Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Feb. 27, 2022 | Jul. 02, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 1, 2022 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PGTI | ||
Entity Registrant Name | PGT Innovations, Inc. | ||
Entity Central Index Key | 0001354327 | ||
Current Fiscal Year End Date | --01-01 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 59,899,927 | ||
Entity Public Float | $ 1,317,945,678 | ||
Entity File Number | 001-37971 | ||
Entity Tax Identification Number | 20-0634715 | ||
Entity Address, Address Line One | 1070 Technology Drive | ||
Entity Address, City or Town | North Venice | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 34275 | ||
City Area Code | 941 | ||
Local Phone Number | 480-1600 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement for the Company’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. The Company’s Proxy Statement will be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Tampa, Florida |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 1,161,464 | $ 882,621 | $ 744,956 |
Cost of sales | 757,965 | 561,297 | 484,588 |
Gross profit | 403,499 | 321,324 | 260,368 |
Selling, general and administrative expenses | 303,043 | 224,386 | 176,312 |
Impairment of trade name | 8,000 | ||
Restructuring costs and charges | 4,227 | ||
Income from operations | 100,456 | 84,711 | 84,056 |
Interest expense, net | 30,029 | 27,719 | 26,417 |
Debt extinguishment costs | 25,472 | 1,512 | |
Income before income taxes | 44,955 | 56,992 | 56,127 |
Income tax expense | 9,759 | 11,884 | 12,439 |
Net income | 35,196 | 45,108 | 43,688 |
Less: Net income attributable to redeemable non-controlling interest | (2,318) | ||
Net income attributable to the Company | 32,878 | 45,108 | 43,688 |
Calculation of net income per common share attributable to common shareholders: | |||
Net income attributable to the Company | 32,878 | 45,108 | 43,688 |
Change in redemption value of redeemable non-controlling interest | (6,081) | ||
Net income attributable to common shareholders | $ 26,797 | $ 45,108 | $ 43,688 |
Net income per common share attributable to common shareholders: | |||
Basic | $ 0.45 | $ 0.77 | $ 0.75 |
Diluted | $ 0.45 | $ 0.76 | $ 0.74 |
Weighted average number of common shares outstanding: | |||
Basic | 59,518 | 58,887 | 58,346 |
Diluted | 60,058 | 59,360 | 59,150 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 35,196 | $ 45,108 | $ 43,688 |
Other comprehensive income (loss) before tax: | |||
Change in fair value of derivatives | 24,455 | 1,569 | (1,229) |
Reclassification to earnings | (18,638) | 2,359 | 5,030 |
Other comprehensive income before tax | 5,817 | 3,928 | 3,801 |
Income tax expense related to other comprehensive income | 1,531 | 970 | 974 |
Other comprehensive income, net of tax | 4,286 | 2,958 | 2,827 |
Comprehensive income | 39,482 | 48,066 | 46,515 |
Less: Comprehensive income of redeemable non-controlling interest | (2,318) | ||
Comprehensive income attributable to the Company | $ 37,164 | $ 48,066 | $ 46,515 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 96,146 | $ 100,320 |
Accounts receivable, net | 141,221 | 92,844 |
Inventories | 91,440 | 60,317 |
Contract assets, net | 55,239 | 28,723 |
Prepaid expenses | 8,727 | 8,357 |
Other current assets, net | 28,985 | 11,111 |
Total current assets | 421,758 | 301,672 |
Property, plant and equipment, net | 185,266 | 135,155 |
Operating lease right-of-use asset, net | 91,162 | 38,567 |
Intangible assets, net | 394,525 | 256,507 |
Goodwill | 364,598 | 329,695 |
Other assets, net | 3,301 | 925 |
Total assets | 1,460,610 | 1,062,521 |
Current liabilities: | ||
Accounts payable | 40,021 | 23,469 |
Accrued liabilities | 82,660 | 60,875 |
Current portion of operating lease liability | 13,180 | 6,132 |
Total current liabilities | 135,861 | 90,476 |
Long-term debt | 625,655 | 412,098 |
Operating lease liability, less current portion | 83,903 | 35,130 |
Deferred income taxes | 37,489 | 28,329 |
Other liabilities | 11,742 | 11,354 |
Total liabilities | 894,650 | 577,387 |
Redeemable non-controlling interest | 36,863 | |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Preferred stock; par value $.01 per share; 10,000 shares authorized; none outstanding | ||
Common stock; par value $.01 per share; 200,000 shares authorized; 63,516 and 62,542 shares issued and 59,696 and 58,999 shares outstanding at January 1, 2022 and January 2, 2021, respectively | 635 | 625 |
Additional paid-in-capital | 433,347 | 420,202 |
Accumulated other comprehensive income | 7,006 | 2,720 |
Retained earnings | 106,398 | 79,896 |
Treasury stock at cost | (18,289) | (18,309) |
Total shareholders' equity | 529,097 | 485,134 |
Total liabilities, redeemable non-controlling interest, and shareholders' equity | $ 1,460,610 | $ 1,062,521 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 01, 2022 | Jan. 02, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Shares authorized | 10,000,000 | 10,000,000 |
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 | 63,516,000 | 62,542,000 |
Common stock, shares outstanding | 59,696,000 | 58,999,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 35,196 | $ 45,108 | $ 43,688 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 30,487 | 24,014 | 18,876 |
Amortization | 21,082 | 18,825 | 15,856 |
Impairment of trade name | 8,000 | ||
Non-cash portion of restructuring costs and charges | 2,442 | ||
Provision for allowance for credit losses | 3,834 | 996 | 1,553 |
Stock-based compensation | 7,819 | 5,458 | 3,923 |
Amortization and write-offs of deferred financing costs | 978 | 1,206 | 1,674 |
Debt extinguishment costs | 25,472 | 1,512 | |
Deferred income taxes | 7,632 | (593) | 4,410 |
Loss (gain) on sales of assets | 261 | (291) | 143 |
Change in operating assets and liabilities (net of acquisition effects): | |||
Accounts receivable | (34,390) | (13,775) | 12,682 |
Inventories | (15,984) | (14,793) | 815 |
Contract assets, net, prepaid expenses, other current and other assets | (5,958) | (11,342) | (4,429) |
Accounts payable and accrued liabilities | (12,750) | 10,240 | (19,487) |
Net cash provided by operating activities | 63,679 | 75,495 | 81,216 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (33,424) | (24,800) | (31,268) |
Business acquisitions | (220,676) | (90,368) | |
Proceeds from disposals of assets | 187 | 766 | 71 |
Net cash used in investing activities | (253,913) | (114,402) | (31,197) |
Cash flows from financing activities: | |||
Proceeds from issuance of senior notes | 638,300 | 53,188 | |
Payments of senior notes | (425,000) | ||
Payment of call-premium on redemption of senior notes | (21,518) | ||
Proceeds from issuance of term loan debt | 60,000 | 64,000 | |
Payments of term loan debt | (54,000) | (10,000) | (64,138) |
Payments of financing costs | (10,675) | (1,266) | (854) |
Purchases of treasury stock under repurchase program | (5,550) | ||
Purchases of treasury stock relating to tax withholdings on employee equity awards | (1,648) | (815) | (505) |
Proceeds from exercise of stock options | 138 | 572 | 1,562 |
Proceeds from issuance of common stock under ESPP | 463 | 305 | 59 |
Net cash provided by (used in) financing activities | 186,060 | 41,984 | (5,426) |
Net (decrease) increase in cash and cash equivalents | (4,174) | 3,077 | 44,593 |
Cash and cash equivalents at beginning of year | 100,320 | 97,243 | 52,650 |
Cash and cash equivalents at end of year | $ 96,146 | $ 100,320 | $ 97,243 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 29, 2018 | $ 385,544 | $ 607 | $ 409,661 | $ (3,065) | $ (8,900) | $ (12,759) |
Begining Balance, Shares at Dec. 29, 2018 | 58,081,540 | |||||
Grants of restricted stock | $ 6 | (6) | ||||
Vesting of restricted stock, Shares | 164,226 | |||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Purchases of treasury stock | (6,055) | (6,055) | ||||
Purchases of treasury stock, Shares | (428,059) | |||||
Retirement of treasury stock | (505) | 505 | ||||
Stock-based compensation | 3,923 | 3,923 | ||||
Exercise of stock options | 1,562 | $ 7 | 1,555 | |||
Exercise of stock options, Shares | 682,931 | |||||
Common stock issued under ESPP | 59 | 59 | ||||
Common stock issued under ESPP, Shares | 4,096 | |||||
Net income | 43,688 | 43,688 | ||||
Other comprehensive income | 2,827 | 2,827 | ||||
Ending Balance at Dec. 28, 2019 | 431,548 | $ 619 | 414,688 | (238) | 34,788 | (18,309) |
Ending Balance, Shares at Dec. 28, 2019 | 58,504,734 | |||||
Grants of restricted stock | $ 7 | (7) | ||||
Vesting of restricted stock, Shares | 219,977 | |||||
Forfeitures of restricted stock | $ (3) | 3 | ||||
Purchases of treasury stock | (815) | (815) | ||||
Purchases of treasury stock, Shares | (51,479) | |||||
Retirement of treasury stock | $ (1) | (814) | 815 | |||
Stock-based compensation | 5,458 | 5,458 | ||||
Exercise of stock options | 572 | $ 3 | 569 | |||
Exercise of stock options, Shares | 284,353 | |||||
Common stock issued under ESPP | 305 | 305 | ||||
Common stock issued under ESPP, Shares | 41,126 | |||||
Net income | 45,108 | 45,108 | ||||
Other comprehensive income | 2,958 | 2,958 | ||||
Ending Balance at Jan. 02, 2021 | 485,134 | $ 625 | 420,202 | 2,720 | 79,896 | (18,309) |
Ending Balance, Shares at Jan. 02, 2021 | 58,998,711 | |||||
Grants of restricted stock | $ 7 | (7) | ||||
Vesting of restricted stock, Shares | 312,982 | |||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Issuance of treasury stock | (20) | 20 | ||||
Issuance of treasury stock, Shares | 4,600 | |||||
Purchases of treasury stock | (1,648) | (1,648) | ||||
Purchases of treasury stock, Shares | (73,105) | |||||
Retirement of treasury stock | $ (1) | (1,372) | (275) | 1,648 | ||
Stock-based compensation | 7,819 | 7,819 | ||||
Exercise of stock options | $ 138 | $ 1 | 137 | |||
Exercise of stock options, Shares | 67,797 | 67,797 | ||||
Common stock issued under ESPP | $ 463 | 463 | ||||
Common stock issued under ESPP, Shares | 27,335 | |||||
Issuance in acquisition of Eco | 6,108 | $ 4 | 6,104 | |||
Issuance in acquisition of Eco, Shares | 357,797 | |||||
Net income | 32,878 | 32,878 | ||||
Other comprehensive income | 4,286 | 4,286 | ||||
Change in redemption value of redeemable non-controlling interest | (6,081) | (6,081) | ||||
Ending Balance at Jan. 01, 2022 | $ 529,097 | $ 635 | $ 433,347 | $ 7,006 | $ 106,398 | $ (18,289) |
Ending Balance, Shares at Jan. 01, 2022 | 59,696,117 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Income tax expense related to other comprehensive income | $ 1,531 | $ 970 | $ 974 |
Description of Business
Description of Business | 12 Months Ended |
Jan. 01, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business PGT Innovations, Inc. (“PGTI”, “we,” or the “Company”), formerly named PGT, Inc., is a leading manufacturer of impact-resistant aluminum and vinyl-framed windows and doors and offers a broad range of fully customizable window and door products. The majority of our sales are to customers in the state of Florida; however, we also sell products in many other states, the Caribbean, Canada, and in South and Central America. Our acquisition of Eco Enterprises ("Eco Acquisition") in February 2021 expands our range of product offerings in our major market of southeast Florida. We also have sales of products that are designed to unify indoor and outdoor living spaces, through our Western Windows Systems’ (“WWS”) division, and most of its sales are in the western United States. Our acquisition of Anlin Windows and Doors in October 2021 expands our presence in the west. Products are sold primarily through an authorized dealer and distributor network. However, with our acquisition of NewSouth Windows Solutions in February 2020, we also began to sell window products in the direct-to-consumer channel through a “factory-direct” sales model. We were incorporated in the state of Delaware on December 16, 2003, as JLL Window Holdings, Inc., with primary operations in North Venice, Florida. On February 15, 2006, our Company was renamed PGT, Inc. On December 14, 2016, we announced that we changed our name to PGT Innovations, Inc. and, effective on December 28, 2016, the listing of our common stock was transferred to the New York Stock Exchange (“NYSE”) from the NASDAQ Global Market, and began trading on the NYSE under its existing ticker symbol of “PGTI”. As of January 1, 2022, we had major manufacturing operations in Florida, in North Venice, Tampa, and in the greater Miami area. We also have manufacturing operations in Arizona and California. Additionally, we have two glass tempering and laminating plants and one insulation glass plant located in North Venice. All references to PGTI or our Company apply to the consolidated financial statements of PGT Innovations, Inc. unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Fiscal period Our fiscal year consists of 52 or 53 weeks ending on the Saturday nearest December 31 of the related year. The years ended January 1, 2022, and December 28, 2019, consisted of 52 weeks. The year ended January 2, 2021 consisted of 53 weeks. Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We are consolidating all wholly owned subsidiaries, as well as Eco, based on the 75 % majority ownership. We refer to Note 23 for our accounting policies relating to the non-redeemable minority interest. Segment information We operate as two segments based on geography: the Southeast segment and the Western segment. See Note 20 for more information. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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. Revenue recognition With the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” together with subsequently issued related guidance, we recognize revenue pursuant to Topic 606 of the Accounting Standards Codification ("ASC"). See Note 4, “Revenue Recognition and Contracts with Customers.” Cost of sales Cost of sales represents costs directly related to the production of our products. Primary costs include raw materials, direct labor, and manufacturing overhead, which consist of salaries, wages, employee benefits, utilities, maintenance, lease costs and depreciation. Shipping and handling costs Shipping and handling costs incurred in the purchase of materials used in the manufacturing process are included in cost of sales. Costs relating to shipping, handling and distribution of finished products to our customers are included in selling, general and administrative expenses and totaled $ 62.4 million, $ 39.3 million and $ 38.3 million for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. Advertising We expense advertising costs as incurred. Advertising expense, which is included in selling, general and administrative expenses, was $ 15.8 million, $ 11.6 million and $ 5.2 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. NewSouth, acquired effective on February 1, 2020, relies heavily on advertising, consistent with its sales-direct-to-homeowner business model. Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for credit losses which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. January 1, January 2, 2022 2021 (in thousands) Accounts receivable $ 145,923 $ 96,560 Less: Allowance for credit losses ( 4,702 ) ( 3,716 ) Accounts receivable, net $ 141,221 $ 92,844 Self-insurance reserves We are primarily self-insured for employee health benefits and workers’ compensation claims prior to 2010 and after 2017. Provisions for losses under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Accruals for healthcare claims and workers’ compensation are included in accrued liabilities in the accompanying consolidated balance sheets. Warranty expense We have warranty obligations with respect to most of our manufactured products. Warranty periods, which vary by product components, generally range from 1 to 10 years , although the warranty period for a limited number of specifically identified components in certain applications is a lifetime. However, the majority of the products sold have warranties on components which range from 1 to 3 years . The Company has recorded a reserve for estimated warranty and related costs based on historical experience and periodically adjusts these provisions to reflect actual experience. During 2021, we recorded warranty expense at an average rate of 2.0 % of sales. This rate is higher than the average rate of 1.7 % of sales recorded in 2020. The increase in our warranty expense rate in 2021, compared to 2020 is a result of costs associated with recent higher levels of warranty repair experience on larger commercial projects than experienced in 2020, which resulted in warranty costs incremental to those we would incur in the normal course of business. The increase in our warranty expense in 2021, compared to 2020, was also affected by costs associated with the wind-down of the commercial business of NewSouth in the first quarter of 2021, which resulted in warranty costs incremental to those we would incur in the normal course of business. We assess the adequacy of our warranty accrual on a quarterly basis, and adjust the previous amounts recorded, if necessary, to reflect the change in estimate of the future costs of claims yet to be serviced. The following provides information with respect to our warranty accrual. Accrued Warranty Beginning of Acquired Charged to Adjustments Settlements End of (in thousands) Year ended January 1, 2022 $ 8,001 $ 4,150 $ 23,637 $ ( 1,440 ) $ ( 20,844 ) $ 13,504 Year ended January 2, 2021 $ 6,244 $ 3,515 $ 15,256 $ 266 $ ( 17,280 ) $ 8,001 Year ended December 28, 2019 $ 6,149 $ - $ 12,720 $ 570 $ ( 13,195 ) $ 6,244 The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of January 1, 2022 and January 2, 2021. The portion of warranty expense related to the issuance of product of $ 3.0 million, $ 3.8 million and $ 2.7 million is included in cost of sales in the consolidated statements of operations for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses in the consolidated statements of operations, and is $ 19.2 million, $ 11.7 million and $ 10.6 million, respectively, for the years ended January 1, 2022, January 2, 2021, and December 28, 2019. Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory as most products are custom, made-to-order products manufactured under noncancelable purchase orders and therefore are recognized as costs of sales relating to revenue recognized over time during the manufacturing process. All inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. The reserve for obsolescence, which was immaterial at January 1, 2022 and January 2, 2021, is based on management’s assessment of the amount of inventory that may become obsolete in the future and is determined through Company history, specific identification and consideration of prevailing economic and industry conditions. Inventories consist of the following: January 1, January 2, 2022 2021 (in thousands) Raw materials $ 87,164 $ 55,916 Work in progress 3,248 4,058 Finished goods 1,028 343 Inventories $ 91,440 $ 60,317 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 related assets. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years Maintenance and repair expenditures are charged to expense as incurred. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liability, and operating lease liability, less current portion, on our consolidated balance sheets. Should we engage in any finance leases in the future, finance leases would be included in property and equipment, other current liabilities, and other liabilities on our consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease right-of-use asset also includes any up-front lease payments made and initial direct costs incurred, less lease incentives received. Our lease terms may include options to extend or terminate the lease. Judgment is required to determine when it is reasonably certain that we will exercise an option and should therefore include the optional period in the lease term. Lease expense is recognized on a straight-line basis over the lease term. We elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets. Long-lived assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated . If such assets are considered to be impaired, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell, and depreciation is no longer recorded. Computer software We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is complete, and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of January 1, 2022, and January 2, 2021, was $ 31.8 million and $ 30.4 million, respectively. Accumulated depreciation of capitalized software was $ 29.0 million and $ 25.3 million as of January 1, 2022, and January 2, 2021, respectively. Amortization expense for capitalized software was $ 3.7 million, $ 4.1 million, and $ 2.4 million for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. We review the carrying value of capitalized software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. Goodwill Goodwill is calculated as the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. We test goodwill for impairment at the reporting unit level at least annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable. Our annual test for impairment is done on the first date of our fiscal fourth quarter. We consider various qualitative factors, including macroeconomic and industry conditions, financial performance of the Company and changes in the stock price of the Company to determine whether it is necessary to perform a quantitative test for goodwill impairment. If we believe, as a result of our qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Under the quantitative test, goodwill is tested under a one-step method for impairment at a level of reporting referred to as a reporting unit. This quantitative analysis involves identifying potential impairment by comparing the fair value of each reporting unit with its carrying amount and, if the carrying amount of a reporting unit exceeds its fair value, then a charge for goodwill impairment will be recognized in the amount by which a reporting unit’s carrying value exceeds its fair value. For our Southeast and Western reporting units, based on qualitative assessments, we concluded that quantitative assessments were not required to be performed. See Note 8 for further discussion of the goodwill of our reporting units. Trade names The Company has indefinite-lived intangible assets in the form of certain trade names. The impairment evaluation of the carrying amount of our indefinite-lived trade names is conducted annually, or more frequently, if events or changes in circumstances indicate that they might be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our indefinite-lived trade names is less than the carrying amount, an evaluation is performed by comparing their carrying amount to their estimated fair values. If the estimated fair value is less than the carrying amount of the indefinite-lived trade name, then an impairment charge is recorded to reduce the carrying value to its estimated fair value. The estimated fair value is determined using the relief from royalty method that is based upon the discounted projected cost savings (value) attributable to ownership of our trade names, our only indefinite-lived intangible assets. Based on qualitative assessments for 2020, we concluded that quantitative assessments were required to be performed for our Western Window Systems trade name. We review the carrying value of our finite-lived trade name in accordance with our policy for long-lived assets. See Note 8 for further discussion of our trade name. Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market. We do not enter into derivatives for speculative purposes. Concentrations of credit risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents, trade accounts receivable and contract assets. Accounts receivable and contract assets are due primarily from dealers and distributors of building materials, and other companies in the construction industry, primarily located in Florida, California, Texas and Arizona. Credit is extended based on an evaluation of the customer’s financial condition and credit history, and generally collateral is not required. The Company maintains an allowance for potential credit losses on trade receivables and contract assets. We maintain our cash with several financial institutions, the balance of which exceeds federally insured limits. At January 1, 2022 and January 2, 2021, our cash balance exceeded the insured limit by $ 89.0 million and $ 96.1 million, respectively. Comprehensive income The Company reports comprehensive income (loss), defined as the total of net income and other comprehensive income (loss), which is composed of all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of other comprehensive income (loss) relate to gains and losses on cash flow hedges. Reclassification adjustments reflecting such gains and losses are recorded as income in the same period as the hedged items affect earnings. Stock-based compensation We use a fair-value based approach for measuring stock-based compensation and record compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Our Company’s awards vest based on service conditions and compensation expense is recognized on a straight-line basis for each separately vesting portion of an award. Stock-based compensation expense is recognized only for those awards that ultimately vest. Income and Sales Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recorded to reflect consequences on future years of differences between financial reporting and the tax basis of assets and liabilities measured using the enacted statutory tax rates and tax laws applicable to the periods in which differences are expected to affect taxable earnings. We have no liability for unrecognized tax benefits. However, should we accrue for such liabilities, when and if they arise in the future, we will recognize interest and penalties associated with uncertain tax positions as part of our income tax provision. Income taxes relating to gains and losses on our cash flow hedges are released at the same time as the underlying transactions are realized. Interest and penalties on income taxes, if any, are recorded as income taxes. Refer to Note 13 for additional information regarding the Company’s income taxes. Sales taxes collected from customers have been recorded on a net basis. Net income per common share Basic earnings per share (“EPS”) available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Diluted EPS available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period. Forfeiture of unvested equity are recognized on an actual basis, at the same time as the equity is forfeited. There were no anti-dilutive shares outstanding for the year ended January 1, 2022. Our weighted average number of diluted shares outstanding excludes underlying securities of 23 thousand and 74 thousand for the years ended January 2, 2021, and December 28, 2019, respectively, because their effects were anti-dilutive. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended January 1, January 2, December 28, 2022 2021 2019 (in thousands, except per share amounts) Net income $ 35,196 $ 45,108 $ 43,688 Less: Net income attributable to redeemable non-controlling interest ( 2,318 ) — — Net income attributable to the Company 32,878 45,108 43,688 Change in redemption value of redeemable non-controlling interest ( 6,081 ) — — Net income attributable to common shareholders $ 26,797 $ 45,108 $ 43,688 Weighted-average common shares - Basic 59,518 58,887 58,346 Add: Dilutive shares from equity plans 540 473 804 Weighted-average common shares - Diluted 60,058 59,360 59,150 Weighted average number of common shares outstanding: Basic $ 0.45 $ 0.77 $ 0.75 Diluted $ 0.45 $ 0.76 $ 0.74 Supplemental cash flow information and non-cash activity The table below presents supplemental cash flow information and non-cash activity for the years ended January 1, 2022, January 2, 2021, and December 28, 2019: Year Ended January 1, January 2, December 28, (in thousands) 2022 2021 2019 Supplemental cash flow information: Interest paid $ 32,636 $ 25,156 $ 24,455 Income tax payments, net of refunds $ 12,166 $ 9,242 $ 11,862 Non-cash activity: Establish right-of-use asset, net of straight-line rent in 2019 $ 65,678 $ 19,185 $ 31,332 Establish operating lease liability $ ( 65,678 ) $ ( 19,185 ) $ ( 33,072 ) Reclassification of accounts receivable to notes receivable $ — $ 1,437 $ 4,401 Property, plant and equipment additions in accounts payable $ 772 $ 61 $ 449 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard was effective beginning January 1, 2021 . Early adoption was permitted. The adoption of this standard did not have any impact on our consolidated financial statements. Business Combinations - Contracts Assets and Liabilities On October 28, 2021, the FASB issued ASU 2021-08,1 which amends ASC 805-20 to “require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination.” Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. This standard was effective beginning January 1, 2022 . Early adoption was permitted. The adoption of this standard did not have any impact on our consolidated financial statements. Accounting Pronouncements Recently Issued, Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in March 2021, subsequent amendment to the initial guidance, ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The guidance generally can be applied currently, through December 31, 2022. We are currently assessing the impacts of the practical expedients provided in Topic 848 and which, if any, we will adopt. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 12 Months Ended |
Jan. 01, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | 4. Revenue Recognition and Contracts with Customers Revenue Recognition Accounting Policy The Company primarily manufactures fully customized windows and doors based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received. The Company has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion of its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. We give our customers 30-day payment terms, which is typical in our industry. Based on these factors, the Company recognizes a substantial portion of revenue over time during the manufacturing process once customization begins, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial. Disaggregation of Revenue from Contracts with Customers As discussed in Note 1, we have two reportable segments: our Southeast segment and our Western segment. See Note 20 for more information. The following table provides information about our net sales by reporting segment, product category and market for the years ended January 1, 2022, January 2, 2021, and December 28, 2019 (in millions): Year Ended January 1, January 2, December 28, Disaggregation of revenue: 2022 2021 2019 Reporting segment: Southeast $ 968.7 $ 752.4 $ 606.6 Western 192.8 130.2 138.4 Total net sales $ 1,161.5 $ 882.6 $ 745.0 Product category: Impact-resistant window and door products $ 787.2 $ 630.2 $ 516.1 Non-impact window and door products 374.3 252.4 228.9 Total net sales $ 1,161.5 $ 882.6 $ 745.0 Market: New construction $ 489.9 $ 402.5 $ 368.4 Repair and remodel 671.6 480.1 376.6 Total net sales $ 1,161.5 $ 882.6 $ 745.0 The Company’s Western segment includes both custom and volume products. This segment’s volume products are not made-to-order and are of standardized sizes and design specifications. Therefore, the Company’s assessment is that the Western segment’s volume products have alternative uses, and that control of these products passes to the customer at a point in time, which is typically when the product has been delivered to the customer. For the years ended January 1, 2022, January 2, 2021, and December 28, 2019, the Western segment’s net sales of its volume products were $ 83.0 million, $ 53.2 million and $ 53.9 million, respectively. Contract Balances Contract assets represent sales recognized in excess of billings related to finished goods not yet shipped and certain unused glass components not yet placed into the production process for which revenue is recognized over time as noted above. Contract liabilities relate to customer deposits at the end of reporting periods. At January 1, 2022 and January 2, 2021, those contract liabilities totaled $ 45.2 million and $ 22.8 million, respectively, of which $ 37.0 million and $ 18.1 million, respectively, are classified within accrued liabilities, and $ 8.2 million and $ 4.6 million, respectively, are classified within contract assets, net, in the accompanying consolidated balance sheets at January 1, 2022 and January 2, 2021. Because of the short-term nature of our performance obligations, substantially all of our performance obligations are satisfied within the quarter following the end of a reporting period. As such, substantially all of the contract liabilities at January 2, 2021 were satisfied in the first quarter of 2021, and contract assets at January 2, 2021 were transferred to accounts receivable in the first quarter of 2021. Contract liabilities at January 1, 2022 represents cash received during the three-month period ended January 1, 2022, excluding amounts recognized as revenue during that period. Contract assets at January 1, 2022 represents revenue recognized during the three-month period ended January 1, 2022, excluding amounts transferred to accounts receivable during that period. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligation is satisfied. Our contracts with our customers generally represent an approved purchase order, together with our standard terms and conditions. Our custom product contracts include distinct goods that are substantially the same and have the same pattern of transfer to the customer over time, and therefore represent a series of distinct goods accounted for as a single performance obligation. For volume products, we allocate the contract’s transaction price to each distinct performance obligation based on the estimated relative standalone selling price of each distinct good. Observable standalone sales are used to determine the standalone selling price. Certain customers are eligible for rebates based on their volume or purchases during an annual period. Rebates are recorded as a reduction to sales and were immaterial in all periods presented. Performance obligations are satisfied over time, generally for our custom products, and as of a point in time for our volume products. Performance obligations are supported by contracts with customers, and we have elected not to disclose our unsatisfied performance obligations as of January 1, 2022 under the short-term contract exemption as we expect such performance obligations will be satisfied within the quarter following the end of a reporting period. Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered custom products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. The Company utilizes the practical expedient which permits expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 01, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions Anlin Windows & Doors On October 25, 2021 , we completed the acquisition of Anlin Windows & Doors. The acquisition was done by Western Window Holding LLC, a Delaware limited liability company, indirectly wholly-owned by PGT Innovations, Inc., which acquired substantially all of the assets, properties and rights owned, used or held for use in the business, as operated by Anlin Industries, a California corporation, of manufacturing vinyl windows and doors for the replacement market and the new construction market, and all activities conducted in connection therewith (the "Anlin Acquisition"), pursuant to that certain Asset Purchase Agreement dated as of September 1, 2021 (the “Anlin Purchase Agreement”), by and among the Company, and Anlin Industries. The fair value of consideration transferred in the Anlin Acquisition was $ 120.1 million, composed of $ 114.2 million in cash, including $ 113.5 million for purchase price and $ 0.7 million in estimated working capital adjustment, and estimated fair value of contingent consideration of $ 5.9 million, discussed in greater detail below. The cash portion of the Anlin Acquisition of $ 114.2 million was financed with borrowings under the fourth amendment of our 2016 Credit Agreement due 2024 of $ 60.0 million, which resulted in net proceeds after fees of $ 59.4 million, with the remaining $ 54.8 million from cash on hand. Cash on hand for the Anlin Acquisition was ultimately provided by the issuance of senior notes due 2029 of $ 575.0 million of 4.375 % and related transactions, further explained in Note 10, Long-Term Debt. Purchase Price Allocation The estimated fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Preliminary Accounts receivable $ 10,803 Inventories 7,633 Contract assets, net 7,027 Prepaid expenses and other assets 1,626 Property and equipment 22,800 Operating lease right-of-use asset 3,450 Intangible assets 77,800 Goodwill 5,596 Total assets acquired 136,735 Accounts payable ( 5,175 ) Accrued and other liabilities ( 7,993 ) Operating lease liability ( 3,450 ) Total liabilities assumed ( 16,618 ) Fair value of consideration transferred $ 120,117 Consideration: Cash $ 114,196 Contingent consideration 5,921 Fair value of consideration transferred $ 120,117 The fair value of certain working capital related items, including Anlin’s accounts receivable, prepaid expenses and other assets, and accounts payable and accrued liabilities, approximated their book values at the date of the Anlin Acquisition. The fair value of inventory was estimated by major category, at net realizable value, which we believe approximates the price a market participant could achieve in a current sale. The substantial majority of inventories at the acquisition date was composed of raw materials. The fair value of property and equipment and remaining useful lives were estimated by management, with the assistance of a third-party valuation firm, using the cost approach. Valuations of the intangible assets were done using income and royalty relief approaches based on projections provided by management, which we consider to be Level 3 inputs, with the assistance of a third-party valuations firm. We incurred acquisition costs totaling $ 1.8 million relating to legal expenses, representations and warranties insurance, diligence, accounting and printing services in the Anlin Acquisition, classified as selling, general and administrative expenses in the accompanying consolidated statements of operations for the year ended January 1, 2022. The Anlin Purchase Agreement provides for the potential for an earn-out contingency payment to sellers should Anlin achieve a certain level of earnings before interest, taxes, depreciation and amortization, ("Anlin EBITDA"), as defined in the Anlin Purchase Agreement, for its fiscal years of 2021 and 2022, of up to $ 3.2 million to be paid out by March 31, 2022, and of up to $ 9.5 million to be paid out by March 31, 2023, respectively. We have recorded an earn-out contingency liability of $ 5.9 million, representing its estimated fair value based on probability adjusted levels of estimated Anlin EBITDA. Estimated Anlin EBITDA is a significant input that is not observable in the market, which ASC 820 considers to be a Level 3 input. This estimated fair value of contingent consideration is preliminary, and may be adjusted as we continue to review the calculation's inputs and assumptions. For tax purposes, contingent consideration does not become part of tax goodwill until paid. As such, the amount of goodwill deductible for tax purposes will not be finalized until the outcome of this earn-out contingency is known. As of January 1, 2022, as the estimated fair value of the earn-out contingency exceeds the amount of book goodwill, there is currently no goodwill deductible for tax purposes, and the amount by which the estimated fair value of the earn-out contingency exceeds book goodwill has gone to reduce the tax bases of the other intangible assets recorded in the Anlin Acquisition. We believe goodwill relates to the expansion of our footprint in a key, strategic market we have identified as a geographic area of growth for our Company. Regarding the allocation of the fair value of consideration transferred in the Anlin Acquisition, specific items being finalized are our calculations of contingencies assumed in the Anlin acquisition, including the earn-out contingency and reserves for warranty obligations. Our estimated fair values of intangibles assets acquired and property and equipment may change as we continue our review changes made to the calculations performed by our third-party valuation firm. However, as noted above, the purchase allocation is preliminary and other items are subject to change. The Anlin Purchase Agreement has a post-closing working capital calculation whereby we are required to prepare, and deliver to sellers, a final statement of purchase price. Valuation of Identified Intangible Assets The valuation of the identifiable intangible assets acquired in the Anlin Acquisition and our estimate of their respective useful lives are as follows: Initial Preliminary Useful Life Valuation (in years) (in thousands) Trade name $ 35,400 indefinite Customer relationships 42,100 15 Developed technology 300 9 Intangible assets, net $ 77,800 Pro Forma Financial Information The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented that does not include Anlin's actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of Anlin adjusted for the following: amortization expense related to the intangible assets arising from the acquisition and interest expense to reflect the refinancing of the 2018 Senior Notes due 2026 and the third amendment of the 2016 Credit Agreement due 2024 into the 2021 Senior Notes due 2029 and the fourth amendment of the 2016 Credit Agreement due 2024 . The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Years Ended January 1, January 2, Pro Forma Results (unaudited) 2022 2021 (in thousands, except per share amounts) (unaudited) Net sales $ 1,251,314 $ 967,825 Net income attributable to common shareholders $ 35,273 $ 50,838 Net income per common share attributable to common shareholders: Basic $ 0.59 $ 0.86 Diluted $ 0.59 $ 0.86 Sales from Anlin included in the year ended January 1, 2022, since its October 25, 2021 acquisition date, totaled $ 21.4 million, and had net income, included in consolidated net income of $ 1.9 million in the year ended January 1, 2022. Such net income has not been reduced for any income taxes or interest expense as we do not allocate such amounts to the division level. CRi SoCal, Inc. On May 2, 2021, pursuant to an asset purchase agreement dated April 9, 2021, we acquired substantially all of the assets and assumed certain liabilities of CRi SoCal, Inc. (“CRi”), a California corporation doing business in California as Combined Resources (the “CRi Acquisition”). CRi is engaged in the sales, distribution and installation of window and door products, and related design services, to homebuilders in the residential new construction market from its leased facility in Rancho Santa Margarita, California. Until its acquisition by the Company, CRi was a customer of the Company’s western business unit. The fair value of consideration transferred in the acquisition of CRi totaled $ 12.5 million, and included $ 12.1 million in cash, funded from cash on hand, and $ 0.4 million in accounts receivable owed by CRi to the Company’s western business unit relating to sales prior to the acquisition, which are considered settled as a result of the acquisition. The purchase price is subject to change through a net working capital adjustment, currently being finalized. The preliminary estimated fair value of assets acquired and liabilities assumed totaled $ 17.6 million and $ 5.1 million, respectively, which included offsetting operating lease right of use assets and operating lease liabilities totaling $ 2.6 million. The estimated fair value of assets acquired also included current assets totaling $ 4.1 million, primarily accounts receivable, identifiable intangible assets totaling $ 7.0 million, goodwill of $ 3.7 million, all of which we believe is tax deductible, and a small amount of property and equipment. Liabilities assumed included the aforementioned operating lease liability, as well as a total of $ 2.5 million in trade accounts payable and customer deposits. Valuations of the intangible assets have been estimated using income and royalty relief approaches based on projections, which we consider to be Level 3 inputs, with the assistance of a third-party valuation firm. We believe goodwill in the acquisition relates to the expansion of our footprint in an existing market, in a way that we believe will enhance our long-term profitability in that market of our Western business. Sales from CRi included in the year ended January 1, 2022, since its May 2, 2021 acquisition date totaled $ 10.9 million. CRi’s effect on consolidated net income was immaterial in the year ended January 1, 2022. NewSouth Window Solutions On February 1, 2020 , we completed the acquisition of NewSouth Window Solutions LLC and NewSouth Window Solutions of Orlando LLC (together, “NewSouth”, and “NewSouth Acquisition”), which became wholly-owned subsidiaries of PGT Innovations, Inc. The fair value of consideration transferred in the acquisition was $ 90.4 million. The acquisition was financed with proceeds of $ 53.2 million from the add-on issuance of $ 50.0 million in 2018 Senior Notes due 2026 (“Add-On Senior Notes”), including a premium of $ 3.2 million, and with $ 37.2 million in cash, including a post-closing adjustment owed to sellers of $ 0.2 million, which was paid during the third quarter of 2020, described below. See Note 10 for a discussion of the First Additional Senior Notes. Purchase Price Allocation The estimated fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Allocation Adjustments to Allocation Final Allocation Accounts receivable $ 10,294 $ ( 1,860 ) $ 8,434 Inventories 3,757 ( 821 ) 2,936 Contract assets, net 4,413 — 4,413 Prepaid expenses and other assets 1,756 — 1,756 Property and equipment 7,423 10 7,433 Operating lease right-of-use asset 10,578 — 10,578 Intangible assets 28,670 ( 1,300 ) 27,370 Goodwill 46,200 5,894 52,094 Accounts payable ( 6,621 ) — ( 6,621 ) Accrued and other liabilities ( 5,524 ) ( 1,923 ) ( 7,447 ) Operating lease liability ( 10,578 ) — ( 10,578 ) Purchase price $ 90,368 $ — $ 90,368 Consideration: Cash $ 90,145 $ 223 $ 90,368 Due to Sellers 223 ( 223 ) - Total fair value of consideration $ 90,368 $ — $ 90,368 The fair value of certain working capital related items, including NewSouth’s retail accounts receivable, prepaid expenses, and accounts payable and accrued liabilities, approximated their book values at the date of the NewSouth Acquisition. Subsequent to our initial allocation, we adjusted the fair value of certain acquired commercial receivable accounts based on a further post-acquisition assessment of their collectability. The fair value of inventory was estimated by major category, at net realizable value. The substantial majority of inventories at the acquisition date was composed of raw materials. The fair value of property and equipment and remaining useful lives were estimated by management, with the assistance of a third-party valuation firm, using the cost approach. Valuations of the intangible assets were done using income and royalty relief approaches based on projections provided by management, which we consider to be Level 3 inputs, with the assistance of a third-party valuations firm. We incurred acquisition costs totaling $ 2.4 million relating to legal expenses, representations and warranties insurance, diligence, accounting and printing services in the NewSouth Acquisition, which includes $ 0.9 million in 2020, and $ 1.5 million in 2019, classified as selling, general and administrative expenses in the accompanying consolidated statements of operations for the years ended January 2, 2021, and December 28, 2019, respectively. The remaining consideration, after identified intangible assets and the net assets and liabilities recorded at fair value, has been determined to be $ 52.1 million, all of which we expect to be deductible for tax purposes. Goodwill represents the increased value of the combined entity through new direct-to-consumer sales channel opportunities, as well as NewSouth’s extensive advertising throughout Florida, and NewSouth’s market intelligence, which we expect to utilize. During 2020, we made additional adjustments to accrued liabilities assumed in the acquisition totaling $ 1.9 million, relating to certain commercial contracts that existed at the acquisition date, which required additional warranty-related rework to complete and which we were not aware of until after the acquisition date, during 2020. Other adjustments to our initial allocation primarily relate to the commercial assets acquired and liabilities assumed in the NewSouth Acquisition. The adjustments included a $ 1.9 million decrease in acquired commercial accounts receivable, which we determined were uncollectible, a $ 1.3 million decrease in acquired intangible assets relating to the commercial trade name, which we have determined had no fair value at the acquisition date, and $ 0.8 million relating to certain commercial inventories, which we determined were obsolete at the acquisition date. The net increase in goodwill relating to these adjustments since the initial allocation was $ 5.9 million. The purchase agreement relating to the NewSouth Acquisition (“PA”) requires certain post-closing adjustments, under which we determined that we owed sellers an additional $ 0.2 million. The calculation resulted in a net increase in purchase price of $ 0.2 million. We paid this amount during the third quarter of 2020. Valuation of Identified Intangible Assets The valuation of the identifiable intangible assets acquired in the NewSouth Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Final Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade name $ 23,500 $ ( 1,300 ) $ 22,200 15 Non-compete agreements 1,670 — 1,670 5 Developed technology 2,600 — 2,600 6 Customer-related intangible 900 — 900 < 1 Other intangible assets, net $ 28,670 $ ( 1,300 ) $ 27,370 Pro Forma Financial Information The following unaudited pro forma financial information assumes the acquisition had occurred at the beginning of the earliest period presented that does not include NewSouth’s actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of NewSouth adjusted for the following: amortization expense related to the intangible assets arising from the acquisition and interest expense to reflect the First Additional Senior Notes. The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Years Ended January 2, December 28, Pro Forma Results (unaudited) 2021 2019 (in thousands, except per share amounts) (unaudited) Net sales $ 890,373 $ 831,610 Net income $ 45,338 $ 44,925 Net income per common share attributable to common shareholders: Basic $ 0.77 $ 0.77 Diluted $ 0.76 $ 0.76 Net sales of NewSouth, included in the consolidated statement of operations for the year ended January 1, 2022, was $ 146.8 million. The net income of NewSouth in the consolidated statements of operations for the year ended January 1, 2022, was $ 17.8 million. Net sales of NewSouth, included in the consolidated statement of operations for the year ended January 2, 2021, was $ 93.9 million. The net income of NewSouth in the consolidated statements of operations for the year ended January 2, 2021, was $ 2.0 million. Such net income amounts have not been reduced for any income taxes or interest expense as we do not allocate such amounts to the division level. Eco Window Systems On February 1, 2021 , we completed the acquisition of a 75 % ownership stake in Eco Enterprises and its related companies, Eco Windows Systems, LLC, Eco Glass Production, LLC, and Unity Windows, LLC (together “Eco”). Eco is a manufacturer and installer of aluminum, impact-resistant windows and doors, serving the South Florida region since 2009. Eco is headquartered in Medley, Florida, near Miami, Florida, and has three manufacturing locations in the region, including a glass processing facility. The fair value consideration for Eco was $ 100.5 million, including $ 94.4 million in cash, which was after adjustments in our favor totaling $ 5.6 million relating to working capital and customer deposits. These adjustments were agreed to and settled in the second quarter of 2021. The fair value of consideration also included PGT Innovations, Inc. common stock with a then estimated fair value of $ 6.1 million. The cash portion of the purchase price was financed by a second add-on issuance of $ 60.0 million aggregate principal amount of 6.75 % senior notes to the 2018 Senior Notes due 2026 on January 25, 2021 (the “Second Additional Senior Notes”), issued at 105.5 % of their principal amount, resulting in a premium to us of $ 3.3 million, together with cash on hand of $ 31.1 million. See Note 10 for a discussion of the Second Additional Senior Notes. The common stock portion of the purchase price was represented by the issuance of 357,797 shares of PGT Innovations, Inc. common stock on February 1, 2021, with a closing price value of $ 21.34 per share on that date, or approximately $ 7.6 million based on that price. However, the seller of Eco, who is also the holder of the 25% redeemable non-controlling interest in Eco Enterprises, is restricted from selling these shares for a three-year period from the date of the acquisition. As such, we estimated that there was an approximately 20 % discount for the lack of marketability of the shares. The fair value of the redeemable non-controlling interest in the acquisition has been preliminarily estimated to be $ 28.5 million, resulting in total fair value of the Eco business in the acquisition, including the redeemable non-controlling interest, of $ 128.9 million. The fair value of the redeemable non-controlling interest has been calculated as 25 % of the initial estimated fair value of the entity at the acquisition date, less a discount for seller’s lack of control in the new entity, estimated to be 5 % , and a discount for the seller’s lack of marketability of the minority stake, estimated to be 10 % . See Note 23 for more information regarding the redeemable non-controlling interest. The estimated fair value of assets acquired, and liabilities assumed as of the closing date of the Eco Acquisition, are as follows: Initial Adjustments to Preliminary Accounts receivable $ 5,031 $ ( 241 ) $ 4,790 Inventories 7,728 ( 684 ) 7,044 Contract assets, net 4,312 ( 123 ) 4,189 Prepaid expenses and other assets 1,706 ( 759 ) 947 Property and equipment 24,009 ( 191 ) 23,818 Operating lease right-of-use asset 27,864 ( 1,049 ) 26,815 Intangible assets 72,700 1,600 74,300 Goodwill 30,051 ( 4,467 ) 25,584 Total assets acquired 173,401 ( 5,914 ) 167,487 Accounts payable ( 6,809 ) ( 116 ) ( 6,925 ) Accrued and other liabilities, including customer deposits ( 4,215 ) ( 604 ) ( 4,819 ) Operating lease liability ( 27,864 ) 1,049 ( 26,815 ) Total liabilities assumed ( 38,888 ) 329 ( 38,559 ) Net assets acquired 134,513 ( 5,585 ) 128,928 Redeemable non-controlling interest ( 34,084 ) 5,620 ( 28,464 ) Fair value of consideration transferred $ 100,429 $ 35 $ 100,464 Consideration: Cash $ 94,321 $ 35 $ 94,356 PGTI common stock 6,108 — 6,108 Fair value of consideration transferred $ 100,429 $ 35 $ 100,464 The fair value of certain working capital related items, including Eco’s accounts receivable, prepaid and other expenses, and accounts payable and accrued liabilities, approximated their book values at the date of the Eco Acquisition. Subsequent to our initial allocation, we adjusted the fair value of certain acquired commercial receivable accounts based on a further post-acquisition assessment of their collectability. The fair value of inventory was estimated by major category, at net realizable value, which we believe approximates the price a market participant could achieve in a current sale. Substantially all of inventories at the acquisition date was composed of raw materials. The fair value of property and equipment was estimated with the assistance of a third-party valuation firm, using the indirect cost approach, which we consider to be Level 3 in the fair value hierarchy. Valuations of the intangible assets have been estimated using income and royalty relief approaches based on projections, which we consider to be Level 3 inputs, with the assistance of a third-party valuation firm. We incurred acquisition costs totaling $ 1.7 million relating to legal expenses, representations and warranties insurance, diligence, accounting and printing services in the Eco Acquisition, which includes $ 1.0 million in the fourth quarter of 2020, and $ 0.7 million in 2021, classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the years ended January 1, 2022 and January 2, 2021, respectively. The remaining consideration, after identified intangible assets and the net assets and liabilities recorded at fair value, has currently been estimated to be $ 25.6 million, classified as part of the Southeast reporting unit goodwill, which we expect the portion of goodwill relating to our 75 % investment to be deductible for tax purposes. In addition, we are currently evaluating the historical book and tax bases of assets and liabilities relating to the redeemable non-controlling interest, which may not be eligible for a step-up in basis, for any deferred tax assets and liabilities that may need to be recorded in the Eco Acquisition. We believe goodwill represents the strengthening of our supply chain for glass through faster glass production, as well as diversification and expansion of product offerings in the high-growth commercial market, and an expansion of our dealer network with minimal overlap with our existing deal network. Valuation of Identified Intangible Assets The valuation of the identifiable intangible assets acquired in the Eco Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Preliminary Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade names $ 36,000 $ ( 1,100 ) $ 34,900 indefinite Customer relationships 36,700 2,700 39,400 5 - 15 Intangible assets, net $ 72,700 $ 1,600 $ 74,300 Pro Forma Financial Information The following unaudited pro forma financial information assumes the Eco Acquisition had occurred at the beginning of the earliest period presented that does not include Eco’s actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of Eco adjusted for the following: amortization expense related to the estimated intangible assets arising from the acquisition; interest expense to reflect the Second Additional Senior Notes; net income attributable to redeemable non-controlling interest; and, change in redemption value of redeemable non-controlling interest. The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Years Ended January 1, January 2, Pro Forma Results (unaudited) 2022 2021 (in thousands, except per share amounts) (unaudited) Net sales $ 1,169,416 $ 945,930 Net income attributable to common shareholders $ 26,375 $ 39,220 Net income per common share attributable to common shareholders: Basic $ 0.44 $ 0.67 Diluted $ 0.44 $ 0.66 Net sales of Eco included in the consolidated statement of operations for the year ended January 1, 2022, from the date of its February 1, 2021 acquisition, was $ 85.6 million, after eliminations of intercompany sales. The net income of Eco in the consolidated statement of operations for the year ended January 1, 2022, from the date of its February 1, 2021 acquisition, was $ 9.3 million, including the portions attributable to the redeemable non-controlling interest of $ 2.3 million. |
Sale of Assets
Sale of Assets | 12 Months Ended |
Jan. 01, 2022 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Sale of Assets | 6. Sale of Assets On September 22, 2017, we entered into an Asset Purchase Agreement (“APA”) with Cardinal LG Company (“Cardinal LG”) for the sale to Cardinal LG of certain manufacturing equipment we used in processing glass components for PGT-branded doors for a cash purchase price of $ 27.8 million. Contemporaneously with entering into the APA, we entered into a seven-year supply agreement. The Company determined to sell these assets and enter the SA to allow us to heighten our focus in our core areas of window and door manufacturing and, at the same time, strengthen our supply chain for high-quality door glass from a supplier with whom we have been doing business for many years. The Company then determined that, although the APA and SA are separate agreements, they were initially negotiated contemporaneously. Therefore, the Company concluded that the $ 27.8 million, of proceeds under the APA should be bifurcated between the sale of the door glass manufacturing assets, and as payment received from a supplier for the Company’s agreement to buy glass components for PGT-branded doors from Cardinal under the SA. The bifurcation of the proceeds in excess of the stand-alone selling price of the assets acquired would be allocated to the SA and recognized as a reduction of cost of sales as glass components are purchased by PGTI. Based on the established stand-alone selling price of the assets sold, as determined by an independent appraisal, approximately $ 7.7 million was allocated to the sale of the assets, with the remaining $ 20.1 million representing consideration received from Cardinal related to the agreement to buy door glass components for PGT-branded doors from Cardinal. This consideration is being amortized over the seven-year term of the SA. The SA provides that the Company will purchase, and Cardinal will supply, all the Company’s requirements for certain glass components used in PGT-branded doors through the end of 2024. The terms of the manufacture by Cardinal and purchase by the Company of such glass components as to purchase orders, forecasts of purchases, pricing, invoicing, delivery and payment terms and other terms, are all as described in the SA. Early in the fourth quarter of 2017, we began purchasing and receiving glass components from Cardinal under the SA. At that time, we began amortizing the advance consideration received from Cardinal initially allocated to the SA. Since its inception, we have amortized a total of $ 11.9 million, of this advance consideration, including $ 2.8 million in each of the years ended December 28, 2019, January 2, 2021 and January 1, 2022, which are classified as reductions to cost of sales in the accompanying consolidated statements of operations in each year. The remaining unamortized balance of $ 8.2 million is classified in the accompanying consolidated balance sheet as of January 1, 2022, as $ 2.8 million within accrued liabilities and $ 5.4 million within other liabilities. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jan. 01, 2022 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 7. Property, Plant and Equipment The following table presents the composition of property, plant and equipment as of: January 1, January 2, 2022 2021 (in thousands) Land $ 10,063 $ 6,664 Buildings and improvements 103,812 85,434 Machinery and equipment 159,822 113,500 Vehicles 21,633 17,374 Software 31,813 30,423 Construction in progress 12,565 12,484 Property, plant and equipment 339,708 265,879 Less: Accumulated depreciation ( 154,442 ) ( 130,724 ) Property, plant and equipment, net $ 185,266 $ 135,155 The Company recognized depreciation expense of $ 30.5 million, $ 24.0 million, and $ 18.9 million related to property, plant and equipment during the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively, of which $ 19.3 million, $ 12.7 million, and $ 10.9 million, respectively, are classified within cost of sales in the accompanying consolidated statements of operations of those years, with the remainder classified within selling, general and administrative expenses. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill and i ntangible assets are as follows as of: Initial January 1, January 2, Useful Life 2022 2021 (in years) (in thousands) Goodwill $ 364,598 $ 329,695 indefinite Other intangible assets: Trade names (indefinite-lived) $ 212,141 $ 140,841 indefinite Customer relationships and customer-related assets 289,047 201,547 < 1 - 15 Trade name (amortizable) 22,200 22,200 15 Developed technology 5,900 5,600 6 - 10 Non-compete agreement 3,338 3,338 2 - 5 Software license 590 590 2 Less: Accumulated amortization ( 138,691 ) ( 117,609 ) Subtotal 182,384 115,666 Other intangible assets, net $ 394,525 $ 256,507 Goodwill at January 2, 2021 $ 329,695 Increase in goodwill from our acquisition of Anlin 5,596 Increase in goodwill from our acquisition of Eco 25,584 Increase in goodwill from our acquisition of CRi 3,722 Goodwill at January 1, 2022 $ 364,598 Trade names (indefinite-lived) at January 2, 2021 $ 140,841 Increase in trade names from our acquisition of Anlin 35,400 Increase in trade names from our acquisition of Eco 34,900 Increase in trade names from our acquisition in CRi 1,000 Trade names (indefinite-lived) at January 1, 2022 $ 212,141 Amortizable Intangible Assets We test amortizable intangible assets for impairment when indicators of impairment exist. No impairment was recorded for any period presented. Estimated amortization of our amortizable intangible assets is as follows for future fiscal years: (in thousands) Total 2022 $ 23,000 2023 20,807 2024 20,760 2025 20,590 2026 17,192 Thereafter 80,035 Total $ 182,384 Amortization Expense Amortization expense relating to amortizable intangible assets for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively, was $ 21.1 million, $ 18.8 million, and $ 15.9 million, respectively. Goodwill We perform our annual goodwill impairment testing on the first day of our fiscal fourth quarter of each year, and at interim periods if needed based on occurrence of triggering events. The Company performed a qualitative assessment for each reporting unit. The qualitative assessments indicated that it was more likely than not that the fair value of each reporting unit exceeded its respective carrying value. As of January 1, 2022, and January 2, 2021, the carrying value of our Southeast reporting unit goodwill is $ 226.8 million and $ 201.3 million, respectively. As of January 1, 2022, and January 2, 2021, the carrying value of our Western reporting unit goodwill is $ 137.8 million and $ 128.4 million, respectively. Indefinite-Lived Intangible Assets We perform our annual indefinite-lived intangible asset impairment testing on the first day of our fiscal fourth quarter of each year, and at interim periods if needed based on occurrence of triggering events. Given the initial deterioration in economic and market conditions associated with the COVID-19 pandemic, and the narrow excess of fair value over carrying value of our WinDoor and WWS trade names in 2019, the Company determined such conditions represented triggering events and that we should complete interim quantitative impairment tests of its WinDoor and WWS trade names as of as of the end of the Company’s first quarter of 2020. These interim impairment tests did not indicate that impairments of those assets existed at that time. Net sales at our WWS reporting unit decreased 19.3 % in the second quarter of 2020, compared to the second quarter of 2019. As a result, we determined to complete a second interim impairment test of our WWS trade name as of July 4, 2020. For this second interim impairment test, we further decreased our modeling assumptions for net sales of our WWS reporting unit for our 2020 fiscal year based on a reassessment of our key assumptions in our modeling, including an updated assessment of macro industry growth in our WWS reporting unit’s key markets. We also decreased our 2021 growth rate assumption as we expected the challenging macro-economic conditions in our core western markets to continue during 2021. Based on our revised modeling, which included our assumptions regarding future revenue, which we consider to be a Level 3 input, using the relief-from-royalty method, we concluded that the fair value of our WWS trade name was less than its carrying value, which resulted in an impairment of our WWS trade name of $ 8.0 million in our second quarter of 2020. Sales for our WWS reporting unit for the 2020 fiscal year exceeded our modeling assumptions used during our second impairment test of our WWS trade name. As such, we performed a qualitative assessment as of the first day of our 2020 fourth quarter and concluded that it was not necessary to perform a Step 1 impairment test for our WWS trade name indefinite-lived intangible assets as no new triggering events or conditions were identified. During 2021, WWS enjoyed organic growth and operational improvements, and there were no new triggering events or conditions identified as of the first day of our 2021 fourth quarter. Therefore, we completed a qualitative assessment of our WWS trade name, which indicated that it is more likely than not that the fair value of our WWS trade name exceeds it carrying value. For our other indefinite-lived trade names, we completed qualitative assessments of these assets on the first day of our fourth quarter of 2021. These qualitative assessments included an evaluation of relevant events and circumstances that existed at the date of our assessment. Those events and circumstances included conditions specific to our other indefinite-lived trade names, such as the industry in which we use these other indefinite-lived trade names, our competitive environment, the availability and costs of raw materials and labor, the financial performance of our Company, and factors related to the markets in which our Company operates. We also considered that, for our other indefinite-lived trade names, no new impairment indicators were identified since the dates of our prior assessments, which were qualitative assessments all other indefinite-lived intangibles other than goodwill. Based on these assessments, we concluded that it is more likely than not that the fair values of our other indefinite-lived trade names exceed their carrying values. As of January 1, 2022, and January 2, 2021, the carrying values of other indefinite-lived trade names was $ 212.1 million and $ 140.8 million, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jan. 01, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 9. Accrued Liabilities Accrued liabilities consisted of the following as of: January 1, January 2, 2022 2021 (in thousands) Customer deposits $ 36,982 $ 18,132 Accrued payroll and benefits 15,765 14,777 Accrued warranty 11,783 6,474 Accrued interest 6,857 10,415 Estimated fair value of contingent consideration, current 2,921 - Advance supplier consideration 2,808 2,808 Accrued health claims insurance payable 2,283 994 Accrued federal and state income taxes - 3,355 Fair value of derivative financial instruments - 52 Other 3,261 3,868 Accrued liabilities $ 82,660 $ 60,875 See Note 5 for a discussion of the estimated fair value of contingent consideration related to the Anlin Acquisition. Of the total currently estimated fair value of contingent consideration of $ 5.9 million, $ 2.9 million is classified as a current liability within accrued liabilities in the accompanying consolidated balance sheet as of January 1, 2022, with the remaining $ 3.0 million classified as a non-current liability within other liabilities. See Note 6 for a discussion of the net advance supplier consideration relating to the SA with Cardinal Glass Industries. Other accrued liabilities are comprised primarily of state sales taxes, property taxes and customer rebates. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 10. Long-Term Debt Long-term debt consists of the following: January 1, January 2, 2022 2021 (in thousands) 2021 Senior Notes Due 2029 - Senior notes issued on September 24, 2021, 4.375 % per annum $ 575,000 $ — 2018 Senior Notes Due 2026 - Senior notes issued on August 10, 2018, 6.75 % per — 365,000 2016 Credit Agreement Due 2024 - Term loan payable with no 60.0 million due on October 31, 2024. 2.10 %. At January 2, 2021, the average rate 2.15 %. 60,000 54,000 Long-term debt 635,000 419,000 Fees, costs, premium and discount (1) ( 9,345 ) ( 6,902 ) Long-term debt, net 625,655 412,098 Less current portion of long-term debt - - Long-term debt, net, less current portion $ 625,655 $ 412,098 (1) Fees, costs, premium and discount represents third-party fees, lender fees, other debt-related costs, and original issue premium and discount, recorded as a net reduction of the carrying value of debt and are amortized over the lives of the debt instruments to which they relate under the effective interest method. 2021 Senior Notes due 2029 On September 24, 2021, we completed the issuance of $ 575.0 million aggregate principal amount of 4.375 % senior notes (“2021 Senior Notes due 2029”), issued at 100 % of their principal amount. The 2021 Senior Notes due 2029 are jointly and severally and fully and unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future restricted subsidiaries, other than any restricted subsidiary of the Company that does not guarantee the existing senior secured credit facilities or any permitted refinancing thereof. The 2021 Senior Notes due 2029 are senior unsecured obligations of the Company and the guarantors, respectively, and rank pari passu in right of payment with all existing and future senior debt and senior to all existing and future subordinated debt of the Company and the guarantors. The 2021 Senior Notes due 2029 were offered under Rule 144A of the Securities Act, and in transactions outside the United States under Regulation S of the Securities Act, and have not been, and will not be, registered under the Securities Act. The 2021 Senior Notes due 2029 mature on October 1, 2029 . Interest on the 2021 Senior Notes due 2029 is payable semi-annually, in arrears, beginning on April 1, 2022, with interest accruing at a rate of 4.375 % per annum from September 24, 2021. We incurred financing costs relating to bank fees and professional services costs relating to the offering and issuance of the 2021 Senior Notes due 2029 totaling $ 8.7 million, which included a 1.25 % lender spread on the total principal value of the 2021 Senior Notes due 2029, or $ 7.2 million, and $ 1.5 million of other costs, all of which are being amortized under the effective interest method. See “Deferred Financing Costs” below. As of January 1, 2022, the face value of debt outstanding under the 2021 Senior Notes due 2029 was $ 575.0 million, and accrued interest totaled $ 6.8 million. Proceeds from the 2021 Senior Notes due 2029 were used, in part, to redeem in full the $ 425.0 million of 2018 Senior Notes due 2026, including the related fees, costs and prepayment call premium discussed further below, prepay the outstanding term loan borrowings under the 2016 Credit Agreement due 2024 of $ 54.0 million and the related fees and costs, and finance the Anlin Acquisition in the fourth quarter of 2021. See Note 5, Acquisitions, for a discussion of the Anlin Acquisition. The indenture for the 2021 Senior Notes due 2029 gives us the option to redeem some or all of the 2021 Senior Notes due 2029 at the redemption prices and on the terms specified in the indenture governing the 2021 Senior Notes due 2029. The indenture governing the 2021 Senior Notes due 2029 does not require us to make any mandatory redemptions or sinking fund payments. However, upon the occurrence of a change of control, as defined in the indenture, the Company is required to offer to repurchase the notes at 101 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. We also may make optional redemptions at various premiums including a make-whole call at the then current treasury rate plus 50 basis points prior to October 1, 2024, then 102.188 % on or after August 1, 2021, 101.094 % on or after August 2025, then at 100.000 % on or after August 1, 2026. The indenture for the 2021 Senior Notes due 2029 includes certain covenants limiting the ability of the Company and any guarantors to, (i) incur additional indebtedness; (ii) pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments; (iii) enter into agreements that restrict distributions from restricted subsidiaries; (iv) sell or otherwise dispose of assets; (v) enter into transactions with affiliates; (vi) create or incur liens; merge, consolidate or sell all or substantially all of the Company’s assets; (vii) place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Company; and (viii) designate the Company’s subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important exceptions and qualifications. 2018 Senior Notes Due 2026 On August 10, 2018, we completed the issuance of $ 315.0 million aggregate principal amount of 6.75 % senior notes (“2018 Senior Notes due 2026”), issued at 100 % of their principal amount. The 2018 Senior Notes due 2026 were jointly and severally and fully and unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future restricted subsidiaries, other than any restricted subsidiary of the Company that does not guarantee the existing senior secured credit facilities or any permitted refinancing thereof. The 2018 Senior Notes due 2026 were senior unsecured obligations of the Company and the guarantors, respectively, and ranked pari passu in right of payment with all existing and future senior debt and senior to all existing and future subordinated debt of the Company and the guarantors. The 2018 Senior Notes due 2026 were offered under Rule 144A of the Securities Act, and in transactions outside the United States under Regulation S of the Securities Act, and were not registered under the Securities Act. On January 24, 2020, we completed an add-on issuance of $ 50.0 million aggregate principal amount of 6.75 % 2018 Senior Notes due 2026, or the First Additional Senior Notes, issued at 106.375 % of their principal amount, resulting in a premium to us of $ 3.2 million. The First Additional Senior Notes were part of the same issuance of, and ranked equally and formed a single series with, the 2018 Senior Notes due 2026. Proceeds from the First Additional Senior Notes, including premium, were used, together with cash on hand, to pay the $ 90.4 million purchase price in the NewSouth Acquisition. On January 25, 2021, we completed a second add-on issuance of $ 60.0 million aggregate principal amount of 6.75 % 2018 Senior Notes due 2026, or the Second Additional Senior Notes, issued at 105.5 % of their principal amount, resulting in a premium to us of $ 3.3 million. The Second Additional Notes were part of the same issuance of, and ranked equally and form a single series with, the 2018 Senior Notes due 2026. Proceeds from the Second Additional Senior Notes, including premium, were used, together with $ 31.1 million in cash on hand, to pay the $ 94.4 million cash portion of the $ 100.5 million purchase price in the ECO Acquisition. The 2018 Senior Notes due 2026 were to mature on August 10, 2026 . However, effective on September 27, 2021, using proceeds from the issuance of the $ 575.0 million 2021 Senior Notes due 2029, discussed above, we redeemed in-full the $ 425.0 million of 2018 Senior Notes due 2026, including accrued and unpaid interest through September 27, 2021, which totaled $ 4.5 million, and a pre-payment call premium of 5.063 % of face value, which totaled $ 21.5 million and are classified as debt extinguishment costs in the accompanying consolidated statement of operations for the year ended January 1, 2022. 2016 Credit Agreement due 2024 On February 16, 2016 , we entered into the 2016 Credit Agreement due 2024, among us, the lending institutions identified in the 2016 Credit Agreement due 2024, and Truist Financial Corporation (formerly known as SunTrust Bank), as Administrative Agent and Collateral Agent. The 2016 Credit Agreement due 2024 establishes senior secured credit facilities in an aggregate amount of $ 310.0 million, consisting of a $ 270.0 million Term B term loan facility originally maturing in February 2022 that amortizes on a basis of 1 % annually during its six-year term, and a $ 40.0 million revolving credit facility originally maturing in February 2021 that included a swing line facility and a letter of credit facility. Our obligations under the 2016 Credit Agreement due 2024 are, subject to exceptions, guaranteed by substantially all of our wholly-owned direct and indirect subsidiaries that are restricted subsidiaries and secured by substantially all of our assets as well as our direct and indirect restricted subsidiaries’ assets. On March 16, 2018, we entered into an amendment of our 2016 Credit Agreement due 2024 (the “Second Amendment”). The Second Amendment, among other things, decreased the applicable interest rate margins for the Initial Term Loans (as defined in the 2016 Credit Agreement due 2024). On February 17, 2017, we entered into the first amendment to our 2016 Credit Agreement due 2024, which also resulted in decreases in the applicable margins, but which, unlike the Second Amendment, did not include any changes in lender positions. On October 31, 2019, we entered into an amendment of our 2016 Credit Agreement due 2024 (“Third Amendment”). The Third Amendment provided for, among other things, (i) a three-year Term A loan in the then aggregate principal amount of $ 64.0 million (the “Initial Term A Loan”), maturing in October 2022, which refinanced in full our existing Term B term loan facility under the 2016 Credit Agreement due 2024 , and had no regularly scheduled amortization, and (ii) a new five-year revolving credit facility in an aggregate principal amount of up to $ 80.0 million (the “Revolving Facility”), maturing in October 2024, which replaced our then existing $ 40.0 million revolving credit facility under the 2016 Credit Agreement due 2024, and includes a swing-line facility and letter of credit facility. The Initial Term A Loan was repaid in full with proceeds from the 2021 Senior Notes due 2029. On October 25, 2021, we entered into an amendment of our 2016 Credit Agreement due 2024 ("Fourth Amendment"). The Fourth Amendment provides for, among other things, a three-year Term A loan in the aggregate maximum available amount of $ 60.0 million (the "Incremental Term A Loan"), maturing in October 2024, proceeds from which were used to fund the Anlin Acquisition. The Fourth Amendment does not change any terms relating to the Revolving Facility, under which we pay quarterly fees on the unused portion of the revolving credit facility equal to a percentage spread (ranging from 0.25 % to 0.35 %) based on our first lien net leverage ratio. As of January 1, 2022, there were $ 5.3 million in letters of credit outstanding and $ 74.7 million available under the Revolving Facility. Our obligations under the 2016 Credit Agreement due 2024 continue to be secured by substantially all of our assets, as well as our direct and indirect subsidiaries' assets, and is senior in position to the 2021 Senior Notes due 2029. The weighted average all-in interest rate for borrowings under the term-loan portion of the 2016 Credit Agreement due 2024 was 2.10 % as of January 1, 2022 and was 2.15 % at January 2, 2021. Deferred Financing Costs All debt-related fees, costs and original issue discount, including those related to the revolving credit portion of the facility, is classified as a reduction of the carrying value of long-term debt. The activity relating to third-party fees and costs, lender fees and discount for the year ended January 1, 2022, are as follows: (in thousands) Total At beginning of year $ 6,902 Add: Deferred financing costs from the issuance of the Second Additional Senior Notes 1,363 Less: Premium on the Second Additional Senior Notes ( 3,300 ) Less: Write-off of deferred costs classified as debt extinguishment costs ( 3,954 ) Add: Deferred financing costs from the issuance of the 2021 Senior Notes due 2029 8,700 Add: Deferred financing costs from the refinancing of the 2016 Credit Agreement 612 Less: Amortization expense ( 978 ) At end of year $ 9,345 Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated, as of January 1, 2022, is as follows: (in thousands) Total 2022 $ 1,233 2023 1,282 2024 1,282 2025 1,083 2026 1,114 Thereafter 3,351 Total $ 9,345 The following represents future maturities of long-term debt as of January 1, 2022 (at face value): (in thousands) Total 2021 $ — 2022 — 2023 — 2024 60,000 2025 — Thereafter 575,000 Total $ 635,000 Interest Expense, Net Interest expense, net consisted of the following: Year Ended January 1, January 2, December 28, 2022 2021 2019 (in thousands) Long-term debt $ 28,625 $ 26,339 $ 24,750 Debt fees 474 327 383 Amortization and write-offs of deferred financing costs and debt discount 978 1,206 1,674 Interest income ( 27 ) ( 120 ) ( 339 ) Interest expense 30,050 27,752 26,468 Capitalized interest ( 21 ) ( 33 ) ( 51 ) Interest expense, net $ 30,029 $ 27,719 $ 26,417 |
Derivatives
Derivatives | 12 Months Ended |
Jan. 01, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 11. Derivatives Aluminum Contracts and Midwest Transaction Premium We enter into aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusion we use in production. Beginning late in the first quarter of 2020, we began entering into forward contracts to hedge the fluctuations in the price of the delivery component of our aluminum extrusion purchases, known as the Midwest Transaction Premium, or MTP. Our contracts are designated as cash flow hedges since they are highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum and the related MTP. We record our aluminum hedge contracts at fair value, based on trading values for aluminum forward contracts. Aluminum forward contracts identical to those held by us trade on the London Metal Exchange (“LME”). The LME provides a transparent forum and is the world’s largest center for the trading of futures contracts for non-ferrous metals. The prices are used by the metals industry worldwide as the basis for contracts for the movement of physical material throughout the production cycle. Based on this high degree of volume and liquidity in the LME, we believe the valuation price at any measurement date for contracts with identical terms as to prompt date, trade date and trade price as those we hold at any time represents a contract’s exit price to be used for purposes of determining fair value. We record our MTP hedge contracts at fair value, based on the Platts MW US Transaction price per pound assessment, which has been a benchmark for decades in the North American aluminum industry. Platts surveys the North American market daily to capture trades, bids and offers on a delivered Midwest basis. Data is normalized to reflect the typical price per pound between the largest number of market participants, for delivery within 7 to 30 days from date of publication, net- 30 -day payment terms, for typical order quantities, chemistries and freight allowances. The survey is extensive and encompasses both domestic and offshore producers, traders and brokers that are varied in scope. Based on the extensive nature of this pricing mechanism, we believe the Platts MW US Transaction price at any time represents a contract’s exit price to be used for purposes of determining fair value. Guidance under the Financial Instruments Topic 825 of the Codification requires us to record our hedge contracts at fair value and consider our credit risk for contracts in a liability position, and our counter-party’s credit risk for contracts in an asset position, in determining fair value. We assess our counter-party’s risk of non-performance when measuring the fair value of financial instruments in an asset position by evaluating their financial position, including cash on hand, as well as their credit ratings. We assess our risk of non-performance when measuring the fair value of our financial instruments in a liability position by evaluating our credit ratings, our current liquidity including cash on hand and availability under our revolving credit facility as compared to the maturities of the financial liabilities. Management makes an accounting policy election not to offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting arrangement. Our counterparties to our derivative contracts do not require the Company to post collateral against hedge contracts in a liability position, if any. At January 1, 2022, the fair value of our aluminum forward contracts was in an asset position of $ 4.8 million. We had 21 outstanding forward contracts for the purchase of 30.7 million pounds of aluminum through December 2022, at an average price of $ 1.11 per pound, which excludes the Midwest premium, with maturity dates of between one month and twelve months . At January 1, 2022, the fair value of our MTP contracts was in an asset position of $ 4.6 million. We had 10 outstanding MTP contracts to hedge the Platt US MW Transaction price per pound for the delivery of 23.5 million pounds of aluminum through December 2022, at an average price of $ 0.12 per pound, with maturity dates of between one month and twelve months . We assessed the risk of non-performance of the Company and our counterparty to these contracts, as applicable, and determined it was immaterial and, therefore, did not record any adjustment to their fair values as of January 1, 2022. We assess the effectiveness of our cash flow hedges by comparing the change in the fair value of the forward contract to the change in the expected cash to be paid for the hedged item. The gain or loss on our aluminum forward contracts is reported as a component of accumulated other comprehensive income (loss) and is reclassified into earnings in the same line item in the income statement as the hedged item in the same period or periods during which the transaction affects earnings. The amount of income, net, recognized in the “accumulated other comprehensive income (loss)” line item in the accompanying condensed consolidated balance sheet as of January 1, 2022, that we expect will be reclassified to earnings within the next twelve months, is approximately $ 9.4 million. The fair values of our aluminum hedges and MTP contracts are classified in the accompanying condensed consolidated balance sheets at January 1, 2022, and January 2, 2021, as follows (in thousands): Derivative Assets Derivative (Liabilities) January 1, 2022 January 1, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ 4,829 Accrued liabilities $ — MTP contracts Other current assets 4,599 Accrued liabilities — Aluminum forward contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 9,428 Total derivative liabilities $ — Derivative Assets Derivative (Liabilities) January 2, 2021 January 2, 2021 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ 3,243 Accrued liabilities $ ( 28 ) MTP contracts Other current assets 423 Accrued liabilities ( 24 ) Aluminum forward contracts Other assets — Other liabilities ( 25 ) MTP contracts Other assets 26 Other liabilities ( 4 ) Total derivative instruments Total derivative assets $ 3,692 Total derivative liabilities $ ( 81 ) The ending accumulated balance for the aluminum forward contracts included in accumulated other comprehensive losses, net of tax, was $ 7.0 million as of January 1, 2022, and $ 2.7 million as of January 2, 2021. The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying consolidated financial statements for the three years ended January 1, 2022 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Year Ended Year Ended December 28, 2019 December 28, 2019 Aluminum contracts ($ 1,229 ) Cost of sales ($ 5,030 ) January 2, 2021 January 2, 2021 Aluminum contracts $ 1,037 Cost of sales ($ 2,470 ) MTP contracts $ 532 Cost of sales $ 111 January 1, 2022 January 1, 2022 Aluminum contracts $ 14,012 Cost of sales $ 12,373 MTP contracts $ 10,443 Cost of sales $ 6,265 |
Fair Value
Fair Value | 12 Months Ended |
Jan. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 12. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The accounting guidance concerning fair value allows us to elect to measure financial instruments at fair value and report the changes in fair value through earnings. This election can only be made at certain specified dates and is irrevocable once made. We do not have a policy regarding specific assets or liabilities to elect to measure at fair value, but rather we make the election on an instrument-by-instrument basis as they are acquired or incurred. During 2021, 2020, or 2019, we did no t make any transfers between Level 1, Level 2 or Level 3 financial assets. We conduct reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. Fair Value of Financial Instruments Our financial instruments include cash equivalents, accounts and notes receivable, accounts payable, and accrued liabilities, whose carrying amounts approximate their fair values due to their short-term nature. Our financial instruments also include borrowings under our 2016 Credit Agreement due 2024 as well as the 2021 Senior Notes due 2019 at January 1, 2022, and 2018 Senior Notes due 2026 at January 2, 2021, all classified as long-term debt. The fair value of borrowings under the 2016 Credit Agreement due 2024 approximates its carrying value due to its variable interest rate nature, and was approximately $ 60.0 million as of January 1, 2022, compared to a principal outstanding value of $ 60.0 million, and $ 54.0 million as of January 2, 2021, compared to a principal outstanding value of $ 54.0 million. The fair value of the 2021 Senior Notes due 2029 is also based on debt with similar terms and characteristics and was approximately $ 578.2 million as of January 1, 2022, compared to a principal outstanding value of $ 575.0 million, and of the 2018 Senior Notes due 2026 of $ 387.8 million as of January 2, 2021, compared to a principal outstanding value of $ 365.0 million. Fair values were determined based on observed trading prices of our debt between domestic financial institutions, which we consider to be Level 2 inputs. The carrying amounts for financial instruments measured at fair value are as follows: Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs January 1, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ 4,829 $ — $ 4,829 $ — MTP contracts 4,599 — 4,599 — $ 9,428 $ — $ 9,428 $ — January 2, 2021 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts, net $ 3,190 $ — $ 3,190 $ — MTP contracts, net 421 — 421 — $ 3,611 $ — $ 3,611 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Income Tax Expense The components of income tax expense are as follows (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Current: Federal $ 790 $ 9,906 $ 5,747 State 1,337 2,571 2,282 2,127 12,477 8,029 Deferred: Federal 7,142 528 3,179 State 490 ( 1,121 ) 1,231 7,632 ( 593 ) 4,410 Income tax expense $ 9,759 $ 11,884 $ 12,439 The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Consolidated statements of operations: Income tax expense relating to continuing operations $ 9,759 $ 11,884 $ 12,439 Consolidated statements of shareholders' equity: Income tax expense relating to derivative financial instruments $ ( 1,531 ) $ ( 970 ) $ ( 974 ) Reconciliation of the Statutory Rate to the Effective Rate A reconciliation of the statutory federal income tax rate to our effective rate is provided below: Year Ended January 1, January 2, December 28, 2022 2021 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 3.2 % 3.7 % 4.0 % Non-deductible expenses 1.3 % 1.0 % 1.6 % Eco partnership income attributable to non-controlling interest ( 1.2 )% — — Florida excess tax refund relating to the Tax Cuts and Jobs Act — ( 1.0 )% — Excess stock-based compensation tax benefits ( 2.0 )% ( 1.4 )% ( 3.7 )% Research activities credits ( 0.8 )% ( 2.3 )% ( 1.2 )% Changes related to state rate changes and U.S. tax reform — — 0.7 % Other 0.2 % ( 0.1 )% ( 0.2 )% Consolidated effective tax rate 21.7 % 20.9 % 22.2 % Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our net deferred tax liability are as follows: January 1, January 2, 2022 2021 (in thousands) Deferred tax assets: Operating lease liability $ 16,949 $ 10,609 Deferrals and accruals relating to ASC 606, net 6,580 3,537 State bonus depreciation and net operating loss carryforwards 3,748 2,606 Stock-based compensation expense 2,527 1,772 Accrued warranty 2,380 1,550 Acquisition costs 2,158 1,664 Advance supplier consideration 2,109 2,776 Other deferrals and accruals, net 1,848 2,206 Obsolete inventory and UNICAP adjustment 1,666 788 Allowance for credit losses 1,048 1,017 Total deferred tax assets 41,013 28,525 Deferred tax liabilities: Property, plant and equipment ( 20,958 ) ( 14,966 ) Trade names and other intangible assets, net ( 18,162 ) ( 17,978 ) Goodwill ( 17,102 ) ( 12,596 ) Operating lease right-of-use asset ( 15,371 ) ( 9,742 ) Eco partnership basis difference ( 3,110 ) — Derivative financial instruments ( 2,421 ) ( 892 ) Prepaid expenses ( 1,378 ) ( 680 ) Total deferred tax liabilities ( 78,502 ) ( 56,854 ) Total deferred tax liabilities, net $ ( 37,489 ) $ ( 28,329 ) Tax-Deductible Goodwill We acquired goodwill deductible for tax purposes in the CGI acquisition as the transaction was treated as an acquisition of stock for tax purposes. At the date of the acquisition, the amount of goodwill deductible for tax purposes from the CGI acquisition was $ 9.3 million. At the time of the acquisition, this goodwill was the same amount for both book and tax purposes and, therefore, no deferred tax asset or liability was recognized. As we amortize this goodwill for tax purposes over its remaining life, which was approximately 7.4 years at the time of the acquisition, we will recognize a deferred tax liability. The unamortized amount of this goodwill was $ 0.2 million and $ 1.5 million at January 1, 2022, and January 2, 2021, respectively. We have goodwill deductible for tax purposes in the WinDoor acquisition as the transaction was an acquisition of stock that was treated as a step-up acquisition of assets and assumption of liabilities pursuant to our election under section 338(h)(10) of the Internal Revenue Code. We are deducting goodwill for tax purposes of $ 38.9 million from the WinDoor transaction. The unamortized amount of this goodwill was $ 23.5 million and $ 26.1 million at January 1, 2022, and January 2, 2021, respectively. We have goodwill deductible for tax purposes in the US Impact acquisition as the transaction was treated as an acquisition of assets and assumption of liabilities for both book and tax purposes. We expect to be able to deduct goodwill for tax purposes of $ 569 thousand from the USI transaction. The unamortized amount of this goodwill was $ 364 thousand and $ 402 thousand at January 1, 2022, and January 2, 2021, respectively. W e completed the WWS Acquisition, which included its subsidiary, WWS Blocker LLC (“Blocker”), on August 13, 2018 . Blocker was a single-purpose U.S. tax blocker which held a 18.06 % ownership percentage of the combined ownership of WWS, and for which that portion of the fair value of assets acquired and liabilities assumed in the WWS Acquisition was not eligible for a step-up in basis. We have goodwill deductible for tax purposes in the WWS Acquisition. Goodwill relating to the 81.94 % portion of the transaction treated as a step-up acquisition of assets and assumption of liabilities totaled $ 133.6 million. We expect to be able to deduct this goodwill for tax purposes. The unamortized amount of this goodwill was approximately $ 103.1 million and $ 112.1 million at January 1, 2022, and January 2, 2021, respectively. WWS has historical tax goodwill, of which the 18.06 % portion of the Blocker treated as an acquisition of stock not eligible for step-up totaled $ 6.0 million. The unamortized portion of this goodwill was approximately $ 4.3 million and $ 4.8 million at January 1, 2022, and January 2, 2021, respectively. This component can continue to be deducted by the Company for tax purposes. We have goodwill deductible for tax purposes in the NewSouth Acquisition as the transaction was treated as an acquisition of assets and assumption of liabilities for both book and tax purposes. In the transaction, there were no earn-out arrangements or separate asset allocation agreements with sellers that we believe would affect the deductibility of goodwill in the acquisition. As such, we expect to be able to deduct goodwill for tax purposes of $ 52.1 million. The unamortized amount of this goodwill was $ 45.4 million at January 1, 2022, and $ 48.9 million at January 2, 2021. In February 2021, we acquired Eco in a transaction treated as a 75 % investment in a partnership which we believe will elect to be treated as an asset acquisition pursuant to Section 743(b) of the Code. As such, although the Eco Acquisition created goodwill for book purposes, our share of the tax deductible goodwill created in this transaction will benefit us through our share of partnership earnings, which will include, among other things, its tax deductible goodwill. In our acquisition of CRi, we acquired goodwill which we believe is tax deductible as the transaction was structured as a purchase of assets and assumption of certain liabilities for both book and tax. In the transaction there were no earn-out arrangements or separate asset allocation agreements with the sellers that we believe would affect the deductibility of goodwill in the transaction. as such, we believe the goodwill acquired of $ 3.7 million is deductible for tax purposes. The unamortized amount of this goodwill was $ 3.5 million at January 1, 2022. In the Anlin Acquisition, we acquired goodwill which we believe is currently not tax deductible as a result of an earn-out agreement associated with this transaction, the fair value of which exceeds the amount of the goodwill acquired. Payments under this earn-out agreement have not been finalized as of January 1, 2022. As such, we are unable to estimate the amount of goodwill that may be deductible, if any, in the Anlin Acquisition. Excess Tax Benefits Excess tax benefits resulting from the exercise of stock options and lapse of restriction on stock awards are now recognized as a discrete item in tax expense, where previously such tax effects had been recognized in additional paid-in-capital. Income tax expense in the years ended January 1, 2022, January 2, 2021, and December 28, 2019, includes excess tax benefits totaling $ 0.9 million, $ 0.8 million, and $ 2.1 million, respectively. Open Tax Years The tax years 2014 to 2020 remain open for examination by the IRS and Florida due to the statute of limitations and net operating losses utilized in prior tax years. |
Leases, Commitments and Conting
Leases, Commitments and Contingencies | 12 Months Ended |
Jan. 01, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Leases, Commitments And Contingencies | 14. Leases, Commitments and Contingencies Leases We lease certain of our manufacturing facilities under operating leases. We also lease production equipment, vehicles, computer equipment, storage units and office equipment under operating leases. Our leases have remaining lease terms of 1 year to 10 years , some of which may include options to extend the leases for up to 5 years , and some of which may include options to terminate the leases within 1 year . All of our leases are operating leases. We did not recognize right-of-use assets or lease liabilities for certain short-term leases that are month-to-month leases. As of January 1, 2022, we had no additional operating or finance leases that have not yet commenced . Our operating leases expire at various times through 2032. Lease expense for the years ended January 1, 2022, and January 2, 2021, totaled $ 25.1 million and $ 13.0 million, respectively, and includes $ 10.6 million and $ 6.6 million, respectively, classified in cost of sales in the accompanying consolidated statement of operations, with the remainder as selling, general and administrative expenses. The components of lease expense for the years ended January 1, 2022 and January 2, 2021 are as follows. Certain amounts in the prior year period have been reclassified to conform to the current presentation (in thousands): Year Ended January 1, January 2, 2022 2021 Operating lease cost $ 15,254 $ 9,165 Short-term lease cost 9,872 3,856 Total lease cost $ 25,126 $ 13,021 Other information relating to leases for the years ended January 1, 2022 and January 2, 2021, are as follows (in thousands, except years and percentages): Year Ended January 1, January 2, 2022 2021 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows relating to operating leases $ ( 13,750 ) $ ( 8,822 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 65,678 $ 19,185 Weighted average remaining lease term in years Operating leases 7.04 6.84 Weighted average discount rate Operating leases 5.5 % 5.8 % Future minimum lease commitments for operating leases are as follows (in thousands): January 1, January 2, 2022 2021 2021 $ - $ 8,327 2022 17,929 7,626 2023 17,577 7,149 2024 16,990 6,748 2025 15,987 6,253 2026 15,025 6,130 Thereafter 32,249 7,670 Total future minimum lease payments 115,757 49,903 Less: Imputed interest ( 18,674 ) ( 8,641 ) Operating lease liability - total $ 97,083 $ 41,262 Reported as of January 1, 2022 and January 2, 2021: Current portion of operating lease liability $ 13,180 $ 6,132 Operating lease liability, less current portion 83,903 35,130 Operating lease liability - total $ 97,083 $ 41,262 Purchase Commitments We are obligated to purchase certain raw materials used in the production of our products from certain suppliers pursuant to stocking programs. If these programs were cancelled by us, as of January 1, 2022, we would be required to pay $ 21.6 million for various materials. During the years ended January 1, 2022, January 2, 2021, and December 28, 2019, we made purchases under these programs totaling $ 262.4 million, $ 227.4 million and $ 216.0 million, respectively. The Company expects to utilize its purchase commitments in its normal ongoing operations. At January 1, 2022, we had $ 5.3 million in standby letters of credit related to our workers’ compensation insurance coverage. Legal Proceedings We are a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of those proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or on a combined basis, will not have a materially adverse effect on our operations, financial position or cash flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 01, 2022 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans Defined Contribution Plan We have a 401(k) plan covering substantially all employees 18 years of age or older who have at least three months of service. Employees may contribute up to 80 % of their annual compensation subject to Internal Revenue Code maximum limitations. We currently make matching contributions based on our operating results. During the years ended January 1, 2022, January 2, 2021, and December 28, 2019, there was a matching contribution of up to 3 %, in each year made at various times during the year. Company contributions and earnings thereon vest at the rate of 20 % per year of service with us when at least 1,000 hours are worked within the Plan year. We recognized expenses for such employer matching of $ 4.5 million, $ 3.3 million and $ 2.9 million for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. 2019 Employee Stock Purchase Plan On May 22, 2019, our shareholders approved, and we adopted the 2019 Employee Stock Purchase Plan (the “2019 ESPP”) whereby eligible employees may purchase the Company’s common stock at a discount from fair market value represented by the trading price of the Company’s common stock on the NYSE. Eligible employees may purchase the Company’s common stock at a price which is determined by the Compensation Committee of the Board of Directors of the Company, but which will be no less than 85 % of fair market value, as defined in the 2019 ESPP. There is a maximum of 700,000 shares issuable under the 2019 ESPP. Since its approval by our shareholders, there have been 70,414 shares issued under the 2019 ESPP. |
Related Parties
Related Parties | 12 Months Ended |
Jan. 01, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | 16. Related Parties In the ordinary course of business, we sell windows to Builders FirstSource, Inc. One of our directors, Brett Milgrim, is currently a director of Builders FirstSource, Inc., and Floyd Sherman, another of our directors, is a former director and the former Chief Executive Officer of Builders FirstSource, Inc. Our total net sales to Builders FirstSource, Inc. were $ 25.9 million, $ 21.4 million and $ 21.9 million for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. As of January 1, 2022, and January 2, 2021, there was $ 3.7 million and $ 1.9 million due from Builders FirstSource, Inc. included in accounts receivable in the accompanying consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | 17. Shareholders’ Equity 2021 Equity Issuance in Eco Acquisition On February 1, 2021 , we completed the Eco Acquisition, which represented a 75 % stake in the newly created entity Eco Enterprises. The fair value consideration for Eco was $ 100.5 million, including $ 94.4 million in cash. The fair value of consideration also included PGT Innovations, Inc. common stock with a then estimated fair value of $ 6.1 million. The common stock portion of the purchase price was represented by the issuance of 357,797 shares of PGT Innovations, Inc. common stock on February 1, 2021, with a closing price value of $ 21.34 per share on that date, or approximately $ 7.6 million based on that price. However, the seller of Eco, who is also the holder of the 25 % redeemable non-controlling interest in Eco Enterprises, is restricted from selling these shares for a three-year period from the date of the acquisition. As such, we estimated that there was an approximately 20 % discount for the lack of marketability of the shares. Repurchases of Company Common Stock During 2021 and 2020, we repurchased 73,105 shares and 51,479 shares, respectively, of our common stock at a total cost of $ 1.6 million and $ 815 thousand, respectively, all relating to purchases from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock awards. Those shares were immediately retired. We also repurchased shares of our common stock on the open market during 2019, as further described in the next paragraph. Program for Repurchases of Company Common Stock On May 22, 2019, our Board of Directors authorized and approved a share repurchase program of up to $ 30.0 million. The repurchases may be made in open market or private transactions from time to time. Repurchases of shares may be made under a Rule 10b5-1 plan, which would permit repurchases when the Company might otherwise be precluded from doing so under applicable laws. The Company bases repurchase decisions, including the timing of repurchases, on factors such as the Company’s stock price, general economic and market conditions, the potential impact on the Company’s capital structure, the expected return on competing uses of capital such as strategic acquisitions and capital investments, and other corporate considerations, as determined by management. From the inception of the program on May 22, 2019, through December 28, 2019, we made repurchases of 393,819 shares of our common stock at a total cost of $ 5.5 million under this program. The repurchase program may be suspended or discontinued at any time. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Jan. 01, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 18. Stock-Based Compensation 2019 Equity Plan On May 22, 2019, our shareholders approved, and we adopted the 2019 Equity and Incentive Compensation Plan (the “2019 Equity Plan”) whereby equity-based awards may be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. A summary of certain key features and terms of the 2019 Equity Plan is set forth below. A more complete discussion about the 2019 Equity Plan is set forth in the Company’s proxy statement for its 2019 annual meeting of stockholders, which was filed with the SEC on April 23, 2019. 2019 Equity and Incentive Compensation Plan sets forth the total number of shares of common stock available for grant thereunder, at 1,550,000 , sets forth the types of awards eligible under the plan, including issuances of options, share appreciation rights, restricted shares, restricted share units, share bonuses, other share-based awards and cash awards, and sets forth the maximum number of shares that may be made subject to awards in any calendar year to any “covered employee” (within the meaning of Section 162(m) of the Internal Revenue Code). shares previously granted under predecessor plans, including the 2014 Equity Plan and the 2006 Equity Plan, may be available for issuance under the 2019 Equity Plan under certain circumstances described below. There were 558,220 shares available for grant under the 2019 Equity Plan at January 1, 2022. 2014 Equity Plan On March 28, 2014, we adopted the 2014 Omnibus Equity Incentive Plan (the “2014 Equity Plan”) whereby equity-based awards may be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. On May 7, 2014, our stockholders approved the 2014 Equity Plan. 2014 Omnibus Equity Incentive Plan sets forth the total number of shares of common stock available for grant thereunder, at 1,500,000 , sets forth the types of awards eligible under the plan, including issuances of options, share appreciation rights, restricted shares, restricted share units, share bonuses, other share-based awards and cash awards, and sets forth the maximum number of shares that may be made subject to awards in any calendar year to any “covered employee” (within the meaning of Section 162(m) of the Internal Revenue Code). With the adoption of the 2019 Equity Plan effective on May 22, 2019, no further shares will be granted and, therefore, no shares are available under the 2014 Equity Plan. However, a previously issued grant under the 2014 Equity Plan that is cancelled or forfeited, expires, is settled for cash, or is unearned, is available to be issued under the 2019 Equity Plan. 2006 Equity Plan On June 6, 2006, we adopted the 2006 Equity Incentive Plan (the “2006 Equity Plan”) whereby equity-based awards could be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. On April 6, 2010, our stockholders approved the PGT Innovations, Inc. (formerly PGT, Inc.) Amended and Restated 2006 Equity Incentive Plan (the “Amended and Restated 2006 Equity Incentive Plan”). With the adoption of the 2014 Equity Plan effective on March 28, 2014, no further shares were granted under and, therefore, no shares were available under the Amended and Restated 2006 Equity Incentive Plan. However, a previously issued grant made under the Amended and Restated 2006 Equity Incentive Plan that is cancelled or forfeited, expires, is settled for cash, or is unearned, is available to be issued under the 2019 Equity Plan. Recent Issuances On February 15, 2021, we issued 289,210 shares of restricted stock to certain executive and non-executive employees of the Company, under the Company’s 2021 long-term incentive plan (“2021 LTIP”). The final number of half of the shares awarded under the 2021 LTIP, or 144,605 shares, is subject to adjustment based on the performance of the Company for the 2021 fiscal year and was not final as of January 1, 2022. Additionally, a portion of the 144,605 performance shares issued under the 2021 LTIP are subject to a total shareholder return ("TSR") component, which will not be finalized until the third anniversary of the February 15, 2021 grants date. Specifically, 37.5 % of the one-half of the restricted stock awarded in the 2021 LTIP are performance restricted shares which will not be earned unless certain financial performance metrics are met by the Company for the 2021 fiscal year. The performance criteria, as defined in the share awards, provide for a graded awarding of shares based on the percentage by which the Company meets earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in our 2021 business plan. The percentages, ranging from less than 80 % to greater than 120 % of the target amount of that EBITDA metric, provide for the awarding of shares ranging from 0 % to 150 % of the target amount of shares with respect to 37.5 % of half of the 289,210 shares, or 54,227 shares. The remaining 62.5 % of the one-half of the restricted stock awarded in the 2021 LTIP, or 90,378 shares, are subject to the same EBITDA metric, but are also subject to a TSR component which stratifies the performance of the Company's common stock price compared to a defined peer group of companies over the three-year period subsequent to February 15, 2021, such that if the Company's TSR falls at the 75th percentile or higher compared to the peer group, grantees will receive an additional 25 % of performance shares. If the Company's TSR falls at the 25th percentile or lower compared to the peer group, grantees will forfeit 25 % of performance shares. If the Company's TSR falls within the 75th and 25th percentiles, there will be no additional adjustment and grantees will receive their performance shares as per the EBITDA metric previously discussed. The final award is also affected by forfeitures upon the termination of a grantee’s employment with the Company. The remaining 144,605 shares from the 2021 LTIP are not subject to adjustment based on any performance or other criteria, but rather, vest in three equal installments on each of the first, second and third anniversaries of the grant date, assuming the grantee is employed by the Company on those vesting dates. The grant date fair value of the 2021 LTIP was $ 23.00 per share for those shares not subject to adjustment based on any performance or other criteria except the passage of time, and the 37.5 % of shares subject only to the EBITDA criteria of Company performance, which represents the closing price of the Company's common stock on the New York Stock Exchange on February 12, 2021, the trading day before the grant date per our policy. For the 62.5 % of performance shares subject to both the EBITDA criteria of Company performance and the TSR component, the grant date fair value was $ 26.10 per share as determined by a third-party valuation specialist engaged by the Company, which used Monte Carlo simulation techniques to determine the fair value of such shares, which we consider to be a Level 3 input. On May 20, 2021, we issued a total of 28,140 shares of restricted stock awards to seven non-employee board members of the Company, and 8,040 restricted stock units to two non-employee board members of the Company who elected to defer receipt of their stock awards, as the non-cash portion of their annual compensation for participation on the Company’s Board of Directors. The restrictions on these awards lapse one year after the grant date. The awards have a weighted average fair value on date of grant of $ 24.88 based on the New York Stock Exchange market price of the common stock on the close of business on the day the awards were granted. On February 1, 2020, in connection with the NewSouth Acquisition, we issued 129,032 shares of restricted stock awards to the sellers of NewSouth, who became employees of the Company after the acquisition, representing 64,516 shares each of those two sellers. This restricted stock award cliff-vests on the third anniversary of the February 1, 2020 acquisition date of NewSouth and requires that the grantees be employees of the Company on the vesting date. This stock had a fair value on the date of grant of $ 15.50 per share, and the related stock-based compensation expense is being recognized on a straight-line basis over the three-year life of the grant. The two sellers also have the ability to earn shares of Company common stock for the opening of new stores in new markets in which NewSouth has not previously had a presence. These two sellers were granted a total of 351,612 shares of restricted stock to open eleven new stores over approximately three years from February 1, 2020 to December 31, 2022, which represents 32,258 shares per store for each of the first ten stores, and 29,032 shares for the eleventh store, with the primary goal of expanding our direct-to-consumer sales-model footprint in the southeastern United States. For stores opened in 2020, once the store achieves a trailing six-month ("TSM") EBITDA of $ 250,000 with TSM EBITDA margin of 8 % , the two sellers will vest in the shares for that store. For stores opened in 2021, once the store achieves a TSM EBITDA of $ 125,000 with a TSM EBITDA margin of 6 % , the two sellers will vest in the shares for that store. For stores opened in 2022, shares vest upon the opening of the store. In 2021, two stores that were opened in 2020 achieved the required TSM EBITDA and TSM EBITDA margin, which resulted in the sellers vesting in the shares relating to those stores. We recognize stock-based compensation expense on each store, based on our assessment of the probability of a store opening and achieving the metrics assigned to such store. We record stock compensation expense over an equity award’s vesting period using the award’s fair value at the date of grant. We recorded compensation expense for stock-based awards of $ 7.8 million, $ 5.5 million and $ 3.9 million for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. Of the $ 7.8 million, $ 5.5 million and $ 3.9 million in stock-based compensation expense in the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively, $ 6.4 million, $ 4.8 million and $ 3.2 million, respectively, are classified within selling, general and administrative expense in the accompanying consolidated statements of operations for those years, with the remainder classified within cost of sales. Stock Options A summary of the status of our stock options as of January 1, 2022, and changes during the year then ended, is presented below: Number of Weighted Weighted Outstanding at January 2, 2021 67,797 $ 2.04 Exercised ( 67,797 ) $ 2.04 Outstanding at January 1, 2022 0 — — Exercisable at January 1, 2022 0 — — For the years ended January 1, 2022 and January 2, 2021, we received $ 138 thousand and $ 0.6 million in proceeds, from the exercise of 67,797 and 284,353 options for which we recognized $ 0.9 million and $ 0.8 million in excess tax benefits as discrete items of income tax expense in each of those year, respectively. The aggregate intrinsic value of stock options exercised during the years ended January 1, 2022 and January 2, 2021, was $ 1.6 million and $ 3.4 million, respectively. Restricted Share Awards A summary of the status of restricted share awards as of January 1, 2022, and changes during the year then ended, are presented below: Number of Weighted Outstanding at January 2, 2021 864,918 $ 16.48 Granted 709,122 $ 19.37 Vested ( 312,982 ) $ 16.03 Forfeited/Performance adjustment ( 114,952 ) $ 17.71 Outstanding at January 1, 2022 1,146,106 $ 18.25 As of January 1, 2022, the remaining compensation cost related to non-vested share awards was $ 5.9 million which is expected to be recognized in earnings using an accelerated method resulting in higher levels of compensation costs occurring in earlier periods over a weighted average period of 1.6 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 19. Accumulated Other Comprehensive Income (Loss) The following table shows the components of accumulated other comprehensive income (loss) for the years ended January 1, 2022, January 2, 2021, and December 28, 2019: Aluminum Forward MTP (in thousands) Contracts Contracts Total Accumulated other comprehensive loss at December 29, 2018 $ ( 3,065 ) $ - $ ( 3,065 ) Change in fair value of derivatives ( 1,229 ) - ( 1,229 ) Amounts reclassified from accumulated other comprehensive earnings 5,030 - 5,030 Tax effect ( 974 ) - ( 974 ) Net current-period other comprehensive income 2,827 - 2,827 Accumulated other comprehensive loss at December 28, 2019 $ ( 238 ) $ - $ ( 238 ) Accumulated other comprehensive loss at December 28, 2019 $ ( 238 ) $ - $ ( 238 ) Change in fair value of derivatives 1,037 532 1,569 Amounts reclassified from accumulated other comprehensive earnings 2,470 ( 111 ) 2,359 Tax effect ( 866 ) ( 104 ) ( 970 ) Net current-period other comprehensive income 2,641 317 2,958 Accumulated other comprehensive income at January 2, 2021 $ 2,403 $ 317 $ 2,720 Accumulated other comprehensive income at January 2, 2021 $ 2,403 $ 317 $ 2,720 Change in fair value of derivatives 14,012 10,443 24,455 Amounts reclassified from accumulated other comprehensive earnings ( 12,373 ) ( 6,265 ) ( 18,638 ) Tax effect ( 432 ) ( 1,099 ) ( 1,531 ) Net current-period other comprehensive income 1,207 3,079 4,286 Accumulated other comprehensive income at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 |
Segments
Segments | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Segments | 20. Segments We have two reportable segments: the Southeast segment, and the Western segment. The Southeast reporting segment, which is also an operating segment, is composed of sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facilities in Arizona and California. Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) from operations basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”), with oversight by the Board of Directors. Total asset information by segment is not included herein as asset information by segment is not presented to or reviewed by the CODM. The following table represents summary financial data attributable to our operating segments for the years ended January 1, 2022, January 2, 2021, and December 28, 2019. Results of the Southeast segment for the year ended January 1, 2022 includes the results of Eco for its post-acquisition period from February 1, 2021, and for the year ended January 2, 20201 includes the results of NewSouth for its post-acquisition period from February 1, 2020. Results of the Western segment for the year ended January 1, 2022 includes the results of CRi for its post-acquisition period from May 1, 2021, and Anlin for its post-acquisition period from October 25, 2021. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Net sales: Southeast segment $ 968,693 $ 752,432 $ 606,631 Western segment 192,771 130,189 138,325 Total net sales $ 1,161,464 $ 882,621 $ 744,956 Income from operations: Southeast segment $ 74,815 $ 85,794 $ 75,484 Western segment 25,641 11,144 8,572 Impairment of trade name — ( 8,000 ) — Restructuring costs and charges — ( 4,227 ) — Total income from operations 100,456 84,711 84,056 Interest expense, net 30,029 27,719 26,417 Debt extinguishment costs 25,472 - 1,512 Total income before income taxes $ 44,955 $ 56,992 $ 56,127 Depreciation expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, was $ 26.5 million, $ 20.9 million, and $ 15.8 million for our Southeast segment, respectively, and $ 4.0 million, $ 3.1 million, and $ 3.1 million for our Western segment, respectively. Amortization expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, was $ 10.7 million, $ 9.2 million, and $ 6.4 million for our Southeast segment, respectively, and $ 10.4 million, $ 9.6 million, and $ 9.4 million for our Western segment, respectively. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Jan. 01, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | 21. Unaudited Quarterly Financial Data The following tables summarize the consolidated quarterly results of operations for the years ended January 1, 2022, and January 2, 2021 (in thousands, except per share amounts): Year Ended January 1, 2022 First Second Third Fourth Net sales $ 271,092 $ 285,500 $ 300,431 $ 304,441 Gross profit 93,962 97,009 104,203 108,325 Net income (loss) attributable to common shareholders 12,384 6,582 ( 6,782 ) 14,613 Net income (loss) per share – basic $ 0.21 $ 0.11 $ ( 0.11 ) $ 0.24 Net income (loss) per share – diluted $ 0.21 $ 0.11 $ ( 0.11 ) $ 0.24 Year Ended January 2, 2021 First Second Third Fourth Net sales $ 220,204 $ 202,783 $ 238,033 $ 221,601 Gross profit 81,127 74,463 86,936 78,798 Net income 15,600 2,199 17,322 9,987 Net income per share – basic $ 0.27 $ 0.04 $ 0.29 $ 0.17 Net income per share – diluted $ 0.26 $ 0.04 $ 0.29 $ 0.17 (1) In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. (2) Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. Earnings per share are 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. Each of our fiscal quarters above consists of 13 weeks, except for the first quarter of the year ended January 2, 2021, which consisted of 14 weeks. |
Restructuring Costs and Charges
Restructuring Costs and Charges | 12 Months Ended |
Jan. 01, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs and Charges | 22. Restructuring Costs and Charges On April 20, 2020 , the Company’s management approved a plan to consolidate its manufacturing operations in Florida, which included exiting our manufacturing facility in Orlando, Florida, where our WinDoor and Eze-Breeze products were assembled and relocated the manufacturing of those products to our Venice and Tampa, Florida plants, respectively. We ceased production at the Orlando facility during June 2020 . As a result of this consolidation, we recorded restructuring costs and charges totaling $ 4.2 million in the year ended January 2, 2021. The following represents activities of restructuring costs and charges for the year ended January 2, 2021: Year Ended January 2, 2021 Beginning Charged Write-offs of End of Restructuring costs and charges of Period to Expense Assets Settled in Cash Period (in thousands) Property and equipment costs and charges $ — $ 1,284 $ ( 540 ) $ ( 744 ) $ — Impairment of lease right-of-use asset — 639 ( 639 ) — — Inventory charges — 1,164 ( 1,263 ) 99 — Personnel-related costs — 1,140 — ( 1,140 ) — Total restructuring costs and charges $ — $ 4,227 $ ( 2,442 ) $ ( 1,785 ) $ — |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Jan. 01, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | 23. Redeemable Non-Controlling Interest On February 1, 2021, we completed an acquisition of a 75 % ownership stake in Eco. The seller of Eco obtained the remaining equity interest in the newly formed company, Eco Enterprises. The seller’s redeemable non-controlling interest was initially established at fair value. The agreement between PGT Innovations, Inc. and the seller provides the Company with a call right for seller’s equity interest in the third year following the acquisition date. If the Company does not exercise its right to call by the third anniversary, the agreement provides the seller with a put right which can be exercised during the 15-day period following the third anniversary. Upon exercise of the put or call right, the purchase price is calculated based on a future agreed performance metric. The put option makes the non-controlling interest redeemable and, therefore, the redeemable non-controlling interest is classified as temporary equity outside of shareholders’ equity. The Company calculates the estimated future redemption value of the non-controlling interest on a quarterly basis and is adjusted to accreted value using the effective interest method. Any accretion adjustment in the current reporting period of the redeemable non-controlling interest is offset against retained earnings and impacts earnings used in the calculation of earnings per share attributable to common shareholders in the reporting period. Based on the formula in the operating agreement governing this transaction, the future redemption value of the redeemable non-controlling interest was estimated to be $ 56.6 million, which we accreted to $ 36.9 million as of January 1, 2022. The following table presents the changes in the Company’s redeemable non-controlling interest for the period presented: Year Ended January 1, (in thousands) 2022 Balance at beginning of year $ — Redeemable non-controlling interest in Eco at initially estimated fair value 28,464 Net income attributable to redeemable non-controlling interest 2,318 Change in value of redeemable non-controlling interest 6,081 Balance at end of year $ 36,863 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 01, 2022 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | (2) Schedule II – Valuation and Qualifying Accounts Balance at Balance at Beginning Costs and End of Allowance for Doubtful Accounts of Period expenses Deductions* Period (in thousands) Year ended January 1, 2022 $ 3,716 $ 3,834 $ ( 2,848 ) $ 4,702 Year ended January 2, 2021 $ 3,320 $ 996 $ ( 600 ) $ 3,716 Year ended December 28, 2019 $ 2,789 $ 1,553 $ ( 1,022 ) $ 3,320 * Represents uncollectible accounts charged against the allowance for doubtful accounts, net of recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). |
Fiscal period | Fiscal period Our fiscal year consists of 52 or 53 weeks ending on the Saturday nearest December 31 of the related year. The years ended January 1, 2022, and December 28, 2019, consisted of 52 weeks. The year ended January 2, 2021 consisted of 53 weeks. |
Principles of consolidation | Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We are consolidating all wholly owned subsidiaries, as well as Eco, based on the 75 % majority ownership. We refer to Note 23 for our accounting policies relating to the non-redeemable minority interest. |
Segment information | Segment information We operate as two segments based on geography: the Southeast segment and the Western segment. See Note 20 for more information. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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. |
Revenue recognition | Revenue recognition With the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” together with subsequently issued related guidance, we recognize revenue pursuant to Topic 606 of the Accounting Standards Codification ("ASC"). See Note 4, “Revenue Recognition and Contracts with Customers.” Revenue Recognition Accounting Policy The Company primarily manufactures fully customized windows and doors based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received. The Company has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion of its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. We give our customers 30-day payment terms, which is typical in our industry. Based on these factors, the Company recognizes a substantial portion of revenue over time during the manufacturing process once customization begins, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial. |
Cost of sales | Cost of sales Cost of sales represents costs directly related to the production of our products. Primary costs include raw materials, direct labor, and manufacturing overhead, which consist of salaries, wages, employee benefits, utilities, maintenance, lease costs and depreciation. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs incurred in the purchase of materials used in the manufacturing process are included in cost of sales. Costs relating to shipping, handling and distribution of finished products to our customers are included in selling, general and administrative expenses and totaled $ 62.4 million, $ 39.3 million and $ 38.3 million for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. |
Advertising | Advertising We expense advertising costs as incurred. Advertising expense, which is included in selling, general and administrative expenses, was $ 15.8 million, $ 11.6 million and $ 5.2 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. NewSouth, acquired effective on February 1, 2020, relies heavily on advertising, consistent with its sales-direct-to-homeowner business model. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. |
Accounts receivable, net | Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for credit losses which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. January 1, January 2, 2022 2021 (in thousands) Accounts receivable $ 145,923 $ 96,560 Less: Allowance for credit losses ( 4,702 ) ( 3,716 ) Accounts receivable, net $ 141,221 $ 92,844 |
Self-insurance reserves | Self-insurance reserves We are primarily self-insured for employee health benefits and workers’ compensation claims prior to 2010 and after 2017. Provisions for losses under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Accruals for healthcare claims and workers’ compensation are included in accrued liabilities in the accompanying consolidated balance sheets. |
Warranty expense | Warranty expense We have warranty obligations with respect to most of our manufactured products. Warranty periods, which vary by product components, generally range from 1 to 10 years , although the warranty period for a limited number of specifically identified components in certain applications is a lifetime. However, the majority of the products sold have warranties on components which range from 1 to 3 years . The Company has recorded a reserve for estimated warranty and related costs based on historical experience and periodically adjusts these provisions to reflect actual experience. During 2021, we recorded warranty expense at an average rate of 2.0 % of sales. This rate is higher than the average rate of 1.7 % of sales recorded in 2020. The increase in our warranty expense rate in 2021, compared to 2020 is a result of costs associated with recent higher levels of warranty repair experience on larger commercial projects than experienced in 2020, which resulted in warranty costs incremental to those we would incur in the normal course of business. The increase in our warranty expense in 2021, compared to 2020, was also affected by costs associated with the wind-down of the commercial business of NewSouth in the first quarter of 2021, which resulted in warranty costs incremental to those we would incur in the normal course of business. We assess the adequacy of our warranty accrual on a quarterly basis, and adjust the previous amounts recorded, if necessary, to reflect the change in estimate of the future costs of claims yet to be serviced. The following provides information with respect to our warranty accrual. Accrued Warranty Beginning of Acquired Charged to Adjustments Settlements End of (in thousands) Year ended January 1, 2022 $ 8,001 $ 4,150 $ 23,637 $ ( 1,440 ) $ ( 20,844 ) $ 13,504 Year ended January 2, 2021 $ 6,244 $ 3,515 $ 15,256 $ 266 $ ( 17,280 ) $ 8,001 Year ended December 28, 2019 $ 6,149 $ - $ 12,720 $ 570 $ ( 13,195 ) $ 6,244 The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of January 1, 2022 and January 2, 2021. The portion of warranty expense related to the issuance of product of $ 3.0 million, $ 3.8 million and $ 2.7 million is included in cost of sales in the consolidated statements of operations for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses in the consolidated statements of operations, and is $ 19.2 million, $ 11.7 million and $ 10.6 million, respectively, for the years ended January 1, 2022, January 2, 2021, and December 28, 2019. |
Inventories | Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory as most products are custom, made-to-order products manufactured under noncancelable purchase orders and therefore are recognized as costs of sales relating to revenue recognized over time during the manufacturing process. All inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. The reserve for obsolescence, which was immaterial at January 1, 2022 and January 2, 2021, is based on management’s assessment of the amount of inventory that may become obsolete in the future and is determined through Company history, specific identification and consideration of prevailing economic and industry conditions. Inventories consist of the following: January 1, January 2, 2022 2021 (in thousands) Raw materials $ 87,164 $ 55,916 Work in progress 3,248 4,058 Finished goods 1,028 343 Inventories $ 91,440 $ 60,317 |
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 related assets. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years Maintenance and repair expenditures are charged to expense as incurred. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liability, and operating lease liability, less current portion, on our consolidated balance sheets. Should we engage in any finance leases in the future, finance leases would be included in property and equipment, other current liabilities, and other liabilities on our consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease right-of-use asset also includes any up-front lease payments made and initial direct costs incurred, less lease incentives received. Our lease terms may include options to extend or terminate the lease. Judgment is required to determine when it is reasonably certain that we will exercise an option and should therefore include the optional period in the lease term. Lease expense is recognized on a straight-line basis over the lease term. We elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets. |
Long-lived assets | Long-lived assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated . If such assets are considered to be impaired, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell, and depreciation is no longer recorded. |
Computer software | Computer software We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is complete, and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of January 1, 2022, and January 2, 2021, was $ 31.8 million and $ 30.4 million, respectively. Accumulated depreciation of capitalized software was $ 29.0 million and $ 25.3 million as of January 1, 2022, and January 2, 2021, respectively. Amortization expense for capitalized software was $ 3.7 million, $ 4.1 million, and $ 2.4 million for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. We review the carrying value of capitalized software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. |
Goodwill | Goodwill Goodwill is calculated as the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. We test goodwill for impairment at the reporting unit level at least annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable. Our annual test for impairment is done on the first date of our fiscal fourth quarter. We consider various qualitative factors, including macroeconomic and industry conditions, financial performance of the Company and changes in the stock price of the Company to determine whether it is necessary to perform a quantitative test for goodwill impairment. If we believe, as a result of our qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Under the quantitative test, goodwill is tested under a one-step method for impairment at a level of reporting referred to as a reporting unit. This quantitative analysis involves identifying potential impairment by comparing the fair value of each reporting unit with its carrying amount and, if the carrying amount of a reporting unit exceeds its fair value, then a charge for goodwill impairment will be recognized in the amount by which a reporting unit’s carrying value exceeds its fair value. For our Southeast and Western reporting units, based on qualitative assessments, we concluded that quantitative assessments were not required to be performed. See Note 8 for further discussion of the goodwill of our reporting units. |
Trade names | Trade names The Company has indefinite-lived intangible assets in the form of certain trade names. The impairment evaluation of the carrying amount of our indefinite-lived trade names is conducted annually, or more frequently, if events or changes in circumstances indicate that they might be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our indefinite-lived trade names is less than the carrying amount, an evaluation is performed by comparing their carrying amount to their estimated fair values. If the estimated fair value is less than the carrying amount of the indefinite-lived trade name, then an impairment charge is recorded to reduce the carrying value to its estimated fair value. The estimated fair value is determined using the relief from royalty method that is based upon the discounted projected cost savings (value) attributable to ownership of our trade names, our only indefinite-lived intangible assets. Based on qualitative assessments for 2020, we concluded that quantitative assessments were required to be performed for our Western Window Systems trade name. We review the carrying value of our finite-lived trade name in accordance with our policy for long-lived assets. See Note 8 for further discussion of our trade name. |
Derivative financial instruments | Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market. We do not enter into derivatives for speculative purposes. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents, trade accounts receivable and contract assets. Accounts receivable and contract assets are due primarily from dealers and distributors of building materials, and other companies in the construction industry, primarily located in Florida, California, Texas and Arizona. Credit is extended based on an evaluation of the customer’s financial condition and credit history, and generally collateral is not required. The Company maintains an allowance for potential credit losses on trade receivables and contract assets. We maintain our cash with several financial institutions, the balance of which exceeds federally insured limits. At January 1, 2022 and January 2, 2021, our cash balance exceeded the insured limit by $ 89.0 million and $ 96.1 million, respectively. |
Comprehensive income | Comprehensive income The Company reports comprehensive income (loss), defined as the total of net income and other comprehensive income (loss), which is composed of all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of other comprehensive income (loss) relate to gains and losses on cash flow hedges. Reclassification adjustments reflecting such gains and losses are recorded as income in the same period as the hedged items affect earnings. |
Stock-based compensation | Stock-based compensation We use a fair-value based approach for measuring stock-based compensation and record compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Our Company’s awards vest based on service conditions and compensation expense is recognized on a straight-line basis for each separately vesting portion of an award. Stock-based compensation expense is recognized only for those awards that ultimately vest. |
Income and Sales Taxes | Income and Sales Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recorded to reflect consequences on future years of differences between financial reporting and the tax basis of assets and liabilities measured using the enacted statutory tax rates and tax laws applicable to the periods in which differences are expected to affect taxable earnings. We have no liability for unrecognized tax benefits. However, should we accrue for such liabilities, when and if they arise in the future, we will recognize interest and penalties associated with uncertain tax positions as part of our income tax provision. Income taxes relating to gains and losses on our cash flow hedges are released at the same time as the underlying transactions are realized. Interest and penalties on income taxes, if any, are recorded as income taxes. Refer to Note 13 for additional information regarding the Company’s income taxes. Sales taxes collected from customers have been recorded on a net basis. |
Net income per common share | Net income per common share Basic earnings per share (“EPS”) available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Diluted EPS available to PGT Innovations, Inc. common stockholders is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period. Forfeiture of unvested equity are recognized on an actual basis, at the same time as the equity is forfeited. There were no anti-dilutive shares outstanding for the year ended January 1, 2022. Our weighted average number of diluted shares outstanding excludes underlying securities of 23 thousand and 74 thousand for the years ended January 2, 2021, and December 28, 2019, respectively, because their effects were anti-dilutive. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended January 1, January 2, December 28, 2022 2021 2019 (in thousands, except per share amounts) Net income $ 35,196 $ 45,108 $ 43,688 Less: Net income attributable to redeemable non-controlling interest ( 2,318 ) — — Net income attributable to the Company 32,878 45,108 43,688 Change in redemption value of redeemable non-controlling interest ( 6,081 ) — — Net income attributable to common shareholders $ 26,797 $ 45,108 $ 43,688 Weighted-average common shares - Basic 59,518 58,887 58,346 Add: Dilutive shares from equity plans 540 473 804 Weighted-average common shares - Diluted 60,058 59,360 59,150 Weighted average number of common shares outstanding: Basic $ 0.45 $ 0.77 $ 0.75 Diluted $ 0.45 $ 0.76 $ 0.74 |
Supplemental cash flow information and non-cash activity | Supplemental cash flow information and non-cash activity The table below presents supplemental cash flow information and non-cash activity for the years ended January 1, 2022, January 2, 2021, and December 28, 2019: Year Ended January 1, January 2, December 28, (in thousands) 2022 2021 2019 Supplemental cash flow information: Interest paid $ 32,636 $ 25,156 $ 24,455 Income tax payments, net of refunds $ 12,166 $ 9,242 $ 11,862 Non-cash activity: Establish right-of-use asset, net of straight-line rent in 2019 $ 65,678 $ 19,185 $ 31,332 Establish operating lease liability $ ( 65,678 ) $ ( 19,185 ) $ ( 33,072 ) Reclassification of accounts receivable to notes receivable $ — $ 1,437 $ 4,401 Property, plant and equipment additions in accounts payable $ 772 $ 61 $ 449 |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles and also clarifies and amends existing guidance. This standard was effective beginning January 1, 2021 . Early adoption was permitted. The adoption of this standard did not have any impact on our consolidated financial statements. Business Combinations - Contracts Assets and Liabilities On October 28, 2021, the FASB issued ASU 2021-08,1 which amends ASC 805-20 to “require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination.” Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. This standard was effective beginning January 1, 2022 . Early adoption was permitted. The adoption of this standard did not have any impact on our consolidated financial statements. Accounting Pronouncements Recently Issued, Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in March 2021, subsequent amendment to the initial guidance, ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The guidance generally can be applied currently, through December 31, 2022. We are currently assessing the impacts of the practical expedients provided in Topic 848 and which, if any, we will adopt. |
Shipping and Handling Cost and Commissions on Contract Assets | Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered custom products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. The Company utilizes the practical expedient which permits expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts | January 1, January 2, 2022 2021 (in thousands) Accounts receivable $ 145,923 $ 96,560 Less: Allowance for credit losses ( 4,702 ) ( 3,716 ) Accounts receivable, net $ 141,221 $ 92,844 |
Information Regarding Warranty Accrual | The following provides information with respect to our warranty accrual. Accrued Warranty Beginning of Acquired Charged to Adjustments Settlements End of (in thousands) Year ended January 1, 2022 $ 8,001 $ 4,150 $ 23,637 $ ( 1,440 ) $ ( 20,844 ) $ 13,504 Year ended January 2, 2021 $ 6,244 $ 3,515 $ 15,256 $ 266 $ ( 17,280 ) $ 8,001 Year ended December 28, 2019 $ 6,149 $ - $ 12,720 $ 570 $ ( 13,195 ) $ 6,244 |
Inventories | Inventories consist of the following: January 1, January 2, 2022 2021 (in thousands) Raw materials $ 87,164 $ 55,916 Work in progress 3,248 4,058 Finished goods 1,028 343 Inventories $ 91,440 $ 60,317 |
Schedule of 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 related assets. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years |
Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in the Calculation of Basic and Diluted EPS | The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended January 1, January 2, December 28, 2022 2021 2019 (in thousands, except per share amounts) Net income $ 35,196 $ 45,108 $ 43,688 Less: Net income attributable to redeemable non-controlling interest ( 2,318 ) — — Net income attributable to the Company 32,878 45,108 43,688 Change in redemption value of redeemable non-controlling interest ( 6,081 ) — — Net income attributable to common shareholders $ 26,797 $ 45,108 $ 43,688 Weighted-average common shares - Basic 59,518 58,887 58,346 Add: Dilutive shares from equity plans 540 473 804 Weighted-average common shares - Diluted 60,058 59,360 59,150 Weighted average number of common shares outstanding: Basic $ 0.45 $ 0.77 $ 0.75 Diluted $ 0.45 $ 0.76 $ 0.74 |
Schedule of Supplemental Cash Flow Information and Non-Cash Activity | The table below presents supplemental cash flow information and non-cash activity for the years ended January 1, 2022, January 2, 2021, and December 28, 2019: Year Ended January 1, January 2, December 28, (in thousands) 2022 2021 2019 Supplemental cash flow information: Interest paid $ 32,636 $ 25,156 $ 24,455 Income tax payments, net of refunds $ 12,166 $ 9,242 $ 11,862 Non-cash activity: Establish right-of-use asset, net of straight-line rent in 2019 $ 65,678 $ 19,185 $ 31,332 Establish operating lease liability $ ( 65,678 ) $ ( 19,185 ) $ ( 33,072 ) Reclassification of accounts receivable to notes receivable $ — $ 1,437 $ 4,401 Property, plant and equipment additions in accounts payable $ 772 $ 61 $ 449 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales by Reporting Segment, Product Category and Market | The following table provides information about our net sales by reporting segment, product category and market for the years ended January 1, 2022, January 2, 2021, and December 28, 2019 (in millions): Year Ended January 1, January 2, December 28, Disaggregation of revenue: 2022 2021 2019 Reporting segment: Southeast $ 968.7 $ 752.4 $ 606.6 Western 192.8 130.2 138.4 Total net sales $ 1,161.5 $ 882.6 $ 745.0 Product category: Impact-resistant window and door products $ 787.2 $ 630.2 $ 516.1 Non-impact window and door products 374.3 252.4 228.9 Total net sales $ 1,161.5 $ 882.6 $ 745.0 Market: New construction $ 489.9 $ 402.5 $ 368.4 Repair and remodel 671.6 480.1 376.6 Total net sales $ 1,161.5 $ 882.6 $ 745.0 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Anlin Windows & Doors [Member] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Preliminary Accounts receivable $ 10,803 Inventories 7,633 Contract assets, net 7,027 Prepaid expenses and other assets 1,626 Property and equipment 22,800 Operating lease right-of-use asset 3,450 Intangible assets 77,800 Goodwill 5,596 Total assets acquired 136,735 Accounts payable ( 5,175 ) Accrued and other liabilities ( 7,993 ) Operating lease liability ( 3,450 ) Total liabilities assumed ( 16,618 ) Fair value of consideration transferred $ 120,117 Consideration: Cash $ 114,196 Contingent consideration 5,921 Fair value of consideration transferred $ 120,117 |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the Anlin Acquisition and our estimate of their respective useful lives are as follows: Initial Preliminary Useful Life Valuation (in years) (in thousands) Trade name $ 35,400 indefinite Customer relationships 42,100 15 Developed technology 300 9 Intangible assets, net $ 77,800 |
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Years Ended January 1, January 2, Pro Forma Results (unaudited) 2022 2021 (in thousands, except per share amounts) (unaudited) Net sales $ 1,251,314 $ 967,825 Net income attributable to common shareholders $ 35,273 $ 50,838 Net income per common share attributable to common shareholders: Basic $ 0.59 $ 0.86 Diluted $ 0.59 $ 0.86 |
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Allocation Adjustments to Allocation Final Allocation Accounts receivable $ 10,294 $ ( 1,860 ) $ 8,434 Inventories 3,757 ( 821 ) 2,936 Contract assets, net 4,413 — 4,413 Prepaid expenses and other assets 1,756 — 1,756 Property and equipment 7,423 10 7,433 Operating lease right-of-use asset 10,578 — 10,578 Intangible assets 28,670 ( 1,300 ) 27,370 Goodwill 46,200 5,894 52,094 Accounts payable ( 6,621 ) — ( 6,621 ) Accrued and other liabilities ( 5,524 ) ( 1,923 ) ( 7,447 ) Operating lease liability ( 10,578 ) — ( 10,578 ) Purchase price $ 90,368 $ — $ 90,368 Consideration: Cash $ 90,145 $ 223 $ 90,368 Due to Sellers 223 ( 223 ) - Total fair value of consideration $ 90,368 $ — $ 90,368 |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the NewSouth Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Final Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade name $ 23,500 $ ( 1,300 ) $ 22,200 15 Non-compete agreements 1,670 — 1,670 5 Developed technology 2,600 — 2,600 6 Customer-related intangible 900 — 900 < 1 Other intangible assets, net $ 28,670 $ ( 1,300 ) $ 27,370 |
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Years Ended January 2, December 28, Pro Forma Results (unaudited) 2021 2019 (in thousands, except per share amounts) (unaudited) Net sales $ 890,373 $ 831,610 Net income $ 45,338 $ 44,925 Net income per common share attributable to common shareholders: Basic $ 0.77 $ 0.77 Diluted $ 0.76 $ 0.76 |
ECO [Member] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The estimated fair value of assets acquired, and liabilities assumed as of the closing date of the Eco Acquisition, are as follows: Initial Adjustments to Preliminary Accounts receivable $ 5,031 $ ( 241 ) $ 4,790 Inventories 7,728 ( 684 ) 7,044 Contract assets, net 4,312 ( 123 ) 4,189 Prepaid expenses and other assets 1,706 ( 759 ) 947 Property and equipment 24,009 ( 191 ) 23,818 Operating lease right-of-use asset 27,864 ( 1,049 ) 26,815 Intangible assets 72,700 1,600 74,300 Goodwill 30,051 ( 4,467 ) 25,584 Total assets acquired 173,401 ( 5,914 ) 167,487 Accounts payable ( 6,809 ) ( 116 ) ( 6,925 ) Accrued and other liabilities, including customer deposits ( 4,215 ) ( 604 ) ( 4,819 ) Operating lease liability ( 27,864 ) 1,049 ( 26,815 ) Total liabilities assumed ( 38,888 ) 329 ( 38,559 ) Net assets acquired 134,513 ( 5,585 ) 128,928 Redeemable non-controlling interest ( 34,084 ) 5,620 ( 28,464 ) Fair value of consideration transferred $ 100,429 $ 35 $ 100,464 Consideration: Cash $ 94,321 $ 35 $ 94,356 PGTI common stock 6,108 — 6,108 Fair value of consideration transferred $ 100,429 $ 35 $ 100,464 |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the Eco Acquisition and our estimate of their respective useful lives are as follows: Initial Initial Adjustment to Preliminary Useful Life Valuation Valuation Valuation (in years) (in thousands) Trade names $ 36,000 $ ( 1,100 ) $ 34,900 indefinite Customer relationships 36,700 2,700 39,400 5 - 15 Intangible assets, net $ 72,700 $ 1,600 $ 74,300 |
Summary of Unaudited Proforma Results | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Years Ended January 1, January 2, Pro Forma Results (unaudited) 2022 2021 (in thousands, except per share amounts) (unaudited) Net sales $ 1,169,416 $ 945,930 Net income attributable to common shareholders $ 26,375 $ 39,220 Net income per common share attributable to common shareholders: Basic $ 0.44 $ 0.67 Diluted $ 0.44 $ 0.66 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table presents the composition of property, plant and equipment as of: January 1, January 2, 2022 2021 (in thousands) Land $ 10,063 $ 6,664 Buildings and improvements 103,812 85,434 Machinery and equipment 159,822 113,500 Vehicles 21,633 17,374 Software 31,813 30,423 Construction in progress 12,565 12,484 Property, plant and equipment 339,708 265,879 Less: Accumulated depreciation ( 154,442 ) ( 130,724 ) Property, plant and equipment, net $ 185,266 $ 135,155 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets Net | Goodwill and i ntangible assets are as follows as of: Initial January 1, January 2, Useful Life 2022 2021 (in years) (in thousands) Goodwill $ 364,598 $ 329,695 indefinite Other intangible assets: Trade names (indefinite-lived) $ 212,141 $ 140,841 indefinite Customer relationships and customer-related assets 289,047 201,547 < 1 - 15 Trade name (amortizable) 22,200 22,200 15 Developed technology 5,900 5,600 6 - 10 Non-compete agreement 3,338 3,338 2 - 5 Software license 590 590 2 Less: Accumulated amortization ( 138,691 ) ( 117,609 ) Subtotal 182,384 115,666 Other intangible assets, net $ 394,525 $ 256,507 Goodwill at January 2, 2021 $ 329,695 Increase in goodwill from our acquisition of Anlin 5,596 Increase in goodwill from our acquisition of Eco 25,584 Increase in goodwill from our acquisition of CRi 3,722 Goodwill at January 1, 2022 $ 364,598 Trade names (indefinite-lived) at January 2, 2021 $ 140,841 Increase in trade names from our acquisition of Anlin 35,400 Increase in trade names from our acquisition of Eco 34,900 Increase in trade names from our acquisition in CRi 1,000 Trade names (indefinite-lived) at January 1, 2022 $ 212,141 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our amortizable intangible assets is as follows for future fiscal years: (in thousands) Total 2022 $ 23,000 2023 20,807 2024 20,760 2025 20,590 2026 17,192 Thereafter 80,035 Total $ 182,384 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of: January 1, January 2, 2022 2021 (in thousands) Customer deposits $ 36,982 $ 18,132 Accrued payroll and benefits 15,765 14,777 Accrued warranty 11,783 6,474 Accrued interest 6,857 10,415 Estimated fair value of contingent consideration, current 2,921 - Advance supplier consideration 2,808 2,808 Accrued health claims insurance payable 2,283 994 Accrued federal and state income taxes - 3,355 Fair value of derivative financial instruments - 52 Other 3,261 3,868 Accrued liabilities $ 82,660 $ 60,875 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: January 1, January 2, 2022 2021 (in thousands) 2021 Senior Notes Due 2029 - Senior notes issued on September 24, 2021, 4.375 % per annum $ 575,000 $ — 2018 Senior Notes Due 2026 - Senior notes issued on August 10, 2018, 6.75 % per — 365,000 2016 Credit Agreement Due 2024 - Term loan payable with no 60.0 million due on October 31, 2024. 2.10 %. At January 2, 2021, the average rate 2.15 %. 60,000 54,000 Long-term debt 635,000 419,000 Fees, costs, premium and discount (1) ( 9,345 ) ( 6,902 ) Long-term debt, net 625,655 412,098 Less current portion of long-term debt - - Long-term debt, net, less current portion $ 625,655 $ 412,098 (1) Fees, costs, premium and discount represents third-party fees, lender fees, other debt-related costs, and original issue premium and discount, recorded as a net reduction of the carrying value of debt and are amortized over the lives of the debt instruments to which they relate under the effective interest method. |
Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount | All debt-related fees, costs and original issue discount, including those related to the revolving credit portion of the facility, is classified as a reduction of the carrying value of long-term debt. The activity relating to third-party fees and costs, lender fees and discount for the year ended January 1, 2022, are as follows: (in thousands) Total At beginning of year $ 6,902 Add: Deferred financing costs from the issuance of the Second Additional Senior Notes 1,363 Less: Premium on the Second Additional Senior Notes ( 3,300 ) Less: Write-off of deferred costs classified as debt extinguishment costs ( 3,954 ) Add: Deferred financing costs from the issuance of the 2021 Senior Notes due 2029 8,700 Add: Deferred financing costs from the refinancing of the 2016 Credit Agreement 612 Less: Amortization expense ( 978 ) At end of year $ 9,345 |
Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount | Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated, as of January 1, 2022, is as follows: (in thousands) Total 2022 $ 1,233 2023 1,282 2024 1,282 2025 1,083 2026 1,114 Thereafter 3,351 Total $ 9,345 |
Future Maturities of Long-Term Debt | The following represents future maturities of long-term debt as of January 1, 2022 (at face value): (in thousands) Total 2021 $ — 2022 — 2023 — 2024 60,000 2025 — Thereafter 575,000 Total $ 635,000 |
Schedule of Interest Expense, Net | Interest expense, net consisted of the following: Year Ended January 1, January 2, December 28, 2022 2021 2019 (in thousands) Long-term debt $ 28,625 $ 26,339 $ 24,750 Debt fees 474 327 383 Amortization and write-offs of deferred financing costs and debt discount 978 1,206 1,674 Interest income ( 27 ) ( 120 ) ( 339 ) Interest expense 30,050 27,752 26,468 Capitalized interest ( 21 ) ( 33 ) ( 51 ) Interest expense, net $ 30,029 $ 27,719 $ 26,417 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Hedges | The fair values of our aluminum hedges and MTP contracts are classified in the accompanying condensed consolidated balance sheets at January 1, 2022, and January 2, 2021, as follows (in thousands): Derivative Assets Derivative (Liabilities) January 1, 2022 January 1, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ 4,829 Accrued liabilities $ — MTP contracts Other current assets 4,599 Accrued liabilities — Aluminum forward contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 9,428 Total derivative liabilities $ — Derivative Assets Derivative (Liabilities) January 2, 2021 January 2, 2021 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ 3,243 Accrued liabilities $ ( 28 ) MTP contracts Other current assets 423 Accrued liabilities ( 24 ) Aluminum forward contracts Other assets — Other liabilities ( 25 ) MTP contracts Other assets 26 Other liabilities ( 4 ) Total derivative instruments Total derivative assets $ 3,692 Total derivative liabilities $ ( 81 ) |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying consolidated financial statements for the three years ended January 1, 2022 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Year Ended Year Ended December 28, 2019 December 28, 2019 Aluminum contracts ($ 1,229 ) Cost of sales ($ 5,030 ) January 2, 2021 January 2, 2021 Aluminum contracts $ 1,037 Cost of sales ($ 2,470 ) MTP contracts $ 532 Cost of sales $ 111 January 1, 2022 January 1, 2022 Aluminum contracts $ 14,012 Cost of sales $ 12,373 MTP contracts $ 10,443 Cost of sales $ 6,265 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value on Recurring Basis | The carrying amounts for financial instruments measured at fair value are as follows: Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs January 1, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ 4,829 $ — $ 4,829 $ — MTP contracts 4,599 — 4,599 — $ 9,428 $ — $ 9,428 $ — January 2, 2021 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts, net $ 3,190 $ — $ 3,190 $ — MTP contracts, net 421 — 421 — $ 3,611 $ — $ 3,611 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense are as follows (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Current: Federal $ 790 $ 9,906 $ 5,747 State 1,337 2,571 2,282 2,127 12,477 8,029 Deferred: Federal 7,142 528 3,179 State 490 ( 1,121 ) 1,231 7,632 ( 593 ) 4,410 Income tax expense $ 9,759 $ 11,884 $ 12,439 |
Summary of Income Taxes Included in Consolidated Statement of Operations and Consolidated Statement of Equity | The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Consolidated statements of operations: Income tax expense relating to continuing operations $ 9,759 $ 11,884 $ 12,439 Consolidated statements of shareholders' equity: Income tax expense relating to derivative financial instruments $ ( 1,531 ) $ ( 970 ) $ ( 974 ) |
Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of the statutory federal income tax rate to our effective rate is provided below: Year Ended January 1, January 2, December 28, 2022 2021 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 3.2 % 3.7 % 4.0 % Non-deductible expenses 1.3 % 1.0 % 1.6 % Eco partnership income attributable to non-controlling interest ( 1.2 )% — — Florida excess tax refund relating to the Tax Cuts and Jobs Act — ( 1.0 )% — Excess stock-based compensation tax benefits ( 2.0 )% ( 1.4 )% ( 3.7 )% Research activities credits ( 0.8 )% ( 2.3 )% ( 1.2 )% Changes related to state rate changes and U.S. tax reform — — 0.7 % Other 0.2 % ( 0.1 )% ( 0.2 )% Consolidated effective tax rate 21.7 % 20.9 % 22.2 % |
Components of Net Deferred Tax Asset and Liability | Significant components of our net deferred tax liability are as follows: January 1, January 2, 2022 2021 (in thousands) Deferred tax assets: Operating lease liability $ 16,949 $ 10,609 Deferrals and accruals relating to ASC 606, net 6,580 3,537 State bonus depreciation and net operating loss carryforwards 3,748 2,606 Stock-based compensation expense 2,527 1,772 Accrued warranty 2,380 1,550 Acquisition costs 2,158 1,664 Advance supplier consideration 2,109 2,776 Other deferrals and accruals, net 1,848 2,206 Obsolete inventory and UNICAP adjustment 1,666 788 Allowance for credit losses 1,048 1,017 Total deferred tax assets 41,013 28,525 Deferred tax liabilities: Property, plant and equipment ( 20,958 ) ( 14,966 ) Trade names and other intangible assets, net ( 18,162 ) ( 17,978 ) Goodwill ( 17,102 ) ( 12,596 ) Operating lease right-of-use asset ( 15,371 ) ( 9,742 ) Eco partnership basis difference ( 3,110 ) — Derivative financial instruments ( 2,421 ) ( 892 ) Prepaid expenses ( 1,378 ) ( 680 ) Total deferred tax liabilities ( 78,502 ) ( 56,854 ) Total deferred tax liabilities, net $ ( 37,489 ) $ ( 28,329 ) |
Leases, Commitments and Conti_2
Leases, Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Leases Commitments And Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The components of lease expense for the years ended January 1, 2022 and January 2, 2021 are as follows. Certain amounts in the prior year period have been reclassified to conform to the current presentation (in thousands): Year Ended January 1, January 2, 2022 2021 Operating lease cost $ 15,254 $ 9,165 Short-term lease cost 9,872 3,856 Total lease cost $ 25,126 $ 13,021 |
Other Information Relating to Leases | Other information relating to leases for the years ended January 1, 2022 and January 2, 2021, are as follows (in thousands, except years and percentages): Year Ended January 1, January 2, 2022 2021 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows relating to operating leases $ ( 13,750 ) $ ( 8,822 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 65,678 $ 19,185 Weighted average remaining lease term in years Operating leases 7.04 6.84 Weighted average discount rate Operating leases 5.5 % 5.8 % |
Future Minimum Lease Commitments for Non-Cancelable Operating Leases | Future minimum lease commitments for operating leases are as follows (in thousands): January 1, January 2, 2022 2021 2021 $ - $ 8,327 2022 17,929 7,626 2023 17,577 7,149 2024 16,990 6,748 2025 15,987 6,253 2026 15,025 6,130 Thereafter 32,249 7,670 Total future minimum lease payments 115,757 49,903 Less: Imputed interest ( 18,674 ) ( 8,641 ) Operating lease liability - total $ 97,083 $ 41,262 Reported as of January 1, 2022 and January 2, 2021: Current portion of operating lease liability $ 13,180 $ 6,132 Operating lease liability, less current portion 83,903 35,130 Operating lease liability - total $ 97,083 $ 41,262 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of the Status of Stock Options | A summary of the status of our stock options as of January 1, 2022, and changes during the year then ended, is presented below: Number of Weighted Weighted Outstanding at January 2, 2021 67,797 $ 2.04 Exercised ( 67,797 ) $ 2.04 Outstanding at January 1, 2022 0 — — Exercisable at January 1, 2022 0 — — |
Summary of the Status of Restricted Share Awards | A summary of the status of restricted share awards as of January 1, 2022, and changes during the year then ended, are presented below: Number of Weighted Outstanding at January 2, 2021 864,918 $ 16.48 Granted 709,122 $ 19.37 Vested ( 312,982 ) $ 16.03 Forfeited/Performance adjustment ( 114,952 ) $ 17.71 Outstanding at January 1, 2022 1,146,106 $ 18.25 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive income (loss) for the years ended January 1, 2022, January 2, 2021, and December 28, 2019: Aluminum Forward MTP (in thousands) Contracts Contracts Total Accumulated other comprehensive loss at December 29, 2018 $ ( 3,065 ) $ - $ ( 3,065 ) Change in fair value of derivatives ( 1,229 ) - ( 1,229 ) Amounts reclassified from accumulated other comprehensive earnings 5,030 - 5,030 Tax effect ( 974 ) - ( 974 ) Net current-period other comprehensive income 2,827 - 2,827 Accumulated other comprehensive loss at December 28, 2019 $ ( 238 ) $ - $ ( 238 ) Accumulated other comprehensive loss at December 28, 2019 $ ( 238 ) $ - $ ( 238 ) Change in fair value of derivatives 1,037 532 1,569 Amounts reclassified from accumulated other comprehensive earnings 2,470 ( 111 ) 2,359 Tax effect ( 866 ) ( 104 ) ( 970 ) Net current-period other comprehensive income 2,641 317 2,958 Accumulated other comprehensive income at January 2, 2021 $ 2,403 $ 317 $ 2,720 Accumulated other comprehensive income at January 2, 2021 $ 2,403 $ 317 $ 2,720 Change in fair value of derivatives 14,012 10,443 24,455 Amounts reclassified from accumulated other comprehensive earnings ( 12,373 ) ( 6,265 ) ( 18,638 ) Tax effect ( 432 ) ( 1,099 ) ( 1,531 ) Net current-period other comprehensive income 1,207 3,079 4,286 Accumulated other comprehensive income at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Data Attributable to Operating Segments | The following table represents summary financial data attributable to our operating segments for the years ended January 1, 2022, January 2, 2021, and December 28, 2019. Results of the Southeast segment for the year ended January 1, 2022 includes the results of Eco for its post-acquisition period from February 1, 2021, and for the year ended January 2, 20201 includes the results of NewSouth for its post-acquisition period from February 1, 2020. Results of the Western segment for the year ended January 1, 2022 includes the results of CRi for its post-acquisition period from May 1, 2021, and Anlin for its post-acquisition period from October 25, 2021. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Net sales: Southeast segment $ 968,693 $ 752,432 $ 606,631 Western segment 192,771 130,189 138,325 Total net sales $ 1,161,464 $ 882,621 $ 744,956 Income from operations: Southeast segment $ 74,815 $ 85,794 $ 75,484 Western segment 25,641 11,144 8,572 Impairment of trade name — ( 8,000 ) — Restructuring costs and charges — ( 4,227 ) — Total income from operations 100,456 84,711 84,056 Interest expense, net 30,029 27,719 26,417 Debt extinguishment costs 25,472 - 1,512 Total income before income taxes $ 44,955 $ 56,992 $ 56,127 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Consolidated Quarterly Results of Operations | The following tables summarize the consolidated quarterly results of operations for the years ended January 1, 2022, and January 2, 2021 (in thousands, except per share amounts): Year Ended January 1, 2022 First Second Third Fourth Net sales $ 271,092 $ 285,500 $ 300,431 $ 304,441 Gross profit 93,962 97,009 104,203 108,325 Net income (loss) attributable to common shareholders 12,384 6,582 ( 6,782 ) 14,613 Net income (loss) per share – basic $ 0.21 $ 0.11 $ ( 0.11 ) $ 0.24 Net income (loss) per share – diluted $ 0.21 $ 0.11 $ ( 0.11 ) $ 0.24 Year Ended January 2, 2021 First Second Third Fourth Net sales $ 220,204 $ 202,783 $ 238,033 $ 221,601 Gross profit 81,127 74,463 86,936 78,798 Net income 15,600 2,199 17,322 9,987 Net income per share – basic $ 0.27 $ 0.04 $ 0.29 $ 0.17 Net income per share – diluted $ 0.26 $ 0.04 $ 0.29 $ 0.17 (1) In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. (2) Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. |
Restructuring Costs and Charg_2
Restructuring Costs and Charges (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Restructuring And Related Activities [Abstract] | |
Activities of Restructuring Costs and Charges | The following represents activities of restructuring costs and charges for the year ended January 2, 2021: Year Ended January 2, 2021 Beginning Charged Write-offs of End of Restructuring costs and charges of Period to Expense Assets Settled in Cash Period (in thousands) Property and equipment costs and charges $ — $ 1,284 $ ( 540 ) $ ( 744 ) $ — Impairment of lease right-of-use asset — 639 ( 639 ) — — Inventory charges — 1,164 ( 1,263 ) 99 — Personnel-related costs — 1,140 — ( 1,140 ) — Total restructuring costs and charges $ — $ 4,227 $ ( 2,442 ) $ ( 1,785 ) $ — |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Redeemable Non-Controlling Interest | The following table presents the changes in the Company’s redeemable non-controlling interest for the period presented: Year Ended January 1, (in thousands) 2022 Balance at beginning of year $ — Redeemable non-controlling interest in Eco at initially estimated fair value 28,464 Net income attributable to redeemable non-controlling interest 2,318 Change in value of redeemable non-controlling interest 6,081 Balance at end of year $ 36,863 |
Description of Business - Addit
Description of Business - Additional Information (Detail) - North Venice [Member] | 12 Months Ended |
Jan. 01, 2022Plant | |
Glass Tempering and Laminating Plant [Member] | |
Description Of Business [Line Items] | |
Number of plants | 2 |
Insulation Glass Plants [Member] | |
Description Of Business [Line Items] | |
Number of plants | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Jan. 01, 2022USD ($)Segmentshares | Jan. 02, 2021USD ($)shares | Dec. 28, 2019USD ($)shares | Feb. 01, 2021 | |
Business Description And Accounting Policies [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Cost of sales | $ 757,965,000 | $ 561,297,000 | $ 484,588,000 | |
Advertising Expense | $ 15,800,000 | $ 11,600,000 | 5,200,000 | |
Original maturity date of cash and cash equivalents | three months or less | |||
Warranty expense, average rate | 2.00% | 1.70% | ||
Portion of warranty expense related to issuance of product | $ 3,000,000 | $ 3,800,000 | 2,700,000 | |
Servicing warranty claims | $ 19,200,000 | 11,700,000 | 10,600,000 | |
Lessee, operating lease, option to extend, description | Our lease terms may include options to extend or terminate the lease. | |||
Operating lease existence of option to extend | true | |||
Lessee, operating lease, option to terminate, description | Our lease terms may include options to extend or terminate the lease. | |||
Operating lease existence of option to terminate | true | |||
Capitalization of software | $ 31,800,000 | 30,400,000 | ||
Accumulated depreciation of capitalized software | 29,000,000 | 25,300,000 | ||
Amortization expense for capitalized software | 3,700,000 | 4,100,000 | $ 2,400,000 | |
The amount of insured limit exceeds by the balance | 89,000,000 | $ 96,100,000 | ||
Material liability for unrecognized tax benefits | $ 0 | |||
Weighted average diluted shares outstanding excluding underlying securities | shares | 0 | 23,000 | 74,000 | |
Minimum [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Warranty periods | 1 year | |||
Warranty period of the majority of products sold | 1 year | |||
Maximum [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Warranty periods | 10 years | |||
Warranty period of the majority of products sold | 3 years | |||
Lessee, operating lease, option to extend, description | 5 years | |||
Lessee, operating lease, option to terminate, description | 1 year | |||
ECO [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Business combination, percentage of ownership stake acquired | 75.00% | 75.00% | ||
Shipping, Handling and Distribution [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Cost of sales | $ 62,400,000 | $ 39,300,000 | $ 38,300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 145,923 | $ 96,560 |
Less: Allowance for credit losses | (4,702) | (3,716) |
Accounts receivable, net | $ 141,221 | $ 92,844 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Information Regarding Warranty Accrual (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Guarantees [Abstract] | |||
Accrued Warranty, Beginning of Period | $ 8,001 | $ 6,244 | $ 6,149 |
Accrued Warranty, Acquired | 4,150 | 3,515 | |
Accrued Warranty, Charged to Expense | 23,637 | 15,256 | 12,720 |
Accrued Warranty, Adjustments | (1,440) | 266 | 570 |
Accrued Warranty, Settlements | (20,844) | (17,280) | (13,195) |
Accrued Warranty, End of Period | $ 13,504 | $ 8,001 | $ 6,244 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 87,164 | $ 55,916 |
Work in progress | 3,248 | 4,058 |
Finished goods | 1,028 | 343 |
Inventories | $ 91,440 | $ 60,317 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Detail) | 12 Months Ended |
Jan. 01, 2022 | |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | Shorter of lease term or estimated useful life |
Minimum [Member] | Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Minimum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Maximum [Member] | Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 40 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Maximum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 01, 2022 | Oct. 02, 2021 | [2] | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 | Oct. 03, 2020 | Jul. 04, 2020 | [1] | Apr. 04, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |||||||||||||
Net income | $ 35,196 | $ 45,108 | $ 43,688 | ||||||||||
Less: Net income attributable to redeemable non-controlling interest | (2,318) | ||||||||||||
Net income attributable to the Company | $ 9,987 | $ 17,322 | $ 2,199 | $ 15,600 | 32,878 | 45,108 | 43,688 | ||||||
Change in redemption value of redeemable non-controlling interest | (6,081) | ||||||||||||
Net income attributable to common shareholders | $ 14,613 | $ (6,782) | $ 6,582 | $ 12,384 | $ 26,797 | $ 45,108 | $ 43,688 | ||||||
Weighted-average common shares - Basic | 59,518 | 58,887 | 58,346 | ||||||||||
Add: Dilutive shares from equity plans | 540 | 473 | 804 | ||||||||||
Weighted-average common shares - Diluted | 60,058 | 59,360 | 59,150 | ||||||||||
Weighted average number of common shares outstanding: | |||||||||||||
Basic | $ 0.24 | $ (0.11) | $ 0.11 | $ 0.21 | $ 0.17 | $ 0.29 | $ 0.04 | $ 0.27 | $ 0.45 | $ 0.77 | $ 0.75 | ||
Diluted | $ 0.24 | $ (0.11) | $ 0.11 | $ 0.21 | $ 0.17 | $ 0.29 | $ 0.04 | $ 0.26 | $ 0.45 | $ 0.76 | $ 0.74 | ||
[1] | Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. | ||||||||||||
[2] | In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Supplemental Cash Flow Information and Non-Cash Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Supplemental cash flow information: | |||
Interest paid | $ 32,636 | $ 25,156 | $ 24,455 |
Income tax payments, net of refunds | 12,166 | 9,242 | 11,862 |
Non-cash activity: | |||
Establish right-of-use asset, net of straight-line rent in 2019 | 65,678 | 19,185 | 31,332 |
Establish operating lease liability | (65,678) | (19,185) | (33,072) |
Reclassification of accounts receivable to notes receivable | 1,437 | 4,401 | |
Property, plant and equipment additions in accounts payable | $ 772 | $ 61 | $ 449 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) | Jan. 01, 2022 |
Accounting Standards Update 2019-12 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in accounting principle accounting standards update adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 |
Change in accounting principle, accounting standards update, early adoption | true |
Change in accounting principle, accounting standards update, immaterial effect | true |
Accounting Standards Update 2021-08 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in accounting principle accounting standards update adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2022 |
Change in accounting principle, accounting standards update, early adoption | true |
Change in accounting principle, accounting standards update, immaterial effect | false |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 01, 2022USD ($) | Oct. 02, 2021USD ($) | [1] | Jul. 03, 2021USD ($) | Apr. 03, 2021USD ($) | Jan. 02, 2021USD ($) | Oct. 03, 2020USD ($) | Jul. 04, 2020USD ($) | [2] | Apr. 04, 2020USD ($) | Jan. 01, 2022USD ($)Segment | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | |
Disaggregation Of Revenue [Line Items] | |||||||||||||
Number of reportable segments | Segment | 2 | ||||||||||||
Net sales | $ 304,441 | $ 300,431 | $ 285,500 | $ 271,092 | $ 221,601 | $ 238,033 | $ 202,783 | $ 220,204 | $ 1,161,464 | $ 882,621 | $ 744,956 | ||
Contract liabilities | 45,200 | 22,800 | $ 45,200 | 22,800 | |||||||||
Revenue recognition, practical expedient | true | ||||||||||||
Contract assets, net | 55,239 | 28,723 | $ 55,239 | 28,723 | |||||||||
Accrued Liabilities [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Contract liabilities | 37,000 | 18,100 | 37,000 | 18,100 | |||||||||
Contract Assets, Net [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Contract assets, net | $ 8,200 | $ 4,600 | 8,200 | 4,600 | |||||||||
Western Segment [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | 192,771 | 130,189 | 138,325 | ||||||||||
Western Segment [Member] | Volume Products [Member] | Passes at Point in Time [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | $ 83,000 | $ 53,200 | $ 53,900 | ||||||||||
[1] | In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. | ||||||||||||
[2] | Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Net Sales by Reporting Segment, Product Category and Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 01, 2022 | Oct. 02, 2021 | [1] | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 | Oct. 03, 2020 | Jul. 04, 2020 | [2] | Apr. 04, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | $ 304,441 | $ 300,431 | $ 285,500 | $ 271,092 | $ 221,601 | $ 238,033 | $ 202,783 | $ 220,204 | $ 1,161,464 | $ 882,621 | $ 744,956 | ||
Southeast Segment [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | 968,693 | 752,432 | 606,631 | ||||||||||
Western Segment [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | 192,771 | 130,189 | 138,325 | ||||||||||
Net sales | 192,800 | 130,200 | 138,400 | ||||||||||
Impact-Resistant Windows and Door Products [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | 787,200 | 630,200 | 516,100 | ||||||||||
Non-Impact Window and Door Products [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | 374,300 | 252,400 | 228,900 | ||||||||||
New Construction [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | 489,900 | 402,500 | 368,400 | ||||||||||
Repair and Remodel [Member] | |||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||
Net sales | $ 671,600 | $ 480,100 | $ 376,600 | ||||||||||
[1] | In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. | ||||||||||||
[2] | Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Oct. 25, 2021 | May 02, 2021 | Feb. 01, 2021 | Jan. 25, 2021 | Feb. 01, 2020 | Jan. 24, 2020 | Aug. 10, 2018 | Jan. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | [1] | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 | Oct. 03, 2020 | Jul. 04, 2020 | [2] | Apr. 04, 2020 | Jan. 01, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Jan. 01, 2022 |
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Goodwill | $ 364,598,000 | $ 364,598,000 | $ 329,695,000 | $ 364,598,000 | $ 364,598,000 | $ 364,598,000 | $ 329,695,000 | $ 364,598,000 | ||||||||||||||||
Goodwill | 364,598,000 | 364,598,000 | 329,695,000 | 364,598,000 | 364,598,000 | 364,598,000 | 329,695,000 | 364,598,000 | ||||||||||||||||
Net sales | 304,441,000 | $ 300,431,000 | $ 285,500,000 | $ 271,092,000 | 221,601,000 | $ 238,033,000 | $ 202,783,000 | $ 220,204,000 | 1,161,464,000 | 882,621,000 | $ 744,956,000 | |||||||||||||
Net income | 35,196,000 | 45,108,000 | 43,688,000 | |||||||||||||||||||||
Net income (loss) attributable to common shareholders | 9,987,000 | $ 17,322,000 | $ 2,199,000 | $ 15,600,000 | 32,878,000 | 45,108,000 | 43,688,000 | |||||||||||||||||
Net income portion attributable to redeemable non-controlling interest | 2,318,000 | |||||||||||||||||||||||
Aggregate principal amount issuance | 635,000,000 | 635,000,000 | 419,000,000 | 635,000,000 | 635,000,000 | 635,000,000 | 419,000,000 | 635,000,000 | ||||||||||||||||
Southeast Segment [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Goodwill | 226,800,000 | 226,800,000 | 201,300,000 | 226,800,000 | 226,800,000 | 226,800,000 | 201,300,000 | 226,800,000 | ||||||||||||||||
Goodwill | 226,800,000 | 226,800,000 | 201,300,000 | 226,800,000 | 226,800,000 | 226,800,000 | 201,300,000 | 226,800,000 | ||||||||||||||||
Net sales | 968,693,000 | 752,432,000 | 606,631,000 | |||||||||||||||||||||
2016 Credit Agreement Due 2024 [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Aggregate principal amount issuance | 60,000,000 | 60,000,000 | 54,000,000 | 60,000,000 | 60,000,000 | $ 60,000,000 | $ 54,000,000 | 60,000,000 | ||||||||||||||||
2018 Senior Notes due 2026 [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Aggregate principal amount | $ 50,000,000 | $ 315,000,000 | ||||||||||||||||||||||
Accrued Interest rate | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |||||||||||||||||||
Aggregate principal amount issuance | $ 60,000,000 | |||||||||||||||||||||||
Percentage of principal amount issued | 105.50% | 106.375% | 100.00% | |||||||||||||||||||||
Debt instrument premium | $ 3,300,000 | $ 3,200,000 | ||||||||||||||||||||||
Anlin Windows & Doors [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Business combination, effective date of acquisition | Oct. 25, 2021 | |||||||||||||||||||||||
Fair value of consideration | $ 120,117,000 | |||||||||||||||||||||||
Cash payment to acquire business | 114,196,000 | |||||||||||||||||||||||
Estimated fair value of contingent consideration | 5,900,000 | |||||||||||||||||||||||
Earn-out contingency payment due in one year | 3,200,000 | |||||||||||||||||||||||
Earn-out contingency payment due in two year | 9,500,000 | |||||||||||||||||||||||
Earn-out contingency liability | 5,900,000 | 5,900,000 | 5,900,000 | 5,900,000 | 5,900,000 | $ 5,900,000 | 5,900,000 | |||||||||||||||||
Business combination, purchase price | 113,500,000 | |||||||||||||||||||||||
Estimated working capital adjustments | 700,000 | |||||||||||||||||||||||
Goodwill | 5,596,000 | |||||||||||||||||||||||
Decrease in acquired accounts receivable | 10,803,000 | |||||||||||||||||||||||
Decrease in commercial trade name | 77,800,000 | |||||||||||||||||||||||
Decrease in commercial inventories | 7,633,000 | |||||||||||||||||||||||
Liabilities assumed | 16,618,000 | |||||||||||||||||||||||
Intangible assets | 77,800,000 | |||||||||||||||||||||||
Goodwill | 5,596,000 | |||||||||||||||||||||||
Goodwill deductible for tax purposes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net sales from acquisition | 21,400,000 | |||||||||||||||||||||||
Net income from acquisition | 1,900,000 | |||||||||||||||||||||||
Anlin Windows & Doors [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Business combination, acquisition related costs | 1,800,000 | |||||||||||||||||||||||
Anlin Windows & Doors [Member] | 2016 Credit Agreement [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | 114,200,000 | |||||||||||||||||||||||
Anlin Windows & Doors [Member] | 2016 Credit Agreement Due 2024 [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | 114,200,000 | |||||||||||||||||||||||
Proceeds from term loan | 60,000,000 | |||||||||||||||||||||||
Debt instrument, fees | 59,400,000 | |||||||||||||||||||||||
Anlin Windows & Doors [Member] | Cash On Hand [Member] | 2016 Credit Agreement Due 2024 [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | 54,800,000 | |||||||||||||||||||||||
Anlin Windows & Doors [Member] | 4.375% Senior Notes Due in 2029 [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Aggregate principal amount | $ 575,000,000 | |||||||||||||||||||||||
Accrued Interest rate | 4.375% | |||||||||||||||||||||||
CRi [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Fair value of consideration | $ 12,500,000 | |||||||||||||||||||||||
Cash payment to acquire business | 12,100,000 | |||||||||||||||||||||||
Goodwill | 3,700,000 | |||||||||||||||||||||||
Decrease in acquired accounts receivable | 400,000 | |||||||||||||||||||||||
Decrease in commercial trade name | 7,000,000 | |||||||||||||||||||||||
Estimated fair value of assets acquired | 17,600,000 | |||||||||||||||||||||||
Liabilities assumed | 5,100,000 | |||||||||||||||||||||||
Operating lease right of use assets and operating lease liabilities | 2,600,000 | |||||||||||||||||||||||
Current assets | 4,100,000 | |||||||||||||||||||||||
Intangible assets | 7,000,000 | |||||||||||||||||||||||
Goodwill | 3,700,000 | |||||||||||||||||||||||
Trade accounts payable and customer deposits | $ 2,500,000 | |||||||||||||||||||||||
Goodwill deductible for tax purposes | 3,700,000 | 3,700,000 | 3,700,000 | 3,700,000 | 3,700,000 | 3,700,000 | ||||||||||||||||||
Net sales from acquisition | 10,900,000 | |||||||||||||||||||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Business combination, effective date of acquisition | Feb. 1, 2020 | |||||||||||||||||||||||
Fair value of consideration | $ 90,368,000 | |||||||||||||||||||||||
Cash payment to acquire business | 90,368,000 | |||||||||||||||||||||||
Business combination, purchase price | 90,368,000 | |||||||||||||||||||||||
Additional payments owe to seller | 200,000 | |||||||||||||||||||||||
Business combination, acquisition related costs | 2,400,000 | $ 900,000 | $ 1,500,000 | |||||||||||||||||||||
Goodwill | 52,094,000 | |||||||||||||||||||||||
Decrease in acquired accounts receivable | 8,434,000 | |||||||||||||||||||||||
Decrease in commercial trade name | 27,370,000 | |||||||||||||||||||||||
Decrease in commercial inventories | 2,936,000 | |||||||||||||||||||||||
Net increase in the purchase price | 200,000 | |||||||||||||||||||||||
Intangible assets | 27,370,000 | |||||||||||||||||||||||
Goodwill | 52,094,000 | |||||||||||||||||||||||
Net sales | 146,800,000 | 93,900,000 | ||||||||||||||||||||||
Net income (loss) attributable to common shareholders | 17,800,000 | 2,000,000 | ||||||||||||||||||||||
Goodwill deductible for tax purposes | $ 52,100,000 | $ 52,100,000 | $ 52,100,000 | 52,100,000 | $ 52,100,000 | $ 52,100,000 | ||||||||||||||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Accrued Liabilities [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Adjustments to accrued liabilities | 1,900,000 | 1,900,000 | ||||||||||||||||||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Adjustments to Allocation [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | 223,000 | |||||||||||||||||||||||
Additional payments owe to seller | (223,000) | |||||||||||||||||||||||
Goodwill | 5,894,000 | 5,900,000 | 5,900,000 | |||||||||||||||||||||
Decrease in acquired accounts receivable | (1,860,000) | 1,900,000 | 1,900,000 | |||||||||||||||||||||
Decrease in commercial trade name | (1,300,000) | 1,300,000 | 1,300,000 | |||||||||||||||||||||
Decrease in commercial inventories | (821,000) | 800,000 | 800,000 | |||||||||||||||||||||
Intangible assets | (1,300,000) | 1,300,000 | 1,300,000 | |||||||||||||||||||||
Goodwill | 5,894,000 | 5,900,000 | $ 5,900,000 | |||||||||||||||||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Premium [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | 3,200,000 | |||||||||||||||||||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Cash On Hand [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | 37,200,000 | |||||||||||||||||||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | 2018 Senior Notes due 2026 [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | 53,200,000 | |||||||||||||||||||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | 2018 Senior Notes due 2026 [Member] | Add-on Issuance [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | $ 50,000,000 | |||||||||||||||||||||||
ECO [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Business combination, effective date of acquisition | Feb. 1, 2021 | |||||||||||||||||||||||
Fair value of consideration | $ 100,464,000 | 100,500,000 | ||||||||||||||||||||||
Cash payment to acquire business | 94,356,000 | 94,400,000 | ||||||||||||||||||||||
Goodwill | 25,584,000 | |||||||||||||||||||||||
Decrease in acquired accounts receivable | 4,790,000 | |||||||||||||||||||||||
Decrease in commercial trade name | 74,300,000 | |||||||||||||||||||||||
Decrease in commercial inventories | 7,044,000 | |||||||||||||||||||||||
Liabilities assumed | 38,559,000 | |||||||||||||||||||||||
Intangible assets | 74,300,000 | |||||||||||||||||||||||
Goodwill | $ 25,584,000 | |||||||||||||||||||||||
Net sales | 85,600,000 | |||||||||||||||||||||||
Net income | 9,300,000 | |||||||||||||||||||||||
Net income portion attributable to redeemable non-controlling interest | $ 2,300,000 | |||||||||||||||||||||||
Business combination, percentage of ownership stake acquired | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | |||||||||||||||||
Working capital adjustment and customer deposits | $ 5,600,000 | |||||||||||||||||||||||
Issue of common stock value to acquire business | $ 6,108,000 | |||||||||||||||||||||||
Sale of stock, price per share | $ 21.34 | |||||||||||||||||||||||
Business combination, value of shares issuance | $ 7,600,000 | |||||||||||||||||||||||
Period of holder of redeemable non-controlling interest restricted from selling shares from date of acquisition | 3 years | |||||||||||||||||||||||
Percentage of discount in sale of stock price per share for lack of marketability | 20.00% | |||||||||||||||||||||||
Estimated fair value of redeemable non-controlling interest | $ 28,464,000 | |||||||||||||||||||||||
Net assets acquired | $ 128,928,000 | |||||||||||||||||||||||
Percentage of estimated fair value of entity at acquisition date to calculate fair value of redeemable on controlling interest | 25.00% | |||||||||||||||||||||||
Percentage of estimated discount for lack of sellers voting control in new entity | 5.00% | |||||||||||||||||||||||
Percentage of estimated discount for lack of sellers of marketability of minority stake | 10.00% | |||||||||||||||||||||||
ECO [Member] | Southeast Segment [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Goodwill deductible for tax purposes | $ 25,600,000 | |||||||||||||||||||||||
ECO [Member] | Common Stock [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Issue of common stock value to acquire business | $ 6,100,000 | |||||||||||||||||||||||
Business combination, number of shares issuance | 357,797 | |||||||||||||||||||||||
ECO [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Business combination, acquisition related costs | $ 1,000,000 | $ 700,000 | $ 1,700,000 | |||||||||||||||||||||
ECO [Member] | Adjustments to Allocation [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Fair value of consideration | $ 35,000 | |||||||||||||||||||||||
Cash payment to acquire business | 35,000 | |||||||||||||||||||||||
Goodwill | (4,467,000) | |||||||||||||||||||||||
Decrease in acquired accounts receivable | (241,000) | |||||||||||||||||||||||
Decrease in commercial trade name | 1,600,000 | |||||||||||||||||||||||
Decrease in commercial inventories | (684,000) | |||||||||||||||||||||||
Liabilities assumed | (329,000) | |||||||||||||||||||||||
Intangible assets | 1,600,000 | |||||||||||||||||||||||
Goodwill | (4,467,000) | |||||||||||||||||||||||
Estimated fair value of redeemable non-controlling interest | (5,620,000) | |||||||||||||||||||||||
Net assets acquired | (5,585,000) | |||||||||||||||||||||||
ECO [Member] | Cash On Hand [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | $ 94,400,000 | $ 31,100,000 | ||||||||||||||||||||||
ECO [Member] | 2018 Senior Notes due 2026 [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Accrued Interest rate | 6.75% | |||||||||||||||||||||||
Aggregate principal amount issuance | $ 60,000,000 | |||||||||||||||||||||||
Percentage of principal amount issued | 105.50% | |||||||||||||||||||||||
Debt instrument premium | $ 3,300,000 | |||||||||||||||||||||||
ECO [Member] | 2018 Senior Notes due 2026 [Member] | Cash On Hand [Member] | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Cash payment to acquire business | $ 31,100,000 | |||||||||||||||||||||||
[1] | In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. | |||||||||||||||||||||||
[2] | Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Oct. 25, 2021 | Feb. 01, 2021 | Jan. 25, 2021 | Feb. 01, 2020 | Jan. 01, 2022 | Jan. 02, 2021 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 364,598 | $ 329,695 | ||||
Anlin Windows & Doors [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 10,803 | |||||
Inventories | 7,633 | |||||
Contract assets, net | 7,027 | |||||
Prepaid expenses and other assets | 1,626 | |||||
Property and equipment | 22,800 | |||||
Operating lease right-of-use asset | 3,450 | |||||
Intangible assets | 77,800 | |||||
Goodwill | 5,596 | |||||
Total assets acquired | 136,735 | |||||
Accounts payable | (5,175) | |||||
Accrued and other liabilities | (7,993) | |||||
Operating lease liability | (3,450) | |||||
Total liabilities assumed | (16,618) | |||||
Fair value of consideration transferred | 120,117 | |||||
Purchase price | 113,500 | |||||
Cash | 114,196 | |||||
Contingent consideration | 5,921 | |||||
Total fair value of consideration | $ 120,117 | |||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 8,434 | |||||
Inventories | 2,936 | |||||
Contract assets, net | 4,413 | |||||
Prepaid expenses and other assets | 1,756 | |||||
Property and equipment | 7,433 | |||||
Operating lease right-of-use asset | 10,578 | |||||
Intangible assets | 27,370 | |||||
Goodwill | 52,094 | |||||
Accounts payable | (6,621) | |||||
Accrued and other liabilities | (7,447) | |||||
Operating lease liability | (10,578) | |||||
Purchase price | 90,368 | |||||
Cash | 90,368 | |||||
Due to Sellers | 200 | |||||
Total fair value of consideration | 90,368 | |||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Previously Reported [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 10,294 | |||||
Inventories | 3,757 | |||||
Contract assets, net | 4,413 | |||||
Prepaid expenses and other assets | 1,756 | |||||
Property and equipment | 7,423 | |||||
Operating lease right-of-use asset | 10,578 | |||||
Intangible assets | 28,670 | |||||
Goodwill | 46,200 | |||||
Accounts payable | (6,621) | |||||
Accrued and other liabilities | (5,524) | |||||
Operating lease liability | (10,578) | |||||
Purchase price | 90,368 | |||||
Cash | 90,145 | |||||
Due to Sellers | 223 | |||||
Total fair value of consideration | 90,368 | |||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Adjustments to Allocation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | (1,860) | 1,900 | ||||
Inventories | (821) | 800 | ||||
Property and equipment | 10 | |||||
Intangible assets | (1,300) | 1,300 | ||||
Goodwill | 5,894 | $ 5,900 | ||||
Accrued and other liabilities | (1,923) | |||||
Cash | 223 | |||||
Due to Sellers | $ (223) | |||||
ECO [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 4,790 | |||||
Inventories | 7,044 | |||||
Contract assets, net | 4,189 | |||||
Prepaid expenses and other assets | 947 | |||||
Property and equipment | 23,818 | |||||
Operating lease right-of-use asset | 26,815 | |||||
Intangible assets | 74,300 | |||||
Goodwill | 25,584 | |||||
Total assets acquired | 167,487 | |||||
Accounts payable | (6,925) | |||||
Accrued and other liabilities, including customer deposits | (4,819) | |||||
Operating lease liability | (26,815) | |||||
Total liabilities assumed | (38,559) | |||||
Net assets acquired | 128,928 | |||||
Redeemable non-controlling interest | (28,464) | |||||
Fair value of consideration transferred | 100,464 | |||||
Cash | 94,356 | $ 94,400 | ||||
PGTI common stock | 6,108 | |||||
Total fair value of consideration | 100,464 | $ 100,500 | ||||
ECO [Member] | Previously Reported [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 5,031 | |||||
Inventories | 7,728 | |||||
Contract assets, net | 4,312 | |||||
Prepaid expenses and other assets | 1,706 | |||||
Property and equipment | 24,009 | |||||
Operating lease right-of-use asset | 27,864 | |||||
Intangible assets | 72,700 | |||||
Goodwill | 30,051 | |||||
Total assets acquired | 173,401 | |||||
Accounts payable | (6,809) | |||||
Accrued and other liabilities, including customer deposits | (4,215) | |||||
Operating lease liability | (27,864) | |||||
Total liabilities assumed | (38,888) | |||||
Net assets acquired | 134,513 | |||||
Redeemable non-controlling interest | 34,084 | |||||
Fair value of consideration transferred | 100,429 | |||||
Cash | 94,321 | |||||
PGTI common stock | 6,108 | |||||
Total fair value of consideration | 100,429 | |||||
ECO [Member] | Adjustments to Allocation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | (241) | |||||
Inventories | (684) | |||||
Contract assets, net | (123) | |||||
Prepaid expenses and other assets | (759) | |||||
Property and equipment | (191) | |||||
Operating lease right-of-use asset | (1,049) | |||||
Intangible assets | 1,600 | |||||
Goodwill | (4,467) | |||||
Total assets acquired | (5,914) | |||||
Accounts payable | (116) | |||||
Accrued and other liabilities, including customer deposits | (604) | |||||
Operating lease liability | 1,049 | |||||
Total liabilities assumed | 329 | |||||
Net assets acquired | (5,585) | |||||
Redeemable non-controlling interest | 5,620 | |||||
Fair value of consideration transferred | 35 | |||||
Cash | 35 | |||||
Total fair value of consideration | $ 35 |
Acquisitions - Schedule for Val
Acquisitions - Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives (Detail) - USD ($) $ in Thousands | Oct. 25, 2021 | Feb. 01, 2021 | Feb. 01, 2020 |
Anlin Windows & Doors [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 77,800 | ||
Anlin Windows & Doors [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | 35,400 | ||
Anlin Windows & Doors [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 42,100 | ||
Initial Useful Life (in years) | 15 years | ||
Anlin Windows & Doors [Member] | Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 300 | ||
Initial Useful Life (in years) | 9 years | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 27,370 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | 28,670 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Adjustments to Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | (1,300) | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 22,200 | ||
Initial Useful Life (in years) | 15 years | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Trade Name [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 23,500 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Trade Name [Member] | Adjustments to Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | (1,300) | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Noncompete Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 1,670 | ||
Initial Useful Life (in years) | 5 years | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Noncompete Agreements [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 1,670 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 900 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Customer Relationships [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Initial Useful Life (in years) | 1 year | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Customer Relationships [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 900 | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 2,600 | ||
Initial Useful Life (in years) | 6 years | ||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Developed Technology [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 2,600 | ||
ECO [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 74,300 | ||
ECO [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | 34,900 | ||
ECO [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | 72,700 | ||
ECO [Member] | Previously Reported [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | 36,000 | ||
ECO [Member] | Adjustments to Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | 1,600 | ||
ECO [Member] | Adjustments to Allocation [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | (1,100) | ||
ECO [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 39,400 | ||
ECO [Member] | Customer Relationships [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Initial Useful Life (in years) | 5 years | ||
ECO [Member] | Customer Relationships [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Initial Useful Life (in years) | 15 years | ||
ECO [Member] | Customer Relationships [Member] | Previously Reported [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 36,700 | ||
ECO [Member] | Customer Relationships [Member] | Adjustments to Allocation [Member] | |||
Business Acquisition [Line Items] | |||
Preliminary/Final Valuation Amount | $ 2,700 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Proforma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Anlin Windows & Doors [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | $ 1,251,314 | $ 967,825 | |
Net income | $ 35,273 | $ 50,838 | |
Net income per common share attributable to common shareholders: | |||
Basic | $ 0.59 | $ 0.86 | |
Diluted | $ 0.59 | $ 0.86 | |
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | $ 890,373 | $ 831,610 | |
Net income | $ 45,338 | $ 44,925 | |
Net income per common share attributable to common shareholders: | |||
Basic | $ 0.77 | $ 0.77 | |
Diluted | $ 0.76 | $ 0.76 | |
ECO [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | $ 1,169,416 | $ 945,930 | |
Net income | $ 26,375 | $ 39,220 | |
Net income per common share attributable to common shareholders: | |||
Basic | $ 0.44 | $ 0.67 | |
Diluted | $ 0.44 | $ 0.66 |
Sale of Assets - Additional Inf
Sale of Assets - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 22, 2017 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 30, 2017 |
Business Acquisition [Line Items] | |||||
Proceeds from sale of manufacturing equipment | $ 187 | $ 766 | $ 71 | ||
Cardinal LG [Member] | Asset Purchase Agreement [Member] | Manufacturing Equipment [Member] | |||||
Business Acquisition [Line Items] | |||||
Proceeds from sale of manufacturing equipment | $ 27,800 | ||||
Asset supply agreement term | 7 years | ||||
Deferred income | $ 20,100 | ||||
Payment amortized under supply agreement term | 7 years | ||||
Cardinal LG [Member] | Asset Purchase Agreement [Member] | Manufacturing Equipment [Member] | Other Current Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment, fair market value | $ 7,700 | ||||
Cardinal LG [Member] | Supply Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Unamortized balance of deferred gain | 8,200 | ||||
Cardinal LG [Member] | Supply Agreement [Member] | Inventory Classified as Cost of Sales [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization of deferred gain | 2,800 | $ 2,800 | $ 2,800 | $ 11,900 | |
Cardinal LG [Member] | Supply Agreement [Member] | Accrued Liabilities [Member] | |||||
Business Acquisition [Line Items] | |||||
Unamortized balance of deferred gain | 2,800 | ||||
Cardinal LG [Member] | Supply Agreement [Member] | Other Liabilities [Member] | |||||
Business Acquisition [Line Items] | |||||
Unamortized balance of deferred gain | $ 5,400 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 339,708 | $ 265,879 |
Less: Accumulated depreciation | (154,442) | (130,724) |
Property, plant and equipment, net | 185,266 | 135,155 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,063 | 6,664 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 103,812 | 85,434 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 159,822 | 113,500 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21,633 | 17,374 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 31,813 | 30,423 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 12,565 | $ 12,484 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 30,487 | $ 24,014 | $ 18,876 |
Depreciation classified within cost of sales | $ 19,300 | $ 12,700 | $ 10,900 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (138,691) | $ (117,609) |
Subtotal | 182,384 | 115,666 |
Other intangible assets, net | 394,525 | 256,507 |
Goodwill at January 2, 2021 | 329,695 | |
Goodwill at January 1, 2022 | 364,598 | 329,695 |
Increase in trade names | 8,000 | |
Anlin [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Increase in goodwill | 5,596 | |
Eco Enterprises, LLC [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Increase in goodwill | 25,584 | |
CRi [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Increase in goodwill | 3,722 | |
Trade Name [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 212,141 | 140,841 |
Trade Name [Member] | Anlin [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Increase in trade names | 35,400 | |
Trade Name [Member] | Eco Enterprises, LLC [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Increase in trade names | 34,900 | |
Trade Name [Member] | CRi [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Increase in trade names | 1,000 | |
Customer Relationships and Customer-related Assets [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 289,047 | 201,547 |
Customer Relationships and Customer-related Assets [Member] | Minimum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 1 year | |
Customer Relationships and Customer-related Assets [Member] | Maximum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 15 years | |
Trade Name [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 22,200 | 22,200 |
Initial Useful Life (in years) | 15 years | |
Developed Technology [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 5,900 | 5,600 |
Developed Technology [Member] | Minimum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 6 years | |
Developed Technology [Member] | Maximum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 10 years | |
Noncompete Agreements [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 3,338 | 3,338 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 2 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Initial Useful Life (in years) | 5 years | |
Software License [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | $ 590 | $ 590 |
Initial Useful Life (in years) | 2 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 04, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | |
Amortization of intangible assets | 21,100,000 | 18,800,000 | $ 15,900,000 | |
Goodwill | 364,598,000 | 329,695,000 | ||
Impairment of trade name | 8,000,000 | |||
Western Window Systems [Member] | COVID-19 [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Percentage of increase (decrease) in net sales | (19.30%) | |||
Trade Name [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Other Indefinite-lived Intangible Assets | 212,100,000 | 140,800,000 | ||
Trade Name [Member] | COVID-19 [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment of trade name | $ 8,000,000 | |||
Southeast Segment [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 226,800,000 | 201,300,000 | ||
Western Segment [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 137,800,000 | $ 128,400,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Amortization for Future Fiscal Year (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 23,000 | |
2023 | 20,807 | |
2024 | 20,760 | |
2025 | 20,590 | |
2026 | 17,192 | |
Thereafter | 80,035 | |
Subtotal | $ 182,384 | $ 115,666 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Payables And Accruals [Abstract] | ||
Customer deposits | $ 36,982 | $ 18,132 |
Accrued payroll and benefits | 15,765 | 14,777 |
Accrued warranty | 11,783 | 6,474 |
Accrued interest | 6,857 | 10,415 |
Estimated fair value of contingent consideration, current | 2,921 | |
Advance supplier consideration | 2,808 | 2,808 |
Accrued health claims insurance payable | 2,283 | 994 |
Accrued federal and state income taxes | 3,355 | |
Fair value of derivative financial instruments | 52 | |
Other | 3,261 | 3,868 |
Accrued liabilities | $ 82,660 | $ 60,875 |
Accrued Liabilities - Additiona
Accrued Liabilities - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Oct. 25, 2021 |
Business Acquisition [Line Items] | ||
Estimated fair value of contingent consideration, current | $ 2,921 | |
Anlin Windows and Doors [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of contingent consideration | 5,900 | $ 5,900 |
Anlin Windows and Doors [Member] | Accrued Liabilities [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of contingent consideration, current | 2,900 | |
Anlin Windows and Doors [Member] | Other Liabilities [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of contingent consideration, non-current | $ 3,000 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 635,000 | $ 419,000 |
Fees, costs, premium and discount | (9,345) | (6,902) |
Long-term debt, net | 625,655 | 412,098 |
Long-term debt, net, less current portion | 625,655 | 412,098 |
2016 Credit Agreement Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 60,000 | 54,000 |
2016 Credit Agreement Due 2024 [Member] | Term Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 60,000 | 54,000 |
2021 Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 575,000 | |
2018 Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 365,000 |
Long Term Debt - Schedule of _2
Long Term Debt - Schedule of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jan. 25, 2021 | Jan. 24, 2020 | Aug. 10, 2018 | Jan. 01, 2022 | Jan. 02, 2021 |
Debt Instrument [Line Items] | ||||||
Lump sum payment due | $ 635,000 | $ 419,000 | ||||
2016 Credit Agreement Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Lump sum payment due | $ 60,000 | $ 54,000 | ||||
2016 Credit Agreement Due 2024 [Member] | Term Loan Payable with 0.675 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Average rate of interest payable | 2.10% | 2.15% | ||||
2016 Credit Agreement Due 2024 [Member] | Term Loan Payable with 0.675 [Member] | Due on October 31, 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Lump sum payment due | $ 60,000 | $ 60,000 | ||||
2021 Senior Notes Due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accrued Interest rate | 4.375% | 4.375% | 4.375% | |||
Lump sum payment due | $ 575,000 | |||||
2018 Senior Notes Due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accrued Interest rate | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |
Lump sum payment due | $ 60,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Oct. 25, 2021 | Sep. 27, 2021 | Sep. 24, 2021 | Feb. 01, 2021 | Jan. 25, 2021 | Jan. 24, 2020 | Oct. 31, 2019 | Aug. 10, 2018 | Feb. 16, 2016 | Jan. 01, 2022 | Jan. 02, 2021 |
Line of Credit Facility [Line Items] | |||||||||||
Face value of debt outstanding | $ 635,000,000 | $ 419,000,000 | |||||||||
Letters of credit outstanding | 5,300,000 | ||||||||||
2016 Credit Agreement Due 2024 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face value of debt outstanding | 60,000,000 | $ 54,000,000 | |||||||||
Credit agreement date | Feb. 16, 2016 | ||||||||||
Prepayment of term loan | $ 54,000,000 | ||||||||||
Senior Secured Credit Facilities [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Amount available under credit facility | $ 310,000,000 | ||||||||||
Term Loan Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Amount available under credit facility | $ 270,000,000 | ||||||||||
Maturity term of credit agreement | 6 years | ||||||||||
Credit facility amortization percentage | 1.00% | ||||||||||
Weighted average interest rate | 2.10% | 2.15% | |||||||||
Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Amount available under credit facility | $ 40,000,000 | ||||||||||
Credit available under the credit facility | $ 74,700,000 | ||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility amortization percentage | 0.35% | ||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility amortization percentage | 0.25% | ||||||||||
Second Amendment [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate terms | The Second Amendment, among other things, decreased the applicable interest rate margins for the Initial Term Loans (as defined in the 2016 Credit Agreement due 2024). | ||||||||||
Third Amendment [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face value of debt outstanding | $ 64,000,000 | ||||||||||
Term of credit facility | 3 years | ||||||||||
Revolving Credit Facility due 2024 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face value of debt outstanding | $ 40,000,000 | ||||||||||
Term of credit facility | 5 years | ||||||||||
Revolving Credit Facility due 2024 [Member] | Maximum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face value of debt outstanding | $ 80,000,000 | ||||||||||
Fourth Amendment [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Term of credit facility | 3 years | ||||||||||
Maximum borrowing available during period | $ 60,000,000 | ||||||||||
ECO [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Cash payment to acquire business | $ 94,356,000 | $ 94,400,000 | |||||||||
Fair value of consideration | 100,464,000 | 100,500,000 | |||||||||
ECO [Member] | Cash On Hand [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Cash payment to acquire business | $ 94,400,000 | $ 31,100,000 | |||||||||
2021 Senior Notes Due 2029 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Long-term debt | $ 575,000,000 | ||||||||||
Accrued Interest rate | 4.375% | 4.375% | 4.375% | ||||||||
Percentage of principal amount issued | 100.00% | ||||||||||
Debt instrument, maturity date | Oct. 1, 2029 | ||||||||||
Face value of debt outstanding | $ 575,000,000 | ||||||||||
Accrued interest | $ 6,800,000 | ||||||||||
Financing Costs | $ 8,700,000 | ||||||||||
Percentage of lender spread on principal amount | 1.25% | ||||||||||
Financing costs lender spread | $ 7,200,000 | ||||||||||
Financing costs other | $ 1,500,000 | ||||||||||
Repurchase notes percentage of aggregate principal amount | 101.00% | ||||||||||
2021 Senior Notes Due 2029 [Member] | Prior to October 1, 2024 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis points, floor | 50.00% | ||||||||||
2021 Senior Notes Due 2029 [Member] | On or After August 1, 2021 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, redemption percentage | 102.188% | ||||||||||
2021 Senior Notes Due 2029 [Member] | On or After August 2025 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, redemption percentage | 101.094% | ||||||||||
2021 Senior Notes Due 2029 [Member] | On or After August 1, 2026 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, redemption percentage | 100.00% | ||||||||||
2018 Senior Notes Due 2026 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Long-term debt | $ 50,000,000 | $ 315,000,000 | |||||||||
Accrued Interest rate | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | ||||||
Percentage of principal amount issued | 105.50% | 106.375% | 100.00% | ||||||||
Debt instrument premium | $ 3,300,000 | $ 3,200,000 | |||||||||
Debt instrument, maturity date | Aug. 10, 2026 | ||||||||||
Face value of debt outstanding | $ 60,000,000 | ||||||||||
Accrued interest | $ 4,500,000 | ||||||||||
Repayments of debt | $ 425,000,000 | $ 425,000,000 | |||||||||
Repurchase notes percentage of aggregate principal amount | 5.063% | ||||||||||
Prepayment of term loan | $ 21,500,000 | ||||||||||
2018 Senior Notes Due 2026 [Member] | NewSouth Window Solutions [Member] | Cash On Hand [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Cash payment to acquire business | $ 90,400,000 | ||||||||||
2018 Senior Notes Due 2026 [Member] | ECO [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Accrued Interest rate | 6.75% | ||||||||||
Percentage of principal amount issued | 105.50% | ||||||||||
Debt instrument premium | $ 3,300,000 | ||||||||||
Face value of debt outstanding | 60,000,000 | ||||||||||
2018 Senior Notes Due 2026 [Member] | ECO [Member] | Cash On Hand [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Cash payment to acquire business | $ 31,100,000 |
Long-Term Debt - Activity Relat
Long-Term Debt - Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | |||
At beginning of year | $ 6,902 | ||
Add: Deferred financing costs from the issuance of Senior Notes | 10,675 | $ 1,266 | $ 854 |
Less: Write-off of deferred costs classified as debt extinguishment costs | (3,954) | ||
Less: Amortization expense | (978) | ||
At end of year | 9,345 | ||
2016 Credit Agreement Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Add: Deferred financing costs from the refinancing of the 2016 Credit Agreement due 2024 | 612 | ||
Second Additional Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Add: Deferred financing costs from the issuance of Senior Notes | 1,363 | ||
Less: Premium on the Second Additional Senior Notes | (3,300) | ||
2021 Senior Notes Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Add: Deferred financing costs from the issuance of Senior Notes | $ 8,700 |
Long-Term Debt - Estimated Amor
Long-Term Debt - Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | Jan. 01, 2022USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 1,233 |
2023 | 1,282 |
2024 | 1,282 |
2025 | 1,083 |
2026 | 1,114 |
Thereafter | 3,351 |
Total | $ 9,345 |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Debt Disclosure [Abstract] | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 60,000 | |
2025 | 0 | |
Thereafter | 575,000 | |
Total | $ 635,000 | $ 419,000 |
Long Term Debt - Interest Expen
Long Term Debt - Interest Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |||
Long-term debt | $ 28,625 | $ 26,339 | $ 24,750 |
Debt fees | 474 | 327 | 383 |
Amortization and write-offs of deferred financing costs and debt discount | 978 | 1,206 | 1,674 |
Interest income | (27) | (120) | (339) |
Interest expense | 30,050 | 27,752 | 26,468 |
Capitalized interest | (21) | (33) | (51) |
Interest expense, net | $ 30,029 | $ 27,719 | $ 26,417 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands, lb in Millions | 12 Months Ended | |
Jan. 01, 2022USD ($)Forwardcontractlb$ / lb | Jan. 02, 2021USD ($) | |
Derivative [Line Items] | ||
Derivative assets | $ 9,428 | $ 3,692 |
Fair Value of Derivative | $ 9,400 | |
MTP Contracts [Member] | ||
Derivative [Line Items] | ||
Typical order quantities payment terms net | 30 days | |
Derivative assets | $ 4,600 | |
Number of outstanding forward contracts | Forwardcontract | 10 | |
Derivative, amount of hedged item | lb | 23.5 | |
Derivative average price | $ / lb | 0.12 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 12 months | |
Aluminum Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative assets | $ 4,800 | |
Number of outstanding forward contracts | Forwardcontract | 21 | |
Derivative, amount of hedged item | lb | 30.7 | |
Derivative average price | $ / lb | 1.11 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 12 months | |
Accumulated other comprehensive income, net of tax | $ 7,000 | $ 2,700 |
Derivatives - Summary of Fair V
Derivatives - Summary of Fair Value of Hedges (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 9,428 | $ 3,692 |
Total derivative instruments Liabilities | (81) | |
Aluminum Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | 4,829 | 3,243 |
Aluminum Forward Contracts [Member] | Accrued Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | (28) | |
Aluminum Forward Contracts [Member] | Other Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | (25) | |
MTP Contracts [Member] | Other Current Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 4,599 | 423 |
MTP Contracts [Member] | Other Assets [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | 26 | |
MTP Contracts [Member] | Accrued Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | (24) | |
MTP Contracts [Member] | Other Liabilities [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Liabilities | $ (4) |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ 24,455 | $ 1,569 | $ (1,229) |
Aluminum Contracts [Member] | Inventory Classified as Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | 14,012 | 1,037 | (1,229) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | 12,373 | (2,470) | $ (5,030) |
MTP Contracts [Member] | Inventory Classified as Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | 10,443 | 532 | |
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | $ 6,265 | $ 111 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of assets, level 1 to level 2 or level 3 transfers | $ 0 | $ 0 | $ 0 |
Long-term debt | 635,000,000 | 419,000,000 | |
2016 Credit Agreement Due 2024 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of current long-term debt | 60,000,000 | 54,000,000 | |
Long-term debt | 60,000,000 | 54,000,000 | |
2018 Senior Notes Due 2026 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of current long-term debt | 387,800,000 | ||
Long-term debt | $ 365,000,000 | ||
2021 Senior Notes Due 2029 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of current long-term debt | 578,200,000 | ||
Long-term debt | $ 575,000,000 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ 9,428 | $ 3,611 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 9,428 | 3,611 |
Aluminum Forward Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 4,829 | 3,190 |
Aluminum Forward Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 4,829 | 3,190 |
MTP Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 4,599 | 421 |
MTP Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ 4,599 | $ 421 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 790 | $ 9,906 | $ 5,747 |
State | 1,337 | 2,571 | 2,282 |
Total current | 2,127 | 12,477 | 8,029 |
Federal | 7,142 | 528 | 3,179 |
State | 490 | (1,121) | 1,231 |
Total deferred | 7,632 | (593) | 4,410 |
Income tax expense | $ 9,759 | $ 11,884 | $ 12,439 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes Included in Consolidated Statement of Operations and Consolidated Statement of Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Consolidated statements of operations: | |||
Income tax expense relating to continuing operations | $ 9,759 | $ 11,884 | $ 12,439 |
Consolidated statements of shareholders' equity: | |||
Income tax expense relating to derivative financial instruments | $ (1,531) | $ (970) | $ (974) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax benefit | 3.20% | 3.70% | 4.00% |
Non-deductible expenses | 1.30% | 1.00% | 1.60% |
Eco partnership income attributable to non-controlling interest | (1.20%) | ||
Florida excess tax refund relating to the Tax Cuts and Jobs Act | (1.00%) | ||
Excess stock-based compensation tax benefits | (2.00%) | (1.40%) | (3.70%) |
Research activities credits | (0.80%) | (2.30%) | (1.20%) |
Changes related to state rate changes and U.S. tax reform | 0.70% | ||
Other | 0.20% | (0.10%) | (0.20%) |
Consolidated effective tax rate | 21.70% | 20.90% | 22.20% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Asset and Liability (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Deferred tax assets: | ||
Operating lease liability | $ 16,949 | $ 10,609 |
Deferrals and accruals relating to ASC 606, net | 6,580 | 3,537 |
State bonus depreciation and net operating loss carryforwards | 3,748 | 2,606 |
Stock-based compensation expense | 2,527 | 1,772 |
Accrued warranty | 2,380 | 1,550 |
Acquisition costs | 2,158 | 1,664 |
Advance supplier consideration | 2,109 | 2,776 |
Other deferrals and accruals, net | 1,848 | 2,206 |
Obsolete inventory and UNICAP adjustment | 1,666 | 788 |
Allowance for credit losses | 1,048 | 1,017 |
Total deferred tax assets | 41,013 | 28,525 |
Deferred tax liabilities: | ||
Property, plant and equipment | (20,958) | (14,966) |
Trade names and other intangible assets, net | (18,162) | (17,978) |
Goodwill | (17,102) | (12,596) |
Operating lease right-of-use asset | (15,371) | (9,742) |
Eco partnership basis difference | (3,110) | |
Derivative financial instruments | (2,421) | (892) |
Prepaid expenses | (1,378) | (680) |
Total deferred tax liabilities | (78,502) | (56,854) |
Total deferred tax liabilities, net | $ (37,489) | $ (28,329) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Feb. 01, 2021 | Feb. 01, 2020 | Aug. 13, 2018 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | May 02, 2021 |
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | |||||||
Income Taxes [Line Items] | |||||||
Open tax years for examination | 2014 | ||||||
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | |||||||
Income Taxes [Line Items] | |||||||
Open tax years for examination | 2020 | ||||||
ASU 2016-09 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Excess tax benefit | $ 900,000 | $ 800,000 | $ 2,100,000 | ||||
CGI [Member] | |||||||
Income Taxes [Line Items] | |||||||
Goodwill deductible for tax purpose | 9,300,000 | ||||||
Deferred tax asset and liability | $ 0 | ||||||
Goodwill remaining amortization period for tax purposes | 7 years 4 months 24 days | ||||||
Unamortized goodwill | $ 200,000 | 1,500,000 | |||||
WinDoor [Member] | |||||||
Income Taxes [Line Items] | |||||||
Goodwill deductible for tax purpose | 38,900,000 | ||||||
Unamortized goodwill | 23,500,000 | 26,100,000 | |||||
US Impact Systems Inc. [Member] | |||||||
Income Taxes [Line Items] | |||||||
Goodwill deductible for tax purpose | 569,000 | ||||||
Unamortized goodwill | 364,000 | 402,000 | |||||
Western Window Systems [Member] | |||||||
Income Taxes [Line Items] | |||||||
Unamortized goodwill | $ 103,100,000 | 112,100,000 | |||||
Business combination, effective date of acquisition | Aug. 13, 2018 | ||||||
Step-up acquisition of goodwill percentage | 81.94% | ||||||
Acquisition of assets and assumption of liabilities | $ 133,600,000 | ||||||
Western Window Systems [Member] | Western Window Systems Blocker LLC [Member] | |||||||
Income Taxes [Line Items] | |||||||
Unamortized goodwill | $ 4,300,000 | 4,800,000 | |||||
Step-up acquisition of goodwill percentage | 18.06% | ||||||
Acquisition of assets and assumption of liabilities | $ 6,000,000 | ||||||
New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |||||||
Income Taxes [Line Items] | |||||||
Goodwill deductible for tax purpose | 52,100,000 | ||||||
Unamortized goodwill | $ 45,400,000 | $ 48,900,000 | |||||
Business combination, effective date of acquisition | Feb. 1, 2020 | ||||||
ECO [Member] | |||||||
Income Taxes [Line Items] | |||||||
Business combination, effective date of acquisition | Feb. 1, 2021 | ||||||
Percentage of ownership stake | 75.00% | 75.00% | |||||
CRi [Member] | |||||||
Income Taxes [Line Items] | |||||||
Goodwill deductible for tax purpose | $ 3,700,000 | ||||||
Unamortized goodwill | $ 3,500,000 | ||||||
Acquisition of assets and assumption of liabilities | $ 17,600,000 |
Leases, Commitments and Conti_3
Leases, Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Commitments Contingencies And Other Matters | |||
Operating lease existence of option to extend | true | ||
Operating lease extension period | Our lease terms may include options to extend or terminate the lease. | ||
Operating lease existence of option to terminate | true | ||
Operating lease termination period | Our lease terms may include options to extend or terminate the lease. | ||
Operating lease not yet commenced description | no additional operating or finance leases that have not yet commenced | ||
Finance lease not yet commenced description | no additional operating or finance leases that have not yet commenced | ||
Lease expenses | $ 25.1 | $ 13 | |
Amount required for payment of materials | 21.6 | ||
Purchase of materials | 262.4 | 227.4 | $ 216 |
Letters of credit | 5.3 | ||
Cost of Sales [Member] | |||
Commitments Contingencies And Other Matters | |||
Lease expenses | $ 10.6 | $ 6.6 | |
Minimum [Member] | |||
Commitments Contingencies And Other Matters | |||
Operating lease term | 1 year | ||
Maximum [Member] | |||
Commitments Contingencies And Other Matters | |||
Operating lease term | 10 years | ||
Operating lease extension period | 5 years | ||
Operating lease termination period | 1 year |
Leases, Commitments and Conti_4
Leases, Commitments and Contingencies - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Leases Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 15,254 | $ 9,165 |
Short-term lease cost | 9,872 | 3,856 |
Total lease cost | $ 25,126 | $ 13,021 |
Leases, Commitments and Conti_5
Leases, Commitments and Contingencies - Other Information Relating to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows relating to operating leases | $ (13,750) | $ (8,822) |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 65,678 | $ 19,185 |
Weighted average remaining lease term in years | ||
Operating leases | 7 years 14 days | 6 years 10 months 2 days |
Weighted average discount rate | ||
Operating leases | 5.50% | 5.80% |
Leases, Commitments and Conti_6
Leases, Commitments and Contingencies - Future Minimum Lease Commitments for Non-Cancelable Operating Leases (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Leases Commitments And Contingencies Disclosure [Abstract] | ||
Year one | $ 17,929 | $ 8,327 |
Year Two | 17,577 | 7,626 |
Year Three | 16,990 | 7,149 |
Year Four | 15,987 | 6,748 |
Year Five | 15,025 | 6,253 |
Year Six | 6,130 | |
Thereafter | 32,249 | |
Thereafter | 7,670 | |
Total future minimum lease payments | 115,757 | 49,903 |
Less: Imputed interest | (18,674) | (8,641) |
Operating lease liability - total | 97,083 | 41,262 |
Current portion of operating lease liability | 13,180 | 6,132 |
Operating lease liability, less current portion | $ 83,903 | $ 35,130 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | May 22, 2019 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Age of employees | 401(k) plan covering substantially all employees 18 years of age or older who have at least three months of service. | |||
Service period required | 3 months | |||
Employee's contribution | 80.00% | |||
Matching contribution | 3.00% | 3.00% | 3.00% | |
Vesting rate | 20.00% | |||
Requisite hours of work | at least 1,000 hours | |||
Recognized employee benefit | $ 4.5 | $ 3.3 | $ 2.9 | |
2019 Employee Stock Purchase Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Common stock issued under ESPP, Shares | 700,000 | 70,414 | ||
2019 Employee Stock Purchase Plan [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Purchase price of common stock as percentage of fair market value | 85.00% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - Builders FirstSource, Inc [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Related Party Transaction [Line Items] | |||
Total net sales to Builders FirstSource | $ 25.9 | $ 21.4 | $ 21.9 |
Accounts receivable due from Builders FirstSource | $ 3.7 | $ 1.9 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Feb. 01, 2021 | Jan. 25, 2021 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | May 22, 2019 |
Schedule Of Equity [Line Items] | ||||||
Acquisition of treasury stock | $ 1,648,000 | $ 815,000 | $ 6,055,000 | |||
Program for Repurchases of Company Common Stock [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Shares repurchased | 393,819 | |||||
Stock repurchase program, authorized amount | $ 30,000,000 | |||||
Total cost of common stock repurchased | $ 5,500,000 | |||||
Restricted Stock [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Shares repurchased | 73,105 | 51,479 | ||||
Acquisition of treasury stock | $ 1,600,000 | $ 815,000 | ||||
Common Stock [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Shares repurchased | 73,105 | 51,479 | 428,059 | |||
ECO [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Business combination, effective date of acquisition | Feb. 1, 2021 | |||||
Business combination, percentage of ownership stake acquired | 75.00% | 75.00% | ||||
Fair value of consideration | $ 100,464,000 | $ 100,500,000 | ||||
Cash payment to acquire business | 94,356,000 | 94,400,000 | ||||
Issue of common stock value to acquire business | $ 6,108,000 | |||||
Sale of stock, price per share | $ 21.34 | |||||
Business combination, value of shares issuance | $ 7,600,000 | |||||
Percentage of holder of redeemable non-controlling interest restricted from selling shares from date of acquisition | 25.00% | |||||
Percentage of discount in sale of stock price per share for lack of marketability | 20.00% | |||||
ECO [Member] | Cash On Hand [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Cash payment to acquire business | $ 94,400,000 | $ 31,100,000 | ||||
ECO [Member] | Common Stock [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Issue of common stock value to acquire business | $ 6,100,000 | |||||
Business combination, number of shares issuance | 357,797 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | May 20, 2021Member$ / sharesshares | Feb. 15, 2021$ / sharesshares | Feb. 01, 2020Store$ / sharesshares | Mar. 28, 2014shares | Jan. 01, 2022USD ($)$ / sharesshares | Jan. 02, 2021USD ($)$ / sharesshares | Dec. 28, 2019USD ($) | May 22, 2019shares | May 07, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense for stock based awards | $ | $ 7,819 | $ 5,458 | $ 3,923 | ||||||
Number of shares exercised | 67,797 | ||||||||
Proceeds from exercise of stock options | $ | $ 138 | 572 | 1,562 | ||||||
Selling, General and Administrative Expenses [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense for stock based awards | $ | $ 6,400 | $ 4,800 | $ 3,200 | ||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 28,140 | 709,122 | |||||||
Weighted-average period | 1 year 7 months 6 days | ||||||||
Weighted average fair value of common stock | $ / shares | $ 18.25 | $ 16.48 | |||||||
Number of non management board members | Member | 7 | ||||||||
Weighted average fair value of common stock | $ / shares | $ 16.03 | ||||||||
Total unrecognized compensation | $ | $ 5,900 | ||||||||
Restricted Stock [Member] | New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 129,032 | ||||||||
Weighted average fair value of common stock | $ / shares | $ 15.50 | ||||||||
Weighted-average period | 3 years | ||||||||
TSM EBITDA, amount | $ | $ 125,000 | $ 250,000 | |||||||
TSM EBITDA margin percentage | 6.00% | 8.00% | |||||||
Restricted Stock [Member] | New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Total Eleven Stores [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 351,612 | ||||||||
Number of stores | Store | 11 | ||||||||
Restricted Stock [Member] | New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Ten Stores [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 32,258 | ||||||||
Number of stores | Store | 10 | ||||||||
Restricted Stock [Member] | New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | Eleventh Store [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 29,032 | ||||||||
Number of stores | Store | 1 | ||||||||
Restricted Stock [Member] | Seller One [Member] | New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 64,516 | ||||||||
Restricted Stock [Member] | Seller Two [Member] | New South Window Solutions LLC and New South Window Solutions of Orlando LLC [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 64,516 | ||||||||
Restricted Stock Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 8,040 | ||||||||
Number of non management board members | Member | 2 | ||||||||
Restricted Stock Award and Restricted Stock Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average fair value of common stock | $ / shares | $ 24.88 | ||||||||
Lapsing period of restrictions related to restricted stock issued | 1 year | ||||||||
Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate intrinsic value of stock options exercised | $ | $ 1,600 | $ 3,400 | |||||||
Number of shares exercised | 67,797 | 284,353 | |||||||
Proceeds from exercise of stock options | $ | $ 138 | $ 600 | |||||||
Tax benefit realized | $ | $ 900 | $ 800 | |||||||
2019 Equity and Incentive Compensation Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common shares available for grant | 558,220 | 1,550,000 | |||||||
Common stock issued in employee grant, Shares | 0 | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance criteria defined in share awards | The percentages, ranging from less than 80% to greater than 120% of the target amount of that EBITDA metric, provide for the awarding of shares ranging from 0% to 150% of the target amount of shares with respect to 37.5% of half of the 289,210 shares, or 54,227 shares. | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares awarded subject to performance adjustment | 144,605 | ||||||||
Shares awarded subject to total shareholder return | 144,605 | ||||||||
Restricted stock awards | 289,210 | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance percentage | 80.00% | ||||||||
Percentage of shares issuable based on target performance | 0.00% | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance percentage | 120.00% | ||||||||
Percentage of shares issuable based on target performance | 150.00% | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | EBITDA Criteria [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 54,227 | ||||||||
Percentage of shares issuable based on target performance | 37.50% | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | EBITDA Criteria of Performance and TSR component [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 90,378 | ||||||||
Percentage of shares issuable based on target performance | 62.50% | ||||||||
Weighted average fair value of common stock | $ / shares | $ 26.10 | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | Company Performance Criteria [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 144,605 | ||||||||
Weighted average fair value of common stock | $ / shares | $ 23 | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | TSR Falls at 75th Percentile or Higher [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of additional performance shares to be received by grantee | 25.00% | ||||||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | TSR Falls at 25th Percentile or Lower [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of performance shares to be forfeiture by grantee | 25.00% | ||||||||
2014 Omnibus Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common shares available for grant | 0 | 1,500,000 | |||||||
2006 Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common shares available for grant | 0 | ||||||||
Common stock issued in employee grant, Shares | 0 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of the Status of Stock Options (Detail) | 12 Months Ended |
Jan. 01, 2022$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Outstanding Beginning balance | 67,797 |
Number of Shares, Exercised | (67,797) |
Number of Shares, Outstanding Ending balance | 0 |
Number of Shares, Exercisable Balance | 0 |
Weighted Average Exercise Price, Beginning balance | $ / shares | $ 2.04 |
Exercised | $ / shares | $ 2.04 |
Weighted Average Exercise Price, Ending balance | $ / shares |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of the Status of Restricted Share Awards (Detail) - Restricted Stock [Member] - $ / shares | May 20, 2021 | Jan. 01, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at January 2, 2021 | 864,918 | |
Granted | 28,140 | 709,122 |
Vested | (312,982) | |
Forfeited/Performance adjustment | (114,952) | |
Outstanding at January 1, 2022 | 1,146,106 | |
Weighted Average Fair Value, Outstanding Beginning balance | $ 16.48 | |
Weighted Average Fair Value, Granted | 19.37 | |
Weighted Average Fair Value, Vested | 16.03 | |
Weighted Average Fair Value, Forfeited/Performance adjustment | 17.71 | |
Weighted Average Fair Value, Outstanding Ending balance | $ 18.25 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ 485,134 | ||
Change in fair value of derivatives | 24,455 | $ 1,569 | $ (1,229) |
Amounts reclassified from accumulated other comprehensive earnings | (18,638) | 2,359 | 5,030 |
Tax effect | (1,531) | (970) | (974) |
Other comprehensive income, net of tax | 4,286 | 2,958 | 2,827 |
Accumulated other comprehensive income (loss), Ending Balance | 529,097 | 485,134 | |
Accumulated Other Comprehensive Loss [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 2,720 | (238) | (3,065) |
Other comprehensive income, net of tax | 4,286 | 2,958 | 2,827 |
Accumulated other comprehensive income (loss), Ending Balance | 7,006 | 2,720 | (238) |
Aluminum Forward Contracts [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Change in fair value of derivatives | 14,012 | 1,037 | (1,229) |
Amounts reclassified from accumulated other comprehensive earnings | (12,373) | 2,470 | 5,030 |
Tax effect | (432) | (866) | (974) |
Other comprehensive income, net of tax | 1,207 | 2,641 | 2,827 |
Aluminum Forward Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 2,403 | (238) | (3,065) |
Accumulated other comprehensive income (loss), Ending Balance | 3,610 | 2,403 | $ (238) |
MTP Contracts [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Change in fair value of derivatives | 10,443 | 532 | |
Amounts reclassified from accumulated other comprehensive earnings | (6,265) | (111) | |
Tax effect | (1,099) | (104) | |
Other comprehensive income, net of tax | 3,079 | 317 | |
MTP Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 317 | ||
Accumulated other comprehensive income (loss), Ending Balance | $ 3,396 | $ 317 |
Segments - Additional Informati
Segments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022USD ($)Segment | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Depreciation expense | $ 30,487 | $ 24,014 | $ 18,876 |
Amortization expense | 21,082 | 18,825 | 15,856 |
Southeast Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 26,500 | 20,900 | 15,800 |
Amortization expense | 10,700 | 9,200 | 6,400 |
Western Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 4,000 | 3,100 | 3,100 |
Amortization expense | $ 10,400 | $ 9,600 | $ 9,400 |
Segments - Summary of Financial
Segments - Summary of Financial Data Attributable to Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 | Oct. 03, 2020 | Jul. 04, 2020 | [2] | Apr. 04, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | ||
Net sales: | |||||||||||||
Total net sales | $ 304,441 | $ 300,431 | [1] | $ 285,500 | $ 271,092 | $ 221,601 | $ 238,033 | $ 202,783 | $ 220,204 | $ 1,161,464 | $ 882,621 | $ 744,956 | |
Income from operations: | |||||||||||||
Total income from operations | 100,456 | 84,711 | 84,056 | ||||||||||
Impairment of trade name | (8,000) | ||||||||||||
Restructuring costs and charges | (4,227) | ||||||||||||
Interest expense, net | 30,029 | 27,719 | 26,417 | ||||||||||
Debt extinguishment costs | $ 25,500 | 25,472 | 1,512 | ||||||||||
Total income before income taxes | 44,955 | 56,992 | 56,127 | ||||||||||
Southeast Segment [Member] | |||||||||||||
Net sales: | |||||||||||||
Total net sales | 968,693 | 752,432 | 606,631 | ||||||||||
Income from operations: | |||||||||||||
Total income from operations | 74,815 | 85,794 | 75,484 | ||||||||||
Western Segment [Member] | |||||||||||||
Net sales: | |||||||||||||
Total net sales | 192,771 | 130,189 | 138,325 | ||||||||||
Income from operations: | |||||||||||||
Total income from operations | $ 25,641 | $ 11,144 | $ 8,572 | ||||||||||
[1] | In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. | ||||||||||||
[2] | Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data - Summary of Consolidated Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 01, 2022 | Oct. 02, 2021 | [1] | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 | Oct. 03, 2020 | Jul. 04, 2020 | [2] | Apr. 04, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net sales | $ 304,441 | $ 300,431 | $ 285,500 | $ 271,092 | $ 221,601 | $ 238,033 | $ 202,783 | $ 220,204 | $ 1,161,464 | $ 882,621 | $ 744,956 | ||
Gross profit | 108,325 | 104,203 | 97,009 | 93,962 | 78,798 | 86,936 | 74,463 | 81,127 | 403,499 | 321,324 | 260,368 | ||
Net income | $ 9,987 | $ 17,322 | $ 2,199 | $ 15,600 | 32,878 | 45,108 | 43,688 | ||||||
Net income (loss) attributable to common shareholders | $ 14,613 | $ (6,782) | $ 6,582 | $ 12,384 | $ 26,797 | $ 45,108 | $ 43,688 | ||||||
Net income (loss) per share - basic | $ 0.24 | $ (0.11) | $ 0.11 | $ 0.21 | $ 0.17 | $ 0.29 | $ 0.04 | $ 0.27 | $ 0.45 | $ 0.77 | $ 0.75 | ||
Net income (loss) per share - diluted | $ 0.24 | $ (0.11) | $ 0.11 | $ 0.21 | $ 0.17 | $ 0.29 | $ 0.04 | $ 0.26 | $ 0.45 | $ 0.76 | $ 0.74 | ||
[1] | In the third quarter of 2021, we refinanced our 2018 Senior Notes due 2026 into the 2021 Senior Notes due 2029. As a result, we recorded debt extinguishment costs totaling $ 25.5 million. See Note 10 for more information. | ||||||||||||
[2] | Net income for the second quarter of the year ended January 2, 2021 was affected by charges for the impairment of a trade name and restructuring activities. See Notes 8 and 22, respectively, for further discussion. |
Unaudited Quarterly Financial_4
Unaudited Quarterly Financial Data - Summary of Consolidated Quarterly Results of Operations (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 02, 2021 | Jan. 01, 2022 | Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Debt extinguishment costs | $ 25,500 | $ 25,472 | $ 1,512 |
Restructuring Costs and Charg_3
Restructuring Costs and Charges - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 20, 2020 | Jan. 02, 2021 |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges | $ 4,227 | |
Manufacturing Facility Closing [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and related activities, Description | On April 20, 2020, the Company’s management approved a plan to consolidate its manufacturing operations in Florida, which included exiting our manufacturing facility in Orlando, Florida, where our WinDoor and Eze-Breeze products were assembled and relocated the manufacturing of those products to our Venice and Tampa, Florida plants, respectively. | |
Restructuring and related activities, initiation date | Apr. 20, 2020 | |
Restructuring and related activities, completion date | Jun. 30, 2020 | |
Restructuring costs and charges | $ 4,200 |
Restructuring Costs and Charg_4
Restructuring Costs and Charges - Summary of Restructuring Costs and Charges (Detail) $ in Thousands | 12 Months Ended |
Jan. 02, 2021USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring costs and charges, Charged to Expense | $ 4,227 |
Restructuring costs and charges, Write-offs of Assets | (2,442) |
Restructuring costs and charges, Settled in Cash | (1,785) |
Property and Equipment Costs and Charges [Membe] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring costs and charges, Charged to Expense | 1,284 |
Restructuring costs and charges, Write-offs of Assets | (540) |
Restructuring costs and charges, Settled in Cash | (744) |
Impairment of Lease Right-of-Use Asset [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring costs and charges, Charged to Expense | 639 |
Restructuring costs and charges, Write-offs of Assets | (639) |
Inventory Charges [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring costs and charges, Charged to Expense | 1,164 |
Restructuring costs and charges, Write-offs of Assets | (1,263) |
Restructuring costs and charges, Settled in Cash | 99 |
Personnel-Related Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring costs and charges, Charged to Expense | 1,140 |
Restructuring costs and charges, Settled in Cash | $ (1,140) |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Additional Information (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Jan. 01, 2022 |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable noncontrolling interest value | $ 56,600 | |
Accretion value of redeemable non-controlling interest | $ 36,863 | |
ECO [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Sellers equity interest call right exercise period | 3 years | |
Sellers equity interest put or call right exercise purchase price description | Upon exercise of the put or call right, the purchase price is calculated based on a future agreed performance metric. | |
Sellers equity interest put right exercise period following call right exercise period | 15 days | |
Eco Enterprises, LLC [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by parent | 75.00% |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Summary of Changes in Redeemable Non-Controlling Interest (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2022USD ($) | |
Noncontrolling Interest [Abstract] | |
Redeemable non-controlling interest in Eco at initially estimated fair value | $ 28,464 |
Net income portion attributable to redeemable non-controlling interest | 2,318 |
Change in value of redeemable non-controlling interest | 6,081 |
Balance at end of period | $ 36,863 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 3,716 | $ 3,320 | $ 2,789 |
Costs and expenses | 3,834 | 996 | 1,553 |
Deductions | (2,848) | (600) | (1,022) |
Balance at End of Period | $ 4,702 | $ 3,716 | $ 3,320 |