income Taxes [Line Items] | |||||||
State and Federal net Operating loss carry-forwards | 302,800 | ||||||
State and Federal Tax credit carry-forwards | $ 3,000 | ||||||
State and Federal net Operating loss carry-forwards expiration year | 2,038 |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in valuation allowance | |||||
Balance at January 1, | $ 4,821 | $ 136,548 | |||
Reductions credited to expense | $ 1,000 | $ (100) | $ (3,700) | (2,839) | (131,727) |
Enactment of federal income tax rate change | 427 | ||||
Balance at December 31, | $ 2,409 | $ 2,409 | $ 4,821 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contribution by Plan participants as annual compensation percentage | 75.00% | ||
Plan Pro rata vesting period | 5 years | ||
Plan Expenses recognized | $ 6.8 | $ 4.6 | $ 4.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Outstanding letters of credit | $ 82.2 |
Segment and Product Informati_3
Segment and Product Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018StoreStatesRegionSegment | |
Segment Reporting [Abstract] | |
Number of Locations | Store | 401 |
Number of states | States | 39 |
Number of geographic regions | Region | 9 |
Number of operating segments | Segment | 9 |
Segment and Product Informati_4
Segment and Product Information - Schedule of Reconciling Information by Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 1,815,980 | $ 2,118,467 | $ 2,089,888 | $ 1,700,436 | $ 1,778,939 | $ 1,878,909 | $ 1,843,297 | $ 1,533,064 | $ 7,724,771 | $ 7,034,209 | $ 6,367,284 |
Depreciation & Amortization | 97,906 | 92,993 | 109,793 | ||||||||
Interest | 108,213 | 193,174 | 214,667 | ||||||||
Income before income taxes | 260,755 | 91,929 | 21,669 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 7,557,496 | 6,871,737 | 6,204,936 | ||||||||
Depreciation & Amortization | 74,155 | 70,337 | 85,048 | ||||||||
Interest | 116,109 | 99,210 | 87,861 | ||||||||
Income before income taxes | 316,206 | 265,955 | 220,219 | ||||||||
Operating Segments | Northeast | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,340,637 | 1,285,286 | 1,204,100 | ||||||||
Depreciation & Amortization | 13,582 | 13,255 | 18,220 | ||||||||
Interest | 23,786 | 20,893 | 18,660 | ||||||||
Income before income taxes | 33,496 | 40,358 | 35,347 | ||||||||
Operating Segments | Southeast | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,704,313 | 1,542,330 | 1,362,259 | ||||||||
Depreciation & Amortization | 11,746 | 10,457 | 11,242 | ||||||||
Interest | 25,733 | 22,939 | 19,768 | ||||||||
Income before income taxes | 66,191 | 49,738 | 40,256 | ||||||||
Operating Segments | South | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,050,961 | 1,855,425 | 1,699,371 | ||||||||
Depreciation & Amortization | 21,422 | 19,724 | 21,822 | ||||||||
Interest | 26,367 | 23,320 | 22,303 | ||||||||
Income before income taxes | 110,613 | 90,230 | 71,806 | ||||||||
Operating Segments | West | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,461,585 | 2,188,696 | 1,939,206 | ||||||||
Depreciation & Amortization | 27,405 | 26,901 | 33,764 | ||||||||
Interest | 40,223 | 32,058 | 27,130 | ||||||||
Income before income taxes | 105,906 | 85,629 | 72,810 | ||||||||
All other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 167,275 | 162,472 | 162,348 | ||||||||
Depreciation & Amortization | 23,751 | 22,656 | 24,745 | ||||||||
Interest | (7,896) | 93,964 | 126,806 | ||||||||
Income before income taxes | $ (55,451) | $ (174,026) | $ (198,550) |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data - Summary of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total sales | $ 1,815,980 | $ 2,118,467 | $ 2,089,888 | $ 1,700,436 | $ 1,778,939 | $ 1,878,909 | $ 1,843,297 | $ 1,533,064 | $ 7,724,771 | $ 7,034,209 | $ 6,367,284 |
Gross margin | 492,779 | 522,781 | 496,328 | 411,052 | 431,220 | 459,322 | 460,797 | 376,052 | 1,922,940 | 1,727,391 | 1,596,748 |
Net income | $ 52,021 | $ 73,328 | $ 56,622 | $ 23,220 | $ (42,701) | $ 39,750 | $ 37,910 | $ 3,822 | $ 205,191 | $ 38,781 | $ 144,341 |
Net income per share: | |||||||||||
Basic | $ 0.45 | $ 0.64 | $ 0.49 | $ 0.20 | $ (0.38) | $ 0.35 | $ 0.34 | $ 0.03 | $ 1.79 | $ 0.34 | $ 1.30 |
Diluted | $ 0.45 | $ 0.63 | $ 0.49 | $ 0.20 | $ (0.38) | $ 0.34 | $ 0.33 | $ 0.03 | $ 1.76 | $ 0.34 | $ 1.27 |
Unaudited Quarterly Financial_4
Unaudited Quarterly Financial Data - Summary of Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||
Gain (loss) on extinguishment of debt | $ 3,200 | $ (56,300) | $ 3,170 | $ (56,657) | $ (55,776) | |||
Write-off of debt discount and debt issuance costs | $ 1,000 | |||||||
Financing costs | $ 1,400 | 2,799 | 15,663 | |||||
Valuation allowance related to net deferred tax | 1,000 | $ (100) | $ (3,700) | (2,839) | $ (131,727) | |||
Income tax expense, enactment of federal tax rate change | $ 29,000 | $ 29,000 |